Blue Ocean Investment Strategies - 10 Reasons Why Everyone Should Utilize the Long Tail of Investing

Defined within the realm of the statistical Bell Curve, the long tail would reside in the skinny tail at the borders. The long tail, in regards to goods and services, refers to the evolution away from mainstream offerings towards more niche products and services. With the internet drastically reducing the costs of establishing distribution channels, the ability of entrepreneurs to focus more on the longtail sector to fit their customized needs is gaining increasing appeal.

However, almost no one speaks of the longtail of investing. To me, longtail investment strategies are the strategies that do not heavily rely on fundamental or technical analysis, but exploit other strongly predictive factors to produce not only superior returns to traditional investment strategies but also investment opportunities with far better risk-reward paradigms than those produced by traditional investment strategies. Here are 10 reasons why the longtail of investing is the only way to build wealth.

(1) You will never achieve the level of wealth you desire by handing your money over to a large investment firm. The vast majority of private investors hand their money to large institutions and allow them to invest their money for them. If this were truly the best way to achieve financial freedom, then almost every one you know would be ecstatic with their financial consultant. Think of how many people you know that absolutely rave about their financial consultant.

The fact that 90% of people you know do not rave about their financial consultant should tell you that niche investment strategies, or longtail investment strategies, are far superior. The ones that are happy with the large investment houses already were independently wealthy before they sought out their help. Think about how many people you know that have ever told you, “I wasn’t wealthy before, but thanks to my investment firm, I am wealthy beyond my dreams now.”

(2) Thanks to evolving information technology, there are many other means of making investment decisions than just utilizing fundamental and technical analysis. Though people have been really slow to grasp this, once they do, longtail investment strategies, like those invented by SmartKnowledgeU™, will boom. There is no doubt that the level of top-notch financial, political and corporate information available to the average investor has increased by leaps and bounds within the past decade.

There is a virtual treasure map that was created by the flattening of the world over the past decade to selecting stocks that are poised to explode. However, because the largest, most powerful investment institutions in the world have kept the masses of investors fixated on traditional investment techniques such as value and fundamental analysis, the longtail of investment strategies is currently much further behind in its developmental phases than it should be.

The best analogy I can use when explaining why people have ignored the long tail of investment strategies is to compare it to the incredibly slow adoption of Internet Protocol Version 6 (Ipv6) by the United States. When China started preparing its country for Ipv6 a decade ago, the benefits in increased security and its added value properties in e-commerce were evident even back then. However, people in the U.S. were comfortable with the lesser Ipv4 so did not take any action until the progress and superior internet and business capabilities of China, Korea, Taiwan, and Hong Kong finally embarrassed the U.S. enough to move forward and catch up with Asia.

I see the same thing happening in the educational realm of investing. Everyone is comfortable with the traditional investment strategies that have been propagated for the last several decades so nobody sees a need to move forward even though much better strategies exist today. Just as with Ipv6, the world will eventually realize that the safest and best means of investing money reside in the longtail, and they will eventually adopt these strategies.

(3) With so much investor skepticism of corporate integrity sparked by past accounting scandals at Enron, WorldCom, General Motors and the like, and the current, ongoing backdating option scandals, investors will increasingly seek alternate means of making investment decisions other than crunching numbers that they feel are untrustworthy. Furthermore, technical analysis often yields false positives as well. A chart will show indexes that appear bullish having just broken through a ceiling of resistance only to have the index turn back downward for a prolonged period of time, or a chart will appear bearish having just broken through a floor of resistance only to turn around and begin another bullish ascent.

In fact, you have seen some of these turnaround trends with some of the technical posts that I've placed on my blog in previous months. In fact, that is why I always state that I never rely solely on technical indicators to make my decisions. I rely only on technical indicators to confirm or dispel what my long tail investment strategies tell me. Of the three types of analysis, fundamental, technical and long tail, long tail investment strategies yield by far the least amount of false negatives and false positives. That's why I rely on them so heavily.

This sentiment will lead to an evolution of longtail investment strategies, and the discovery of more efficient and better predictive means of making investment decisions than even those that already exist. Even current longtail investment strategies, such as those utilized at SmartKnowledgeU™ are constantly evolving as access to reliable information increases every year. Making decisions as if you were a fly on the wall of boardrooms is no longer a fantasy. It is possible, thanks to the evolution of the information landscape.

