Thursday, December 27, 2007

Happy Prosperous New Year!

First we want to wish you a very happy prosperous new year in 2008! This will be our last post for 2007. Share the attitude of gratitude always!

The durable orders and initial jobless claims reports just came out giving weakness to the US Dollar. Consumer confidence is coming out shortly so stay tuned for that.

The Department of Commerce released its advance report on new orders for durable goods in the month of November on Thursday, showing that orders for goods meant to last for at least 3 years increased by much less than economists had been expecting. The report showed that durable goods orders edged up 0.1 percent in November following a 0.4 percent decrease in October. Economists had been expecting a much more substantial increase of about 2.2 percent.The smaller than expected increase in durable goods orders came as a 1.9 percent increase in orders for transportation equipment was partly offset by notable decreases in orders for machinery and communications equipment. Excluding the increase in orders for transportation equipment, durable goods orders fell 0.7 percent in November compared to a 0.9 percent decrease in October. The Commerce Department also said orders for non- defense capital goods excluding aircraft, an indicator of business spending, fell 0.4 percent in November after falling 2.9 percent in the previous month. The report also showed that shipments of durable goods were unchanged in November following a 0.5 percent increase in the previous month, while inventories of durable goods jumped 0.8 percent after a 0.4 percent increase in October.

The Department of Labor released its report on initial jobless claims in the week ended December 22, showing that jobless claims unexpectedly increased compared to the previous week. The report showed that jobless claims rose to 349,000 from the previous week''s revised figure of 348,000. Economists had expected jobless claims to fall to 340,000 from the 346,000 originally reported for the previous week. At the same time, the Labor Department also said that the less volatile four-week moving average edged down to 342,500 from the previous week''s revised average of 343,500.The report also showed that continuing claims in the week ended December 15 rose to 2.713 million from the preceding week''s revised level of 2.638 million.The unexpected increase in weekly jobless claims may raise some concerns about the strength of the December employment report due to be released next Friday. Economists currently expect the report to show an increase of about 70,000 jobs.

With currencies moving on the above news, I want to mention that due to 'holiday madness', you may have a chance to get in on this sold out Forex solution.

Last week, 30+ year trader Bill Poulos filled up his next group of 500 students who jumped at the chance to grab his sold out Forex Profit Accelerator home study course.

This course was then pulled off the market last Wednesday (the countdown timer lashed "Sorry, Expired" at midnight that day).

But because of last-minute, hectic holiday schedules, Bill received more than a few pleas from hopeful traders who missed the deadline... they begged him to open up a few more spots . . . as it turns out, a lot of folks got to their emails later than usual because they got slammed with their 'holiday duties' and flat out missed their chance at getting a copy of the course.

So considering it IS the holidays, Bill made a decision . . .

GET ON BOARD BY MONDAY

He decided to open up his enrollment page again, but only for 33 more traders.

Why 33?

Well, this year marks the 33rd year he's been trading the markets . . . but the page is only open through the end of the year because he doesn't want the final 33 traders to fall behind his 500 other students who got on board in time.

It expires on Monday, December 31st, at 11:59pm eastern time.

Bill already has hundreds of traders who signed up on his 'Soldout' page for his notification list, so these 33 copies will be gone - the question is HOW SOON... ?

So if you missed out last week, and want a final chance to "get in", go ahead and claim your copy of Bill's step-by-step Forex home study course that reveals how you can finally achieve Forex F-R-E-E-D-O-M in less than 20 minutes a day.

Click here to get it:

Good day, and good trading!

P.S. These final 33 copies will be "doled out" on a first come first served basis, so please be sure to make your decision quickly and then do your best to grab one of the remaining copies here:

Remember, that page will expire on Monday, December 31st, at 11:59pm eastern time.

Friday, December 21, 2007

Happy Holidays 2007!

This will be our last post before Christmas. Merry Christmas & Happy Prosperous New Year to You! Share the Attitude of Gratitude! Thank you for visiting us!

What do you want for Christmas? You can have whatever you want when you know what you want. Dream and think big and have the lifestyle you really want. Best wishes!

Getting What You Really Want by Dr. Van K. Tharp - International Institute of Trading Mastery.

The "Traders Coach" Dr. Van Tharp's 2008 Trading Workshop Schedule

Save 20% On Van Tharp's Trading Courses Until Dec 31

I used to do an exercise in the Peak Performance 101 workshop entitled “Getting What You Want”. The exercise starts out with a question: If you could have anything in the universe, what would it be? Perhaps your answer might be $10 million dollars. However, the exercise doesn’t end there. It just triggers another question: What would that get you? So to carry our example forward, you’d now ask, “What would the $10 million dollars get you?” Perhaps you might answer, “Security… I’d feel secure in my retirement.”

It doesn’t end with that answer. The second answer merely triggers another question: What would that get you? And to continue the example, you now ask, “What would security get you?”

This process continues at least five times. Each time you get an answer, the new question becomes, “What would that (i.e., the answer to the last question) get you? At the end of five iterations, I then survey the class for what they have come up with at the end of their questions What do you think everyone comes up with? The answer is important because it really says a lot about you. But before I give you the results, do the exercise for yourself. Answer each of the following questions.

1) If you could have anything in the universe, what would it be?

2) What would that (answer 1) get you?

3) What would that (answer 2) get you?

4) What would that (answer 3) get you?

5) What would that (answer 4) get you?

6) What would that (answer 5) get you?

I’m actually curious to know what percentage of you started out with "trading success." Perhaps a lot of you, but I doubt if anyone ended up there.

There are some universals about this exercise. With five repetitions of the question about 90% of all people end up with a mental state. Examples of mental states include security, freedom, confidence, happiness, etc. But we can take it further. If you do enough repetitions of the question, everyone ends up with a universal mental state such as Oneness, Love, Ultimate Happiness, etc. What’s interesting about the exercise is that it flat out tells you what you really want! The final answer is always one of those universal mental states (and I’m not sure that they really are not all the same).

Yet what do we do with our lives? We spend it pursuing things such as money, power, career or perhaps trading success. But that’s not what we really want. And that’s true for everyone.

Now, what if there was a course that you could take that would give you as a result of doing the course, one of those ultimate states. Would you want to take that course?

Well, let me tell you a true story about a man named Lester Levinson. Lester had advanced degrees and was a very successful entrepreneur. In that sense, he was probably a lot like most of you. However, he was very unhealthy. One day his doctors basically said, “Lester, there is really nothing we can do for you. You are going to die in a few months.” So Lester retreated to his Manhattan apartment to die. But before he did so, he did an exercise similar to the one I just took you through and concluded that what he really wanted out of life was LOVE. He looked at his life and concluded that he was the happiest when he was LOVING, rather than when he felt people loved him.

As a result, Lester started a series of mental exercises designed to help him be more loving. And as he continued to do those exercises over the next few months, he didn’t die. Instead, some remarkable things happened:

* First, all of the symptoms of his illness just disappeared. And whenever something happened to his body he could heal it instantly.
* Second, he found that he could materialize whatever he wanted just by thinking about it. He played with this for a while, soon materializing millions of dollars worth of real estate. But knowing that he could get those material things any time he wanted them just by thinking about them, he soon lost interest in them and just gave them away. Besides, what he really wanted was LOVE and he was getting that by being LOVING.
* Third, he basically started operating in the world at the level of a very advanced spiritual being.

In the spirit of being loving, Lester started to teach what he had learned. As a result we all have that core process that Lester went through to heal himself and become happy and loving available to us through a series of five books entitled “Happiness is Free.” Each book is a seven week course, so the series is basically a 35 week course on attaining happiness. And if you do the course, I believe that you can attain a level of happiness that is way beyond what you experience today or probably what you’ve ever experienced. (We have a few of these courses available for sale, click here for more.)

However, I didn’t write this article to sell these courses, but more to convey some very important points. Logically, if you decided, after doing the exercise, that what you ultimately wanted was love or happiness, then I would expect that we’d get at least 1,000 orders for the course. Of course, you’d have to believe that you’d actually get “ultimate happiness” out of doing the course to order it. And perhaps you don’t think you really want happiness or perhaps you don’t think the course will help you attain it. That’s a personal choice.

