Archive for December, 2009
New Users Overview Of ETF Trend Trading
Posted by: | CommentsETF trend trading is one of the methods that is often used when one is using an ETF trading strategy. In order to be successful with trend trading a person must do all of the research and work that is completed when using the Buy and Sell Points Setting strategy.
While many individual feel that there is no history to many trends within the market, this is often not the case. By doing the proper research a person will often find that certain sectors introduce a product that becomes a trend on a regular basis.
In order to accomplish effective trend trading the trader will need to determine what sector they wish to analyze. This may be one of the sectors that a person is currently trading in, or a sector that is in another basket. In some cases, an individual will choose the sector based on the company that consistently has had trends that peak as part of their historical data.
Many websites offer trend trading techniques, methods, tips, and strategies. However, in most cases a person who does a historical analysis of a sector will find that some trends are reoccurring and this knowledge will allow them to come into the market when the trend is going to come in and get out when it reaches it peak through a buy and sell point setting strategy. An example would be an electronics firm that introduces a new product each year. The stock for this company raises significantly right before and right after the product is introduced. By the fourth month the stock starts to drop. By the seventh month the stock tanks and the firm’s stock remains at the bottom of the index for five months. An individual with the historical data would know to come in right before the stock raises and get out when it peaks. Without the necessary data a trader would come in somewhere near the top and get out somewhere near the bottom.
It is also necessary to identify other triggers that affect the historical trends of a sector. The death or displacement of key industrial leaders in a sector will usually negatively impact the sector even if they are in an upward trend. In addition by analyzing patterns of moving average, trading volume, historic highs and lows, an individual can accurately calculate the return on investment by acting right before or right after the trend peaks.
If the trend trading is going to take place in a sector that a person is not familiar with, it will be beneficial to go on the websites that focus on trend trading. These websites will have information regarding all of the active baskets that have up and coming trends and what one can expect. Some sights also offer historical data regarding the sectors that are expected to trend.
Setting buy and sell limits will be important to effective and successful trend trading. This is an extremely fast moving form of trade and an individual can easily lose sight of their goals when they get caught up in the action of the trading environment. By setting buy and sell limits a person will find that they can enjoy the action, but still sell before they experience an adverse reaction.
Talking to professionals who know the details and intricacies of trend trading will help a trader to develop a strategy that will provide them with the greatest return for their investment. When deciding on the plan, method, and strategy that will be used, an individual will want to research successful trend trading methods and pattern to find the one that will best meet their needs.
Learn how it’s very possible to make 6% per month in your investment accounts using etf trading! “Big A” is a recognized expert in the world of etf trading system and reveals trading and investment secrets that have been kept under wraps by hedge traders for years. Get his free report and webinar today!
By popular demand…I emailed Bill all these questions. Since Bill is a smart guy…I’m sure he will touch on some of them without even having to consult my Great Questions Handbook.
I’m sure Angry Obama Supporters don’t mind…after all they are …are questions on the issues?
1. Senator Obama, are we winning in Iraq? Yes or No?
2. Senator Obama, is and was the surge a success? Yes or no?
3. Senator Obama, when did life begin for your daughters?
4. Senator Obama, how is it above your paygrade to not know when life begins, but not above it to end it?
5. Senator Obama, will you denounce the Daily Kos for it’s smear tactics?
6. Senator Obama do you view baby’s born out of wedlock a punishment?
7. Senator Obama were you conceived out of wedlock? Do you view yourself as a punishment to your mother? I mean after all according to some, you are a gift to the world. You would not be here given this historical moment had you been aborted. Do you recognize that and how does it bother you consciously that you are denying that opportunity for someone else?
8. Senator Obama, you say you want to get out Iraq…if we do and Iran goes in…will you send troops back into Iraq? Seems like it makes sense to me..that you deal with Iran first before you withdraw heavily from Iraq.
9. Senator Obama you complained that American corporations are going to invest in China…did it ever occur to you by raising capital gains taxes on American corporations and the wealthy that is exactly what you will be helping?
