pic from jacreative @ Flickr
Another day, another Dow drop.
It’s obvious that all the maneuvering and stimulating have done little to stave off rapidly deteriorating global economic conditions. Like injecting a heart with adrenaline, the programs designed to re-start the economy gave it a boost, but only treated a symptom temporarily and never addressed the disease.
Why? Government money is too diluted. It probably takes almost as much money administering stimulus funds than the actual amount that will seep into the economy.
Austerity programs will only stunt or retract an economy. It’s a great gesture, but growth is the key.
To promote growth, governments should drastically cut, if not totally suspend capital gains tax.
The move would:
Instantly boost the market.
You could reasonably expect a 10 to 20 percent rise in the stock market. You could also expect new companies striving for initial public offerings to come out in full force.
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Accelerating Technology, Investing, Money, Online Investing AI
angel investing, depression, economy, invest, Investing, investors, recession
Finding a path is easier than making your own sometimes.
You can lose direction. You can run into unforeseen obstacles. You can lose interest. Or, you can just get tired.
Investors and traders are lucky because there have been trailblazers in the investment world for more than a hundred years. Some of them are less well known than others. Their success has also been well-documented.
Some of the stories are actually reverse-lessons. You should do the opposite of what these legends of stock market success did. Especially after they earned their money.
Here are a few famous investors listed at My SMP–and how they arrived at their fortunes.
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Accelerating Technology, Investing, Money, Online Investing AI, Success
great investors, investors, Money, risk, traders, trading, wealth, wealth management
I think Warren Buffett is an interesting guy.
I admire him. I read a few books that were written by him or about him. I believe–at least for my long-term holdings in my portfolio–that the Intelligent Investor, written by Buffett’s mentor, Benajamin Graham, is a must-read.
Over the years, I’ve had some disagreements with Buffett, but nothing to stop me from sitting down and having steak with him.
But there’s one thing that would: paying a million dollars for that steak.
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Dreams Come True, Investing, Money, Online Investing AI
auction, benjamin graham, berkshire hathaway, charity, dinner, investors, long term investing, Money, Warren Buffett, wealth
quinn_anya@Flickr
According to the Wall Street Journal, the government is considering a tax on financial transactions that could raise $100 billion for the government coffers.
This week, the left-leaning Economic Policy Institute floated the idea of a national transaction tax that would raise $100 billion to $150 billion a year. The tax, at a rate of 0.1% to 0.25% of the value of the trade, would be levied on all financial transactions such as stock trades, but not on consumer transactions such as with credit cards.
This will include a tax on your stock purchases. And your stock sales. (In addition to capital gains tax.)
Using a little math, that would mean that there’s $100 trillion in transactions each year. It sounds like another cash cow for the bureaucratic milking. Who will miss a couple hundred billion here or there?
But, as with most things, the law of unintended consequences rules and the question remains, what effect will this have on investors?
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Business Strategy, Investing, Money, Online Investing AI, US Economy
economy, government, Investing, investors, overseas, tax
What do you invest in?
Stocks?
Bonds?
Options and futures?
Forex?
Actually, you don’t invest in assets; you invest in yourself. All those assets are just tools to accomplish that. Here are some web sites and blogs that will help you learn about investing and learn how you can create your own investment style and philosophy.
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Business Strategy, Internet, Investing, Money, Online Investing AI, US Economy
Investing, investors, week, wisdom, wrap-up
Jenny Downing-Creative Commons
As we develop Automated Trading systems, one of the criticisms I hear frequently is: “Automated Trading will never replace traditional human trading.”
To which I respond, “We’re not trying to replace human trading.”
Trading is more than a way to make money. A lot of people enjoy it, just like people like riding bulls, putting together jigsaw puzzles, playing contact sports, strumming the guitar, and a gazillion other ways to work, play, and create.
Automated Trading can actually augment a traders’ activity. Here’s how:
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Accelerating Technology, Automated Trading, Business Strategy, Investing, Money, Online Investing AI, US Economy
Automated Trading, hedge, investors, traders, trading systems
As Automated Trading become more and more popular, it’s interesting to hear people’s ideas and opinions on the matter. Some people think that they have to be perfect in order to be useful. Or, they think that they have to make money on every trade to create value for it’s owner. Or, the Automated Trading systems must correctly determine the direction of the market on a consistent basis.
That kind of thinking is silly when you take a moment to consider it. What trader makes money on every trade? Is it possible to have more losing trades than winning trades and still make money? Absolutely. If your winning trades make more money on an average per trade basis, then it is possible to have more losing trades and still make a profit.
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Automated Trading, Investing, Money
Automated Trading, emotions, human trading, Investing, investors, Money, stocks
Everyone thinks you invest in a company, or a commodity, or an options contract, or a piece of real estate, or any of the hundreds of other types of investments.
You’re really not. You’re investing in yourself. You’re just using those assets as vehicles to generate wealth. Wealth that can then be used to improve your life.
In order to make the transition from a wage-earner to someone who is financially free, you have to recognize the power of investing. Investing, when done properly and without emotion, can lead to exponential returns and increased wealth.
Each dollar invested, earns a percentage. Which is then reinvested. And reinvested. Until you have enough money that you no longer have to rely on an outside income. You may not quit your job; but, you know you can.
So what are the keys to investing in yourself?
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Investing, Money, Online Investing AI
financial freedom, invest, Investing, investors, Money, wage slave, wealth
A good portion of independent investors are drawn to trading and the market, in general, because they enjoy it. It’s a hobby for many.
But, a vast group of potential investors are left on the doorstep of financial freedom because they believe that it takes special skills and a whole lot of time and effort to become a “trader.” They may invest in a few stocks, but rumors that they will be forced to spend hours locked away with a copy of Value Line and research earnings reports keeps them from actively trading and investing.
With a full-time job and family commitments, time is a commodity they can’t trade.
So, they need someone else to mind their money, they decide.
The financial industry reinforces this stereotype, making it clear that only financial analysts with 120-hour work weeks can understand the market.
But is this true?
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Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI
financial industry, financial wizards, investment, investors, Money, technology, trade, traders, trading
It was once true that the only people who made money trading stocks and assets were brokers. There weren’t such things as daytraders and independent investors.
Only brokers had access to the market. And, better yet for them, they had access to your money. Brokers could make money no matter what way the trade was executed. Commissions and fees saw to that.
Then came the internet. And the stock market’s barrier to entry crumbled drastically. Anyone could trade and as the 24-7 approach to the market became more common, people could trade any time they wanted to. Then, new markets opened. Independent investors and traders could trade currencies. They could trade commodities. They could trade foreign desks. They could trade derivatives.
All these worlds opened up. And some traders made a lot of money. But other traders went broke.
Despite the accessibility, traders still had trouble researching and monitoring the all-day, all-night markets. Yet, the myth still persists that only full-time traders have any chance of making money in the market. Here’s why that myth will crumble.
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Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI
advanced technology, Automated Trading, investors, traders, trading, trading systems
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
