By: Ron Lanieri
How many of you out there think that the market is performing well?
How many think the market is performing poorly?
And how many feel the markets performance is neutral?
Actually none of these answers is correct. You see, the market does not perform, you do. You perform!
Sometimes you perform well, and other times you do not perform so well. The market doesn't perform, it moves. It moves up, it moves down and it moves sideways.
It moves along like anything else that travels in a business cycle. If the market did perform, then you would only be able to make money in an up market.
As you know, it is possible to make money in a down market, and even in a stagnant market. Thus it stands to reason that the market simply moves and you react to it. So, let's talk about your performance. You have two ways that you can perform, directly and indirectly.
Directly, you pick your own stocks. Indirectly, someone else picks your stocks for you, whether it is your broker or a fund manager.
In the latter case, the fact that you chose someone else to pick the actual stock does not mean that the responsibility of a loss is theirs. After all, it was you who chose them.
In the end, it is you and you alone who are responsible for your performance. Consequently, it is your responsibility to become an educated investor.
Years ago, individual investors didn't have to worry about who was managing their money. Now, things have changed as poor returns from money managers and investment firm scandals have shaken our confidence in these ‘professionals.'
To get a better look at what lies ahead, you have to go back and look at what transpired to get you to where you are now. From there, maybe a clearer path into the future will become visible.
During the Great Bull Market of the 1990's, many investors, like you, entered the market and reaped the returns of the largest bull market in history.
Everyone, it seemed, made incredibly high rates of return. The market's incredible, unprecedented move appeared to make geniuses of us all - but in actuality, it masked some major flaws with many industry professionals. It also created a misconception in the general public that all market professionals were experts.
Suddenly, the bubble burst and those flaws were exposed.
Not only did we find out that most of those experts possessed more luck than skill, but we also discovered that some had been cheating us out of our hard earned savings.
Many investors were discouraged with these market developments, and to make matters worse, many had lost significant amounts of money. Not to mention, the prospect of regaining these losses seemed slim to uncertain, at best.
Furthermore, the very people we normally looked to for help in retrieving these losses either lacked the talent to recover them or had lost enough of our trust and confidence that we wouldn't even entertain the thought of letting them try.
About The Author:
About author:
Ron Ianieri is a professional options trader, former floor trader, and market maker on the PHLx options exchange. As co-founder of the Options University, Ron teaches hundreds of aspiring options traders from all over the world how to trade options 'the right way'. Click here to learn more: optionsuniversity.com
Tuesday, March 3, 2009
Easy Philosophy Of New And Old Investor
By: David Vagner
Many people consider that it is impossible to earn money on HYIP market, one is full of SCAMs. They think that only the wealthy or uneducated get involved in HYIP. But it is not true. I know many people who invest in HYIP every day and earn near $4000-5000 a month additional income.
One financial advisor once told: "It does not matter how good of job someone has, if they want to acquire wealth in this life, at some point they are going to have to invest in something." Investing is very popular thing. Many people consider investment one of the best way to success. Investing is something most people will do during their lifetime. They may invest in real estate, life insurance, stocks, bonds, mutual funds or a simple 401K.
HYIP is one type of investing. We live in a world of information and there is a wealth of information about investing. A lot can be learned from credible websites, you can find books at your local library, join an online investment group, talk to your peers and even sign up for free investing seminars. Many young investors invest in HYIP without knowledge. They rashly put their money in every HYIP (very often new investors invest money in HYIP with big percentages) and look forward to withdraw their profit. As rule, they lost money.
Many new investors get involved in an HYIP because they receive an email with all of these amazing claims for a short-term high yield investment program that will change their life. Many HYIPs are listed on theHYIPs.net. Unfortunately, it is usually the newer investor that cannot see the limit to such investments and goes all in with a large sum of cash. While there is a chance that all will go well and their first big investment will be a huge success, this is usually a setup for a huge loss. Newer investors are often excited by all of the promises and the deflection of suspicion and questioning that they fall prey to a scam, or to a poorly construction HYIP. It is often through a loss of any amount of money that a new investor learns to really research any investment before opening their wallet.
There are also cases where the new investor is so cautious that he or she can end up making a good deal of money through an HYIP because they do not just jump at the first opportunity that crosses their path. Instead, they learn about HYIP and do some research until they find the right program. This can be a great way to start off your investing, although one must remember that there are no promises with HYIP and next time the results may not be as favorable.
Many experienced investors do not hesitate to get involved in the high-risk world of HYIP because they have learned how to tell the difference between a good investment and a bad one. Experienced investors usually have a bit of money put away as well, and while they do not look forward to losing money, they might be better able to afford a loss if the HYIP investment does not go well. Experienced investors know the type of questions to ask, the type of data to look for, and probably know what type of HYIP program will be most beneficial to their investment portfolio. Many such questions you can find on theHYIPs.net. With experience comes the knowledge to more adequately weigh the risks and benefits of any high-risk investment, including high yield investment programs.
This is not to say that the experienced investor will never experience loss through an HYIP, because it happens to investors will all experience levels. Some scams are set up so that even the most cautious fall for the false promises. And, sometimes even the best laid HYIP plans are not as lucrative as everyone first thought they would be. This leads to a loss of money for all involved, no matter their experience level.
