Tuesday, July 31, 2007

Skills Make You Rich Not Theories

I'm continuing you share what Robert Kiyosaki wrote in his book "Business School", For People Who Like Helping People.

Skill make you rich not theories.

Do I regret dropping out from business school? Yes, sometimes I do. Yet I am also in good company of dropouts. Bill Gates, Michael Dell, Steve Jobs, and Ted Turner were also dropouts. Earlier entrepreneurs such as Thomas Edison and Henry Ford also dropped out of school. I believe that all these entrepreneurs saw the real-world business as a more exciting place to get their real-world experience. These men became monster butterflies, forever changing the world of business.

Don't get me wrong. Much of the information being taught in the business school I attended was valuable information for anyone in business. However, the school was not teaching me the street-wise skills I knew I needed to be an entrepreneur. Instead, the traditional business school was teaching me the skills to be an employee. Soon after dropping out, I began the first nylon and velcro surfer wallet business and took it worldwide with over 500 sales reps. Byu the age of 30, I was a millionaire and then the company went broker two years later. While losing a business was not a pleasant experience, it was a great education. I learned a lot in three years, not only about business, but also about myself.

More tomorrow on Roberts real life experiences, and how we can learn from them to have real life wealth and success in our own lives.

Click the "Skills Make Your Rich Not Theories" title link above to review an online business model that provides exponential passive income, and all working from home.

Have a great day using your skills to become wealthy!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Monday, July 30, 2007

Life Changing Business Education

Good Monday! Ready to go to work or ready to get up when your done sleeping? Or ready to fire the boss, take control of your life, and go live it the way you want? Whatever your thoughts are, good or bad, positive or negative, most likely they will manifest into reality.

There's a video and book I highly recommend called "The Secret". I heard the book is available at National Bookstore now, not sure about the video, but I will be checking this week since I will buy the book. I have the video already, which I obtained from the USA.

"The Secret" is the about The Law of Attraction. Your mind attracting into your life and reality whatever your thinking about in your mind whether its what you want, and what you don't want. The power of thought, and how thoughts become things. This video and book are truly awesome, and the thought techniques taught in it, have the ability to change your life forever the way you want your life to truly be. Read the book, watch the video, and empower yourself to live the life you want and beyond.

Today and this week, I'm going to continue discussing the network marketing industry. The network marketing industry offers poor and middle class people a chance at being wealthy like the rich, because the initial investment and start up costs into the business are very small compared with traditional business startups, and other investments that many average people cannot afford. Network marketing is truly a business for the common people to become time money rich and free.

The following is an excerpt from Robert Kiyosaki's book Business School.

It's not about the money.

"We have the best compensation plan." I ofter heard this comment when I was investigating different network companies. The people anxious to show me their business opportunity would tell me stories of people making hundreds of thousand of dollars a month because of the business. I have also met people who really do make hundreds of thousands of dollars a month from their network marketing business, so I do not doubt the massive earning potential of a network marketing business.

It's not about the products.

"We have the best products." This statement is the second most emphasized benefit I was presented with when inspecting different network marketing companies. I also found it interesting how many product-focused companies sales presentation were based around the life-changing testimonials. In on presentation, the founder of the company told me how she invested her secret potion to save her dying mother in Iowa. After doing some investigation, I found out her mother never lived in Iowa and the product she said she invented came from a laboratory in California that private-labels the product for many other companies. As I said earlier, there a fakes and con men, and in this case con women, in any business and profession.

It's the education plan.

The number-one reason I recommend a network marketing business is for its system of education. I recommend investing the time to look past the compensation and products and really look into the heart of the company to see if it is truly interested in training and educating you. That takes more time that just listening to a three-hour sales pitch and looking at colorful product catalogues and how much money people are making. To find out how good their education really is may require you to get off your couch and look into their training, educational seminars and events. If you like what you hear from the initial presentation, take some time to actually meet the people who do the educating and training.

Look carefully, because many network marketing companies say they have great education plans. Yet, I found that some did not have the great education and training systems they claimed they did. In some companies I looked into the only training they had was a recommended book list, and then they focused on training you to recruit your friends and family into the business. So take your time and look carefully because many network marketing companies do have excellent education and training plans, and in my opinion, some of the best real-life business training I have seen anywhere.

Basically what Robert is saying here, is that old traditional schools never taught, and most don't teach today, the skills to run a business and the financial intelligence that's required to sustain a business and teach people how to have money work for them to reach financial freedom, instead of working for money in a job, which is a path to a lifetime of struggle and hardship.

Click the "Life Changing Business Education" title link above to review an online global business opportunity that provides exponential passive income.

Have a great day changing into the person you need to become first through the right education, to become rich of time and money second!

Saturday, July 28, 2007

Wealth For Everyone

Today I'm sharing more from Robert Kiyosaki's book Business School. He's talking about everyone having wealth, not just a select greedy few persons.

In my opinion, the new form of business, the network marketing business, is a revolution simply because for the first time in history it is now possible for anyone and everyone to share in the wealth that, until now, has been reserved only for the chosen few or the lucky. I am aware that there has been some controversy over this new form of business and it's had its share of greedy and sometimes cooked people trying to make a quick buck. Yet, if you step back and look at this new form of business, it is a very socially responsible system of sharing the wealth. A network marketing business is not a good business for greedy people. Saying it another way, the only way a network marketing business works is by helping someone else become rich as you become rich. To me, that is revolutionary, just a revolutionary as Thomas Edison and Henry Ford were in their days.

Before closing, I know that most people are generous. I am also not condemning greed, since a little greed and personal self-interest is always healthy. It is when greed or personal gain becomes excessive that most of us protest or shake our heads in disgust. Since most people are generous and want to help their fellow human beings, the new forum of networking business systems gives more people the power to help many more people. While this business is not for everyone, if you are a person who truly wants to help as many people as possible achieve their financial goals and dreams, then the network marketing business is worthy of your time to consider.

In summary, today there are many ways for a person to become rich. The best way to become rich is to find the way that works best for you. If you are a person who loves helping other people, I believe the new form of business system - network marketing - is for you. That is why I have titled this book "The Business School For People Who Like Helping Other People." If helping other people is not your cup of tea, then there are at least 10 other methods to choose from.

In the following chapters, I will be discussing the core values I have found in most network marketing companies. In my opinion, these core values are the most important for you to consider in deciding whether or not you will be a part of the industry. Rich dad taught his son and me that core values are far more important than money. He often said, "You an become rich by being cheap and greedy. You can also become rich by being abundant and generous. The method you choose will be the method that most closely matches the core values deep inside of you."

Click the "Wealth For Everyone" title link above to review and exponential passive income online business model. It comes with an education, training, support, and mentoring system. Free sign up.

Have a great day helping everyone to attain wealth, just like you!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Friday, July 27, 2007

Henry Ford & The Smart People

Continuing from yesterday on Robert Kiyosaki talking about how a network marketing business is a new and revolutionary way to achieve wealth. I'll continue where I left off discussing about Henry Ford and his automobile network.

