Planning Your Dive and Diving Your Plan - Trading!

A colleague of mine just returned from a scuba diving trip in Cozumel, which just happens to be one of my favorite places to dive. Anyway, she was telling me about an unexpected difficulty she encountered while swimming around the corral reef down about 85 feet. It wasn’t anything serious but her story reminded me of something my scuba instructor used to say over and over again. "Plan your dive, and dive your plan".

When you’re down about 90 or 100 feet the nitrogen acts on your body in a way that’s not too dissimilar to having one dry martini on an empty stomach. It’s called Nitrogen Narcosis, Rapture of the Depths, or Martini’s Law. So the thing to do is get your planning done while you have a clear head, (i.e. on the surface). And then when you’re deep into it, and you’re feeling a bit euphoric, or nervous, you don’t have to make any decisions about ‘what’ to do. You just follow your plan.

This holds true for trading as well. When you’re feeling the euphoria or nervousness set in, remember to follow your plan. And, uhm yeah,, also have a plan to follow. Clear heads will prevail.

Years ago I had the good fortune of talking with a trading guru for several hours. This individual is world renowned for his trading saavy and skill. What he elaborated in that conversation had a tremendous impact on me. HE said that when he learned how to trade that his family enforced only one rule that he had to follow. KNOW WHERE YOU ARE GOING TO GET OUT BEFORE YOU GET IN. He felt that the problem that most traders had was that they felt that this simplicity did not apply to them. I remember sitting and speaking with him and thinking about my own mistakes, primarily letting hope take over in my decision making.

Many traders think that crying "UNCLE" on a trade and taking a loss is unacceptable. Since that conversation I have taken numerous losses on trades but it’s funny how they don’t have the STING that they used to because I PLAN MY DIVE and DIVED MY PLAN.

Historical Briefing: Stocks, Finance and Money

The World Bank claims that some two billion of the world’s citizens live on $1 per day or less! That fact absolutely shocked me. With this statistic in mind it becomes important to focus on all of the things that have served as money over the history of civilization. Aztecs used Cocoa beans, Norwegians used Butter and dried cod, many Indian tribes used animal skins and some of the early colonists used grains. It’s worth thinking about this the next time you pick up your paycheck. The word "salary" is derived from the word SALT, which is what was the key currency of the North Africans for hundreds of years. SALT was a key commodity substance used for preserving food.

A butter and dried cod banking system? Reconciling your monthly bank statement must have been very messy!

I’ll take bear markets for $100 please Alec!

Anybody want to guess how we came to describe and define a BEAR market? Well, there is a debate on this one as most people feel that when a Bear makes a killing its claws move from up to down. However, bear markets are bone-chilling experiences. Markets always fall much faster than they rise! Anyway, the word "arctic" is derived from "arktos" which just so happens to be the Greek word for "BEAR!" And that is how it is believed that the word BEAR came to describe a declining market. Brrrrrrrrrrr..

Now you know!

Ok, why the heck do they call it Wall Street anyway?

It was the Dutch you see. They had just moved to Manhattan and had nowhere to build a dyke, so instead they built a wall. This was in 1653, and it wasn’t meant to keep water out, but was made to keep out the British and Indians. Easy enough for the Dutch, just a 12 foot high wood stockade that ran from river to river.

Then in 1685 they laid out Wall Street along the line of the stockade.

Now you know.

These days the average volume on the New York Stock Exchange is several hundred million shares. We have even seen numerous days when the volume exceeded over one billion shares. To give you an idea of how far we have come, the last date on record when the New York Stock Exchange traded less than one million shares was October 10, 1953. The very first day that the BIG BOARD traded over one million shares was December 15, 1886. On Black Tuesday, the BIG CRASH on 10/29/29 the market established Record volume of 16 million shares!

Trading Education: The Best of Both Worlds!

I made my very first investment in the stock market when I was ten years old. Ever since then I have been hooked! Now I check out hundreds of trades each year with the same excitement andenthusiasm, and each time try to find that one market at the right time that could dramatically create wealth.

If you would’ve been fortunate enough to invest $1,000 in Microsoft when it first came public, that initial investment would be worth close to $300,000 today. In the last 10 years America Online has been up 12,000% and it has come creashing lower as well! Although statistics like this are advocated regularly by journalists and brokers the majority of investors have a very difficult time staying in an investment for that long of a period of time even though they know they are in a good company The financial markets are a never ending source of temptation trying to lure you into a new position with each passing second. The belief that the grass is always greener in another market is a distraction that every investor eventually has to contend with. Even if you are a MUTUAL FUND investor the fact is that you are always looking for the BEST return available.