Anyway, I was so impressed with this course initially, that I ordered a few sets and gave them to some very special people associated with my company. Later on, I then ordered ten more copies of the course to sell. And interestingly enough, we still have most (if not all) of them in stock. Most people either don’t think that they want happiness or they don’t believe that they can get it simply by completing a course (i.e., doing all the exercises). It’s rather amazing. This is what people want but they are not likely to do anything about it.

I’m so fascinated by this process that I plan to interview each of the people I gave the course to just to see what they’ve done with it. I haven’t done the interviews yet, but I think I know the results. I’ll report the actual results to you later in another article for Tharp's Thought's. And I’ll also tell you about the exercise that I just completed that motivated me to write this series of articles.

About Van Tharp: Trading coach, and author, Dr. Van K. Tharp is widely recognized for his best-selling book Trade Your Way to Financial Freedom and his outstanding Peak Performance Home Study program - a highly regarded classic that is suitable for all levels of traders and investors. Click here to learn more about Dr. Van Tharp.

Good day, good trading, and Merry Christmas!

Wednesday, December 19, 2007

The Ugliest Word in Trading and Investing

By D.R. Barton, Jr. of International Institute of Trading Mastery and Dr. Van Tharp the Traders Coach.

Click here for Dr. Van Tharps 2008 USA and International Trading Workshops Schedule

“Maturity of mind is the capacity to endure uncertainty.” John Finley

There is one concept that is so powerful that it makes every trader and investor, from the haggard professional, right down to the wet-behind-the-ears newbie tremble in their Crocs.

The same word strikes fear in the hearts of engineers, doctors, soldiers, scientists, ball players, weather forecasters and even lawyers.

It is at the heart of every discomfort you’ve ever felt when trading.

It is UNCERTAINTY.

Uncertainty is the thing that we, as humans, are least equipped to deal with. And without a doubt, the one constant in every good or great trader that I’ve worked with is their ability to deal with uncertainty. The good news for all of us is this: there are many useful (i.e., successful) ways to deal with uncertainty and the havoc that it brings into the world of trading.

Why Uncertainty Is So Central

The markets can be characterized in many different ways. One of the most useful ways that I’ve found is to understand the markets as the reflection of mass psychology. A concept that I’ve coined is this:

“The market is not a problem to be solved; it is psychology to be understood.”

If I approach the markets in an effort to evoke “scientific certainty,” as one e-mailer put it, or to solve a mathematical equation, I’m setting myself up for disappointment. The nature of the market continues to change, and it defies any effort to put it in a box.

It’s much like understanding the actions of another person. Even with my closest friends, the best I can do is to understand their tendencies, what they are likely to do in any given circumstance. And how they react to the exact same stimulus may vary from time to time based on their current emotional state or other input that I can’t discern at the time.

Uncertainty is so important because it is perhaps the central controlling concept in our decision making process. The greater the uncertainty, the tougher the decision; as uncertainty is removed, decisions become much simpler.

Over the next few weeks we’re going to look at how traders deal with uncertainty and some useful tools that you can use to improve your trading.

We will look at quantifying uncertainty, ignoring it, transferring it and living with it. And I would love to hear your stories on dealing with uncertainty. If you’ve had an experience dealing with uncertainty that provided a great learning experience, a vexing question, or just a good belly laugh, please forward it to me at drbarton@iitm.com . Let me know if I may use the story (either anonymously or credited) in a future article.

Good and good trading mentoring with the traders coach, Dr. Van Tharp!

Tuesday, December 18, 2007

2008 New IT Tech Trends

As we move into the holidays and the end of the year, we are already looking at where we want to place investment money for next years up and coming new growth trends. I've got 10 information technology sector trends that could see big growth in 2008. Investigate these trends, and the companies involved in these trends. It could result in exponential gains for you next year.

Before I forget, here's a Free Christmas Gift for you, Power Forex Profit Principles . . . Merry Christmas and Happy Prosperous New Year!

What are the experts predicting for tech trends in 2008? At the recent Gartner Symposium/ITxpo held last October in Orlando, more than 6000 senior business and IT strategists from virtually all major industries gathered for the industry's largest conference to gain the latest advice on driving profíts and performance with IT. Attendees rely on the Gartner Symposium/ITxpo for their annual planning and to gain insight into how their organizations can best use IT to address business challenges and improve operational efficiency.

Reflecting Gartner's very latest research findings, the analysts projected the 10 technologies likely to play a 'strategic' role in 2008. Gartner defines a strategic technology as one "with the potential for significant impact on the enterprise in the next three years." In addition Gartner also looks at "high potential for disruption to IT or the business, the need for a major dollar ínvestment, or the risk of being late to adopt."

"Companies should factor these technologies into their strategic planning process by asking key questíons and making deliberate decisions about them during the next two years," said David Cearley, vice president and distinguished analyst at Gartner. "Sometimes the decision will be to do nothing with a particular technology. In other cases it will be to continue investing in the technology at the current rate. In still other cases, the decision may be to test/pilot or more aggressively adopt/deploy the technology. The important thing is to ask the question and proactively plan."

Here's a look at the top 10 tech trends, and what Gartner had to say about them:

Green IT: The focus of Green IT that came to the forefront in 2007 will íncrease in 2008. As the impact on power grids, carbon emissions from increased use and other environmental impacts are under investigation, companies should be mindful of potential regulations that could limit the building of data centers, and should be prepared with backup plans for handling growing data demands.

Unified Communications: At present only 20 percent of the installed base with PBX has migrated to IP telephony, with more doing some sort of tríal testing. Gartner says that over the next three years the majority of corporations will migrate to Internet Protocol telephony, resulting in a major change in voice communications.

Business Process Modeling: Top-level process services must be defined jointly by a set of roles (which include enterprise architects, senior developers, process architects and/or process analysts). A key to success will be an organization's ability to bring these roles together, whether they be process or service designated. Gartner also expects business process management software suites to better complement SOA applications development.

Metadata Management: Over the next three years, companies working to integrate both customer data and product data will link these master data management efforts together in an overall enterprise information management (EIM) strategy. According to Gartner "This critical part of a company's information infrastructure will enable optimization, abstraction, and semantic reconciliation of metadata to support reuse, consistency, integrity and shareability." Metadata management, Gartner notes, also extends into SOA software development projects with service registries and application development repositories.

Virtualization 2.0: Virtualization technologies can improve IT resource utilization, but with the addition of automation technologies - with service-level, policy-based active management - even greater improvements are possible. "Resource efficiency can improve dramatically, flexibility can become automatic based on requirements, and services can be managed holistically, ensuring high levels of resiliency," Gartner says.

Mashup and Composite Apps: Over the next 3 years, Web mashups will be the way companies create composite enterprise applications, Gartner predicts. Mashup technologies will evolve significantly over the next five years, and application leaders must take this evolution into account when evaluating the impact of mashups and in formulating an enterprise mashup strategy.

Web Platform and Web-Oriented Architecture: Software-as-a-Service, in which applications are available on-demand over the Web, is becoming a sensible option for many companies. Emerging Web platforms, Gartner says, will provide service-based access to information, applications, and business processes through Web-based "cloud computing" environments. Companies must also look beyond SaaS to examine how Web platforms will impact their business in 3-5 years.

Computing Fabric: According to Gartner researchers, "A computing fabric is the evolution of server design beyond the interim stage, blade servers, that exists today. The next step in this progression is the introduction of technology to allow several blades to be merged operationally over the fabric, operating as a larger single system image that is the sum of the components from those blades. The fabric-based server of the future will treat memory, processors, and I/O cards as components in a pool, combining and recombining them into particular arrangements to suit the owner's needs." The researcher added, "For example a large server can be created by combining 32 processors and a number of memory modules from the pool, operating together over the fabric to appear to an operating system as a single fixed server."