In other words, Henry Ford was a man who became rich because he cared not only for his customers, but because he cared for his workers. He was a generous man rather than a greedy man. Henry Ford also came under much criticism and personal attack by the so-called intellectual society. Henry Ford was not well educated, and like Thomas Edison, was often ridiculed because of his lack of formal education.

One of my favorite stories of Henry Ford was when he was asked to submit to a test by so-called smart people from the world of academics. On the appointed day, a group of smart people came in to give him an oral test. They wanted to prove he was ignorant.

The test began by one scholar asking him a question such as, "What is the tensile strength of the rolled steel you use." Ford, not knowing the answer, simply reached for one of the many phones on his desk and called his vice president who knew the answer. The vice president came in, and Ford asked him the question. The vice president gave him the answer the panel wanted. The next smart person then asked another question and again Ford, not knowing the answer, called someone else from his staff who knew the answer. This process went on until finally one of the smart people on the panel shouted, "See, this proves you are ignorant. You don't know the answers to any of the questions we ask you."

Henry Ford reportedly replied, "I don't know the answers because I do not need to clutter my head with the answers you seek. I hire smart young people from your schools who have memorized information that you think is intelligence. My job is to keep my head clear of such clutter and trivial facts so that I can think." At that point, he asked the smart people from the world of academics to leave.

For years, I have committed to memory what I believe is one of Henry Ford's most important sayings: "Thinking is the hardest work there is. That is why so few people engage in it."

Click the "Henry Ford & The Smart People" title link above to review an exponential passive income online business complete with education training support and mentoring system. Free sign up.

Have a great day being ignorant and becoming rich! Haha!

Thursday, July 26, 2007

Revolutionary Way To Achieve Wealth

I'm continuing from yesterday on Robert Kiyosaki's description of the difference of big business owners and small business owners. "It's about the size of their business network." Robert said.

As Robert says, "A network marketing business is a new and revolutionary way to achieve wealth."

The reason I put network marketing as an eleventh way of becoming rich all by itself is because it is a revolutionary new way of sharing the wealth with anyone who truly wants to acquire great wealth. A network marketing system is setup to make it possible for anyone to share in the wealth. A network marketing system - a system I often call a personal franchise or an invisible big business network - is, in my opinion, a very democratic way of wealth creation. The system is open to anyone who had drive, determination and perseverance. The system does not really care what college you went to, if you went to one, how much money you make today, what race or sex you are. Most network marketing companies care primarily about how much you are willing to learn, to change and to grow, and whether you have the guts to stick it out through the thick and thin while you learn to be a business owner.

Recently, I listened to an audio recording of a very famous and rich investor, delivering a speech to a famous business school. I do not mention the school's name or his name because what I am about to say is not very flattering. He said, "I am not interested in teaching people to invest. I am not interested in helping poor people get ahead in life. All I want to do is spend time with intelligent people like you, here at (the famous business school.)"

While I personally do not agree with what he said, I still recommend him for his honesty. As a person who spent much of my life growing up with the rich friends of my rich dad, I oftern heard such comments, but they were said discreetly and quietly. In public, they would attend charity events and donate money to popular causes, buy many of them did that only to appear socially acceptable. In their private meetings, I often heard their real thoughts - thoughts that were of similar context to the famous investor speaking the the famous business school.

Obviously, not all rich people share that attitude. Nonetheless, I am constantly amazed at how many rich and successful people are rich and successful because they are greedy and have very little interest in helping those less fortunate. Again, I will state that not all rich people share this attitude, but the percentage is significant from my experience.

A primary reason I support the network marketing industry is that their systems are fairer than previous systems of acquiring wealth. Henry Ford, one of the world's greatest businesspersons, became rich by fulfilling the mission statement of his company, the Ford Motor Company. Ford's mission statement was, "Democratize the automobile." The reason that mission statement was so revolutionary was because at the turn of the century, automobiles were only available to the rich. Henry Ford's idea was to make the automobile affordable for everyone, which is what "Democratize the automobile" means. Interestingly enough, Henry Ford was an employee of Thomas Edison, and in his spare time, Henry designed his first automobile. In 1903, the Ford Motor Company was born. By slashing production costs and adapting the assembly line to mass produce standardized inexpensive cars, Ford became the largest automobile producer in the world. Not only did he make his car affordable; he paid the highest wages in the industry as well as offering profit sharing plans for his workers, redistributing over $30 million annually to them . . . and $30 million was worth a lot more in the early 1900s than it is today.

Tomorrow I will continue on this Revolutionary Way To Achieve Wealth.

Click the "Revolutionary Way To Achieve Wealth" title link above to review an online business model that can provide exponential returns over time. Free to sign up. Comes with built in education training and support system for success.

Have a great day networking for everyone to achieve wealth!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Wednesday, July 25, 2007

The Eleventh Way To Become Rich

According to Rich Dad Robert Kiyosaki, there are eleven ways to become rich which I have shared here in my previous blog posts. Today is the eleventh way to become rich.

The difference between big business owners and small business owners.

Before moving on the the eleventh way of becoming rich, I want to discuss the difference between a small-business owner and a big-business owner. The difference is that big-business people build networks. The world is filled with small-business owners who own restaurants. The difference between a single-restaurant owner and Ray Kroc, who founded McDonalds, is that McDonalds is a network of hamburger restaurants known as a franchise network. Another example, in contrast, is a small-business owner who owns a television repair shop as compared to Ted Turner, who built CNN, which stands for Cable News Network. Again, notice the word network. The point is that the difference between a small-business owner and a big-business owner is simply the size of their network. While many small-business owners own businesses, very few business owners build networks. Simply put, building a business network is how the richest people in the world became rich.

The eleventh way to become rich.

11. You can build a network marketing business. The reason I put a network marketing business as the eleventh way of becoming rich is that it is a very new and revolutionary way to aqiuire great wealth. If you will quickly glance over the first 10 ways of becoming rich in my previous blog posts here, you may notice that the focus is a self-centered focus on who becomes rich. In other words, it might be seen as a greedy focus. For example, someone who tries to become rich by being cheap is primarily focused upon themselves and maybe a few family and friends becoming rich. Someone who marries for money is definitely focused on the money for himself or herself. Even a big business is focused on only a few selected people becoming rich. When franchises came out they made it possible for more people to become business owners and share in the wealth, but in most cases, franchises are reserved for only those with the money to buy the franchise, and as I stated earlier, a McDonalds franchise today costs over $1 million to get in. Therefore, I am not saying these people are bad or greedy people; I am simply saying that in most cases, the focus is not on a lot of people becoming rich. The focus is on the individual becoming rich.

Tomorrow I will continue with more information on this eleventh way of becoming rich. "Network marketing is a very democratic way of wealth creation." Rich Dad Robert Kiyosaki says.

Click "The Eleventh Way To Become Rich" title link above to review an online business model that has exponential passive income potential. Free sign up.

Have a great day helping others to become rich just like you!

Tuesday, July 24, 2007

Way To Become Rich 8 9 & 10

I'm almost finished with Robert Kiyosaki's eleven ways a person can become rich. Tomorrow will be the eleventh way.