Years ago when I worked as a broker I was confronted with this dilemma. One of my clients told me that he knew the BIG MONEY was made in holding on for the LONG TERM but that he liked trading the short term swings. He asked my advice and I had to think long and hard for several days before I could respond.

Eventually, I presented him with the following strategy that literally combines the best of the TRADER and INVESTOR worlds. Traders are looking for the quick hit and run. Investors seek their advantage by looking at the long term. Long term investors quite often benefit from allowing dividends to be reinvested into purchasing more stock in the company and the very real possibility of the stock splitting in the future. If you combine both of these apparently opposite perspectives you end up with a very unique viewpoint that eliminates a lot of stress associated with decision making. This strategy will bring home the perspective that within every seed that you plant in the financial markets lies the promise of ten thousand forests. I refer to it as my FOREST STRATEGY! It is another way to make your short term efforts as a trader pay you dividends by also recognizing the importance and significance of long term investing.

Let’s say that your initial investing capital is $10,000. 1) Find a company, preferably in the Standard and Poors 500 Index that you understand and are familiar with. If you want to narrow down your group you can select companies that are in the Dow Jones Industrial Average which include only 30 stocks. These are established companies with long financial histories that can be researched to your hearts delight.

2) Study the companies Price Earnings Ratio. Where is the Price Earnings ratio now? What has been The highest and lowest points of the price earnings ratio over the last five years? Look to buy a company with a historically low price earnings ratio that is a leader in its industry. Use the Price Earnings Ratio as a guide. Don’t try to pick bottoms. 3) Look at a chart of prices to see what has happened recently and to determine where a good buy point is.

4) Place your trade with the intention of a 10% profit objective. Once you reach your profit objective, sell enough shares in the company to remove your initial $10,000 investment and only leave your $1,000 profit in that stock.

5) Repeat steps 1-3 as you search for another company to trade for a 10% profit and plant the Remainder for the long term.

6) Repeat, Repeat, Repeat.

The drawback on this type of trading is that when you are with a great company you do give up a lot of upside. However, if you look at the PROBABILITIES how many IBM’s, Aol’s, Yahoos! Or Microsofts are there out there in relation to the entire universe of stocks? What I personally like about this style of trading is that it eliminates the GREED factor that most investors have of trying to hold on for the top tick. Secondly it also allows you to build a nice diversified portfolio. Thirdly, trading becomes a very fun game with potentially lucrative long term implications. It is very possible to trade this way once a month planting a seed in a quality company that can easily become a Forest of Wealth for you.

Some trades might take the better part of a year to pan out. Some trades might achieve your profit objective in a matter of weeks or days if you are really fortunate.. Keep in mind that you still have to manage your risk on each and every trade. Let me be perfectly blunt, if you don’t manage your downside there will not be an UPSIDE… It is acceptable to use any of the RISK Management Techniques that I advocate by doing Partial Covered Calls and other Option Selling Techniques. When done correctly those techniques can dramatically accelerate your returns.

I must admit that I truly enjoy this type of trading. (My broker likes it as well as it generates many more commissions for him.) However, part of the reason that this method sits well with me is that I hardly pay any attention at all to my profits after I take them. It becomes very stress free to know that you have increased your wealth 10% and are just interested in planting seeds all over the financial landscape in companies that meet your criteria. I must however stress the point that you make sure that you are aware of the downside. This method is by no means RISK FREE….but for the individual who likes to trade and invest simultaneously it truly is ideal.

Guard your investment principal at all costs and let your profits run. Just one more way to look at the bigger picture. Kind of like a Johnny Appleseed meets the financial markets. Many extremely successful investors do this with Initial Public Offerings as well. Study away.and remember,let’s be careful out there.

Oil spike, jobs report pummel stock market

An unprecedented spike in crude oil prices followed the release of a dour unemployment report Friday, sending the stock market to its worst losses in months.

By the end of the day, hopes that the economy’s slowdown was nearly over had been left behind. And consumers who had seen a small break in gasoline prices again were facing the prospect of $4-a-gallon prices at the pump.

The jobs report for May from the Labor Department was filled with grim numbers, starting with a 5.5 percent unemployment rate, up from 5 percent. That was the biggest one-month rise since 1986 and put the unemployment rate at its highest since October 2004.

Employers also had eliminated 49,000 jobs in May, the fifth straight month of losses.

With multiple worries to choose from, Wall Street flinched principally because of oil’s surge. There was less concern about the jump in unemployment, though both reinforced worries about economic weakness.

