Wise Observer

There are three important differences between investing and trading. Overlooking them can lead to confusion. A beginning trader, for example, may use the terms interchangeably and misapply their rules with mixed and unrepeatable results. Investing and trading become more effective when their differences are clearly recognized. An investor’s goal is to take long term ownership of an instrument with a high level of confidence that it will continually increase in value. A trader buys and sells to capitalize on short term relative changes in value with a somewhat lower level of confidence. Goals, time frame and levels of confidence can be used to outline two completely different sets of rules. This will not be an exhaustive discussion of those rules but is intended to highlight some important practical implications of their differences. Long term investing is discussed first followed by short term trading.

My mentor, Dr. Stephen Cooper, defines long term investing as buying and holding an instrument for 5 years or more. The reason for this seemingly narrow definition is that when one invests long term, the idea is to “buy and hold” or “buy and forget”. In order to do this, it is necessary to take the emotions of greed and fear out of the equation. Mutual funds are favored because of they are professionally managed and they naturally diversify your investment over dozens or even hundreds of stocks. This does not mean just any mutual fund and it does not mean that one has to stay with the same mutual fund for the entire time. But it does imply that one stays within the investment class.

First, the fund in question should have at least a 5 or 10 year track record of proven annual gains. You should feel confident that the investment is reasonably safe. You are not continually watching the markets to take advantage of or to avoid short term ups and downs. You have a plan.

Second, performance of the instrument in question should be measured in terms of a well defined benchmark. One such benchmark is the S&P 500 Index that is an average of the performance of 500 of the largest and best performing stocks in the US markets. Looking back as far as the 1930’s, over any 5 year period the S&P 500 Index has gained in price about 96% of the time. This is quite remarkable. If one widens the window to 10 years, he finds that over any 10 year period the Index has gained in price 100% of the time. The S&P500 Index has gained an average of 10.9% a year for the past 10 years. So the S&P500 Index is the benchmark.

If one just invests in the S&P500 index, he can expect to earn, on average, about 10.9% a year. There are many ways to enter this kind of investment. One way is to buy the trading symbol SPY, which is an Exchange Traded Fund that tracks the S&P500 and trades just like a stock. Or, one can buy a mutual fund that tracks the S&P500, such as the Vanguard S&P 500 Index Fund with a trading symbol VFINX. There are others, as well. Yahoo.com has a mutual fund screener that lists scores of mutual funds having annualized returns in excess of 20% over the past 5 years. However, one should try to find a screener that gives performance for the past 10 years or more, if possible. To put this into perspective, 90% of the 10,000 or so mutual funds that exist do not perform as well as the S&P500 each year.

The fact that 10.9% is average market performance for the past 10 years is all the more remarkable when one considers that the average bank deposit yield is less than 2%, 10 year Treasury yields are about 4.2% and 30 year Treasury yields are only 4.8%. Corporate bond yields approximate those of the S&P500. There is a reason for this disparity, though. Treasuries are considered the safest of all paper investments, being backed by the United States Government. FDIC regulated savings accounts are probably the next safest while stocks and corporate bonds are considered a bit more risky. Savings accounts are possibly the most liquid, followed by stocks and bonds.

To help you calibrate the safety and liquidity question, the long bond holders are comparing bond yields they now receive with next year’s anticipated stock yields. Consider that next year’s anticipated S&P500 yield is around 4.7% based on the reciprocal of its average price to earnings ratio (P/E) of 21.2. Yet the 10 year annualized return of the index has been 10.9%. Bond holders are prepared to accept half the historical yield of stocks for added safety and stability. In any given year, stocks may go either up or down. Bond yields are not expected to fluctuate widely from one year to the next, although they have been know to do so. It is as if bond holders want to be free to invest short term, as well as, long term. Many bond holders are thereby traders and not investors and accept a lower yield for this flexibility. But if one has decided once and for all that an investment is for the long term, high yield stock mutual funds or the S&P500 Index, itself, seem the best way to go. Using the simple compound interest formula, $10,000 invested in the S&P500 index at 10.9% a year becomes $132,827.70 after25 years. At 21%, the amount after 25 years is more than $1 million. If in addition to averaging 21%, one adds just $100 a month, the total amount after 25 years exceeds $1.8 million. Dr. C. rightly believes that 90% of one’s capital should be allocated over a several such investments.