Before I get to the ways to become rich, I want to share this quote from a very honorable man. "There are costs and risks to a program of action, but they are far less than the long-range risks and costs of comfortable inaction." John F. Kennedy.

I shared this for the sake of information and action for people. All the information in the world is no use if it is not put to action. Procrastination begets more, and so there is no progression, and possibly only regression. Affirmative action begets more, and so there is progression and growth. John F. Kennedy was referring to the high risk in one's life of no action. Life for some people today has become a mind and body numbing of comfortable inaction. Want growth in your life? Get out of your comfort zone, challenge yourself, and you will fly beyond your biggest dreams currently.

Now for the more ways to become rich.

8. You can become rich by inheriting money. By the time we are in our twenties, we should know if we are going to inherit anything. If you know you are not going to inherit anything, then obviously you need to find some other way to become rich.

9. You can become rich by investing. One of the most common complaints I have is that it takes money to invest. In addition, in most cases that is true. There is another problem with investing. You can lose everything you invest if your are not financially educated and trained to be an investor. As many of us have seen, the stock market is risky and volatile, which means one day you make m oney, and the next day it could be all gone. With real estate, although you can use your banker's money to invest, it still take some money and education to accumulate great wealth. In this book, you will find out how to acquire the money to invest. More importantly, you will learn how to become an investor before you risk your money.

10. You can become rich buy building a business. Building a business is the way most of the rich became very rich. Bill Gates built Microsoft, Michael Dell created Dell Computers in his dormitory room. The problem is that building a business from scratch remains the riskiest of all the ways to become rich. Even purchasing a franchise, which is less risky, can be very expensive. prices to purchase well-known franchises may range from $100,000 to $1.5 million just for the rights to the franchise. On top of the initial fee, there are monthly payments to the headquarters for training advertising and support. In addition, even all this support is still no guarantee of great wealth. Many times a person must continue to pay money to the franchisor or headquarters, even when his or her personal franchise is losing money. Although the buying a franchise is less risky than starting your own business from nothing, statistics show that 1/3 of all franchises eventually go broke.

Click the "Ways To Become Rich 8 9 & 10" title link above to learn about an exponential passive income online business model with free sign up.

Good day, and good becoming rich!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Monday, July 23, 2007

Ways of Becoming Rich 6 & 7

I'm continuing to share this week the ways of becoming rich as described by Robert Kiyosaki in his book Business School.

Robert Kiyosaki Quote: "If you want to be rich and happy, don't go to school." Ask anyone who went to traditional college. Did it teach them how to get rich? Career and lifestyle are two different things. What do you really want?

6. You can become rich by being exceptionally smart, talented, attractive or gifted. Tiger Woods is an example of an exceptionally gifted golfer - a golfer who spent years developing his gift. Yet being gifted, smart or talented is still no guarantee of becoming rich. Rich Dad would say, "The world is filled with gifted people who never become rich. Just go to Hollywood and you find many beautiful, handsome and talented actors who earn less than most people." Statistics also show that 65 percent of all professional athletes are broker five years after their high-paying professional careers are over. In the world of money, it takes more than God-given brains, talent or good looks to become rich.

7. You can become rich by being lucky. Trying to become rich by being lucky is almost as popular as trying to become rich by being cheap. As most of us know, millions of people bet billions, maybe trillions, of dollars on the lottery, the race tracks, casinos and on sporting events, all hoping to strike it rich by being lucky. Moreover, as we all know, for every lucky person there are thousands, maybe millions, of unlucky people. Again, studies have shown that most lottery winners are broker five years after winning more money than they could have earned in five lifetimes. Therefore, even being lucky once or twice does not mean you hold on to your wealth.

As we can see from looking at the different sides and perception of money, there is much to be learned by all of us. Why is there much to be learned about money? Because the old traditional schools of the past, and present do not teach it for reasons right or wrong, good or bad. What matters is the here and now and what you have from it at the end of the day. Robert Kiyosaki has provided the world, the gift of financial intelligence so that each person upon their choosing has the chance at becoming rich, and free of time and money. Empower yourself with his teachings to have the lifestyle you want for yourself and your families future.

Click the "Ways of Becoming Rich 6 & 7" title link above to review a exponential passive income online business model.

Good monday, good 2007, and don't stop fighting for your dreams!

Friday, July 20, 2007

Becoming Rich via Hard Work

It's Friday! TGIF! Did you work hard this week? What will you do this weekend to become rich? Monday will be here in a short time. Do you like Mondays? Robert said, "Building your own business is the best way to become rich. After you have built your business, and you have strong cash flows, then you can begin investing in other assets."

Today is option number five from Robert on the eleven ways to become rich, becoming rich by via hard work. Tomorrow will be number 6, becoming rich by being exceptionally smart, talented, attractive, or gifted.

5. You can become rich via hard work.

The problem rich dad had with hard work was that he noticed that hard-working people often had a hard time enjoying their money and their life. In other words, hard work was all they knew. They did not know how to have a good time.

Working Hard For A Bad Income

Rich dad also taught his sone and me that many people work hard for the wrong kind of income. He said, "People who physically work hard for money often work hard for the wrong kind of income. People who work for the wrong income ofter work harder adn harder only to be taxed more and more." In my rich dad's mind, to work for income that is taxed more and more was not financially intelligent. Most people who have a job work for the highest taxed of all income. In addition, the people who are paid the least often pay the highest percentage in taxes.

When I was a boy, my rich dad taught me that there is more than one kind of income. He said, "There is good income and bad income." In this book, you will find out what kind of income to work hard for . . . which is income that is taxed less and less even though you earn more and more.

Rich dad also pointed out to his son and me that many people work very hard all of their lives but had very little to show for their hard work at the end of their lives. In this book, you will find out how you may have to work hard for a few years but eventually be free to choose never to work again . . . if that is what you choose to do.

Click the "Become Rich via Hard Work" title link above to review a online business that provides exponential growth from a very small startup cost.

Insight of The Day

"Things don't go wrong and break your heart so you can become bitter and give up. They happen to break you down and build you up so you can be all that you were intended to be."

Have a great day working hard for money or having money working hard for you!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Thursday, July 19, 2007

More Ways To Become Rich

This week and today I'm sharing in more detail each of the eleven ways Robert Kiyosaki says a person can become rich.

Today is number four, becoming rich by being cheap. Tomorrow will be number five, becoming rich via hard work.

4. You can become rich by being cheap.

Rich dad said, "Trying to become rich by being cheap is the most pupular way people attempt to become rich. People who try to become rich by being cheap are people who often try to live below their means rather than finding ways to expand their means." He also said, "The problem with becoming rich by being cheap is that in the end you're still cheap." We have all heard stories of people who spent their lives hoarding money, pinching pennies, and shopping at sales just to acquire masses of money. Yes, even though they have a lot of money, they live life as poorly as someone who is truly poor. To my rich dad, having a lot of money yet living like a poor person made very little sense.