(4) With the growth of blogs and pure information sites on the web, the stranglehold of global investment myths, including the Modern Portfolio Theory of diversification, will soon be exposed for what they are – cleverly disguised sales strategies posing as investment strategies. Once people realize this, longtail investment strategies will gain wider acceptance, much like acupuncture and herbal medicine eventually gained credibility as healing regimens in the schools of Western medicine.

(5) Wider acceptance of alternative, longtail investment strategies that far outperform those utilized by global investment firms will happen as word of successes via these strategies spread throughout the world via the internet. The internet distribution channel can and will be used to change the mindset of investors.

(6) The Do-It-Yourselfers are Growing – With the success of books such as Stephen Covey’s “The Eight Habit” that emphasize personal accountability to achieve excellence versus handing control over to someone else, cultural shifts will happen whereby people will seek to seize control over their own financial future versus just handing their money to a firm to manage. As this cultural shift happens, multitudes of people will realize that they are shorting their returns significantly every single year by handing their money to global investment houses.

(7) The flattening of the world and accessibility to previously inaccessible investment information will undoubtedly yield an increasing amount of investment strategies that reside in the longtail. People will realize the foolishness of believing in the one investment strategy thrust upon them by global investment houses for the past half of century as “the only viable and safe way to invest.” If the younger generation takes an interest in investing, adding their creativity to the investment arena will result in explosive growth in the longtail of investment strategies. However, since the odds of this occurrence are quite low, a more gradual shift towards niche investment strategies is much more likely.

(8) The explosion of social networking sites like YouTube, MySpace, Friendster, and so forth, will amplify the viral marketing of longtail investment concepts. Again, ignorance of longtail investment strategies causes fear and hesitancy to use them. Viral marketing of longtail investment concepts will increase millions of investors’ comfort level with these different and unique concepts.

(9) People are ultimately interested in returns, no matter how much global investment firms try to separate themselves from their competitors with smoke and mirror service claims. All the gratitude for luxury box suites at Los Angeles Lakers games, suites at the Four Seasons Hotel, conferences at world-class golf courses and resorts will quickly wither once people realize how much more money they are earning with longtail investment strategies.

(10) Again, because people will readily abandon all the perks they get as a preferred client at a large investment firm for far superior returns on their portfolios, longtail investing will eventually reach a critical mass. Eventually the longtail of investing will migrate towards the center and become the mainstream methods of investing, though this may take several decades to occur.

This article may be freely reprinted on another website as long as it is not modified, changed, or altered in any way and as long as the below author byline is included along with the active hyperlinks below:

J.S. Kim is the Managing Director of SmartKnowledgeU™ and editor of the SmartKnowledgeU™ investment newsletters. He is the inventor of the revolutionary SmartKnowledgeU™ investment strategies that are designed to grant the average investor a very high probability of earning 25% or more returns annually from his or her investment portfolio.

To learn how to build wealth from the coming investment crisis, click the following link, Use advanced wealth planning techniques to get rich!

Learn more about our investment newsletters here.

Visit our blog "The Underground Investor" for much more commentary on global markets.

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Getting a Global Investment Exposure in the Direct Way

Many of American investors considers that getting global investment exposure just means buying some US exchange listed Pepsi shares or some other such international company which has a huge part of its income outside USA. But this is not the real investing way to get global exposure. Global Investment for the most part is not just buying US companies with source of income around the world, it means owning the real thing, and its not Pepsi.

It means investing to non-US exchange listed companies in select foreign countries! Buying US listed companies with high non-US Dollar revenues have the same baggage/handicap other US companies have, among them: very high employee expenses, possible unfunded US pension liabilities, too much complex balance sheets and a few the executive options perk back dating nonsense. And mostly US stocks have very high p/e ratios' and very low at dividend yield. Most of all US stocks are priced in US currency, likely to be very weak currency from now on.

Foreign shares are priced daily in dollars to US based investors but the point is the underlying stock is in a foreign currency. So if A,B or C's stock price does not move at all, but the US Dollar continues to decline its value, his stock price in US dollars will move-up nevertheless.

US investors especially should consider owning value shares in emerging market for high dividend yield, high growth, low p/e's and US currency declination protection. Especially in Asia market, countries like Thailand, Malaysia and India still has a lot of very good potential and low risk shares to buy and hold for a least 1-2 year from now (2007).