Real World Web: The term "real world Web" is informal, referring to places where information from the Web is applied to the particular location, activity or context in the real world. Gartner states, "It is intended to augment the reality that a user faces, not to replace it as in virtual worlds. It is used in real-time based on the real world situation, not prepared in advance for consumption at specific times or researched after the events have occurred." It gives the example of a navigation unit that adjusts the information it delivers as a car or boat moves around. Gartner sees real world Web application improving many business processes and creating new revenue streams.

Social Software: The Web 2.0 market will go through a lot of changes between now and 2010, Gartner says, and will experience considerable flux with continued product innovation and new entrants, resulting in considerable vendor consolidation. However, the research firm does see social networking being adopted by many enterprises to augment traditional collaboration.

According to Gartner, "These 10 opportunities should be considered in conjunction with many proven, fully-matured technologies, as well as others that did not make this líst, but can provide value for many companies," said Carl Claunch, vice president at Gartner. "For example, real-time enterprises providing advanced devices for a mobile workforce will consider next-generation smartphones to be a key technology, in addition to the value that this líst might offer."

Good day, and good new investing trends to you!

Share the Attitude of Gratitude this Holiday Season!

Monday, December 17, 2007

24 Hour Forex Notice

Last week, I alerted you to the re-release of the step-by-step Forex Profit Accelerator course that's totally taken the Forex trading community by storm.

Well, if you've checked the website lately, then you know that only 67 copies of the course remain and the offer will be closed for good on Tuesday, December 18th, at 11:59pm eastern time.

See the latest inventory count here.

WHY IT MAKES COMPLETE SENSE

If you're still struggling with the Forex markets, or are just sick and tired of staring at your computer like a zombie for 2, 3, 4 hours a day or more . . . then I really encourage you to take 30+ year market veteran Bill Poulos's Forex Profit Accelerator for a test drive.

Why? Well, I was thinking about what specifically it is that I like the best about this course and what sets it above most of the other methods and courses I've seen. Here's what I came up with.

COMPLETE -- This is one of the most complete Forex trading courses I've ever seen. Period. There's material to get beginners going quickly, and it's structured in such a way that more experienced traders can jump right into the "meat" of the methods.

Further, it's a multimedia powerhouse -- from the screen capture CD-ROM videos to the full color reference manual to the detailed "trading blueprints". It's designed to make sure you really understand all the concepts quickly and effectively.

CLEAR -- Bill's teaching style is among the best I've ever seen. He speaks in a clear, nurturing way that steps you through all the material. It's very apparent why so many traders keep coming back to Bill's courses.

CONSTANT -- I think of this as the "surprise" of the course. Bill constantly follows-up with his students after they get his course. He mentions this on his open letter, but I really believe this is the true value of his course. His students
receive regular new bonus video lessons, and Bill is fanatical about offering concise, thoughtful answers to his students' questions.

So that's what stands out for me about the Forex Profit Accelerator. And frankly, I'll even go out on a limb and say that if you can't succeed in the Forex markets with Bill's course, then you probably never will. That's how powerful his methods are.

FAIR WARNING

I cannot promise that copies of the Forex Profit Accelerator will be available when you visit the web page - it may already be completely sold out.

If that's the case, please put your name on the waiting list. Bill has no immediate plans to release any more copies of this course, but after he gets through mentoring his next group of students, he may introduce a few more (but it could be months before that happens - I can't say when).

If any copies are left, you can claim one here.

Good day and good forex trading!

P.S. I just checked Bill's real-time inventory counter before sending this email to you and it now reads 61 copies available. Time is running out. You can check it here.

Thursday, December 13, 2007

Free Forex Trading Video

One of the most challenging aspects of trading is to get your mind around "the hard right edge" - the unknown future that lies to the right of any chart.

After all, it's one thing to go back and examine a particular chart's history and how how a trading method worked . . . but it's altogether different to examine the current bar", or the current day, make a trading decision and then see what happens the next day.

That's why I was excited to see this brand new "play-by-play" Forex trading video that shows you the decision-making process a premiere Forex mentor goes through each day using a specific trading method that leaves nothing to chance.

Here's what's unique: He recorded daily segments as the trade was playing out so you can get a real feel for the on-the-spot observations and decisions he makes each day, and it's all done without knowing what's beyond 'the hard right edge'.

This is a recent trade for the USD/CAD Forex pair... and it's still an OPEN TRADE, so watch it carefully and see what happens by clicking here.

When you're watching the video, notice how 'the hard right edge' doesn't bother this trader at all, and then imagine what it would feel like to trade with 100 percent confidence every time.

It's pretty awesome. ;-) I hope you enjoy this play-by-play Forex video.

Good day and good forex trading!

P.S. This day-by-day Forex video will likely only be online this week, so be sure to watch it now by clicking here.

Tuesday, December 11, 2007

Free Interactive Brokers MTPredictor Software Trading Webinar Dec 14

Interactive Brokers and MTPredictor Trading Software team up for compatibility.

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MTPredictor Trading Software - Free 30 Day Trial

Trading software for investing trading low risk high reward trade chart setups on stocks, options, futures, forex, commodities, index’s in real-time and end-of-day quotes charts. Built in money management function for leveraged margin trading of automatic position sizing. Invest and trade with 3:1 plus reward to risk ratios.

Invest2Success users enjoy a 10% discount on the MTPredictor Trading Software.

This Free Webinar is Friday December 14th. It’s a special webinar introduction to Interactive Brokers, their global brokerage, and access to the diversified international financial markets.

Free Webinar

This free webinar is for customers and friends of Invest2Success, MTPredictor, you are warmly invited to a FREE online webinar - hosted by Gerald Perez, Managing Director of Interactive Brokers UK Limited. Gerald will outline the benefits of dealing through IB, which was recently listed on the U.S. NASDAQ exchange (IBKR).

Advantages Features Benefits

Distinct advantages include direct market access to futures, equities, bonds, forex and options on markets in over 70 countries worldwide, best price execution, low commissions, high interest earned and low financing costs.

Compatibility and Free Trial

Remember - MTPredictor users can trade directly from their charts through Interactive Brokers, using its connection to the NinjaTrader Platform, and enjoy a 10% discount off the regular price.

Free Webinar Date Time

Date: Friday 14 December 2007
Time: 16:30-17:30 London time

Click the link below to Register for the Free Webinar

http://www.mtpredictor.com/support/Webinars2.html Then click the IB event.

Click the link below to Review and Trial for Free the MTPredictor Trading Software

http://www.invest2success.com/mtpredictor_trading_software.html

Forex Acceleration In 20 Minutes a Day

The tide just turned again in the Forex community. Here's what's up.

First, it started with the giveaway of the Free Power Forex Profit Principles, which is still available by clicking the link.

Then in the past 7 days, over 40,000 traders have bombarded a special, "insiders" Forex trading website.

You might even call it an "underground" website because everything it exposes challenges what 95% of all Forex traders have held to be true for years.

So if you have ANY interest in discovering how to ride the "coat tails" of the big banks to maximize your "pip potential" in the Forex markets, you're in for a TREAT today.

103 TRADERS "GOT IT" - Will you?

So in just the past 24 hours, over 100 traders got their hands on what HISTORY will likely call a turning point in Forex trading.

I'm talking about a truly groundbreaking way to trade the Forex markets that takes less than 20 minutes day. Hint: It's NOT day trading.

I was lucky enough to get my hands on a preview copy of this technique recently and I'm absolutely floored by what's being revealed in this limited-edition trading course.

CAUTION: This is NOT for "systems junkies", or individuals who like to let others make their trading decisions. It IS for traders who like to have FULL CONTROL of their destiny in the markets.

397 MORE "GET IT", but it may be too late.

The 30+ year trading veteran who's "spilling the beans" on his totally unique twist on the Forex markets is only releasing 500 more copies of his course that has the power to help you accelerate your profit potential like never before.

And he only has 397 more copies to move.

So if you want to:

Vanquish the pressure, strain, and stress normally associated with Forex.

Maximize your returns by riding on the "coat tails" of the behemoth market drivers before they know what hit them.

Drastically reduce your trading time by spending less than 20 minutes a night "in the trenches".

Practically "rub out" account-crippling losses with simple yet profound risk management strategies only a few select traders are using . . . then check out the open letter the developer of this 4-pronged approach to Forex put together for you, and see the VIDEO PROOF from his current students click here.