10. Senator Obama you said our infrastructure should be like China’s…did it occur to you that China has lax regulation and building codes…that it pollutes more than the United States..in another words Senator…lax enrivonmental regulations foster the type of infrastructure you see now in China.
11. Senator Obama, some say Sarah Palin, the VP for the Republicans has accumlated more substantial experience in 2 years than you have had in 4 years. What say you?
12. Senator Obama, Sarah Palin is well known for going against the Republican establishment. When have you stood up against the Corrupt Chicago Political Machine or anyone else in the Democratic Party? Can you give me one example.
13. Senator Obama, You were the only member of the state Senate to vote against a bill to prohibit the early release of convicted criminal sexual abusers. WHY?
14. Senator Obama, as a State Senator you were also among only four who voted against bills to toughen criminal sentences and to increase penalties for “gangbangers” and dealers of Ecstasy. WHY?
15.Senator Obama, also you voted “present” on a bill making it harder for abusive parents to regain custody of their children. WHY?
16. Do you said we should show humility towards evil. Does the Sanctuary City policies like the ones in San Francisco…your idea of showing humity towards evil? I.e Senator…the Bologna Widow lost a husband and two sons because Galvin Newsome turned a blind eye and did not want to face the immigration problem
17. So do you favor Sanctuary City policies? Will you allow them to continue? What will you do about it?
1 If managers are making decisions to maximize shareholder wealth, then they are
primarily concerned with making decisions that should:
a. Positively affect profits.
b. Increase the market value of the firm’s common stock.
c. Either increase or have no effect on the value of the firm’s
common stock.
d. Accomplish all of the above.
2 A firm has return on equity of 20% and a total asset turnover of 4. Assuming
a debt ratio of 50% and sales of $1,000,000, calculate net income.
a. $25,000
b. $50,000
c. $75,000
d. $100,000
3 The trading of negotiable certificates of deposit takes place on the:
a. Chicago Board of Trade.
b. New York Stock Exchange.
c. American Stock Exchange.
d. None of the above.
4 As the cost of capital is increased, the:
a. IRR remains constant.
b. Payback period remains the same.
c. Discounted payback period increases.
d. Both “b” and “c”.
e. All of the above
5 You have just won a magazine sweepstakes and have a choice of three
alternatives. You can get $100,000 now, or $10,000 per year in perpetuity, or
$50,000 now and $150,000 at the end of 10 years. If the appropriate discount
rate is 12%, which option should you choose?
a. $100,000 now
b. $10,000 perpetuity
c. $50,000 now and $150,000 in 10 years
6 The break-even quantity of output results in an EBIT level equal to:
a. Fixed costs.
b. Contribution margin.
c. Zero.
d. Variable costs.
7 If the NPV of a project is positive, then the project’s IRR _________________
the required rate of return.
a. must be less than
b. must be greater than
c. could be greater or less than
d. cannot be determined without actual cash flows
8 Given a 360-day year, the effective annual cost of not taking advantage of the
3/10, net 30 terms offered by a supplier is:
a. 55.7%.
b. 45.4%.
c. 32.3%.
d. 28.2%.
9 A company is technically insolvent when:
a. Cash outflows in a given period are greater than cash inflows.
b. Earnings before interest payments are less than the interest
payments.
c. It lacks the necessary liquidity to promptly pay its current
debt obligations.
d. The current ratio is less than 1.0.
10 Monopoly Corp. is projecting sales of $12 million next year. All sales will be
on a credit basis. The present average collection period is 45 days. Monopoly
is considering a change in selling terms from net 30 days to 2/10, net 30 in
order to speed up the collections of its receivables. Studies indicate that one
half of the firm’s customers will take the discount. If Monopoly offers this
discount, how much will it cost next year? Assume a 365-day year.
a. $87,000
b. $98,000
c. $103,000
d. $112,000
e. $120,000
11 Which of the following most likely would cause a lease to be classified as a
capital lease?
a. The lease is for five or more years.
b. The lease is for $1 million or more.
c. The lease permits the lessee to purchase the equipment at the
end of the lease for its fair market value.
d. The present value of the lease payments, calculated at the
lessee’s typical rate of interest for a similar purchase
loan, is more than the original purchase price of the
equipment.
