Friday, January 1st, 2010
Do you remember your first trade? Did you get butterflies in your stomach when you were giving your broker the authority to place the trade, or if you were placing the trade online did you get a buzz when you were about to press the confirm button?
If you are like most people than you probably did, and you probably also read the share price every day in the morning paper, or watched the computer screen the entire time the market was open. With each movement of the share price up you probably experienced great joy, and likewise each downward price movement it seemed like the world was crashing down around you.
And possibly then you discovered that the overseas markets that were open when you should have been sleeping had a great impact on your local market the following morning so you would stay up and watch the overnight action. Pretty soon you begin to be consumed by the entire process. Does anyone relate to this?
The Stock Market is a based a lot on emotion, or psychology. Fear and greed, that’s the two major players at work. Greed causing those who would not normally invest come out in droves, typically towards the end of a bull market, and then the fear sets in, quickly driving prices down as the crowds rush to dump their shares.
You have a choice over whether you bring your emotions in to the game, or you have a choice to leave them at the door. Each has their merits, and each are suitable for different people and different strategies.
When you do bring emotion into the stock market, it can and does cloud your judgement. For a new investor, they are in the unenviable position of losing their entire capital, as they get off winning trades too early, and let the losers run, living in the hope that the ticker will start to swing their way soon. For those with some years of proven market experience behind them, they are able to use their judgement on the run and use their learned instinct to exit a trade early, or get out of a trade when things don’t appear correct.
A far better approach, both for your capital and your nerves, is to employ a mechanical trading system and to stick with it, always. Using such a system allows you to have your entry point, exit point and stop loss all organised before you even enter the trade. From here, you do not have to do anything, and you can sleep well at night knowing if the market goes against you that you are protected at a predefined value.
Mechanical trading systems are extremely valuable tools for many traders, and there are many websites around now that freely offers this information. The trick is to find one that a system that sits well with your own personality. Once you have found one, back test it as much as possible and move onto to paper trading it, and finally if it still produces winning results, begin live trading. Tweak only if necessary, and always, always, stick to your plan.
By sticking with our plan we have the ability to completely take emotion out of the scenario, and it allows the trader to analyse both the winning, and the losing trades so that the system can be finely tuned as the traders experience manifests.
In conclusion it may be a very wise decision to implement a mechanical trading plan, and very quickly your emotions will be kept in check and will allow the trader to concentrate on their job, which is to turn a profit. Rather than being chewed up and spat out by the market, the trader can grab their little slice of the market when the conditions are right and live to trade another day.
Tags: Butterflies In Your Stomach, Buzz, Computer Screen, Crowds, Droves, Emotion, Emotions, Great Joy, Greed, Instinct, Judgement, Local Market, Losers, Market, Market Experience, Merits, New Investor, Overseas Markets, Share Price, Stock, Stock Market, Systems, Trading, Unenviable Position
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Monday, December 7th, 2009
It’s for sure! Online money is out there. Here I explain what separates the big money winners from the losers. I need to first show you some of the key ideas that pre-date the Internet.
Before the Internet
The need to make money has always been with us. One of the earliest strategies to accomplish this was the “chain letter”. Don’t worry – I’m not promoting a chain letter – rather explaining a lesson we can all learn from that ill-fated methodology.
The power of the chain letter lay in the fact that it allowed people to leverage their investment. It worked like this.
You get a letter that asks you to:
* Send a small amount of money to the person whose name is at the top of a list of future recipients.
* Delete the first recipient on the list, and put your own name on the bottom of the list.
* Copy and mail the letter to as many people as you can.
If you sent the letter to 100 people, and each of them sent it to 100, and so on, by the time your name got to the top of the list it would be in the hands of many thousands of recipients – each of whom would send you a small amount of money.
How Chain Letters Didn’t Work
The principle problem with the chain letter was that your small donation to the person at the top of the list was a gift. You got nothing in return. For this reason, our country’s lawmakers got into the act.
The “End” of the Chain Letter
Lawmakers don’t like to see large amounts of money changing hands without getting their own hands on some of it – to tax it in other words.
So the “authorities” outlawed the chain letter as you might expect. The public rationale was that the process would sooner or later “saturate”, because 100 x 100 x 100 x etc. would eventually encompass everyone on the planet, and those joining toward the end would never get the “reward” they had been “promised”.
This action ignored the fact that no chain letter in history ever actually “saturated”. But the concept looked good mathematically and seemed popular with the voters; so the public remains “protected” from chain letters to this day.
The Invention of Multilevel Marketing (MLM)
In the early sixties, a little vitamin company called Nutrilite invented the marketing strategy we know today as multilevel marketing.
This was a very clever idea. It built on sequential recruitment, the basis of the chain letter; but it sold real products: vitamins. Now there was value received in every transaction.
Two young men partnered up and got really successful at this business and wound up buying Nutrilite. Out of this grew the giant multilevel company known as Amway. Its annual sales hit a billion dollars around 1986, and is approaching seven billion dollars a year today (2008).