I hope you find it as inspiring as I have.

Good day, and good forex trading!

P.S. Last September, I watched this developer quickly sell out of 950 copies of this course over 10 days during its initial release. And with about HALF that amount being released this week, it's a near certainty it will happen again. So IF YOU VALUE YOUR TIME, I really urge you to check out his letter here, and then ask yourself how what he has to say stacks up against how YOU currently trade:

Monday, December 10, 2007

Weekly Stock Pick BUCY

With the global commodities boom still intact, worldwide demand for coal, copper, iron ore, coal, copper and other basic materials looking like its not letting up anytime soon, and with the tremendous growth internationally, especially in China and India we have a buy on Bucyrus, ticker BUCY.

Remember who got rich from the California Gold Rush in the 1800’s? Was it the gold miners or those who provided the picks and shovels? It was the pick and shovel suppliers. What we consider to be a global commodities super-cycle we are in currently, we think Bucyrus has continued growth with its play in the commodities sectors.

Required resources behind the strong and fast rise of emerging industrial global economies are basic materials. Mining companies have increased production to meet growing demand. More equipment from suppliers is required such as drills, mega shovels and other major excavation equipment and tools. A company that supplies mining companies is Bucyrus International, Nasdaq BUCY. The company specializes in large scale excavation equipment used in surface mining and more recently high-tech systems for underground coal mining.

Bucyrus is one of the top two mining suppliers in the world, and based in Milwaukee Wisconsin. Bucyrus has operations that cover the globe. About 60% of its revenue comes from outside the U.S and the international growth that's happening now. Commodity businesses are cyclical and we see the current up cycle -- now in its fourth year -- extending at least another few years, if not for another decade or two possibly.

High commodity prices and capital expansion projects from the mining firms are among the main ingredients behind what will be an extended commodities cycle we believe. After years of losses, income at Bucyrus picked with earnings rising from 48 cents a share that year to $2.25 in 2006. This year we're expecting earnings to rise 31% vs. 2006, to $2.95, and we expect profit to climb 55% in 2008 and 31% in 2009.

Earnings could peak in 2010. Bucyrus CEO Tim Sullivan in a November conference call said that the Bucyrus surface mining shovel business is two-thirds sold out for 2008 and will probably be fully sold out by January at the latest. Bucyrus went into the underground coal mining business when it purchased German mining supplier DBT in May. The underground coal component was more than half of third-quarter revenue. Underground total sales were $263 million vs. $237 million in surface mining. Surface mining was second in sales, but with higher margins which is very nice.

Bucyrus third-quarter results were from surface mining margins which reached 19.7%. Also underground margins were about 14%, well ahead of the forecasted 10%. With the increased revenue from the DBT purchase, total third quarter revenue was 170% higher than last year's figure at $500.3 million. Surface mining sales rose 28% from last year's third quarter also.

Earnings in the quarter were up 43% from last year, to 76 cents a share. The market for underground equipment is not growing as fast as surface mining currently. It's taking a break after a big run, we are expecting a rebound for the next foreseeable quarters. Bucyrus back-log Sept. 30 stands at $1.3 billion, which is down from the second-quarter backlog in both sectors.

Orders for large draglines, multi-million dollar machines dig up rock and dirt should increase into the middle of 2008. Shipping congestion in Australia has been problem for on-time delivery of new orders from major mining customers. Bucyrus has been a leader in powerful dragline drive systems for nearly 30 years. It has almost 400 drag-lines in operation, with income being generated from on parts and services. BHP Billiton is one of the firm's largest customers. With the recent on and off again merger buyout wars of mining rival giants BHP and Rio Tinto, we feel Bucyrus will continue to be profitable supplying their growth and the rest of industries growth.

"Bucyrus is building a new dragline for a major Canadian coal mining company, with a contract value of more than $100 million. The sale of this dragline highlights the ongoing demand for our products and services," CEO Sullivan said in a statement. He told analysts his company is talking with producers in Canada's active oil sands "to get a bigger piece of the pie." With high prices, and if they go higher, will make the oil sands a place to be invested in on way or the other.

CFO Craig Mackus said in the conference call that capacity constraints are affecting the surface mining sales. The expansion of the company’s headquarters plant should be finished by the first quarter of 2008, he said. "The big issue out in the marketplace right now is not, gee, is there going to be machinery bought," Sullivan said during the conference call.

Based on announced capital expansion plans by major producers of iron ore, copper and gold, "that's a given," he said. "The concern by the producers right now is if they're going to get their equipment when they need it and when they want it." Those words are music to our ears fundamentally as demand is not stopping yet. Technically, and at current new high prices, we think Bucyrus is a great growth story buy with its current price to earning ratio at 34.

Click here to use the CANSLIM Stock Investing Method from William O'neil of Investor's Business Daily, Investors.com, the #1 financial news source for investors who want to substantially improve their results in the stock market.

Friday, December 07, 2007

Option Ratio Backspreads

Its non-farm payroll Friday everyone! The most significant data report in the financial universe! Stay tuned, and heads up when the report hits!

Today, I'm sharing a little on market neutral options trading, and ratio backspreads.

Ratio Backspreads are used by traders when they think a big move will occur. Usually buying a further month ratio backspread is mentioned. While this gives you more time it also makes you widen the strikes between the options you buy and the options you sell. Or, you have to pay more of course.

If you wanted to put on a ratio backspread, you might want to have more time to be correct but you also want to have the purchased options strike price to be as close to the sold options strike as possible.

This is so the purchased options will get in the money quicker. If you feel the market will move a lot higher or lower in a short amount of time, start thinking of buying a close month ratio backspread. Yes, you have less time, but the strike prices of the options will be closer and you will need less of a move.

Please use this for educational purposes only.

February Gold closed at 807.1. January options follow the Feb. futures contract. Jan. Gold 810.0 Call options closed at 14.60. Jan. Gold 830.0 Call options closed at 7.70.

If you felt that this market was going higher fast, you can try and sell 1 Jan. 810 Call and buy 2 Jan. 830 call options for even money. There is limited risk but unlimited profit potential.

I am not giving advice on what to do in this market right now. I am just trying to show you a reason why you should start looking at the closer months when choosing to put on a ratio backspread.

To recap, the further months will give you more time to be correct but you will have to pay more to put on a ratio backspread. Or, you will have to buy the options that are further away from the money. In that case, you would need a bigger move to be profitable.

Click here to learn more about option ratio backspreads, option trading, options trading software, and extensive options trading training.

Thursday, December 06, 2007

Free Power Forex Profit Principles

I've got sweet surprise for you today. If you trade Forex, how do 2 new complimentary trading treats sound?

You can walk away with over 2000 bucks of top-notch Forex education . . . "on the house" - click here to get it all.

Here's the scoop . . .

Next week, on Tuesday, December 11th, the Forex trading community will get turned on its ear... again! Why do I say that? Because the home study course that stripped the Forex community away from their computers last September by showing them how to reap huge pip potential in just 20 minutes a night is coming back . . . but only for 7 more days.

Everything about it is first class... and easy to understand. I'll have more information to send you about it on December 11th, but for now I've been granted special permission to give you private access to a Members Website Preview so you can get "up close & personal" with this trading course before the rest of the community gets a chance to.

You see, the author of the course is only releasing 500 more copies from December 11th to December 18th... but here's the problem: He already has 20,000+ traders interested in it. So he just doesn't have enough inventory to go around.

All 950 copies released in September actually sold out in 10 days.

That's why he's letting me give you complimentary access to his Members Website Preview, but only until December 11th. He wants to weed out the "tire kickers" so that only the traders who are truly serious about discovering how to trade the Forex markets in less then 20 minutes a day can get a copy of the course. Incidentally, December 11th is when the Members Website Preview closes down and re-opens only for students of his new course.

Here are just a few of the goodies you'll get on the preview site, beginning TODAY:

Total access to his PIP FEEDER service where you can get daily lists of the Forex pairs that have met his rigorous trade alert criteria. In fact, these are Forex pairs that have a high probability of entering into potentially profitable positions any day now. He'll eventually be charging $197/mo for this service, but it's complimentary on the Members Website Preview.