To US investors whom want global exposure, I suggest to own the real thing, and it is not just Pepsi !

Have been investing in asian stock markets for more than 10 years. Source: http://www.bullish.info

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Is a Global Real Estate Market Crash Really Imminent?

Have you heard of the butterfly effect?

It’s a chaos theory concept whereby theoretically a butterfly flapping its wings in one part of the world and creating a tiny change in the atmospheric conditions around it could cause a chain of events leading to a catastrophic tornado reaping havoc on our lives elsewhere in the world for example.

It sounds dramatic doesn’t it?

Well, it’s a concept being cited right about now in many media reports, articles and press releases relating to the state of real estate marketplaces around the globe which is why it’s important that we understand the basic concept of the effect.

The reason why the butterfly effect is being cited is quite simple - recently construction industry shares on the Spanish stock market crashed down as a result of just one more alleged scandal being heaped on many other horror stories relating to the real estate industry in Spain – so now many people are saying that this could just be the catalyst that causes property markets around the world to come crashing down around our ears.

But is a global real estate market crash really imminent?

This is an incredibly interesting question to examine. Never before have so many property markets around the world been so closely interlinked and intertwined. In part property markets are now more linked than ever because we can all travel about and buy real estate pretty much anywhere in the world. In part it’s because a number of countries have actively courted our attentions with regard to their real estate marketplaces because for them foreign direct investment is critical to the success of their economies. Additional reasons include the fact that an increasing number of us recently decided to get in on real estate investing meaning that more of our wealth than ever before is now resting in property markets around the world. Furthermore, we have just been through a sustained and intense period of property price appreciation pushed up by our demand for multiple properties and by our strong purchasing power at a time when many of the world’s economies are doing well, unemployment levels are low and interest rate levels have remained attractively low as well allowing ever greater numbers of people to borrow ever greater sums of money.

So many markets are directly linked and many other markets have simply been similarly affected by patterns of purchasing power for example…therefore theoretically, if one market does crash it could affect all other markets right?

Wrong.

The two main reasons being given for a potential (and probably actually imminent) property market crash in Spain are over supply and lack of affordability. So in markets that are suffering the same conditions a real estate market crash could well be imminent.

In other locations where supply is still well below local and international demand and where property stock remains attractively priced and affordable there is no exact and definite reason why the butterfly effect starting in Spain should cause a crash.

However, if you are considering investing in real estate in a given location/nation you should always consider these primary factors: -

1) What is your investment approach – a) acquiring capital growth or b) earning rental income?

2) If a) acquiring capital growth, what local factors suggest that prices are going to keep on rising? Be sure there is room for sustained growth and that you will be able to exit quickly from the market when the time is right to sell. Make sure oversupply will not become an issue and ensure your potential resale audience will have funds available when it comes time for you to sell.

3) If b) rental income, what does your tenant market desire, how much can they afford to pay for your product, can you buy low enough to attract a decent yield? Select appropriate stock for your tenant market demand.

4) Always, always do extensive due diligence on your market demand – you will not resell or rent real estate that is not in demand so know your market and know the factors driving and affecting your market’s property based decisions.

5) Never put all your financial eggs in one basket – in this case I mean in one commodity such as real estate or even in one single piece of real estate. The key to investment success is diversification.

6) If in doubt, don’t buy!

Rhiannon Williamson writes about international real estate investment and buying property abroad - to keep up to date with global property market movements visit her site http://www.shelteroffshore.com/

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Options Trading - The A,B,C Of Options Trading

Like futures trading, an option gives a trader the right, but does not obligate him, to buy the underlying stock at whatever the specified price on a preset time in future.

You make profits if the stock value ends up higher than what you purchased at. On the flip side, if the prices drop, then you lose out on your investment.

There are 2 kinds of options: the put option and the call. When you purchase a call option, you expect that the value of your investment will rise and you buy a put option when you expect the prices to fall.

In either case you make a profit, provided your foresight was correct, unlike other derivatives where you get a profit only when value of shares increases.

You could use the hedging strategy when you are unsure if the price of your stocks is going to go up or fall down. What you should do in such case is go for a put option. If the price dips, you make a profit and if it goes up, at least you do not lose the investment, only the profits.

If you are sure your stocks are going to dip in value, it would be better to sell out and re invest in put options.