Now that you’ve allocated 90% of your funds to long term investing, that leaves you about 10% for trading. Short to intermediate term trading is an area that most of us are more familiar with, probably due to its popularity. Yet it is significantly more complex and only about 12% of traders are successful. The time frame for trading is less than 5 years and is more typically from a couple of minutes to a couple of years. The typical probability of being right on the direction of a trade approaches an average high of about 70% when an appropriate trading system is used to less than about 30% without a trading system.

Even at the low end of the spectrum, you can avoid getting wiped out by managing the size of your trades to less than about 4% of your trading portfolio and limiting each loss to no more than 25% of any given trade while letting your winners run until they decrease by no more than 25% from their peak. These percentages can be increased after there is evidence that the probability of choosing the correct direction of a trade has improved.

Intermediate term trading is based more on fundamental analysis which attempts to assign a value to a company’s stock based on its history of earnings, assets, cash flow, sales and any number of objective measures in relation to its current stock price. It may also include projections of future earnings based on news of business agreements and changing market conditions. Some refer to this as value investing. In any case, the objective is to buy a company’s stock at bargain prices and wait for the market to realize its value and bid up the price before selling. When the stock is fairly priced, the instrument is sold unless one sees continuing growth in the value of the stock, in which case he moves it over into the investment category.

Since trading depends on the changing perceived value of a stock, your trading time frame should be chosen based on how well you are able detach yourself from the emotions of greed and fear. The better one can remove emotions from trading, the shorter the time frame he can successfully trade. On the other hand, when you feel surges of emotion before, during or immediately after a trade, it’s time to step back and consider choosing your trades more carefully and trading less frequently. One’s ability to remove emotions from trading takes a great deal of practice.

This is not just a moral statement. An entire universe of what’s called technical analysis is based on the aggregate emotional behavior of traders and forms the basis of short term trading. Technical analysis is a study of price and volume patterns of a stock over time. Pure technicians, as they are called, claim that all pertinent news and valuations are imbedded into a stock’s technical behavior. A long list of technical indicators has evolved to describe the emotional behavior of the stock market. Most technical indicators are based on moving averages over a predefined time period. Indicator time periods should be adjusted to fit the trading time frame. The subject is far too large to do it justice in less than several volumes of print. The lower level of confidence involved in trading is the reason for the large number of indicators used.

While long term investors may use only a single long term moving average with confidence to track steadily increasing value, traders use multiple indicators to deal with shorter time frames of oscillating value and higher risk. To improve your results and make them more repeatable, consider your expectations of changing value, your time frame and your level of confidence in predicting the outcome. Then you will know which set of rules to apply.

James Andrews publishes the Wiser Trader Stocks and Options Newsletter. Information on selected stock market trading systems, including those of Dr Stephen Cooper, can be found at http://www.wisertrader.com.

© 2004 Permission is granted to reproduce this article, as long as, this paragraph is included intact.

A prison to some living things and a precious stone to others, amber is indeed a fossilized resin. While some consider it a gemstone, others think that it cannot be called a precious stone because it isn’t of mineral provenience. However discussed this issue might be no argument can stop people from wearing amber jewelry. Part of the amber charm consists mainly in the fact that it immortalizes something inside it. It acts like a cryogenic pod, keeping the insects body in great shape because it doesn’t allow the bodies to decay. Some pieces of amber jewelry have prehistoric organic matter captured in their resin adding mystery and charm to the wonderfully colored jewels.

Amber jewelry has become a common thing for all people nowadays, but for a long period of time only nobility could afford it. Because it was thought it had miraculous powers their price was very high. In time, more and more people could afford to purchase amber jewelry. Today things are a little bit different. Anyone can afford amber jewelry, but the prices go from a few dollars to thousands of dollars, depending on what the buyer is looking for.

The first thing one has to decide when purchasing amber jewelry is the wanted metal for that specific piece. If it is crafted in silver the jewel can be cheaper, but if gold or platinum are used, the price can raise because these metals are more expensive. Then there is the problem of the stone. Amber stones don’t come only in the yellow-brown color. They can be yellow, red or even blue and green, but the most expensive and valuable are the transparent, clear ones. Although the brown normal stones won’t cost too much, the green ones are more expensive. The green amber isn’t different in any way compared to the brown one. The only thing that differentiates the green stones is that they’re harder to find than the brown ones.