The "Pip Vault", which contains actual Forex trade example "scren capture" videos, so you can see exactly how his students can trade in less then 20 minutes a night.

Bonus Forex tutorials, including a very detailed lesson on the ins and outs of Forex trading using one of the most popular charting and trading software packages on the market.

Previews of the actual CD-ROMs that ship with the course so you can see exactly the type of material that's on them, and a TON more.

But don't take my word for it. Go ahead and check it out now by clicking here now.

And to celebrate the re-release of this course, the developer is going to give away the FIRST copy that gets shipped next Tuesday.

He's even covering shipping & handling to anywhere in the world.

Want in on the action? Just go here

Good day and good forex trading!

P.S. Remember, this complimentary preview access WILL expire on Tuesday, December 11th, so I urge you to get in now while you can if you have any interest learning how to dramatically up your "pip potential" while saving hours a day at the same time.

Wednesday, December 05, 2007

Subprime Delivers One-Two Punch

Subprime Delivers One-Two Punch Just Like Hurricane Katrina Did

By Susan C. Walker, Elliott Wave International

The world is awash in bad news about the subprime mortgage meltdown, just the same way that New Orleans was awash in floodwaters from Hurricane Katrina two summers ago. A few examples:

The median price for new home drops 13% since last year, the most in 37 years, according to a Census Bureau report on November 29. This due in large part to buyers not being able to get financing now that lenders have tightened their lending standards in response to the subprime debacle.

Major Wall Street banks write off billions of dollars in subprime-backed securities.

Dire forecasts estimate that the credit crunch caused by the mortgage problems will cause between $250 billion to $500 billion of losses at banks and brokerages before it's done.

If you want to see how this kind of news looks on a price chart, consider the chart that we published in the latest Elliott Wave Financial Forecast. It shows how confidence in the mortgage market has simply fallen off a cliff. "The ABX Mortgage Indexes are akin to the eerie music that starts to play right before the goriest scenes in a horror movie," write our analysts Steve Hochberg and Pete Kendall. Even prime-rated mortgages (the top line on the chart) seem to have been tainted by the cliff-diving exploits of the subprime and Alt-A mortgage indexes.

Mortgage Indexes

Editor's note: Elliott Wave International invites you to read more about this Mortgage Mutiny chart in a special three-page excerpt from the November 2007 Elliott Wave Financial Forecast, called "Transition to a Fear of Risk."

The continuing repercussions of the subprime meltdown since two Bear Stearns' hedge funds imploded in August remind me how closely this situation imitates the delayed punch of Hurricane Katrina in the summer of 2005. In fact, I wrote a column for Fox News on that very topic a few months ago, some of which is worth repeating.

The following is excerpted from "Subprime Storm Mimics Katrina," originally published July 30, 2007.

Wall Street may have reason to worry about a financial hurricane poised to do the same kind of damage Hurricane Katrina did — in terms of money and assets lost — in New Orleans in 2005. Given the latest storm warnings about subprime mortgages and the Dow’s dive last week, it looks like "Subprime Katrina" might become the financial storm of the decade.

Wall Street investment bankers who remember the devastation in New Orleans might want to start battening down the hatches. In fact, some of them seem to understand their pending doom as they try to cajole the rest of the world into thinking that the subprime (otherwise known as low-quality) mortgage contagion is contained. 'Sure, sure, Bear Stearns got hit when its subprime hedge funds lost their value, but everyone else is O.K.,' they say. 'Let's all heave one collective sigh of relief that we dodged that bullet.'

Does that attitude sound familiar? It's exactly how the people of New Orleans felt for the 8-10 hours after Hurricane Katrina whipped up the Gulf Coast and dumped its rain. It was over; they had dodged the bullet. Their beautiful city that is built below sea level and surrounded by sea walls and levees was safe. That's where Wall Street is right now – hoping the levees will hold as investment bankers try to sandbag the rest of us with lots of placating talk. Well, it turns out that New Orleans was about as safe as the subprime bonds that are now below their own "C" level.

Although Wall Street bankers have been doing one heckuva job, I think it's too soon to breathe easy, just as it was too soon for those in the Big Easy to breathe easy. Here's why: Wall Street was warned about the coming hurricane-force fall-out from subprime mortgages, and it ignored the warnings, buying up all the securities backed by subprime mortgages that it could. Now, Wall Street is having trouble selling more debt. It sounds like it may be too late for many Wall Street denizens to get out of town – and their positions – before the floodwaters start rising.

Remember, too, the finger-pointing and blaming that started as soon as the rest of the nation realized that the U.S. government was not doing enough to help New Orleans? The editors of The Elliott Wave Financial Forecast recognize a similar change in attitudes toward Wall Street:

"The unwinding process will be sped along by a flood of revelations about illicit hedge fund and investment banking activities. Just as Enron, Tyco and a host of other primary beneficiaries of the late 1990s bull market run became the focus of scandals, hedge funds and the banks that enabled them are starting to become a focal point for scrutiny." (The Elliott Wave Financial Forecast, July 2007)

Then will come the final installment. Just as the U.S. government was slow to come to grips with the disaster in New Orleans so that people were left to fend for themselves, so too will investment bankers and investors have to fend for themselves. They may find themselves clutching their worthless paper and wishing someone would bail them out from the rooftops of their now-worthless homes.

Now, here we are at the end of November, and the situation for investors and investment banks has played out almost exactly as I outlined. Hardly anyone is coming out smelling like a rose. If anything it's the opposite, as the stench from quarterly financial filings rises as banks reveal how many billions in dollars they must write off for their mortgage investments gone bad. Sadly, the conclusion to my Subprime Katrina column still holds true: "Heckuva Job Brownie – now known as Helicopter Ben Bernanke and his Federal Reserve team – won't have any more luck picking up the pieces on Wall Street than FEMA did in New Orleans."

Click here for a free trial of Elliott Wave Trading Software, and automatically keep your risk low, and reward high.

Tuesday, December 04, 2007

50,000+ Forex Survey Results Just In . . . New Update

One of the top online trading mentors has just released a brand new December, 2007 update to a landmark Forex report that not only ruffled some feathers when the first version was released in September . . . but it challenged everything that 90% of most Forex traders hold to be true.

And those that took action on what's revealed in the report have been dipping their wallets in over 3,100 pips of profit potential since September.

So if you have ANY interest in discovering how to ride the "coat tails" of the big banks to maximize your "pip potential", you're in for a TREAT.

And if you already saw the first version . . . wait until you see the new one.

STAY WITH ME HERE

The trader who put this 77-page monster together very recently surveyed over 50,000 traders to find out what their biggest concerns, questions, and challenges were around Forex trading.

And then he spilled the beans on the cold, hard reality of the Forex markets - to your benefit.

Here's why . . .

Not only does he reveal his answers to the top 20+ questions his readers asked him, but he completely cracks open and obliterates the unfounded confusion that seems to plague most Forex traders.

20 MINUTES A DAY?

Find out how the author spends just 20 minutes a day with TOTAL confidence in the Forex markets, identifying more pip potential in that time than most traders spend hours trying to squeeze out of their favorite Forex pairs.

You'll also learn:

How to "shake out" the good Forex brokers from the unscrupulous ones. Many brokers won't be prepared when you ask them these 5 questions (page 12).

His "insiders formula" on how to determine the best mix of technical indicators to use when trading Forex pairs (page 23).

Step-by-step tactics for applying his "Optimal Profit Exit Strategy". This is one of his favorite ways to enjoy profit-taking as quickly as possible (page 33).

How he was able to drastically reduce his "time in the trenches" trading Forex by spending only 20 minutes a day. These 2 discoveries made it all possible (page 54).

Plus, there's a TON more you'll get to sink your teeth into when you get the report.

WHY HE'S GIVING IT ALL AWAY

When I snuck a look at a preview copy of this report, I thought for sure I'd see it for sale online in a few days. In fact, I'd personally pay at least 50 or 60 bucks for this, and probably more.

But here's the kicker - it's not for sale (at least not right now.