Another strategy could be to sell out before the expiry date of your options so you can purchase the underlying profitable stocks. Selling on the options is not a problem because there are bodies responsible for the purchase of so as to maintain a balance in the system.

Do take the time to be a part of forums and online discussions on the possibilities of options trading. You will find up to date information there that no book can provide. Some websites can offer free training material as well, which is a great boon for beginners.

Like any investment, options trading requires you to be updated with regularity, on the economy and businesses of different trading companies, if you would like to buy stock options on their company. It is great when you have a good idea of who you will need to trade with.

When you have the adequate information on the goings-on of the market, you are best equipped to make your self a good profit. Secondly, the timing with which you make your moves is vital, so make sure you make regular observations of the market if not continuous in your business day.

To conclude, although trading with options can be a risky business, it can give you good returns when you play your cards right. So make sure you are getting regular information updates and that you have a strategy to work with.

Abhishek has an uncanny insight into Trading! Visit his website www.Trading-Masters.com and download his FREE Trading Report and learn some amazing Trading tips and tricks for FREE. His tips would save you thousands and make you better at Trading! But hurry, only limited Free copies available! www.Trading-Masters.com

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Beginning Investors Top Investment Strategy

There is an investing technique that will lower market risk and allow young investors to benefit from long-term growth. This technique is called dollar cost averaging; and it's a great technique to combine with broad based index fund investing.

Long-term gains using a dollar cost averaging plan.

Dollar cost averaging allows young investors to purchase stock investments consistently over a longer period of time. This stock market strategy works especially well with broad-based market index investments like the mutual funds and ETF's that mirror the return of the S&P 500. This powerful and simple investment plan will help lower risk and you have the potential for higher returns.

For young investors looking for consistent gains over time, establishing a dollar cost averaging plan could be a perfect solution. Young investors are able to purchase more shares when the stock market experiences short-term corrections. That way when the index turns around and starts heading up in value young investors are able to profit more because they own more shares.

When the market is rising young investors are able to capitalize on the market trend because they are following a consistent investment plan. As they purchase more and more shares in a bull market that money is going to work for them right away.

Dollar cost averaging spreads the prices that you purchase stock market investments (cost basis) over a longer period. Investors are protected from stock market corrections and benefit from long-term gains in the market.

Steps to creating an effective dollar cost averaging plan.

For young investors creating a successful dollar cost averaging plan is simple. There are two basic steps that will get your money working for you:

1. Decide on the exact amount of money you will invest each and every month. The key to a successful dollar cost averaging plan is consistency. You can increase your investment over time but avoid investing different amounts each month.

2. Set up the exact times you invest. If you decide to invest once per month do so on the same day. For instance, the fifth of every month invest $150. This is made simple with help from an automatic investment plan. Set this up one time and your investments are made automatically for you each and every month. All you have to do is check your statements to see how your investments are doing.

Improve your dollar cost averaging plan through diversification.

Diversification is a simple spreading out the risk of owning a stock investment by owning many different stocks in a variety of sectors. Owning a group of stocks, instead of an individual stock, could further reduce your risk. This will reduce the risk of owning any single investment. The investment of choice for many young and beginning investors is broad based indexes.

An example of a broad based market index is the S&P 500. By investing in the S&P 500 index you own a piece of every stock that makes up the S&P 500. Stocks like American Express, Google, Ford, Nordstrom, Home Depot, Staples and Yahoo are a few of the stocks that make up that index. That way you're protected in case one of the stocks in the S&P 500 drops 70% of its value, you're only invested 1/500th, and you won't experience too much loss from that. In comparison, if you just owned that stock by itself you would have lost 70% immediately.

For young investors, keeping your investments diversified and using a dollar cost averaging investing technique - you have effectively reduced risk and are in an excellent position to achieve long-term profits.

Vince Shorb, the leading financial literacy advocate and author of 'Financially Free by 30' gives young adults practical investment strategies they can use now to achieve long-term benefits. Visit http://www.FreeBy30.com now for his free 5 step video course visit.

Article Source: http://EzineArticles.com/?expert=Vince_Shorb

Investment Property and Financial Security

It has been estimated that over 95% of the world’s millionaires have made money through investing in property. It has also been said that the best way to become successful it to find someone who is, and copy what they have done.

With this in mind, once you are aware of the huge potential that property investment has for creating wealth, and have decided that you would like to follow this course of action, how do you know where do you start?