Rich dad had a friend who live cheaply all his life, saving his money, never spending on anything except for the bare necessities. The sad thing was that his three grown children could not wait for him to die so they could get their hand on all the money. After he passed away, his three children made up for all the years of living cheap and spent all his money in less than three years. After all the money was gone, the kids were just as poor as their dad was, even though he once had lots of money. To my rich dad, people who hoard money yet live poorly are people who worship money, making money their master rather than learn to become a master of money.

Click the "More Ways To Become Rich" title link above, to review an online business model that provides exponential passive income potential, with an extensive education training and support system.

Daily Insight

"People who say that life is not worthwhile are really saying that they themselves have no personal goals which are worthwhile. Get yourself a goal worth working for. Better still, get yourself a project. Always have something ahead of you to look forward to . . . to work for and hope for."

What do you really want? Have a great day becoming whatever you want!

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Wednesday, July 18, 2007

Other Ways To Become Rich

As a follow up to last Monday's different ways to become rich post, I'm sharing in more detail each of the eleven ways.

Today is number three, being greedy. Tomorrow will be number four, being cheap.

3. You can become rich by being greedy.

My rich dad said, "The world is filled with people who became rich by being greedy. Greedy rich people are the most despised of all the different types of rich people."

After the stock market crash of 2000, the world feasted on stories of companies that distorted their financial records, CEO's who lied to investors, insiders who sold stock illegally, and corporate officers who told their workers to buy shares while they were selling theirs. For months, the news was filled with stories about the leaders of Enron, WorldCom, Arthur Anderson, and Wall Street analysts who were lying, cheating, and stealing. In other words, some of these rich greedy people were so greedy they broke laws and turned into crooks. The first few years of the 21st century revealed some of the worst examples of greed, corruption, and lack of moral guidance, proving that not all crooks deal in drugs, wear masks and rob banks.

Click the "Other Ways To Become Rich" to review the entire book of Business School in where this above excerpt came from.

Empower your mental growth with financial intelligence from Robert Kiyosaki. Along your additional spiritual emotional and physical growth, become and live what you want. What do you really want? A career or a lifestyle? The law of attraction will give it to you always.

Have a great day becoming rich!

Tuesday, July 17, 2007

Can You Teach Me To Become Rich?

Yesterday, I briefly described some different ways to become rich. Today, I'll described a little more in detail about some of the ways. First a short real life story from Rich Dad Robert Kiyosaki on what his teacher told him at school one day.

"Can you teach me to be rich?" I asked my teacher.

"No" my biology teacher replied. "My job is to help you graduate so you can find a good job."

"But what if I don't want a job? What if I want to be rich? I asked.

"Why do you want to be rich?" asked my teacher.

"Because I want to be free. I want to have the money and time to do what I want to do. I don't want to be an employee for most of my life. I don't want my life's dreams to be dictated by the size of my paycheck."

"That's nonsense. You're dreaming about the life of the idle rich and you can't be rich if you don't have good grades and a high paying job," said the teacher. "Now get back to dissecting your frog," the teacher said. I was talking to my rich dad later that day after school, and was telling him this story about my teacher. I told rich dad, "I would dissect a thousand frogs if it would make me rich."

What's the lesson of Roberts story? The old traditional school systems did not in the past, and most likely in the future, are not going to teach you to be rich. If you want to be rich, you're going to need to get it on our own or the help of a mentor or Rich Dad type of person just as Robert learned from his Rich Dad.

The new education for this new century in this new information age is information. The industrial age is all over. Start thinking about the future, and where you want your future to be in it? "A person with a dream cannot be denied." Louie Carillio. You can do it. You need the new education now if you want to be rich. Rich Dad Robert Kiyosaki has that education and knowledge that you need, if you want to be rich. Enjoy new school kids . . . its a great life!

Some way to become rich explained in more detail.

1. You can become rich by marrying someone for his or her money.
This is a very popular way of becoming rich. Yet, rich dad would say, "You know what kind of person marries for money."

2. You can become rich by being a crook.
Rich dad said, "The trouble with being a crook is that you have to associate with other crooks. Much of business is based on trust. How can you have much trust when your partners are crooks?" He also said, "If you are honest and make an honest mistake in business, most people understand and give you a second chance. In addition, if you learn from your honest mistakes, you will grow into a better business person. But if you are a crook and you make a mistake, then you either go to jail or your partners will punish you in their own efficient ways."

Click the "Can You Teach Me To Become Rich?" title link above to review a global online business opportunity that provides exponential passive income over time. Smart investors check out many deals first then usually pick one. Do the same and become free.

Good day, and good new future schooling for you!

Monday, July 16, 2007

Different Ways To Become Rich

It's Monday, and it's the beginning of the rest of your life. What do you really want? Don't choose based on your current and past circumstances. Set your dreams and goals based on what you really want, and go get the knowledge, a plan, take action on it, and have success far greater than what you have right now.

With positive belief, thinking, saying, your body will do what your mind is telling it consciously and unconsciously. You want positive success and wealth in your life? Then block out and do not dwell on any negative garbage from anywhere, anything, or anyone. Whatever your focusing on, good bad, right or wrong, your mind will manifest it into reality whether you like it or not. Focus on your dreams and goals, and stay away from all the negative things, people, events, that make you think and talk more negative. This could be hard to do in this world that's full of so much negative energy, but you can, just make the decision and do it. If you have to change friends because they are too negative, and stealing your dreams, then so be it. Align yourself with success minded people just like you, and stay away from the negative thinkers including your long time friends. If you want much more out of your life, its now time to make that change.

"I can't", "I won't", "Its too hard", "I don't have time". These are all statements, and when you say these statements, your programming your mind to do nothing but still having the same thing. "The definition of insanity is doing the same thing over and over expecting a different result." Albert Einstein.

"How can I?". Now you've just opened up your mind to the possibilities of life, and you begin to find a way to success and the life you really want. Watch the video "The Secret" over and over again until that story and success technique is implanting in your brain. Now you can have whatever you want. Look on the right column under investing links for The Secret book and video.

As Robert states in most all of his books, "Learn to have money work for you rather than to have your work for money." "Building a business is the best way to become rich. After you have built your business, and you have strong cash flow, then you can begin investing in other assets".

Ways To Become Rich.

Rich dad said, "Because so many people do not have an adequate financial education, they come up with many interesting ways to become rich other than building a business network. For example, millions of people try to become rich playing the lottery or working hard and saving money. An some people actually do become rich using these different methods." He also said, "If you want to become rich, you need to find a way to become rich that best works for you." The following are some of the other ways people become rich.

1. You can become rich by marrying someone for his or her money.

2. You can become rich by being a crook.

3. You can become rich by being greedy.

4. You can become rich by being cheap.

5. You can become rich via hard work.

6. You can become rich by being exceptionally smart, talented, attractive, or gifted.

7. You can become rich by being lucky.

8. You can become rich by inheriting money.

9. You can become rich by investing.

10. You can become rich by building a business.

11. You can become rich by building a network marketing business.

So maybe now your beginning to understand a few things on being rich. Many rich people in the world became rich because they started a business of some kind. Now all business's are not created equal, and be very careful on starting off doing a business. If you don't have financial intelligence, get Roberts books for your new schooling. Traditional old schools won't, and cannot teach you the new school for your future wealth.