Amber is a lot softer than any other precious stone which makes it easier to shape by jewelers. The price is influenced by the amber shape also. A stone in its original shape is cheaper, but if you want a special design the price will rise. It’s almost impossible to wear amber jewelry with a big stone on it, especially if that jewel is a pin, a pair of earrings or cufflinks. Sometimes amber has a piece of tree bark or a small insect trapped in it. A long time ago, wearing amber jewelry with something imprisoned in it was considered disgraceful and those types of stone weren’t used. Now they’re valuable and the insect or object that is trapped inside it makes a huge difference. When making amber jewelry, the jewelers try to make the inclusion as visible as possible. This makes the jewel more valuable.

Another important aspect in amber jewelry is the provenience of the stone. Jewelry with stones from the Baltic area knows a wider and more rapid spreading than other. The stones from that area are the most common, because this is the largest excavation site were amber was found. Stones from the Dominican area are also very common. They’re a little bit softer than the ones found in the Baltic area. This is the place were the blue and smoky green stones originate from.

Jewelry can usually last hundreds of years. Amber jewelry is no exception and it can be a great inheritance for the generations to come. There is only one thing you should do: keep them in perfect storage conditions. Because the stone is very soft it’s easier to scratch or chip than other precious stones, like diamonds. So, you should keep your ambler jewelry wrapped in a soft cloth. Each piece of jewelry has to be wrapped in a different cloth because, if you put them together, they might rub one against another and get their shiny surface destroyed. The stone itself has to be stored in similar conditions, away from the metal of the chain (in case it’s a pendant).

mber jewelry has to be protected from the sun and from any heat sources which will damage the gem. For cleaning purposes, amber jewelry has to be rubbed only with a soft flannel cloth and with water. Rubbing the stone with olive oil and whipping any remains from its surface will give back that extra sparkle to the piece of amber jewelry you posses. One should never use hot water, steam cleaners or any type of soap and detergent to clean amber jewelry. If that happens, there is a high risk to destroy a beautiful jewel.

In the past amber was thought to have curative proprieties and was administered internally as a powder. To keep alive the traditions and beliefs people wore amber jewelry in the aching area. These superstitions may actually be true because of the energy the stone acquires. It is said that it can heal minor illnesses like throat ache, or head ache. So, if you have a soar throat you should try wearing a necklace and it’s possible the pain will go away.

Amber jewelry is indeed much appreciated nowadays and knowing some facts about the piece that you might be wearing right now can be quite interesting. Wrapped in mystery and beauty at the same time, this gem can fascinate anyone who is interested in it. For those who want to know more, amber jewelry is just a click away.

As the New Year approaches and we consider what we can give up to better our health and, with this current economic climate, we’re also considering things to save a few pennies here and there. As we all know and as the old saying says ‘every penny counts’.

Cigarettes are probably quite high on peoples ‘things to give up’ list; for me it’s chocolate. We all thinking of making sacrifices, but the one thing we apparently won’t sacrifice is our broadband. According to a survey conducted by the telecoms provider BT, UK consumers will not give up their internet.

The BT survey asked respondents how they were changing their lives in order to save money. Over half said that, whatever happened, they would not give up their broadband connections whilst chocolate, alcohol and television are things that would be considered by some. Managing director of BT’s Consumer division, John Petter said - “Savvy savers have already worked out how they can use technology to their advantage, with almost half of people using the internet to search for bargains on comparison sites and one in six starting to use their landline instead of their mobile.”

“Broadband offers access to myriad ways of saving money: searching for the cheapest deal, selling unwanted goods, downloading discount vouchers, entering competitions…”. The most popular money saving tactic has been to stay in more often. Well, I’m happy to do that, it sounds like an easy way of saving a few pence; I can stay indoors and surf the internet for bargains (whilst munching on a bar of Cadbury’s - oops!).

“Virtual Real Estate Investing” is a relatively new concept. What is meant by “Virtual Real Estate Investing” ranges from online games like SecondLife (where real profit can be made) to the use of internet technologies to make normal real estate investors more profitable.

To find out the real story, I had a conversation with Bryan Ellis, widely considered to be one of the originators of the concept of Virtual Real Estate Investing.

When I began using the term virtual real estate investing in the late 1990s, I did so because I saw clear parallels between the strategies used for profiting from physical real estate and those that would create income in the online world, said Ellis.

An example of the similar nature of “virtual” and “physical” real estate Bryan Ellis likes to point out is the methods of making a profit from domain names compared to physical real estate. “There’s a huge difference between a website and a piece of real estate, but the ways you can profit from them are similar: ‘flipping’, rental/leasing, advertising sales, etc…all of these apply to both markets” he states.