You can't purchase a copy.

But the author really has a deep-seated drive to "shake up" the Forex community, and that's why he decided to GIVE IT AWAY.

In his own words he says, "I want to de-mystify the Forex markets once and for all. So I sat down to write this report as if I was under oath, being grilled by an attorney. That's how direct and forthcoming it is."

HOW TO GET YOUR COPY

To get your copy, just click here right now:

By the way, you also have the author's permission to give away copies of this report to anyone you think needs some "first aid" for their Forex trading.

I hope you enjoy it as much as I have.

Good day and good Trading

P.S. This is a HUGE report. Take your time and read it all, but hurry and download it. Why? Because it's so large, it could be taken offline at any moment if the author's web server "bandwidth" gets eaten up with all the requests for the report.

You can get it here:

Monday, December 03, 2007

Stock Pick CPHD

Cepheid develops and markets a diagnostic testing system called the GeneXpert that’s a hardware platform for genetic tests of diseases that can be identified by their genetic code. There are several specific tests for this platform including MRSA, the killer staph infection that is typically found in hospitals, but is also spreading to other venues.

After a very good quarterly revenue report and a positive conference call I am putting buy rating on Cepheid CPHD.

In its latest quarter, Cepheid reported that revenues were up 53% to $36.3 million, from the 3rd quarter 2006. Total product sales were up 50% to $34 million, and clinical product sales were up 258% to $20.7 million.

The GeneXpert system sales greatly increased last quarter. At the end of the quarter 1,376 GeneXpert System modules were installed in hospitals in the United States, including 77 in VA hospitals, up by 51 modules in the 3rd quarter and representing a 79% share of the VA market.

Cepheid razor and blades business model is growing also. Sales of the one-time test cartridges were about $18 million with $16 million in hardware sales, increasing gross margins to 43%. Take note that currently large double digit royalties paid on the GeneXpert to a third party will be reduced greatly by 2010, thus increasing Cepheid’s bottom line earnings per share.

In a news announcement November 29, Cepheid and Broadlane Signed a Group Purchasing Contract for GeneXpert(R) Systems and Xpert(TM) Molecular Diagnostic Tests, along with the Xpert MRSA. Broadlane is a leading supply chain services company serving more than 20,000 acute care hospitals, ambulatory care facilities, physicians practices and other healthcare providers throughout the United States. Under the terms of the contract, Broadlane customers can take advantage of Cepheid's molecular diagnostic instruments, reagents and services for its GeneXpert® System and Xpert(TM) line of tests, including Xpert MRSA. Broadlane Members Include Hospital Systems Such as Tenet and Kaiser.

Cepheid has also announced the development of a simpler GeneXpert system called CLIA exempt, which means it can be used in smaller health care facilities such as nursing homes, and managed health care for senior citizens, opening up the potential of a very large new market.

Cepheid did lose money in the last quarter. $4.7 million GAAP, $1.5 million non-GAAP. It stated it would be profitable on a pro forma basis non-GAAP in 2008. Lastly, Cepheid raised revenue guidance for all of 2007 to $124 million-$127 million.

Good day and good investing!

Friday, November 30, 2007

How to Trade When the Market ZIGZAGS

Lately with all the uncertainty in the markets, prices have been flying all over place. Zigging this way, and zagging that way. Setting up and taking a position these days can be easily taken out hitting your stop-loss with all the zigs and zags going on. Want to learn the profitable way to trade zigzags in the market?

Check this out. Here's a trading system that successfully trades the zigzags and keeps you profitable. Learn . . .

How zigzags differ from other corrective structures and motive waves

How zigzags are structured in terms subdivisions and shape

What are the three different types of zigzags

How zigzags can “function” as actionary as well as reactionary waves

When zigzags are most likely to occur, always occur, and never occur

What rules and guidelines govern subdivisions of zigzags

How to use Fibonacci ratios to estimate subwaves of zigzags

How to use Elliott's guideline of depth to trade zigzags

How to use channeling to pinpoint when the zigzag will end

How to set entry, stop, price target, and exit levels when trading zigzags

What to expect when a zigzag ends

Review this ZigZag Trading System for Free

This 90-minute online video covers all the basics – from the rules and guidelines, to Fibonacci relationships and more. You receive immediate access to the trading course. It's delivered to your desktop in professional-quality Flash video format. Download and print the presentation slides so you can take notes as you view the trading course. There's a self-assessment quiz to help reinforce your understanding of the major points. You can also submit your questions re: the trading course material to the Trading Education Team anytime.

On-Demand e-Learning: How to Trade When the Market Zigzags

Senior Tutorial Instructor Wayne Gorman teaches you, step-by-step, how to identify, enter and exit the trading opportunities in this common trading pattern in real time.

Good day, good weekend, and good trading!

Thursday, November 29, 2007

Whatever Happened to the "Global Savings Glut"?

The stock market rallied strongly on Wednesday (Nov. 28).

Maybe they really were, or maybe they only thought they were. Either way, we've been hearing for a couple of years now about how the financial system is "awash in cash." It was back in 2005 when none other than Ben Bernanke himself coined "global savings glut," his phrase of choice to describe the phenomenon.

It was only last month when The New York Times ran a piece with the headline, "Silicon Valley Start-Ups Awash In Dollars, Again."

So imagine my surprise when, this very morning, I see a front-page story in The Wall Street Journal that has a very different headline, to wit: "Financial Firms, Capital Depleted, Hunt for Cash."

Wow.

And the "financial firms" in the article weren't a collection of little corner banks, either (assuming that there's enough of them still around to amount to a "collection"). The firms named in the article included Citigroup, Bank of America, and Merrill Lynch.

I won't go into the particulars, 'cause you already know who the Bad Guy is in this story: Mr. Subprime Fiasco.

As for what was real and what wasn't when it comes to a world awash, glutted, and overstuffed with cash… well, who knows?

It couldn't be that what looked like a glut was in fact a bunch of return-hungry investors and institutions scooping up a bunch of debt instruments that weren't nearly as low-risk as advertised. That could never happen.

All I do know is that the WSJ story said that things have gotten so bad that, in an effort to raise $6 billion, Freddie Mac will soon sell "a larger offering of nonconvertible noncumulative perpetual preferred stock, and a substantially smaller offering of convertible noncumulative perpetual preferred stock."

I could look up what that means, but doing so would only beg the question of why anyone would pay anything for even one share of stock that has four adjectives preceding it.

It's getting crazy out there, to the point that the media claims that stocks rally because investors ignore bad news that's real, and instead were inspired by hope of a Fed rate cut, a.k.a. news that hasn't happened yet and didn't work the last time it did.

Want to know what we think tomorrow's news will be? Find out today by clicking here.

Good day and good trading!

Wednesday, November 28, 2007

The Monsters are Due on Wall Street

Greed. Fear. They are the two emotions that rule financial markets. Greed sends the markets up, while fear sends them down. Lately, fear has begun to sink its claws in. For instance, take today's lead sentence from a page 1 story in a leading financial newspaper:

Fears of a credit squeeze and economic downturn pushed the Dow Jones Industrial Average into a full correction, as yesterday's 1.83% decline sent it 10% below its October peak…. [Wall Street Journal, 11/27/07]

Fear makes people want to sell their stocks. It takes a level head to shake off thoughts of fear when others seem consumed by it – particularly when you invest in the markets. Fortunately, technical analysis allows investors to separate their thoughts from their emotions. That can be useful during days when the market drops more than 200 points.

But fear is such a strong emotion that it can also make people turn on one another. Which is exactly the point that Rod Serling made in his classic Twilight Zone episode, called "The Monsters Are Due on Maple Street," which first aired in March 1960.

The show began with neighborhood kids playing outdoors one summer evening on Maple St. There comes a loud roar, and all the lights and phones go out. When one adult tries unsuccessfully to start his car only to have it turn itself on as he walks away from it, the others look at him suspiciously. Then the lights turn on in one of the houses, and the parents and kids look in panic at the owner of that house. As their fear mounts, one of the loud-mouthed neighbors shoots a stranger walking toward them on the street. He breaks down and blames one of the little boys for all the trouble, saying, "Look, I swear it isn't me! But I know who it is! I know who the monster is!"