Click the "Different Ways To Become Rich" title link above to review an online business opportunity. Smart money investors, investigate many opportunities before choosing one. Some deals are good, some bad. Find out what works for you, not for anyone else. Learn to do the same thing. Knowledge > Goals > Plan > Action > Success.

Good day, good business building, and good investing.

Friday, July 13, 2007

No Money To Invest or Trade?

Its Friday the 13th. Are you feeling unlucky, lucky or grateful? Whatever you're feeling and thinking you will be receiving it whether you want it or not. I've said this because of an empowering video called The Secret. If you haven't seen it yet, see it. The Law of Attraction is very powerful.

Want to be an investor or trader but don't have the amount money to get started or the amount you would like to have to make more money investing and trading in the markets? Start a part time business.

I'm not talking about just any business, but a business that can provide exponential returns long term. I'm talking about a network marketing business with its exponential potential.

Networking Marketing
SixFigureIncome - Online Network Marketing

Since 1998, SFI has been leading the Internet income revolution with its cutting edge affiliate program that empowers even average people to earn $20, $50, even $100 per hour working from their home computer. SFI has shown millions of men and women from over 200 countries worldwide how to cash in on the Internet. In fact, our system is so successful that over 8000 people join SFI every week.

Keep your full time job until your part time network marketing business is consistently replacing your job income plus a little extra for buffer, then continue to build your business to keep earning that positive cashflow. As you continue to grow your business, you can then use the extra profits to open up a online brokerage account to start investing and trading.

There's some good, and a lot of bad network marketing opportunities and companies around today. Around the world unfortunately there are many illegal pyramid scams hiding behind the legitimate business name of network marketing. Many global governments do not understand the difference, and thus do not know how to regulate it giving this legitimate industry a bad name, and letting the pyramid scams ripoff people off people of their hard earned money, while a small few at the top make it all.

There's a huge difference between network marketing and pyramid schemes. To make a long story short, here's the difference between a legitimate network marketing business and companies, and pyramid schemes.

Legitimate network marketing business's invite people first to see the business plan, then upon the choice of the invited new person, become sponsored into the business by the person who invited him or her. At time of signup and throughout the life of membership, there can be no signup or monthly product purchase quota required to be and continue to be a member. Additionally, sponsorship means the following is always available. An education training and support system to help the newly sponsored persons become profitable in their new business. If the online network marketing business you're investigating does not have all of these, walk away, forget it, and go find the one that does.

Robert Kiyosaki quote from his Business School book. "It's not the money, its not the products . . . the most valuable thing in a good networking marketing company is the education, training, support, and mentoring system." With this, people grow large permanent passive income network marketing business's. The money is the result of everything they do in the business.

The illegal pyramid scams are this. They recruit people and try to impose upon the new members to purchase a large amount of product at the time of signup, and or with a monthly quota. This is illegal in the USA, but many country governments around the world, do not understand this difference, do not have laws against this, and thus they let operate in their country what is absolutely illegal in the United States after the US Supreme Court handed down the court ruling in 1979 after many complaints from people being ripped off by the illegal pyramid scams who were hiding behind the name of network marketing. Usually in these illegal pyramid scams there is no form of education, training, support, events or seminars. At the end of the day, the new unsuspecting person who just signed up, purchased a large amount of products is left with those products in which they don't know how to market and sell, and the person who recruited them has taken one third of their money, put it into their pocket, paid the company the other two thirds, and is gone. If anyone or any company is trying to do this to you, get their name and number, tell them thanks for the information, tell them I'll be in touch, and report them to the local governmental authorities. Its time we put an end to these illegal pyramids schemes and the stealing peoples hard earned money by a greedy few.

We are involved in one of the leading online network marketing business in the world. Its called SFI or Six Figure Income. SFI is in almost 80 markets around the world currently. Along with this multi-national corporation, there is an online education, training, support, and mentoring system that is second to none on learning doing teaching and mentoring the skills to be successful in the business.

As the saying goes in the stock market, "Leaders lead for a reason, and laggards lag for the opposite reasons." Invest with leaders to not waste precious time energy and money.

This business model is just necessarily not about the money. In this business model people can earn a little or a lot, its their choice. It's not necessarily about the products either. The products are low cost high quality products that people use everyday. The most valuable thing in the network marketing business model is the education and training program that traditional schools don't teach. Real life business and leadership skills and much more for sustainable success. Come learn do and teach the business model of the future as Robert Kiyosaki says, where all people involved benefit, not just a few rich company owners hiring employees to make themselves rich only.

There's so much opportunity in life. Look for it, and investigate it. Don't let your current circumstances stop you from achieving your dreams and goals in life. Start with knowledge, then set your dated dreams and goals, then in this business, SFI already has the business plan, so all you have to do is take action to follow and duplicate that plan, and financial success can be yours in a big way.

Believe it can be, and you will think it can be, and you will speak as it can be, and your body will do as it is in your mind.

With the right knowledge, the right dreams goals, the right plan, and the right action, success is only a matter of time.

There's a special book and video out now called "The Secret". I recommend you get it, its awesome success stories of mind of matter. What if the new things you do today and in the future could change your life for the better? What would you do with the time and money?

Looking forward to sharing more about the this great opportunity and the subject of success with you. Its Free to Start an online network marketing business with SFI, and currently as we've seen they are one of the largest online network companies in the world, and their education, training, support program is extensive giving new business owners the best chance at obtaining success in their new business.

Don't let anyone tell you can't because you can . . . just say to yourself, how can I and the success process will begin.

Have a great weekend and go for your dreams.

Thursday, July 12, 2007

Using Stop-Loss

Do you use stops on all your trades? Trading without stops is the ego wanted to never be held accountable to admit that a position was a mistake if a certain level is breached or if a certain set of circumstances play out in an unexpected manner.

Let the market take you out. This takes your ego out of the decision - this decision on what stop level to exit should be calculated before entering the trade. Again you want to prevent your mind playing tricks by rationalizing a new reason to hold on to a poor performer. I review my trading journal each day in order to remind myself of the #1 Entry Driver for the positions and key stop levels - if any of these are broken, I have lost the edge projected and should exit such busted trades immediately.

Most traders think of stops relating to their exit of a position, but I'm finding these days that one of my most preferred entry techniques also involves a stop. A stop order to buy (or "buy stop") becomes a market order when the option contract trades or is bid at or above the stop price. A stop order to sell (or "sell stop") becomes a market order when the option contract trades or is offered at or below the stop price. The objective here is to only buy when the stock takes out a significant prior high, or sell when the stock breaks to a meaningful new low point. In this way I make the stock prove to me that it wants to make the anticipated move. If it doesn't, I don't get into the trade. I've found this method far superior to the limit order technique of trying to buy below the current market price or sell above the current market price. What I generally have found is that limit orders hoping for a better price are merely another ego behavior to believe that we can tell the market what we want it to do. In turn when I missed out on getting filled due to a tight limit order, I was often left watching from the sidelines as the stock mounted a continued trend. The stop entry has triggered me into some trends that I would have otherwise missed.