The parallels really are obvious. Consider: A valuable piece of real estate is valuable largely due to the interest that other people have in that specific location. Similarly, ownership of a desirable domain name is valuable for the same reasons. In either case, you could sell or lease the asset and turn it into cash.

In our next installment of this series on virtual real estate investing, Bryan Ellis will share the internet analogies to the physical concept of real estate development.

Celebrating a Special Occasion with Jewelry

Nothing more personal than our response to color. Color is the new language of passion, and nothing captures it better than distinctively styled jewelry.
Leave her speechless with our brilliant colorless and fancy colored diamond or bold brilliant gemstone jewelry styles.

Jewelry and gems, The Buying Guide

Choosing the Setting

The setting you choose will be determine primarily by your personal taste. Nevertheless, it is a good idea to be familiar with a few of the most common settings so that you have a working vocabulary and some idea of what is available.

- Bezel setting.
With a bezel setting, a rim holds the gemstone and completely surrounds the gem. Bezels can have straight edges, scalloped edges, or can be molded into any shape to accommodate the gemstone. The backs can be open or closed. One advantage of the bezel setting is that it can make a stone look larger. The bezel setting can also conceal nicks or chips on the girdle. It can also protect the girdle of the stone from chips and nicks.
Keep in mind that if you use yellow gold in a bezel setting, the yellow of the bezel surrounding the gemstone will be reflected into the gemstone, causing white stones to appear less white. On the other hand, a yellow gold bezel can make a red stone such as ruby look even more red or an emerald look more green.

A variation on the bezel setting is the collet setting. The collet setting has a similar appearance to the bezel setting but involves the use of gold tubing.

- Prong setting.
Prong settings are perhaps the most common type of setting. They come in an almost infinite variety; four prong, six prong, and such special styles as the Belcher, Fishtail, or six prong Tiffany. In addition, prongs can be pointed, rounded, flat, or V-shaped. Extra prongs provide added security for the stone and can make a stone look slightly larger. However, too many prongs holding too small a stone can overpower the stone and make the setting look heavy. When setting a marquise, heart shape, or pear shape gemstone, it is recommended that the point or points be held by a V-shaped prong which will best protect the point or points. For emerald cut gemstones which have canted corners, straight, flat prongs are the best choice.

- Gypsy setting.
In this type of setting, the shank (metal part of the ring that goes around the finger) is one continuous piece that gets broader at the top, and is shaped on top into a dome. At the center of the domed top is an opening, into which the gemstone is inserted. There are no prongs. The look is smooth and clean, and popular for men’s jewelry.

- Illusion setting.
The illusion setting is used to make the mounted gemstone appear larger by surrounding it with metal, often worked to create an interesting design.

- Flattop and bead setting.
In a flat top setting a faceted gemstone is placed into a hole in the flat top of the metal and then held in place by a small chips of metal attached at the stone’s girdle. Sometimes these metal chips are worked into small beads, so this setting is sometimes called a bead setting.

- Channel setting.
Channel setting is used extensively today, especially for wedding bands (or wedding rings). The stones are set into a channel with no metal separating them. In some cases the channel can continue completely around the ring, so that the piece has a continuous row of stones.

- Bar setting.
Bar setting, which resembles a channel setting, combines the contemporary and classic look. It is used in a circular band and, rather than using prong, each gemstone is held in the ring by a long tin bar, shared between two stones.

- Pave setting.
Pave setting is used for numerous small stones set together in a cluster with no metal showing through. The impression is that the piece is entirely paved with stones. The setting can be flat or domed shaped, and can be worked so that the piece almost appears to one large single gemstone. Fine pave setting work can be very expensive.

- Cluster setting.
A cluster setting usually consists of one large gemstone and several smaller stones as accents. A cluster setting is designed to create a lovely larger piece from from small stones.

Distinctive contemporary settings

Today there are many interesting and distinctive designs offering something for everyone. Fine “casting” houses produce top quality settings that simply await the stones to finish them off. Some firms produce “semi-mounts,” settings complete with side stones, awaiting only your center gemstone. These can provide affordable and easy solutions to creating a new ring, or remounting stones from something else.
An increasing number of custom jewelry designers also cater to today’s market. International jewelry design competitions such as the Spectrum Awards designer competition sponsored by the American Gem Trade Association (AGTA), or the Diamonds International Awards sponsored by the Diamond Information Center, provide a showcase for their work. The result is an almost limitless choice, ranging from bold sculpted gold and platinum combinations to intricate antique reproductions.