MLMs and the Law
The Federal Trade Commission (FTC) took Amway to court, claiming that the sequential recruitment of distributors violated the anti-chain-letter laws.
Amazing! The courts finally did something right. They recognized that there is nothing basically wrong with sequential recruitment, and completely exonerated Amway.
When the dust had settled, the FTC and the Department of “Justice” agreed to re-define the chain letter and the MLM so the chain letter remained illegal while the MLM was officially legalized.
Many people learned from this that sequential recruitment is legal when the customers actually receive something they want in return for their money.
Mail-Order MLM
Still talking pre-Internet lore: it wasn’t long before enterprising individuals began building mail order businesses in which the products sold were documents (small booklets) that provided the reader with useful information.
Such documents were easy to create, cheap to produce, and inexpensive to mail. Employing sequential recruitment similar to that used by chain letters, such businesses provided (for a price) the document products and the methodology of distribution.
It was up to each participant to reproduce the documents, to advertise them via the mail, and to deliver them via mail as promised.
This system of doing business meets all the legal standards of current MLM laws and provides for a very high return on investment. A document that cost 50¢ to produce and another 50¢ to mail might sell for $10 or $20. This business model is still much in use today, and huge profits are being made.
The use of the Internet to facilitate this money making process further amplifies the method’s profitability and makes it accessible to almost anyone. Its development was the next step towards creation of the first online money making machine.
Enter the Internet
On the Internet today, free or inexpensive email to opt-in lists, cheap classified advertising, and highly targeted (though not-so-cheap) search engine advertising make it possible to advertise much more cheaply than can be done by conventional mail.
The cheap and, often automated, creation of personal websites puts large amounts of information in the hands of would-be “infopreneurs” at a fraction of the cost of snail-mail distribution.
Instead of printing and mailing booklets to their customers, businesses of this sort simply receive payment via secure credit card transaction, and then permit the buyer to download the product at the click of a mouse at essentially no cost to the seller.
Thus the properly equipped “infopreneur” creates a virtual money-making machine that handles all the formerly laborious tasks associated with mail-order document sales.
By combining the best features of sequential recruitment, MLM sales, and mail-order document sales with the computer automation provided by the Internet, today’s infopreneur can make large amounts of money in record time. This is the basis of virtually all the big online money-makers.
The worse the economy, the higher the unemployment level, the fewer the jobs available, the more attractive this kind of business is to the public.
The Best Online Money Machine – So Far
Examples of this newly developed business technology come in many styles. Some are well explained and easy to implement; some are more complex and not so well documented. Unless you want to build your own online money machine from scratch – a major undertaking that I don’t recommend – I suggest that you plug into an existing one that works.
To see the best example of this technology that I have found so far – one that is simple, legal, honest, and ethical – you don’t have to look far.
Tags: Amount Of Money, Authorities, Big Money, Bottom Of The List, Build, Chain Letter, Chain Letters, Changing Hands, Lawmakers, Losers, Machine., Mail, Methodology, Money, Money Machine, Money Winners, Need Money, Need To Make Money, Online, Online Money, Principle, Rationale, Recipient
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Wednesday, November 4th, 2009
If you are interested in blogging to voice your opinion and have your world view promoted, then this product is not for you.
On the other hand if you want to find out how to make money with a blog, then this is a very good starting point.
Rob Benwell, the creator of Blogging to the Bank has made a lot of money through creating multiple blogs, not from specialising in one area.
The way he operates is as follows-
1. Research the web using keyword tools, Google and Clickbank to find where the hungry crowd and money is and give them what they want.
The fact that you have no interest in the niche is irrelevant..if you want to make money with a blog.
2. Use Wordpress to set up your blogs and make sure to choose a domain name that is optimized to get traffic
3. Install the plug ins that he recommends which will optimize your blog for humans and search engines
4. Write content or outsource it for the particular niche
5. Promote your blog through SEO and Web 2.0 methods and drive traffic to your blog
6. Sell Clickbank products and use Adsense from Google to monetize
7. Rinse and repeat..do it again and again and ramp up the successful niches and abandon the losers.
Blogging to the Bank 3.0 ebook is quite short..and to the point.
But if your goal is to make money with a blog then you won’t be bothered by this because the step by step instructions work on a need to know basis.
As with all Clickbank products there is the usual 60 day money back guarantee so if you have any problems or are not satisfied then you will get your money back, guaranteed by Clickbank.
Bruce Dillon is a full time internet marketer who makes his living from creating profitable blogs.
He provides FREE tips, video and Reviews of blogging products at
HowToMakeMoneyWithABlog
Tags: Adsense, Bank, Blog, Blogging, Clickbank, Dillon, Domain Name, Drive Traffic, Ebook, Good Starting Point, Google, How To Make Money, Hungry Crowd, Internet Marketer, Losers, Monetize, Money, Need To Know Basis, Niche, Niches, Plug Ins, Product, ReviewHow, Search Engines, Specialising, Time Internet
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