You should define an initial stop point for your trade, before you enter the trade. This determines the risk you are willing to take. The whole purpose of a stop in my opinion is to define the point at which the trend is invalidated. The potential reward should preferably be three or more times the risk you are willing to take. Next, you need to determine if a position is working for you, how will you protect your profits? This is known as a trailing stop. In a good uptrend, I prefer to use a close under the 10-day exponential moving average as my trailing stop, unless I am using another method as my driver in the trade, such as a close back into a stock's Acceleration Bands.

At this point, let me explain my preferred stop method. I tend to use "closing stops", meaning I don't want to place my stop order intraday to be gunned by the floor or taken out by day-trader noise. Many battles are fought during the trading day, but the war is won at the close. We want to wait to see who wins the war at the end of each session. If XYZ stock is going to close against my closing stop level, then I place a market order to close the position in the final minutes of trading (if you miss this exit as subscriber for any reason, you can still place a market order to exit on the next morning's opening price). If the stock happens to be within a few cents of this level and it is unclear, I will wait for the close, and if my level breaks, I will make sure to sell it at the market on the next trading day's opening price. This has kept me from getting whipped out of a number of good swing trades during the day, while still giving me the ability to exit when the stock has proved me wrong by day's end. Some worry that a stock may move too far against them by the close compared to an intraday stop, and occasionally a stock will be filled well against our closing stop by the end of the day. But that risk is small compared to the bigger risk of getting whipped out of a position intraday, only to have it post a strong reversal in our favor and be off to the races. I call these "Bend But Don't Break" points. You want to wait for the end of that bar's close. If the chart is a weekly chart, wait until the end of the week's close to stay with the true trend while others will tend to get faked out.

The final exit issue I'll deal with here is how to take profits. Should we use a fixed target, or should we only use trailing stops on winning positions until the trend breaks? The answer depends on your risk tolerance, as well as the market environment. For conservative traders, I recommend sticking with price targets compared to defined risk levels, as you can lock in profits more safely that way. In addition, in more choppy markets the target profit approach is advisable, as noise can work to your advantage in taking profits at targets. But in trending markets, we want to be able to keep at least a partial position on, and then use a trailing stop like the 10-day exponential moving average to stay with the best trending situations.

Click the Using Stop-Loss title link above to learn more about the different types of stop-loss techniques.

Good day and good trading!

Wednesday, July 11, 2007

Poker & Trading

Know When to Fold ‘Em - by Van K. Tharp, Ph.D.

One of my hobbies is playing poker and I can do it for free online. When I visit a casino and play poker, I usually make money. However, when I started to play online with play money, I had tremendous difficulty making money. And that didn’t make sense to me because I knew that most of the people I was playing against were terrible. Why couldn’t I make money?

However, one day I read a poker book by a professional who said that he had the same experience in low-limit games in Las Vegas. He said that when he had a good hand, he typically had five or six bad players staying with him. One of them would typically make a very lucky draw and he would be beaten.

Once he figured out what was happening, however, he rarely lost again. And his secret was knowing when to fold ‘em. In Texas Hold’em, every player is dealt two cards face down. These are your unique cards that you must use, although with five common cards that are dealt face up, to make the best five card poker hand. You typically bet your hand after you see your two “pocket cards;” after the fist three common cards (called the flop); and after the fourth and fifth cards respectively.

Bad players typically play most starting hands they are dealt, but if there are enough bad players, then one of them will get a good draw that will beat most people. So the solution to beating them is to only play the outstanding starting hands – the hands that will typically win the pot 30% of the time or better. That means that you must FOLD 80% of the hands you are dealt. You never play them and in most cases, it doesn’t cost you anything not to play a bad hand.

One of the advantages we have as traders is that we do not have to trade. And it costs nothing to not trade. So the common solution is to only take a position in outstanding trades. And these are usually either trades that are moving strongly in your favor before you enter or trades that are so highly undervalued that you are getting an investment at a small fraction of what it is worth.

One of the highest starting hands in poker is an Ace-King of the same suit. In a ten person game, this starting hand will typically win 68.6% of the time. But it usually does require some help to win. Suppose you are dealt an Ace-King of hearts which you bet so you can see some more cards. However, the next three cards are a 3 of clubs, a jack of diamonds, and a 7 of spades. Those three cards didn’t help you at all. You don’t even have a pair in your hand and you only have two more cards to see. Now the odds don’t look good that this will be one of the 68.6% of the hands that an Ace King of the same suit will win. You should fold that hand, especially if other people are betting heavily. And again, it won’t cost you much money at this stage to fold – just the amount of your initial bet.

The same occurs when you invest in a stock. You buy the stock because it is going up. However, once you buy it, it starts to slowly go down. After several weeks, it’s down about 5%. At this point it’s like the bad poker hand – you should walk away from it. The odds, right now, don’t seem to be in your favor.

Bad players will typically play bad hands to begin with and they’ll stay with good hands that don’t get supported as more cards are revealed. If you become more conservative with the odds, only playing the best hands, you’ll probably win most of them and lose very little money.

One of the golden rules of trading is to cut your losses short and this means get out of trades that don’t seem to be working in your favor. Next, week we’ll talk about the opposite situation, when the poker hand or the trade starts to look really good.

Click the Poker & Trading title link above to review Van Tharp's trading classic, Trade Your Way To Financial Freedom. This book will make a real trader out of you.

Good day, good trading, and good poker playing!

Tuesday, July 10, 2007

When To Sell

It's interesting that so many of us will spend a great deal of time studying the perfect time to buy, yet so little time on when to sell. Ironically though, we may be better served by focusing our efforts on the latter, since the sell side of the transaction actually puts money in our pocket. There is plenty of literature available on the subject of 'when to sell', but today I'd like to highlight some of the most helpful sell rules that you can take and apply immediately.

1) "I never buy at the bottom, and I always sell too soon" - Average Joe Investor. As difficult as it is, you want to sell stocks when things look like the stock may soar forever. As we all know, all good things do come to an end, and it's far too easy to let a 30% gain turn into a 20% loss because you're trying to squeeze out a 35% gain. You may ultimately leave some profits on the table, but better to leave some profit on the table than none in your pocket.

2) Keep in touch with a company's fundamental data. All of the fundamental research that we do typically comes prior to making the investment, but many times the company's financial statements after you invest in it will clue you in on a pending downturn. If earnings or revenue taper off, you want to be one of the first ones aware of that, prior to a sell-off.

3) In Bill O'Neill's Book 'How To Make Money In Stocks', he summarizes good money management (capital protection) with this simple quote, "The whole secret to winning in the stock market is to lose the least amount possible when you're not right." While it's always more enjoyable to dwell on winning trades, it's important that you protect your investment capital. If you allow yourself to take large losses, you have diminished the amount you can put into your next winning trades. This is why it's crucial to use trailing stops, exit rules, and be willing to accept that every trade is not going to be a great trade.

4) For those of you who use technical analysis to generate automated signals, you don't necessarily have to use the opposite of your entry signal as an exit signal. You may find that an entirely different technique than your buy signal gives you better, and more profitable, exits.