The most important thing you can do is become informed. Learn how to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read as many investment books as you can. Read auto-biographies of successful people. Learn what they did right, and even more importantly what they did wrong, so that you won’t make the same mistakes. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.

Find out about Negative, Neutral and Positive gearing – and why gearing is such an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.

Once you have educated yourself and understand why investing in property is such a powerful tool, you will be able to embark on the road to financial security.

In Australia, and many other countries less than 5% of the population reach retirement able to support themselves, without government or family assistance. If you want to be one of the elect who are self sufficient at retirement, then now is the best time to start striving toward financial security.

Debra Lohrere is the author of several books on property investment, creating financial security, goal setting and the power of compounding. Please visit her storefront at http://www.lulu.com/DebraLohrere or homepage http://www.debra.lohrere.com/home.shtml

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Top 10 Option Investment Strategies

Neutral to Bullish Strategies

1. Long Call: Simply buy a call option on a stock. This provides unlimited upside potential and caps the associated risk at the amount paid for the stock option. For Example, say you have $1600 and think Google (GOOG) will increase in value: say it is currently trading at $500 a share but you only have enough money to buy 3 shares. Instead of buying the shares you decide to buy call options on Google (GOOG). Let’s say you want to be conservative and only buy options trading write at the money (strike of $500). Now you just need to choose the expiration month (do you think the stock will increase in value soon or will it take a while?)

Say you believe Google (GOOG) will increase in value within 1 month. You buy September 500 Calls for $16 (you have $1000 so you can afford 1 contract (sold in 100 board lots). As long as Google (GOOG) Trades at $516 at expiration in September you have made a profit.
Say GOOG is trading at $550 at expiration of the call options:
If you had bough 3 shares your profit would be ($550-500)*3 = $150.
If you bought the Call Options your profit would be {(550-500)-16}*100 = $3400.

2. Put Writing (Short Put): Simply sell put options on a stock. This provides you with the option premium while your maximum risk is strike price of the option minus the premium received. Your max risk scenario would only occur if the price of the stock went to $0. For this strategy an investor will normally have a neutral to bullish market forecast.

Say you are interested in Apple (AAPL) and think it will appreciate in value or remain the same. You can sell Puts on Apple (AAPL) and received the option premium in exchange for the risk that the stock may decrease in value up to the expiration of the stock options you sell. Say Apple (AAPL) is trading at $120. To be conservative you write put options with a strike price at the money ($120) for $6 each and an expiry in 1 month. Say you only write 1 contract, you will receive $600. While you are waiting for the option to expire you can invest that $600 elsewhere say in Google. At expiry, as long as the Apple (AAPL) is trading above (120 – 6 = $114) you have made a profit.

3. Married Put: This strategy is implemented by buying the stock and buying a put on the stock. This provides you with protection against a price decline while you can still participate in all upside in the stock price. The risk/reward profile is very similar to the Long Call; that’s why this strategy is also referred to as a ‘synthetic call.’

Lets go with Starbucks (SBUX). You buy 100 shares at $25 a piece for $2500 and want to protect yourself against a decline in Starbuck’s (SBUX) stock price so you buy puts right at the money because you are being very conservative. Say you only want to protect your stock from a decline for 1 month. You buy puts with a strike of $25 1 month to expiration for say $1. Now, the most money you can loose over the month is the $1 you paid for the put while you still can participate in any upside so as long as the Starbucks (SBUX) is trading above $26 at expiration you have made a profit.

Neutral to Bearish Strategies

4. Long Put: Simply buy Put Options on a stock. This strategy is implemented when an investor has a bearish forecast for a stock. Say you think Google (GOOG) will decrease in price over the next month. Instead of shorting Google (GOOG) you decide to buy put options on Google (GOOG) because you don’t want to put so much money at risk. Say Google (GOOG) is trading at $500. If you were to short the stock you need to be able to cover you position. Say you have $1500, you would be able to cover shorting 3 shares. If you buy puts and are conservative you could write at the money $500 puts for one month out for say $15. You could afford 1 contract (100 shares). If you had just shorted the stock you would profit as long as the stock declines in value, but you have unlimited up side risk. With the put options on google (GOOG) your risk is limited to you initial investment while your rewards could be substantial.
Say Google (GOOG) in one month is now trading at $450:

If you shorted the stock your profit would be ($500 - $450) * 3 = $150
If you purchased the puts your profit would be ($500 + $15 - $450) * 100 = $6500

5. Call Writing: Simply Write (Sell) call options on a stock. This provides you with the option premium while your maximum risk is infinite (the stock can potential increase to infinity, ha). For this strategy an investor will normally have a neutral to bearish market forecast. Say you are interested in Apple (AAPL) and think that it will depreciate in value over the next month or remain the same. You can sell Call options on Apple (AAPL) and receive the option premium in exchange for the risk that the stock may increase in value over the month.