“It appears to be oil-induced rather than that jobs number,” Ken Powell, chief equity strategist at Overland Park-based Mariner Wealth Advisors LLC, said of Friday’s drop.

The Dow Jones industrial average gave up 3.1 percent of its value, erasing more than the 214 points it had gained Thursday. Its loss of 394.64 points was the biggest in more than a year and left the blue-chip stock index at 12,209.81, the lowest since the end of March.

The oil price spike, sparked by comments that Iran might be attacked by Israel, pushed crude oil futures to a record close Friday of $138.54 a barrel, up $10.75.

The price was up more than $11 at one point during trading on the New York Mercantile Exchange. A barrel of oil cost less than $11 less than a decade ago, in late 1998.

Gasoline prices had retreated a few cents in recent days, with AAA noting that the national average retail price for gasoline dropped Thursday for the first time in a month.

But Friday’s big jump in oil prices, which followed a smaller rise the previous day, will put a stop to that. Wholesale gasoline prices, which had declined earlier in the week, jumped nationwide. In the Midwest, wholesale prices were up about 20 cents a gallon Friday.

“This is all we needed to put fuel on the fire,” said Mike Right, a spokesman for AAA in Missouri.

Oil prices were relentless Friday. They started early up about $5 for a barrel of West Texas Intermediate oil, the U.S. benchmark, and gathered strength through the day.

The move was triggered by stern talk from Israel officials that Iran’s nuclear program, which Israel and the West believe exists to build nuclear weapons, could not be allowed to continue.

Israel’s prime minister, Ehud Olmert, was quoted Friday saying that Israel would attack Iran if it did not abandon its nuclear program. He was in Washington this week and said his discussions with President Bush were dominated by Iran.

There is precedent for Israeli military action. In 1981, Israeli planes destroyed an unfinished Iraqi nuclear reactor. Iran has denied that its nuclear program is meant to produce weapons. Last year Israel bombed a suspected nuclear reactor in Syria.

A conflict that involved Iran would quickly be felt by the oil market. Iran is the second-largest producer in the Organization of the Petroleum Exporting Countries and the fourth-largest exporter of oil in the world, according to the Energy Information Administration.

Iran produces 3.8 million barrels per day of crude oil, and there is only enough surplus oil production in the world to replace just over half that amount. A disruption of Iran’s oil exports clearly would be serious, said market observers.

How to Draw Cars - Beginner Tips & Tools for Success

Learning how to draw cars is not as difficult as you may believe. Many beginners when attempting to draw cars will fail at first because of that "I can't do it" mentality. They will see all of the details, the shadows and the highlights and become intimidated and lose confidence. In order to succeed, to really learn how to draw, you must remove all preconceived notions about drawing.
Learning how to draw is really a matter of breaking down what you see into smaller parts or shapes. You have to look at the picture as a smaller step by step process. When you break things down like this the problem at hand becomes easier to draw. But before you go off and start to draw those cool muscle or race cars, you really need to understand a bit more about the supplies you will need. How else are you going to draw those cool cars?
Having good supplies is definitely going to make it easier to draw and more enjoyable, but it won't make you a better artist. You must learn and understand the basics first. Quality equipment is an aid, but it is not a substitute for your skills or abilities.
The first thing you are going to need is a good surface to draw on. You will need a solid sturdy table, desk, or drafting table. Whatever you choose to draw on, make sure the surface does not wobble and is level. Do not settle for a cheap surface. It will only frustrate you and make things more difficult. Many artists like to work on a surface that is on a slight angle towards the artist which promotes a better posture. Being comfortable is very important.
Make sure you have good lighting. Learning how to draw cars is challenging enough. You do not need the frustration of poor lighting. Your lighting should be even so that there are no shadows or hot spots of light, so you may need more than one light source to draw with. There are specially made lamps for artists that produce light which mimics natural sunlight.
You can purchase these online or at art stores, but I have found that the professionally made lights for artists can be rather expensive. If you happen to live near a Home Depot or other home improvement center, try looking in their lighting department. I purchased my lamps there for under 20 dollars each.
As for what tools you should have on hand to draw with, there are no "One drawing tool fits all" formulas. You will have to experiment with different pens and pencils until you find the ones that are the most comfortable to draw cars with. It is probably best to have a variety of drawing tools on hand.
Many car artists have various pens, pencils, markers and even paints on hand to produce different effects. For instance, some car artists prefer to work with Prismacolor "Verithin" pencils for sketching fine lines and for light shading. Other artists prefer the convenience of mechanical pencils as there is no sharpening needed. Mechanical pencils are not the best for shading in areas however. So you see, having a variety of tools on hand to draw with is essential.
Paper is another item of personal choice. Again, you have to experiment. Just like pens and pencils, there are also a variety of drawing surfaces. Try your favorite pens and pencils on various surfaces. Drawing surfaces have different textures and thicknesses and your drawing mediums will behave differently depending on the surface and how you apply them. You may also find guides helpful to draw with. Some car artists prefer to use ellipses and straight edges to help create straight lines and circles, while others work free hand.
If you do not happen to live near any art supply stores, you can always purchase your supplies online. Just go to any major search engine and type in "drawing supplies" and you will find plenty of online shops. My recommendation is Misterart.com. I have been buying my supplies there for a few years now and my shipments are always delivered fast and in perfect condition.
I hope these tips and instructions have given you more insight on how to draw cars. The most important thing with drawing cars, or any art for that matter, is to never give up. Keep practicing. Practice every day if possible and keep a sketchbook of your work so that you can keep track of your progress. You will get the hang of this and learn how to draw cars.