Then the episode concludes with two voices discussing their experiment:

Alien #1: Understand the procedure now? Just stop a few of their machines, and radios, and telephones, and lawnmowers, throw them into darkness for a few hours and then sit back and watch the pattern.
Alien #2: And this pattern is always the same?
Alien #1: With few variations. They pick the most dangerous enemy they can find. And it's themselves. All we need do is sit back and watch.
Alien #2: Then I take it that this place, this "Maple Street," is not unique?
Alien #1: By no means. The world is full of Maple Streets. And we'll go from one to the other and let them destroy themselves. One to the other...One to the other...One to the other...

That's a powerful reminder of how fear works – on both Maple Street and Wall Street. And it was an interview with Stephen King in Time magazine that brought this Twilight Zone piece to mind. Here's a question and answer from that interview about the new movie based on his novel, The Mist:

Question: Part of The Mist is this subtext about how fear makes people irrational. How do you think that's playing out in the world today?

Stephen King: Well, it's always there. What The Mist reminds me of is a big, exciting version of an episode like "The Monsters are Due on Maple Street." In that episode, these aliens did an experiment to see what fear did to human beings. [In The Mist], there really are monsters and they show up on Main Street in this little town. Granted, the situation is unreal, but an audience can say, "Here's a good, harmless place where I can actually test drive what I would do in a disaster." Particularly if the disaster was just totally inexplicable. But in the real world, if disaster strikes us, it seems to me that it's always inexplicable. [Time magazine, 11/23/07]

But in either a greedy world or a world of worry and fear, the markets are not completely inexplicable. That's where students of Elliott wave analysis can learn how to keep a grip on their own fear or greed and see what's really happening in the major financial and commodities markets. For instance, on Monday night (November 26), our Short Term Update calmly pointed out after a serious down day that there are still two viable scenarios for what's going to happen next in the markets. In fact, the August lows are key to knowing whether one bullish pattern or one bearish pattern will take hold.

If you like the feeling of being scared, sit down with a DVD of The Twilight Zone and a bucket of popcorn. But if you would prefer to stay calm amid a panicking herd, then avail a Free Independent Investors eBook and sit back and relax.

Good day and good trading!

Tuesday, November 27, 2007

Options Trading Puts & Calls

The Building Blocks: Puts and Calls by Stan Freifeld & Online Trading Academy

I have a mathematical and analytical type of personality. In fact, that's what attracted me to options trading in the first place. Wait a minute, there's some important options news:

**Options Alert** On November 7th, the NASDAQ announced that it would pay $652 million in cash for the Philadelphia Stock Exchange, the country's oldest stock exchange. It is expected that the NASDAQ exchange will start trading options on Dec. 7, 2007, assuming they receive SEC approval. Also, on Monday of this week, the CBOE announced that it would start publishing a new volatility index, similar to the popular VIX. While the VIX represents a 30 day implied volatility based on the S&P 500, this new index, symbol VXV, will represent a 3 month implied volatility also based on the S&P 500. Details will follow as they become known.

Wow, there's never a dull moment here in options land!

Anyway, back to the beginning. Relative to stocks, options have characteristics that make them more interesting, more fun to trade, and perhaps a better match to my personality. When you're trading stocks, you buy them when you think they're going up and sell them when they're headed south. Of course, that's not always so easy to do. On the other hand, I may buy an option that I'm predicting will go down in value, because at the same time I can sell another option against it, predicting it will go down even more. This is called a spread, but we're getting ahead of ourselves!

Every options position, and all of the funny names that you've heard (straddles, strangles, butterflies, iron butterflies, broken wing butterflies, condors back spreads, vertical spreads, time spreads, need I go on?) are just combinations of Calls, Puts and sometimes Stock. Let's make sure we fully understand what these fundamental building blocks really are. The plan here is to start from basics and build a library of articles so that our options trading is on a firm foundation.

Be aware that there are options on almost every conceivable type of asset that trades: stocks, futures, commodities, Forex, bonds, interest rates, etc. However, for now, we will be discussing options on equities, i.e. Stock Options. So what exactly are they?

A Call (Put) option is a contract that gives the holder the Right, but not the Obligation, to Buy (Sell) an underlying asset, at a certain price, up until a certain date.

That "certain price" is called the Strike price or Exercise price and the "certain date" is called the Expiration date. So,

A Call (Put) option is a contract that gives the holder the Right, but not the Obligation, to Buy (Sell) a Stock at a Strike price, up until the Expiration Date.

You'll probably also hear options referred to as a "wasting asset." All that means is that with all other things being equal, the value of an option will decrease as time goes by. Just the opposite of a fine wine!

Calls and Puts generally represent 100 shares of stock. Be careful, if you want to control 300 shares of stock, you want 3 option contracts, not 300. There are some sad stories regarding people who didn't quite understand that and traded a lot bigger size than they anticipated! There are times when an option contract will represent something other than 100 shares, possibly after a stock split or a merger, or some other corporate reorganization, so if you're not sure, check with your broker or the Options Industry Council.

Options can be classified as either In The Money (ITM), Out of The Money (OTM), or At The Money (ATM). You can determine an options status by comparing the Stock price (S) to the Exercise Price (E).

So, as an example, with XYZ stock trading at $53, the Dec 50 Call is ITM, and the Dec 50 Put is OTM. In a similar fashion, if the stock was trading at $48, then the Call would be OTM and the Put, ITM. With the stock at $50, both options would be ATM. Even with the stock "slightly" above or below $50, we would still refer to the above options as being ATM.

Options that are ITM also have Intrinsic Value. This Intrinsic Value represents the amount that the option is worth at expiration, and the minimum amount that it is worth prior to expiration. So with XYZ trading at $53 the Dec 50 Call is worth at least $3 because we could exercise the Call, i.e., buy stock for $50, and then sell it in the open market for $53, netting $3. So for Calls, we see that the Intrinsic Value is equal to the difference between S and X. Likewise for Puts, if the stock is trading at $48, the Dec 50 Put has an Intrinsic Value of $2. We can exercise the Put, i.e. sell the stock for $50, and buy it back in the open market for $48. So for Puts, the Intrinsic Value is equal to X - S.

Another way to look at it is that the Intrinsic Value represents the amount that an option is ITM. So you might hear an options trader refer to the above Call as being $3 in the money, or the Put as being $2 in the money. Note that Intrinsic Value cannot be negative and it is zero for ATM and OTM options.

Okay, so how do we know the value of these options? Well, that's the million dollar question and we'll address it in later articles, so keep on reading. What about the price of an option? That's usually called the premium. This premium is the sum of 2 parts, namely; Intrinsic Value and Time Value. If we know the premium that an option is trading for, then we can easily calculate the Time Value by subtracting the Intrinsic Value from the premium.

By the way, we should remember that value and price are different. In fact, we'll end this article quoting the words of Warren Buffet: "Price is what you pay, Value is what you get."

Next time, we'll discuss how we can buy or sell options and learn how to draw profit and loss graphs at expiration of our basic positions. A recent mentoring student of mine mentioned that he had never seen these graphs before and now feels a lot more comfortable knowing how to determine at a glance the profitability of his options positions.

Click here for more options trading information, and live option trading seminars.

Wednesday, November 21, 2007

Attitude of Gratitude! Happy Thanksgiving!

I want to share with you this Thanksgiving my Attitude of Gratitude. Thank You. I'm posting the following message as my gratitude to everyone that follows my blog, and uses my website to empower themselves for financial success. Thank you and God Bless you.

A Secret Scrolls message from Rhonda Byrne, Creator of The Secret

Two words which will change your life!

There are two words that, when spoken, have the most unfathomable power to completely change your life. Two words which, when they pass your lips, will be the cause of bringing absolute joy and happiness to you. Two words that will create miracles in your life. Two words that will wipe out negativity. Two words that will bring you abundance in all things. Two words which, when uttered and sincerely felt, will summon all the forces and vibrations in the Universe to move all things for you.

The only thing standing between you, happiness, and the life of your dreams, are two words...