12 UVP preferred stock pays $5.00 in annual dividends per share. If your
required rate of return is 13%, how much will you be willing to pay for one share?
a. $38.46
b. $26.26
c. $65.46
d. $46.38
13 Determine the dollar value of a three year annuity that would produce the
same NPV as the following project if the appropriate discount rate is 15%, and
initial outflow = 0.
Initial Outflow = $1,200
Cash Flow Year 1 = $800
Cash Flow Year 2 = $500
Cash Flow Year 3 = $700
a. $250.38
b. $673.94
c. $146.28
d. $430.82
14 Sola Cola Corporation is undertaking a capital budgeting analysis. The
rate on 30-year U.S. Treasury bonds is 6.3%, and the return on the S&P 500
index is 18.5%. If the cost of Sola Cola’s retained earnings is 19.7%,
calculate its beta.
a. 1.1
b. 1.3
c. 1.5
d. 1.7
15 Zybeck Corp. projects operating income of $4 million next year. The firm’s
income tax rate is 40%. Zybeck presently has 750,000 shares of common
stock outstanding which have a market value of $10 per share, no preferred
stock, and no debt. The firm is considering two alternatives to finance a new
product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of
60,000 new shares of common stock. If Zybeck issues common stock this
year, what will projected EPS be next year?
a. $2.10
b. $2.96
c. $2.33
d. $1.67
16 In the event that Zoldt Corporation, which has a low P/E ratio, were to
acquire Sky Corporation, which has a higher P/E ratio, an analyst can be
certain that one of the following will occur.
a. Zoldt Corp. will see an immediate decrease in P/E.
b. Zoldt Corp. will see an immediate decrease in EPS.
c. Zoldt Corp. will see an immediate increase in the growth rate
of EPS.
d. Zoldt Corp. will see an immediate increase in EPS.
17 Assume that an investor owned 5,000 of Chrysler Corporation common stock
prior to the purchase of Chrysler by Daimler-Benz of Germany. At the time
of the acquisition, the dollar was worth 1.7848 German marks. Further
assume that the purchase price was equal to 107.09 marks per share.
What was the sales price of Chrysler common stock per share in U.S.
dollars?
a. $50
b. $191
c. $107
d. $60
e. None of the above
18 If a company’s average collection period is higher than the industry average,
then the company might be:
a. Enforcing credit conditions upon its customers which are too
stringent.
b. Allowing its customers too much time to pay their bills.
c. Too tough in collecting its accounts.
d. Too liquid.
19 Kiosk Corp. has current assets of $4.5 million and current liabilities of $3.6
million. The current ratio is 1.25, and the quick ratio is 0.75. How much
does Kiosk have invested in inventory (in millions)?
a. $0.8
b. $1.8
c. $2.4
d. $2.9
e. $3.6
20 A firm has a total asset turnover of 2, a net profit margin of 5%, and a debt
ratio of 50%. If the firm has a dividend payout ratio of 20%, calculate its
sustainable growth rate.
a. 14%
b. 16%
c. 18%
d. 20%
21 If you have $20,000 in an account earning 8% annually, what constant amount
could you withdraw each year and have nothing remaining at the end of five
years?
a. $3,525.62
b. $5,008.76
c. $3,408.88
d. $2,465.78
22 A firm has a degree of combined leverage of 1.25. Price per unit is $15 and
variable cost per unit is $5. Interest expense is $10,000 and fixed costs are
$190,000. Calculate the quantity of output produced.
a. 100,000 units
b. 120,500 units
c. 150,000 units
d. 200,000 units
23 A stock currently sells for $63 per share, and the required return on the
stock is 10%. Assuming a growth rate of 5%, calculate the stock’s last
dividend paid. (Rounded)
a. $1
b. $3
c. $5
d. $7
24 An optimal capital structure is achieved:
a. When a firm’s expected profits are maximized.
b. When a firm’s expected EPS are maximized.
c. When a firm’s expected stock price is maximized.
e. When a firm’s break-even point is achieved.