Remember, selling is half of the challenge, and you should devote half of your efforts to making sure you're selling at the right time. You will find the results are an efficient, more profitable portfolio.

Good day, good investing and trading.

Sunday, July 08, 2007

Weekly Stock Market Outlook

Nasdaq Outlook

On Friday, the NASDAQ Composite gained 9.86 points (+0.37%) to end the day at 2666.51. For the week, the index gained 63.28 points (+2.43%). It was also a new multi-year high made in an impressive fashion. Though we can't say the same for the other indices, these gains may be more than the NASDAQ can support.

After hitting the 50 day moving average line (purple) in late June, the NASDAQ has been on a roll - up 4.1% from the June 27th low of 2560.45. It was the strongest week and a half we've seen in a long time, but was it too good? We're now stochastically overbought. The last two times we were (06/05 and 06/21), the NASDAQ Composite pulled all the way back to the 50 day line.

The counter-argument is that we stayed stochastically overbought between mid-March and early May - stocks rallied the whole time.

Those same folks might also argue the CBOE NASDAQ Volatility Index (VXN) looks to be moving lower more than it does higher, with plenty of room to keep falling.

Specifically for the NASDAQ, we'd be leery of jumping in now. If this bullishness is for real, there will still undoubtedly be pullbacks to use as entry spots. And/or, those same pullbacks will serve as confirmation that this unusual bullishness will persist. The key is what happens at the 20 day line at 2612, and then what happens at the 50 day moving average line. Both have been support so far, but things change.

Just for the record, the volume behind Thursday and Friday's buying was weak.

NASDAQ Composite Chart

S&P 500 Outlook

The S&P 500's close of 1530.45 Friday was a 5.05 point (+0.33%) improvement. For the week, that meant a 27.10 point (+1.8%) gain....and a 're-load' on bullish momentum. Can it last? We've seen it happen before under the same scenario.

During the last two weeks, the S&P 500 has crossed back above its 10, 20, and 50 day lines....all of which are basically in the same place. You may also remember we were recently thinking the 10 and 20 day lines (red and blue) cross under the 50 day average (purple) could be a bearish problem. Well, since then, the problem has been staved off. Technically, the 10 and 20 day lines are bullishly diverging from the 50 day line again. We've also got a new MACD crossover. On top of that, the VIX is sinking, and has more room to move even lower. In other words - at face value - the scenario seems to be a bullish one.

However, in our quest to find optimal entry points into such potential uptrends, we do think there are two hurdles traders could use as milestones. The first one is the resistance line (dashed) that halted Friday's advance. It extends back to the SPX's early-June peak, and also tags the mid-June peak. The second one is the potential ceiling at 1540 (red horizontal line)....the new all-time highs hit in early June. The passing of those two hurdles will make further upside progress even easier.

On the flipside, the combined 10, 20 and 50 day averages make for a meaningful support line. The lowest of those three is at 1512, and rising. If that level breaks as support, then caution is merited (though we're not going to call it an omen of bearish things to come - see late June for why).

S&P 500 Chart

Dow Jones Industrials Outlook

The Dow Jones Industrial Average ended at 13611.68 last week, up 45.84 points (+0.34%) for the day, and up 203.06 points (+1.51%) from the previous week's close. Like the SPX, it appears the bullish momentum has been restored.....doesn't it?

There are a lot of similarities between the Dow an the S&P 500 right now. The one we're most interested in, however, is the new upward momentum we seem to be seeing on the 10 and 20 day moving average lines (red and blue). Two weeks ago they were pointed lower; now they're not.

We also have a new MACD crossover, and unlike the NASDAQ, we're NOT stochastically overbought here. So, if the momentum gets traction, we don't see any immediate roadblocks.

We do however see a roadblock down the road.....13,756. That was the all-time high made on June 1st. It was close to retested in mid-June, and the pullback then leaves us wondering if there's a ceiling there. If there is, any upward move from here may not last too long. Notice how we'd be stochastically overbought by that point in time. If we can clear that hurdle though, look out above.

The bearish make-or -break point remains the 50 day line (purple).

Red Flag: The volume behind last week's buying was also very thin here, and does not necessarily express the majority opinion.

Dow Jones Industrials Chart

Have a great week!

Thursday, July 05, 2007

China & India Markets

A handful of recent developments in China reveal the upsides and downsides of this brave new world. Our imports from China once again overwhelmed our exports, and it’s put a glass ceiling on how much we can improve our trade deficit into the foreseeable future.

Another downside: some toxic substance got into our pet food made in China. And it’s thought that it just as easily could happen to our human food supplies.

At the same time, investment from the U.S. and other western countries continues to pour into China. And Chinese investment is going the other way – the latest being a landmark $3 billion investment in the U.S. private-equity Blackstone Group.

Chinese imports of minerals from nickel to coal continue to prop up commodity prices. And China remains the number-one buyer of U.S. government bonds, which is how the U.S. government raises money to pay off its debts. That allows us to keep buying boatloads of cheap Chinese imports, which help put a lid on inflation here.

When it comes to trade and finance, China is one of our main dance partners … and the choreography is complicated. Despite our trade deficit, I strongly believe that our economy would be worse off without China than with it.

But it raises a vexing issue: Is it a good thing to be so dependent on another country for our economic well-being? Especially a country we’re competing with over such things as energy supplies and influence in Asia and the Middle East? Especially a country that has such different views of democracy, human rights, and the environment?

Most of these same issues also exist in slightly different form with India, which has more poor people than any other nation, including China. And poverty, as we all know by now, can be a breeding ground for extremism, religious fanaticism, and terrorism. Yet India is also a source of cheap labor for our outsourcing needs, and their emerging middle class is creating huge investment opportunities for foreign and domestic capital.

Is the glass half full or half empty regarding China and India?

The answer is … both. It’s a very mixed picture – something we Americans sometimes find very hard to accept. For example, if India can fix its poverty problem and China can fix its environmental problem, the picture gets a little brighter. On the other hand, if China continues its crackdown on Internet free speech and India fails to further reform its economy, the picture gets a little darker.

Either way, we’re no longer immune to what happens in other parts of the world. The greatest stupidity would be to go about our private, business, and investing lives as if we were.

All our eyes should be open to the opportunities and dangers other countries pose. In my Wealth Advantage portfolio, four out of nine companies come from outside the U.S. and Canada. In my more conservative INCOME portfolio, four out of 13 companies come from outside the U.S. These stocks give both portfolios much better diversification and return.

Sure there are risks with investing in Indian and Chinese markets that you don’t get with investing here. In China, for example, the Shanghai Composite Index has just climbed over the 4,000 mark. It’s no longer a matter of if, but when, this superheated bubble will burst.

But some of the best values and/or companies with the best upsides come from overseas. I, for one, am not willing to forego these exciting investment opportunities because of an uptick in risk. Rather, I try to understand the nature of the risks and how I can best manage them. Vigilance, due diligence, and adhering to your sell-stops go a long way.