Settings to suit your lifestyle

It is important to consider your lifestyle when selecting any piece of jewelry. Be realistic about the wear and tear a ring or bracelet might take and remember that no piece of jewelry is indestructible. remember, even diamond, the hardest natural substance known, can chip or break if exposed to a sharp accidental blow.

Active outdoor types, for example, might be better off avoiding jewelry like a ring containing a marquise or pear shape gemstone since both these shapes have points. Points are more vulnerable to chipping or breaking, which could result from the kind of sudden or sharp blow an active person might subject a stone to.

In addition, the shank as well as the prongs of a ring will show the effects of wear; any detailing on a ring will blur over time, as the result or gardening, playing on the beach, mountain climbing, handling ski equipment or bicycles or any other kind of repeated contact or use.

Classic four or six prong settings serve a less active generation well, but may not be as well suited to today’s woman. If your daily schedule features a great deal of activity, you would be wise to consider a sturdier jewelry style, keeping in mind that sturdy and graceful are not mutually exclusive. For example, a bezel set setting might be better suited to your activity level. This choice won’t detract from a gemstone’s brilliance, yet it will afford you and your fine gems greater security.

Since everyday activities can loosen a setting as easily as more strenuous ones, can, it is important to have a reputable jeweler check mountings and settings once every six months. Chlorine attacks soldering links and stress points, so if you swim regularly in a chlorinated pool, take your jewelry off first.

In terms of ring design, while ring usually round, fingers aren’t. Top heavy rings will turn on the finger unless the diameter, or outline, is square or stirrup shaped to conform to the shape of the finger. Also, remember that rings worn togeher side by side quickly begin to wear on each other.

Tips for selecting the right style

1. set a realistic budget range to eliminate confusion and temptation that can result in disappointment.
2. Shop around and familiarize yourself with current styles to educate your eye and learn what really appeals to you.
3. Try on different styles; jewelry looks different when you see it on. This holds true of rings especially. Many people; when looking for a rings, insist they don’t like a particular ring in a showcase, and then love it when they try it on.
4. If you are trying to achieve an impressive look with smaller stones, consider interesting jackets for earrings, or inserts or wraps for rings. These enable you to slip your ring or studs into another piece (usually gold, platinum, or silver, sometimes with stones) and instantly create a larger look.
5. If selecting an engagement ring, remember that you will also be wearing a wedding band. be sure to select a style that will complement the type of wedding band you are considering.

Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. In order to make your goal REAL, you need to attach severe, horrifying, intense and profound fear to failure.

Open up a notepad either on a desk or on your computer in a quite place and write a 50-page letter to yourself surrounding this question:

– What is going to happen to me 20 years from now if I do not learn the successful skills I need to know in order to become a brilliant or the best on line trader?

Write your answers in detailed pictured thoughts. I have found that writing in length brings out the hidden agenda into realms of things that are too painful to face. This pain aids you to move into a different direction.

Now do the same exercise for this question:

– Ask yourself - Why do you want to become the best trader online?
– What kind of trader do I want to become? Good proposal examples: online stock trader, online forex trader etc.
– What trader market research would I like to pursue? The most popular illustrations: online daytrader, online swing trader etc.
– What systems would I like to learn as a trader? A good example might be as an online fibonacci trader.

See, if you have a strong enough WHY that answers the following questions pertaining to trading - then you will find a way, no matter how difficult the pain, to get the job done. Here are some ideas for your 50-page letter.

– Do you want to create a stream of passive income?
– Do you want to create a sense of security for yourself about where your next check will come from?
– Do you want to earn income that will act as an extra supplement source cash so that you can afford some of the finer things in life instead of living paycheck to paycheck?

In his “Rich Dad, Poor Dad” series of books, Robert Kyosaki advises against anyone securing a part time job. Instead, Kyosaki suggests starting a part time business.

In my opinion, profitable trading is the perfect business and the best home based business opportunity. It is capitalism’s best kept secret that will allow you to work at home. The market makes no distinction about your wealth, educational level, ethnic background or any other aspect of your identity. There is no room for office politics, difficult bosses or tricky employees in this arena. You can trade from anywhere. Follow a few simple rules, and you can run your business as you see fit.