Seized Property Auction - Buying Cars and Real Estate for Cheap

Nearly everyday law enforcement agencies across the country seize various properties that are connected to criminal activities. Once this property has been processed and used as evidence during the criminal trial phase the government no longer needs to keep this property. To offset storage and processing costs these properties are then offered for sale at a seized property auction.
There is no cost associated with attending a government auction as they are open to anyone who is at least eighteen years old who has a valid driver's license or ID. Just be sure to do some up front research so as to familiarize yourself with how property auctions work. One thing is for sure, there will be no shortage goods and items to bid on. Here's a short list of what you can expect to find.
1. Vehicles - Cars, trucks, and SUVs are probably the most common items to be found. You will also find RVs, boats, ATVs, motorcycles, and in some cases even aircraft. Most of these vehicles have low starting bids and can be successfully purchased for much less then their market value.
2. Real estate property - The government and local law enforcement agencies seize all forms of real estate. Homes, businesses, undeveloped land, commercial property can all find its way to government seizure auctions. And much like vehicles it can be had for well below market value.
3. Furniture and household items - When real estate is seized everything inside the building has to be dealt with as well. This can be a great way to furnish your home for pennies on the dollar. Plasma TVs, Xbox's, Playstations, stereo equipment, couches, dining room sets, and just about any other household item you can think can be purchased at big discounts.
4. Art work, antiques, jewelry, and designer clothing - There is no shortage of stuff to bid on at an auction. People who run afoul of the government soon find all their stuff being auctioned off to the highest bidder, including the clothes off their backs. It is the government's way of recouping money that otherwise would fall on the tax paying public.
A great way to find out what you can bid on is using an online government seized property auction website. They keep up to date on all government auctions occurring all across the country as well as all the items that will be up for bid. This can give you a head start on other auction goers as you prepare your list of items that you wish to purchase.

Government Repo Auctions For Cheap Seized Cars and Property For Sale

If you've never heard of or attended government repo auctions then you don't know what you are missing. There are deals to be had on repossessed and seized cars and real estate at one of these free public auctions that can't be beat anywhere. If you 18 years of age or older and have a valid drivers license or ID you can participate in one of these money saving events.
There are two types of items you will find at a government repo auction; repossessed and seized properties obtained through criminal investigations and prosecutions, and defaults on loans or owed back taxes. The government uses these auctions to save money on storage costs for the large amounts of properties they seize each and every month. They also are able to recoup much of the administrative costs associated with processing these goods saving the tax payers hard earned money.
Because the government is not interested in making a profit but simply wants to cover their costs the starting bids at these auctions are usually very low. If you research your choices before hand there is a good chance you can save big on whatever you choose to bid on.
Here's what you'll find at one of these free government auctions:
1. All makes and models of vehicles. You will find cars, trucks, SUVs, RVs, and motorcycles at well below market value. Many of these vehicles are less then a year old and are in excellent condition. Most of the seized vehicles are a result of law enforcement arrests and prosecutions which means in many cases they are high end vehicles. Being able to score a luxury sedan, sports car, or tricked out SUV for less then Blue Book value is one of the big draws of these auctions.
2. All types of real estate that includes single family homes, luxury vacation homes, and businesses with all the equipment, commercial property, and undeveloped land. For those who are looking to use real estate as an investment tool a government property auction can be a great place to start.
Participating online is also an option in the internet age. The internet auction sites provide updated listings of when and where these auctions are taking place along with updated listings of all the items that can be bid on. This gives you the chance to do the necessary research before hand which can help you decide what things are worth and what type of bid package you are comfortable with.