Say Apple (AAPL) is trading at $120 and you are going to be conservative and write put options with a strike price at the money ($120). You receive $5 in premium. As long as the price of Apple (AAPL) is less than (120 + 5 = $125) at expiration, you have made a profit.

6. Protected Short Sale: This strategy is implemented by shorting the stock and buying a call option on the stock. This provides you with protection against an increase in the price of the stock while you can still participate in the decline in the stocks price. The risk/reward profile is very similar to the Long Put; that’s why it is also know as a ‘synthetic Put.’

Let’s go with Starbucks (SBUX) again. You can short 100 shares at $25 a piece for $2500 and want to protect yourself against a rise in the stocks price so you buy calls on Starbucks (SBUX) right at the money because you are conservative. Say you only want to protect your stock from a decline for 1 month. You buy calls on Starbucks (SBUX) with a strike of $25 and 1 month to expiration for $1. Now, the most you can loose over the month is the $1 you paid for the put while can still participate in any decrease in the stock price. As long as Starbucks (SBUX) is trading for less than $24 at expiration you have made a profit.
Neutral Option Strategies:

7. Short Straddle: This strategy is implemented by simultaneously writing a put and a call option on the same stock with the same strike price and the same expiration date. This way, as long as the stock price remains somewhat stable you will profit.

For example, say Google (GOOG) is trading at $500 and you think it will remain near that price over the next month: sell google (GOOG) $500 Calls for $16 and sell google (GOOG) $500 Puts for $15, both with expirations of about 1 month. As long as the price of Google (GOOG) at expiration in one month is trading above ($500 – (15 + 16) = $469) and below ($500 + (15 + 16) = $531) you have made a profit.

8. Short Combination (Short Strangle): This strategy is similar to the Short Straddle as you write a call and a put option; however, the difference is that with a short combination you use different strike prices. This way you can increase your window of profit opportunity just incase there is a price move.

For example, say Apple (AAPL) is trading at $120/share and you think the price will remain somewhat stable over the next month but are a bit more causes than the Short Straddle Investor: sell Apple (AAPL) $130 Calls for $2 and sell Apple 110 (AAPL) Puts for $3; both with one month to expiration. As long as the Apple Shares remain above (110 – 3 – 2 = $105) and below (130 + 3 + 2 = $135) you have made a profit. This way you will receive less option premium but are more likely to make a profit.

9. Long Straddle: This strategy is the opposite of the Short Straddle; an investor will simultaneously buy a call option and a put option on the same stock with the same strike price and same expiration date. Investors use this strategy when they think a large price more will occur in a stock but are unsure of which direction the stock will move. This strategy can work well when a major anticipated decision is about to be made for the stock: buy-back program, law suite, new technology, earnings reports, presidential election.

For example, say the United States Presidential Election will occur in the next month and you want to find a way to profit. Some stocks will move depending on which candidate wins and you decide to focus on Starbucks (SBUX). Say one candidate wants to increase taxes on milk and the other wants to decrease them. You know this will effect Starbucks (SBUX) bottom line so you decide to implement a long straddle because you are not sure which candidate will win. You buy calls and puts with the same strike price on Starbucks (SBUX) and same expiration month. When the decision is announce the stock will most likely move dramatically in one direction. As long as the stock moves in one direction more than the amount that you paid in option premium you will profit.

10. Time Spreads (Calendar Spreads): This strategy is implemented by buying and writing an equal number puts or calls on the same stock with different expiration dates but the same strike prices. Normally time spreads have a neutral basis but they can also be designed for a bullish or bearish basis.

For example, sell $500 Calls on Google (GOOG) with 1 month to expiration and buy $500 Calls on Google (GOOG) with 6 months to expiration. You can make a profit if the Calls with a shorter time to expiration erode in value faster than the longer term calls. This tends to work as the time value component of an options value usually erodes faster the shorter the term to expiration. However, you need to consider other aspects of the options price like volatility.