That said; if trading successfully were easy, everyone would reap the profits. The truth is most people that trade will lose money. This is an unpleasant fact for a number of reasons. Nevertheless, the primary cause of why so many people lose money trading is that they simply do not know how to trade.

If you do not know how to trade, that does not mean that you are not smart. On the contrary, many highly intelligent people lose millions of dollars in the market.

If you do not know how to trade, the conclusion is simple - you do not have a:

+ Coach / Mentor and or a
+ System

Most people never master trading because it seems difficult to win and they seldom have access to an experienced, successful trader or trading methodology that actually works. They usually go it alone or attend countless seminars and read even more books. Not that reading books are bad, but in most cases, nearly but not everyone ever reaps excellent results. How do I know this? Because I have actually been there…

Trading successfully is difficult if you do not know what you are doing. Let me show you how to achieve trading success and shortcut your learning curve dramatically. If you have a strong desire to succeed, put in a little work and after a bit of practice, it will become easy.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.

His most recent course Ultimate Trading Systems is a step-
by-step trading roadmap to designing profitable trading
systems. Learn how *you* can become one of his students.
Click Here ==> http://www.ultimate-trading-systems.com

Receive David’s free trading tips by sending a blank email to:
==> http://www.ultimate-trading-systems.com/stocks.html
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

In today’s day and age, it seems that more and more people just aren’t staying together. With the divorce rate in the U.S. currently at an all-time high, it only serves to honor those marriages that have stood the test of time. These marriages embody the true spirit of what the sacred bond is all about; two people sharing a lifetime filled with memories and love. It has long been custom to celebrate such an occasion by the exchanging of diamond anniversary rings. In this article, we’ll take a look at just a few of the wonderful diamond anniversary ring designs that couples can choose from.

One of the most popular designs on the market today is the three stone anniversary ring. This ring usually contains three diamonds of equal size, and they are meant to represent the couple’s past, present, and future. It is also acceptable for the stones to be of varying sizes, as they could also represent any children in the couple’s life. In fact, the meaning behind the diamonds is always open to the couple’s individual interpretation.

Another popular diamond anniversary ring design is the eternity ring. This ring is meant to show the couple’s undying devotion to one another, as the ring features diamonds that complete a circle around the entire finger. These rings can also be designed with additional rows of smaller diamonds that encompass the band. Though a bit pricy, these rings are absolutely stunning pieces.

Many couples also design their own diamond anniversary rings. This is a special way for each person to individualize the piece, thus giving it a heart-felt meaning. Some couples opt for bands that intertwine, representing their unique union. Other people add romantic touches to the rings such as hearts, doves, or flowers. Still others choose to have several smaller diamonds of varying shapes and colors surround the band. Again, a diamond anniversary ring design can be anything the couple chooses, as there really are no limits.

While most diamond anniversary ring designs are geared towards women, there are several simple rings that are suitable for men as well. For example, a man’s ring may start out as a gold or platinum band, and diamonds can be incorporated in an eternity or three stone design. This will have extra meaning as the couple will both be wearing a similar ring to remind them of the long journey they have taken.

As you can see, there are many different diamond anniversary ring designs that can be tailored to fit your life. The important part of an anniversary ring isn’t so much in the diamonds, but in the thought and meaning behind the design. So it is important to select your diamond anniversary design together, as it will serve to symbolize your continuing love for one another. And one last note regarding these rings; while often expensive, there are options available for those couples on a budget. Regardless of cost, a unique diamond anniversary ring design will create wonderful memories while celebrating the life you have made together.

Hannah Roberts has an interest in Shopping related topics. To access more information on diamond promise ring or on anniversary diamond ring, please click on the links.

Technical analysis and fundamental analysis are the two basic areas of strategy in the FOREX market which is the exact same as in the equity markets. However, technical analysis is by far the most common strategy that is used by individual FOREX traders. Here is a brief overview of both forms of analysis and how they directly apply to forex trading:

Fundamental Analysis If you think it’s hard enough to value one company, you should try valuing a whole country instead. Fundamental analysis in the forex market is often an extremely difficult one, and it’s usually used only as a means to predict long-term trends. However it is important to mention that some traders do trade short term strictly on news releases. There are a lot of different fundamental indicators of the currency values released at many different times. Here are a few of them to get you started:

* Non-farm Payrolls * Purchasing Managers Index (PMI) * Consumer Price Index (CPI) * Retail Sales * Durable Goods

You need to know that these reports are not the only fundamental factors that you have to watch. There are also quite a variety of meetings where you can get some quotes and commentary that can affect markets just as much as any report. These meetings are often brought out to discuss any interest rates, inflation, and other issues that have the ability to affect currency values.