25 An investor in the 40% tax bracket owning a tax-exempt bond yielding 6%
realizes an equivalent before-tax yield of:
a. 12%
b. 10%
c. 8%
d. 6%
Can Etf Trend Trading Benefit My Investment Portfolio?
Posted by: | CommentsThere are a lot of people that are beginning to show an immense amount of attention to etf trend trading. However, before you can get involved in this means of training yourself, it is imperative that you have a firm understanding of what etf’s are and exactly what you need to do to begin the trading process with them.
The term etf is actually a shortened version of the funds full name. The full name for the fund is exchange traded fund. These funds are traded everyday on the stock market in the same manner that you would see stocks traded.
These funds hold assets in the same way stocks or bonds and trades do, and can be traded at the same price as the net value of its assets throughout a normal day. Often times these funds are indexed using an s&p 500 or something of the sort.
A lot of people that are looking for an inexpensive means to trade on the stock market are extremely interested in these funds. More and more people are rushing to obtain an etf because of the low amount that you need to put down in order to start your investment.
Etfs offer traders an undivided interest in a pool of different securities. Many people have actually compared these funds to mutual funds because of how they are traded on the market. As many people have a knowledge base that surrounds mutual funds you can probably understand why these funds are becoming so popular.
You can buy or sell your etf anytime throughout the trading day. There are so many different reasons why a plethora of investors have shifted their investment sites on etfs instead of stocks and mutual funds. In order to understand why you should look into investing in etfs you need to understand what they can do to benefit you in the long run.
You can purchase an etf for a lot lower than you would for a normal stock or a mutual fund. Most mutual funds require that you put down a large amount. In fact, many of the mutual funds that people are opting to open state that you need to at least have $1500 in the fund at all times.
You can obtain an etf for as low as one hundred dollars in many respects. However, as you may already know the more money that you put down to start your investment trading the better return you can expect to generate. But, to get your foot into the door you do not have to have a mass amount of money.
Showing etf trading on any investment portfolio says a lot for a veteran and even a new trader. The etf market is extremely diversified so there are always different funds that you can investment it to increase your capital gain.
When you have your own etf you will always have an inclination of how much money the fund is generating. Regardless of what time of the day it is, you can check on your fund and keep up with the status of your investment. What mutual fund or stock allows you to do that?
Learn how it’s very possible to make 6% per month in your investment accounts using etf trend trading! “Big A” is a recognized expert in the world of etf trend trading system and reveals trading and investment secrets that have been kept under wraps by hedge traders for years. Get his free report and webinar today!
Should I Iet My Gf Go To A Ballgame With A Male ‘friend’?
Posted by: | CommentsI’ve been dating this girl for 8 months and as far as I can tell, she’s more invested in the relationship than I am. However, recently it came up that she was busy every night this week. She was transparent about her plans for every night but Wednesday. I pried a little and she told me she was going to a Cubs game with a (single, I think) male friend that she’s known since last summer.
From what she told me, they’ve hung out mostly in groups. They last talked at a BBQ in May 2009 when she mentioned she was dating me. He sends her texts to hang out on the weekends (not sure if alone or in groups). She admits she’s ‘blown him off’ a few times. He also donated to her fundraiser for the Chicago Half Marathon recently.
She’s paying for her own ticket, but it’s just the two of them. I’m not comfortable with this. She wants me to trust her (which I do) but I don’t understand why she wasn’t more upfront about everything to begin with (especially when I asked her about Wednesday). She also told me that she won’t go if it’s too much for me. What should I do?