THANK YOU

Gratitude is one of the easiest and most powerful ways to transform your life. If you become truly grateful, you will magnetize absolute joy to you everywhere you go, and in everything you do. In fact, without gratitude, nothing can ever change. Your life will change to the degree that you use gratitude and begin to feel grateful. If you are just a little bit grateful, your life will change a little bit. If you are very grateful, your whole life will change. If you live gratitude every single day, you will become one of the greatest human beings on the planet, and the light of your life will uplift our world.

The greatest human beings who have ever lived showed us the way with gratitude, and by their example became shining lights in our history. Einstein said "thank you" hundreds of times every single day! Ancient wisdom dating back thousands of years gave us the truth about gratitude. Every single religion speaks of giving thanks. All the sages and saviors of the world demonstrated the use of gratitude in all their teachings.

Of the thousands of letters we receive from people whose lives have become miracles after experiencing The Secret , every single one of them has made gratitude their way of life. It is impossible to be negative when you are giving thanks. It is impossible to criticize or blame when you are feeling grateful. It is impossible to feel sad when you are in gratitude. Most people are sporadically grateful, however, to change your life with gratitude, a new way of learning how to be truly grateful is what will bring unlimited happiness into your life.

So how do you live in gratitude? Begin your day by feeling grateful. Be grateful for the bed you just slept in, the roof over your head, the carpet or floor under your feet, the running water, the soap, your shower, your toothbrush, your clothes, your shoes, the car that you drive, your job, your friends, your refrigerator that keeps your food cold. Be grateful for the weather, the sun, the sky, the birds, the trees, the grass, the rain, and the flowers. Be grateful for the stores that make it so easy to buy the things you need, the restaurants, the utilities and services and electrical appliances that make your life effortless. Be grateful for magazines and the books that you read. Be grateful for the chair that you sit on, and the pavement that you walk on. Be grateful for your favorite music that sweeps you away, and for movies that make you feel good. Be grateful for your phone that connects you with people, for your computer, for the electricity that lights up your life. Be grateful for air travel that flies you everywhere. Be grateful for the roads and traffic lights that keep the traffic in order. Be grateful to those who built our bridges. Be grateful for your pet, for your child, for your loved ones, for your eyes that enable you to read this. Be grateful for your imagination. Be grateful that you can think! Be grateful that you can speak. Be grateful that you can laugh and smile. Be grateful that you can breathe! Be grateful that you are alive! Be grateful that you are You! Be grateful that there are two words that can change your life!

Thank you! Thank you! Thank you!

The more that you practice gratitude the more deeply you will feel it in your heart, and the depth of the feeling is the key. The more deeply and sincerely you feel it, the more you will bring absolute bliss and happiness on every single subject. Watch what happens in your life when you practice gratitude every single day and in every single moment and in every opportunity that you can. Remember, if you are criticizing, you are not being grateful. If you are blaming, you are not being grateful. If you are complaining, you are not being grateful. If you are feeling tension, you are not being grateful. If you are rushing, you are not being grateful. If you are in a bad mood, you are not being grateful.

To understand the power and the magic of gratitude, you have to experience it for yourself. So why not begin by deciding to find 100 things a day to be grateful for? As you practice gratitude every day, it won't take long before gratitude is your natural state of being, and when it happens you will have unlocked one of the greatest Secrets to Life.

This week the United States is celebrating giving thanks with Thanksgiving Day. To inspire everyone to use gratitude, not just for one day but for every single day, The Secret is giving away 9,000 special edition Secret Gratitude Journals, which are beautiful, leather-bound journals. This gift is one journal per person, and the only cost for you is shipping.

For The Secret Video, click here.

There is just one other thing that I want you to know about Gratitude.....

When you are giving thanks, you FEEL GOOD!

Rhonda Byrne

The Secret... bringing joy to billions.

Tuesday, November 20, 2007

Weekly Stock Market Outlook

This past week had been quite volatile for day traders and investors with the major indices spending a majority of the week in negative territory. During last week, the markets provided triple digit losses as well as triple digit gains for both the DOW and the NYSE. Day traders as well as investors have had quite their share of short selling over the past few days. During the trading sessions that posted heavy losses, trading volume surged as investors appeared to do whatever it took, to exit those falling positions. Financial stocks took their share of hits amidst the various down trend trading sessions. As crude oil prices surged last week, the price per gallon of gas continues to rise across the nation. As the housing market continues to falter, it appears it has not been this bad since the great Depression.

Stocks on the move through out the week include Garmin Limited (NASDAQ:GRMN) and E Trade Financial Corporation (NASDAQ:ETFC). More details of their trading activity can be viewed on our Market Commentary located on our website. Our Team of Expert Moderators in our Stocks Day Trading Room played not only these stocks but also, many other stocks with extensive movement through out the trading day. View the Performance details for each of our Trading Rooms for Stocks, Futures and Forex as well as our Swing Trades services from our Performance Index.

This past week for the DOW, we saw a high of 13,368 on Wednesday, a low of 12,975 on Tuesday and max daily range of 344 which occurred on Tuesday. From the high of the week and the low of the week we saw a full trading range for the week of 392. Max Trading Volume through out the week, on any one day was 313 million, on Friday.

This past week for the NYSE, we saw a high of 9,947.72 on Wednesday, a low of 9,568.28 on Monday and a max daily range of 292.47 which occurred on Tuesday. From the high of the week and the low of the week we saw a full trading range for the week of 379.44. Max Trading Volume through out the week, on any one day was 4,146 million, on Monday.

This past week for the NASDAQ, we saw a high of 2,698.35 on Wednesday, a low of 2,583.00 on Monday and max daily range of 62.03 which occurred on Wednesday. From the high of the week and the low of the week we saw a full trading range for the week of 115.15. Max Trading Volume through out the week, on any one day was 2,793 million, on Monday.

This past week for the S&P 500, we saw a high of 1,492.14 on Wednesday and a low of 1,438.53 on Monday. From the high of the week and the low of the week we saw a full trading range for the week of 53.61.

Good day, good investing, and trading!

Thursday, November 15, 2007

Automated Forex Trading

Ever tried automated forex trading? Having a forex trading system that automatically takes positions, sets stop-loss, and take profits point targets? The first thing I can think of is more time. Its frees up your time so you can enjoy other things other than staring at your computer screen for hours on end.

There's a AutoTrader Forex Platform that you can diversify your portfolio between 100+ strategies with automated trade execution. This AutoTrader Forex Platform allows you to automatically execute trades 24 hrs/day following strategies from multiple signal providers, saving you thousands per month in Alert subscription fees. It's like having a staff of professional traders working for you 24 hrs a day and you only pay $1 per 10k round-turn lot, and it includes free forex charts with automated alerts.

Benefits Features of Automated Forex Trading

1. Real-time alerts to Buy or Sell a specific currency pair are generated by the Forex charting software.

2. A Buy or Sell arrow appears on your chart along with a pop-up window and an audio alarm to get your attention.

3. An email alert is immediately sent from a remote server to your email address and/or to your cell phone via text message. A second email soon follows with the Stop-Loss and Limit information. No software is required to be running on your computer to receive email/SMS alerts.

4. You execute the trade on your forex brokerage account or have trades automatically executed using the AutoTrader software. There's no need to keep your computer running for the AutoTrader to execute trades on your brokerage account. All trades are managed from a remote server.

How the Automated Forex Signals Work

The Automated Forex Trading System is as easy as BUY and SELL. The Automated Forex Signal Alerts appear as a Blue "UP" Arrow for a Buy or Red "DOWN" Arrow for a Sell. A Gray Arrow indicates an Exit signal from the previous open position. The software keeps each signal as an open trade position until one of the following occurs; 1. profit target is reached, 2. stop-loss is triggered, or 3. a reverse buy/sell entry signal is generated (meaning you need to close the current position and open a new trade going the other direction). These automated alerts also sound an audio alarm on your computer and, if you choose, you can set your charts to send these alerts to you by e-mail or cell phone as a text message.

Free 30-Day Demo Account

You know that seeing is believing, so sign up for a FREE 30-day demo and see for yourself!