Even changes in how things are worded when addressing certain issues such as the Federal Reserve chairman’s comments on interest rates; can cause a volatile market. Two important meetings that you have to watch out for are the Federal Open Market Committee and Humphrey Hawkins Hearings.

Just by reading the reports and examining the commentary, it can help FOREX fundamental analysts to get a better understanding of any and all long-term market trends and also to allow short-term traders to be able to profit from extraordinary happenings. If you do decide to follow a fundamental strategy, you will want to be sure to keep an economic calendar handy at all times so you know when these reports are released. Your forex broker may also be able to provide you with real-time access to this kind of information.

Technical Analysis Just like their counterparts in the equity markets, technical analysts of the FOREX trading market analyze price trends. The only real difference between technical analysis in FOREX and technical analysis in equities is the time frame that is involved in that FOREX markets are open 24 hours a day.

Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour FOREX market. Some of the most common forms of technical analysis used in FOREX are:

* The Elliott Waves * Fibonacci studies * Parabolic SAR * Pivot points

A lot of technical analysts have a tendency to combine technical studies to make more accurate predictions on your behalf. (The most common method for them is combining the Fibonacci studies with Elliott Waves.) Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions.

Choosing Your Strategy Most successful traders will develop a strategy and perfect it over a specific period of time. Some people will focus on one particular study or calculation, while still some others use broad spectrum analysis as a means of determining their trades. Most experts would likely suggest that you try using a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points. Of course, in the end, it is the individual trader who has to decide what works best for him.

When you are ready to get started in the FOREX market, you should open a demo account and paper trade so that you can practice until you can make a consistent profit. Many people who fail have a tendency to jump into the FOREX market and quickly lose a lot of money because of a lack of experience. It is important to take your time and learn to trade properly before you start committing capital.

You also need to be ale to trade without emotion. You can’t keep track of all stop-loss points if you don’t have the ability to execute them on time. You must always set your stop-loss and take-profit points to execute automatically, and don’t change them unless you absolutely have to. Make your decisions and stick to them. Otherwise you will drive yourself and your brokers crazy.

You should also realize that you need to follow the trends. If you go against the trend, you are just messing with your money because the FOREX market tends to trend more often than anything else and you will have a higher chance of success in trading with the trend.

The FOREX market is the largest market in the world, and every day people are becoming increasingly interested in it. But before you begin trading, make sure your broker meets certain criteria, and take the time to find a trading strategy that works for you.

Now is the Time to Invest in something Real to Assure a Good Life Tomorrow. Gold is golden.

Gold has now surpassed $500. an ounce and still it is one of the worlds greatest bargains. Every day it is becoming more evident that stocks, bonds, and property in America and most of the Anglo-Saxon world are propped up on borrowed money and borrowed time.

In the last half of 2005 alone, U.S. households spent well over $500 billion more than their after-tax earnings. How is this possible? By borrowing of course. About half of that money came from “equity extraction.” The present home owner generation is living off the perceived increase value of their houses. These poor householders don’t have a clue. They think they really can get rich by buying and selling each other’s houses at inflated prices and then borrowing against it. Well, it was fun while it lasted. Living the so called good life. However, if you can find a greater fool, now is the time to sell and find a nice inexpensive rental accommodation and invest the rest in gold.

You need to protect yourself NOW from the biggest one year loss of wealth in the history of the world. Does this statement get your attention? Many western economies have participated in this gigantic fraud of escalating house evaluations as evidence of economic growth, relying on greed and bogus money supply to stoke the fires of the greater fool theory and thus give the illusion of prosperity. As a result house sticker prices kept going up and up in most cities, while in reality the true value has actually been going down. Skeptical huh. What is true value you say?

Remember, world economies have been off the gold standard now for over 35 years, ever since tricky Dick Nixon unpegged the US dollar from gold as a means of surreptitiously stimulating a sagging economy of the time.

Money today is not based on anything tangible or of intrinsic value. It has only a perceived fungible value at whatever level skittish speculators say it is. Politicians and central bankers since Nixon have been free to print fiat money (a piece of paper with numbers on it) at their whim without control or restraint to keep their game afoot. These currencies have since been played off each other as in a worldly game of monopoly.