For more about options strategy please visit http://www.investcanada.blogspot.com where you have access to more detailed descriptions of options trading strategies including risk/reward profiles, when each should be used, and break even points.

An independent investor with a passion for investment strategy. I currently hold a B.COM and am working towards the CFA designation.
Article Source: http://EzineArticles.com/?expert=Stuart_Mcconnachie

Investing Making Money - How To Make A Fortune On Any Investment You Choose

When it comes to investing and making money, whether it be through real estate or the stock market. However, here’s one thing you need to keep in mind: no matter which avenue of investment you take, it is always about the numbers. Here’s what I mean.

In many instances, many people start investing in a rental property or a stock simply because somebody calls them up and tells them they have to get in on this thing, because it’s going to be huge. Stock brokers are notorious for doing this.

Since they make a certain percentage of the money you are investing, naturally they want to get their clients to invest as much as possible. Therefore, they will often times call up their customers and try to hype them up on a stock, telling them it will be the next big thing, and it’s a can’t miss opportunity.

An easy way to tell whether they are telling the truth, when they call up, is to ask them if they themselves are investing their own money in the stock. If they aren’t, you can be sure they are trying to get you to invest just for the money.

How can you tell whether something, whether it be a company or a real estate property, is a good investment? Check the numbers. Unfortunately, most investors aren’t educated enough to do this.

Quite simply, before laying down your money in any investment, make sure it is already turning a profit; don’t be duped by somebody who tells you they are on the verge. If the investment doesn’t have a long and profitable history, it’s always best to move on and look elsewhere. This is the only way to making money investing; if you don't do this, you are essentially gambling with your money. If you invest in a stock or rental property that has been churning out the money for 10+ years, then you can be reasonably sure it will continue making money.

Here's one more quick step: make sure to look into the investment carefully, to make sure the future outlook is also profitable. Just because an investment has proven to make money in the past doesn't necessarily mean this trend will continue. Follow these steps, and you will be investing and making money faster than you ever thought possible.

To learn to invest money and for other investing advice, try checking out http://www.online-investing-tips.com.

This is a popular investment site that gives money investment advice to help you achieve financial freedom.
Article Source: http://EzineArticles.com/?expert=Josh_Neumann

Real Estate Investment

"If you are interested in getting involved in the business of real estate, there are a few basics that you need to know before you get started. For most, making that first purchases is the hardest step because the jargon and paperwork involved with the business can seem a bit overwhelming. In addition, there are so many different types of properties to purchase that investing in real estate can seem downright confusing.In order to simplify the process and to get started in the business of real estate investment, there are three major areas you must consider.

These areas include:
• Getting comfortable with the market
• Knowing your strong points
• Establishing your goals

Once you have taken care of these three areas, you will find that it becomes much easier to buy and sell real estate for profit.Getting Comfortable with the MarketYou most likely will never be completely comfortable with the real estate market until you actually start to dabble in it. The more you buy and sell real estate, the more you will learn and the better you will be able to understand how to gain the most profit from your investment. At the same time, you need to become somewhat comfortable with the process before you begin.The best way to get comfortable with the business of real estate investment is to get to know other investors and to learn from them.

There are many ways you can accomplish this, including:
• Attend Real Estate Investment Association meetings
• Talk with other investors and learn from their stories
• Partner with other investors – you can even offer to do some work for free while they teach you the ins and outs of the business

You can also learn a great deal about the real estate business by watching listings and sales. The MLS is a good way to keep up with sales information, while some counties also publicize sales in their local newspapers. By watching the market closely, you will begin to notice trends that can help you maximize your profits and minimize your risks.

Knowing Your Strong PointsThere isn’t necessarily a “right” way to approach a real estate deal. Rather, you need to understand your own strengths and weaknesses so you can approach the deal from the angle that works best for you. To help you better understand your strengths, you might have to do a little trial and error. You should also choose just one area in which you can specialize.

Areas of specialty may include:
• Foreclosures
• Pre-foreclosures
• Rehabs
• Quick flips

Once you become comfortable with one area of specialty, you can expand your business to include other types of real estate investments if you desire.Establishing Your GoalsNo business can be a success without first establishing clear business goals, the same is true when it comes to real estate investment. To help you better develop a business plan, you must first decide where you are going. For example, if you are just looking to generate a little side income, you might look into investing in fixer uppers or into flipping houses. If your goal is to earn a sizeable income, however, you will need to think bigger.