For example, in China, we have our antennae up for any public announcements from the government that could prick the bubble. We do continuous technical analyses of the China ETFs. And we watch the movements of our own Chinese stock selections very closely. If we see or hear anything that concerns us, we’re ready to take action. In the meantime, our overseas investments are doing extremely well.

Yes, it’s a little more work. But the alternative – ignoring these markets – is unacceptable. For the next few years, that’s where most of the growth will be.

I’m constantly looking for investment opportunities overseas. And so should you.

Click the China & India Markets title link above to review and trial for free, trading platforms and systems that can optimize and lower risk and increase reward while trading these two huge markets.

Good day, good investing, and good trading!

Wednesday, July 04, 2007

Trading Plan

It's been said that if you don't know where you're going, you could wind up anywhere. The same is true in trading - if you don't know what it is you're trying to accomplish, you're not likely to accomplish much of anything. One of the biggest pitfalls we face as aggressive investors is a lack of a specific plan.

At the very least, your trading plan should have (1) a monetary goal, and (2) a proven method. A lot of traders have neither, opting instead for a 'gunslinger' approach. In other words, they take trades that seem solid at the time, and they hold that position until it becomes more painful to hold it than to not hold it (and they may even make an occasional profit). But that lack of focus and specificity will ultimately lead to poor performance. Instead, smart traders treat their trading activities as a business.

First, make sure you have tangible goals. There's an amazing mental 'stick-to-it-iveness' factor that kicks in just in simply having a framework to follow. If you know that a 50% annual return is all that you need, then you can plan accordingly. The initial view you might have of a goal that lofty could be daunting. But with a little planning, you may find that the rewards you seek don't require much risk.

To earn 50% in a year, you'll need to earn about 4% per month on your account. That type of return is quite possible, and easier to swallow than the large 50% figure. By focusing your attention on those smaller increments, you'll not be forced to take excessive risks. The other benefit to a specific goal is the fact that you can track your progress. If you know that you averaged 5% per month for the first 6 months of the year, you can scale back on your risk for the last 6 months of the year.

The benefit of a proven method or system is also twofold. First, if you have a plan, you'll be able to ignore all the data that doesn't affect your trading. The media is not kind to traders - at any given time, you could find ten reasons to buy a stock, and at the same time find ten reasons to sell it. That emotional roller coaster is a nightmare, but if you are systematic and approach trading as a business, you won't talk yourself out of good trades (or keep yourself in bad ones).

Second, if you have a system, you actually have something to analyze. You can't improve 'gunslinging', but you can improve your trade signals.

These are two simple ideas, but exceedingly difficult to do. It's tough because it forces us to acknowledge some failures, and we all seek to avoid pain. It also forces us to look at our account balances, which again can be a source of pain. But the best traders know exactly where they stand financially, to the penny, and they know exactly why each trade failed or succeeded (these are the same people who actually still open their account statements). To know where you need to go, you have to know where you are.

As a first step, I recommend starting small. Set a goal of a 5% return for next month, and set a goal of winning trades 50% of the time - say 2 out of 4. Once you get into the success habit, you can then enhance those goals.

Click the Trading Plan title link above to review valuable books on creating sound and successful Trading Plans.

Good day and good trading!

Sunday, July 01, 2007

Weekly Stock Market Outlook

NASDAQ Composite Outlook

The NASDAQ Composite’s 0.2% loss on Friday (-5.14 points) left it at 2603.23. For the week though, that still left behind a 0.55% gain (+14.27 points) thanks to Wednesday’s big bounce. The NASDAQ’s relative strength continues to be an overall bullish argument.

Take a look at the 50 day moving average line (purple), the 10 day line (red), and the 20 day line (blue). All of them played a support role this past week, and the NASDAQ closed above all of them. It is what it is, which is still bullish.

On the other hand, take a look at the volume bars. The red bearish volume bars continue to be taller and more numerous than the green bullish volume bars. So far it hasn’t mattered, but volume is usually a pre-curser to trend shifts.

From this point, our bearish line in the sand is going to be the 50 day line at 2573. A close (or two) under it would be bearish. Anything else, and we have to assume the bulls will step up to the plate again. On the flipside, only a close above the recent ceiling of 2631 would inspire us to be any more bullish.

NASDAQ Composite Chart

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S&P 500 Outlook

The S&P 500 closed at 1503.35 on Friday, after a 2.35 point (-0.16%) dip. That was just a fraction above a break-even for the week…..0.8 points higher than the prior week’s close. Though still a positive move, the SPX is starting to find some substantial resistance.

You know the 10, 20, and 50 day lines we were looking at on the NASDAQ’s chart? They’re back in play again here, but on the other side of the chart. Rather than acting as support, here they’re acting as resistance. The S&P 500 attempted to cross and close back above all three of them on Thursday and Friday. It failed both times.

Also – and this is very subtle – for the first time in weeks, the SPX failed to make a higher high, and then turned around and made a lower low (though barely). The high watermark was about 1540, reached in early June and mid-June. The low bar was 1487, touched on June 8th. Wednesday’s low of 1484.20 broke new ground, even if things turned around again immediately. To see it occur right before the index started to struggle with short-term moving averages does not exactly bode bullishly.

The MACD lines are also still pointed lower, as they have been for weeks. The VIX may be back on the rise as well, though that won’t become clear until Monday.

The next bearish step will be a close under 1487. The next bullish hurdle is obviously the three short-term moving averages, all right around 1509. If we can actually get above the recent peaks around 1540, that may really spark a bigger move higher.

S&P 500 Chart

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Dow Jones Industrials Outlook

On Friday, the Dow Jones Industrial Average closed just 13 points lower (-0.1%). For the week, it closed 49 points (+0.37%) higher. Where the NASDAQ was slightly bullish and the S&P 500 was slightly bearish, the Dow appears to be caught between a bullish rock and a bearish hard place.

The potential double-top? Yep, the Dow made on of those, around 13,750. The lower low after that second top? We’d say no….it was more like a double-bottom. Wednesday’s low of 13,205 was basically even with early June’s low of 13,208. So at this point based solely on price the chart, we have to say the Dow is in a trading range.

And the moving averages? There’s support at the 50 day line (purple), and resistance at the 10 and 20 day lines (red and blue). The squeeze is on though….the 10 and 20 day lines are falling, while the 50 day line is rising. They’ll intercept sometime this coming week, and by default the Dow will have to be on one side or the other of all three of them. We’ll follow that lead.

On that same note, when the 10 and 20 day lines fall under the 50 day moving average, it will be the first time it’s happened since February. It’s also a major intermediate-term sell signal, so again the market has a heavy burden it may not be able to bear. The MACD lines are already bearish, as if the 10/20 day line cross under the 50 day line wasn’t enough.

Volume? This is a bit tricky here. To look at it visibly, we’d have to say the tide was turning bearish – we’ve started seeing more red bars, and they’re plenty tall. The Chaikin line though (which is more objective), isn’t saying quite the same thing…at least not yet. We’ll continue to watch the volume trend here, but we expect to have some more meaningful ‘tells’ from the price action – and soon.

Dow Jones Industrials Chart

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Have a great week investing and trading!