As the unmasking of the great deception accelerates, countries with manageable debt and natural resources will see their currencies decline slower in relation to the US dollar, but all currencies will decline in relation to, you guessed it, Gold.

Like any expanding bubble, there comes a point where it can expand no more, and the subsequent resizing is shockingly fast. These is no new economic model in play that now guarantees perpetual prosperity or even status quo, despite what vested interests and their spin doctors would have you believe. When push comes to shove, paper and electronic blips won’t cut it. As the saying goes, BS walks, and the age old measure of real value called Gold, will be what talks.

If you played this oneupmanship game with your friends and countrymen, your house is worth far less than you know. In fact, your house is losing value daily and you don’t even realize it. When it becomes front page headlines, it will be too late. All the greater fools will have already been fooled with no one left to bail you out. Unfortunately, it will not be just the nouveau rich who will feel the pain. Their shortsighted greed will bring down the rest of the economy as well, precipitating bank failures, pension fund losses and a demise of most other paper assets.

Americans in particular now owe far more money to far more people than can ever be paid back. They have bigger houses, newer cars, more electronic gadgets and a smug attitude to go with it. But they also have more bills to pay and no more money to pay them with. Much the same scenario as their government that purports to lead.

The U.S. government has borrowed more money from foreigners in the last eight years than all previous administrations since the time of George Washington. During the current US administration, the feds have borrowed more than a trillion dollars from foreign governments and banks. This is more than all the rest of the nation’s administrations put together from 1776 to 2000. Oh, the costs of empire building and the waging of patriotic wars to free people so they can be more like us.

Consider the fact, that despite a flat or even negative earnings picture in overall stocks in recent years, bonuses paid to managers on Wall Street and high salaries throughout corporate America including G.M., are obscene. This is but more evidence that we have reached a late, degenerate stage of an imperial economy. The sun has not set yet, but its final glow is about to descend beyond the horizon.

The companies that make the most money these days are those that shuffle money - not those that make things people want to buy. And throughout the entire society, everyone participates in what has become an orgy of swindle and delusion. The practitioners of this prevarication call it salesmanship. At best it is entertainment. Not value or substance, but mindless triviality, delusion or false expectations. At worst, psychological manipulation to create frivolous desire, leaving the weak minded and undisciplined open to unbridled theft. Just add up how much interest you are paying on your car, your house, your credit cards and everything else you have been induced to believe is necessary for a successful life. The barbarians are at your door and benefiting mightily from your labors.

The mantra of the private sector through its advertising is ‘get it while you can’ despite the fact that this attitude is crushing the hopes and aspirations of the next generation. Previous generations attempted to leave the world a better place then they found it for their offspring. Now, the young and the unborn are saddled with an insurmountable mountain of debt and who cares. I’ve got mine you say…but do you really, when the charade unravels?

It will be the minority of savvy and erudite investors who pause to take notice that the emperor has no clothes. It will be the astute who shed themselves of the attractive burdens they have accumulated and put at least some of what is still marketable into gold. It will be the shrewd and brave who have the resources in the form of universally accepted coin, gold, to live reasonably well during the shakeout and to pick up the bargains for literally pennies on the dollar when the storm finally passes.

These are among the reasons why gold is going to go up more, no doubt, a lot more.

When a stock takes off or breaks out of a bullish formation you must have a 50% or more increase in volume to validate the move. This works just like the thrusters on the space shuttle. The greater the volume, the greater the thrust to propel a stock higher! You always want to see that surge of buying in a stock. It validates your opinion that it is a stock you want to own because it obvious that everyone else wants to own it too. This upward movement on increased volume creates momentum which pushes the stock high and in turn brings in more buyers.

The same holds true for the market. The only way to confirm if the price action you are seeing is real is to see if you have a huge increase in volume to confirm it.

According to Bill O’Neil, founder of IBD, you would like to see a 1% or greater move in the market averages with an increase in volume from the prior trading day. This is called a “follow through day.” All major market moves have started with this type of price and volume action.

Volume confirms price action….IT IS JUST COMMON SENSE.

Don’t panic in those early minutes when your stock opens underwater. Keep a level head and know the first half hour is often bizarre. If an hour of trading goes by and your stock hasn’t done squat, it’s time to consider alternatives, but if it’s making it’s way back up, it’s usually best to keep it in play.

More trading and investing tips at:

http://lb.bcentral.com/ex/manage/subscriberprefs?customerid=12826