Whatever your long term goals may be, you can create a business plan that will help you achieve that goal. This will involve developing several small goals along the way that will help you monitor your progress and stay on track.The business of real estate investment can be quite profitable and can be of very little risk if you approach it wisely.

Do your homework, be honest with yourself about your strengths and weaknesses, and establish goals and you will be sure to be a success."Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan’s Austin Real Estate Guide, visit his Austin Realtor website, & his Tulsa Real Estate website. He has seen considerable success in real estate, and looks forward to many more years in the business.Article Source: http://EzineArticles.com/?expert=Kinan_I_Beck

Investment technique For creating Passive Income

There are many wealth creation strategies and investment techniques available to those who are looking to create a passive income. These fall into three main categories. Running a business, investing in property and investing in the share market. Although there are many options in each of these areas, finding the right wealth creation strategy for you is not that hard.The formula for Wealth Creation is relatively simple.

In order to increase your wealth, you need to increase your wealth generating activities. Most of us start out trading our time, for money.We get paid an hourly rate for doing a certain job. The problem with this is that in order to increase your income, you usually need to increase the amount of hours you sell to your employer or clients. Which in turn reduces the amount of time you have to spend on yourself, your family and doing the things you enjoy.In order to increase your quality of life, the only realistic strategy is to increase your income, and reduce the amount of hours you work.

How do you do this you might ask? By using time tested wealth creation strategies and investment techniques to create and then increase your passive income.Creating a Passive Income gives you more time and money to spend on Wealth CreationPassive income is generated when you are making an income without having to work for it. For example if you own a business, that you have setup to run completely on its own, or if you own shares in a company that pays you annual dividends, or perhaps a piece of real estate that generates capital or rental returns.

All these investment techniques earn you passive income. because you are not limited by the amount of hours you can spend per day working on them. Instead of working for money, you now have money working for you. This is the true essence of any effective wealth creation strategy. Maximum return for minimum effort.

Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at http://www.Global-Investment-Institute.comInvestment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.Article Source: http://EzineArticles.com/?expert=Mika_Hamilton

Online Investing Tips

The world of online stock investing has proved to be the fortune maker for thousands of people. It is a dynamic market where an intelligent and careful investor can make a lot of money. It has been regarded as the best legal way of making money in the shortest time. In spite of all this, the fact that the stock market can be a risky market and it has made many investors back out.

For a new stockbroker it is essential to be well versed with the terms and trends of the stock market if he/she wants to succeed with the least of risks involved. It is futile to make brash theories about the stock trading field on your own hunches. This will lead to the loss of money and you might be forced to withdraw from future efforts in this field. In order to excel in this industry, you have to employ good planning skills with a lot of patience to get the desired results.

One of the best things you can do to raise your income through stock market trading is to study the working methods of the investors who have been above average in this field and follow their example. You must start off by investing in the stock market with relatively safer investments. In the beginning, you must stay clear from stocks that have a history of extreme fluctuations. Another thing to be kept in mind is that you must start the investment process at a young age so that you get the maximum returns on your retirement.Today you can invest your resources at home. This is a very good thing for you as you can utilize the extra time in educating yourself on the finer points of the market. You must read all the relevant information and learn to ward off useless advices.

There are many people who can create a situation of panic around you and this might lead to a situation where you might make the wrong decisions. The determination to stick to a well-planned investment is essential to get the right results. Stock market quotes are a great way in analyzing the market trends. They help in the right assessment of a stock as you can see its performance over a wider period of time.You should not hesitate to use the services of an established broker if you are new to the market and need some good advice to start off with your fortune making exercise.

Patience is also a must-required virtue, which will help you in making the right choices. You must realize that money cannot be made overnight and needs meticulous planning to become a reality. If a stock broker is patient and well educated about his investments, he/she is guaranteed to make the most out from the online stock-trading field. With these points in mind, you can surely benefit a lot in the long run, and carve out a better future for you and your family.

Open an account with sogoinvestIf you are new to sogoinvest: Online stock trading investmentArticle Source: http://EzineArticles.com/?expert=Amit_Malhotra