It does not really seem to matter what the experience level is, you may win with one HYIP and lose with another. In the world of high yield investment programs you just have to be aware that there are high risks associated with a possible high pay off. While there are no promises to anyone who invests in this sort of program, you can protect yourself a bit by looking into the HYIP before you invest, to get a track record, and be sure that business is conducted in a manner in which you feel comfortable with.
It is up to each investor to decide what HYIP is worthy of the risk and which is not. Remember that any HYIP worth your time will acknowledge the risk associated, if they do not, it is better not to take that much of a risk!
I know how to choose good HYIP for investing, developed my own rules of successful HYIP investment, so I do not hesitate to you about this. All my secrets I revealed in my HYIP course. For more information visit http://www.thehyips.net/lessons/
About The Author:
David Vagner shows you the way of his amazing success.For more information read his free course at HYIP monitor : => http://www.thehyips.net/lessons/
Many people consider that it is impossible to earn money on HYIP market, one is full of SCAMs. They think that only the wealthy or uneducated get involved in HYIP. But it is not true. I know many people who invest in HYIP every day and earn near $4000-5000 a month additional income.
One financial advisor once told: "It does not matter how good of job someone has, if they want to acquire wealth in this life, at some point they are going to have to invest in something." Investing is very popular thing. Many people consider investment one of the best way to success. Investing is something most people will do during their lifetime. They may invest in real estate, life insurance, stocks, bonds, mutual funds or a simple 401K.
HYIP is one type of investing. We live in a world of information and there is a wealth of information about investing. A lot can be learned from credible websites, you can find books at your local library, join an online investment group, talk to your peers and even sign up for free investing seminars. Many young investors invest in HYIP without knowledge. They rashly put their money in every HYIP (very often new investors invest money in HYIP with big percentages) and look forward to withdraw their profit. As rule, they lost money.
Many new investors get involved in an HYIP because they receive an email with all of these amazing claims for a short-term high yield investment program that will change their life. Many HYIPs are listed on theHYIPs.net. Unfortunately, it is usually the newer investor that cannot see the limit to such investments and goes all in with a large sum of cash. While there is a chance that all will go well and their first big investment will be a huge success, this is usually a setup for a huge loss. Newer investors are often excited by all of the promises and the deflection of suspicion and questioning that they fall prey to a scam, or to a poorly construction HYIP. It is often through a loss of any amount of money that a new investor learns to really research any investment before opening their wallet.
There are also cases where the new investor is so cautious that he or she can end up making a good deal of money through an HYIP because they do not just jump at the first opportunity that crosses their path. Instead, they learn about HYIP and do some research until they find the right program. This can be a great way to start off your investing, although one must remember that there are no promises with HYIP and next time the results may not be as favorable.
Many experienced investors do not hesitate to get involved in the high-risk world of HYIP because they have learned how to tell the difference between a good investment and a bad one. Experienced investors usually have a bit of money put away as well, and while they do not look forward to losing money, they might be better able to afford a loss if the HYIP investment does not go well. Experienced investors know the type of questions to ask, the type of data to look for, and probably know what type of HYIP program will be most beneficial to their investment portfolio. Many such questions you can find on theHYIPs.net. With experience comes the knowledge to more adequately weigh the risks and benefits of any high-risk investment, including high yield investment programs.
This is not to say that the experienced investor will never experience loss through an HYIP, because it happens to investors will all experience levels. Some scams are set up so that even the most cautious fall for the false promises. And, sometimes even the best laid HYIP plans are not as lucrative as everyone first thought they would be. This leads to a loss of money for all involved, no matter their experience level.
It does not really seem to matter what the experience level is, you may win with one HYIP and lose with another. In the world of high yield investment programs you just have to be aware that there are high risks associated with a possible high pay off. While there are no promises to anyone who invests in this sort of program, you can protect yourself a bit by looking into the HYIP before you invest, to get a track record, and be sure that business is conducted in a manner in which you feel comfortable with.
It is up to each investor to decide what HYIP is worthy of the risk and which is not. Remember that any HYIP worth your time will acknowledge the risk associated, if they do not, it is better not to take that much of a risk!
I know how to choose good HYIP for investing, developed my own rules of successful HYIP investment, so I do not hesitate to you about this. All my secrets I revealed in my HYIP course. For more information visit http://www.thehyips.net/lessons/
About The Author:
David Vagner shows you the way of his amazing success.For more information read his free course at HYIP monitor : => http://www.thehyips.net/lessons/
Monday, March 2, 2009
Inside Secrets Banks Dont Want You To Know
By: Joe Janetti
1. What is a good construction loan?
A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment.
2. Should I use A Broker?
The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows which banks are the best. A broker is a representative for hundreds of banks. Although the broker serves as middle-man, his or her services will not cost you anything extra. That's because brokers get loans at wholesale rates, and pass them along to their clients at retail prices, just like any other business.
* Wholesale and Retail- The difference between wholesale and retail is how brokers make money. Therefore, you get the same rate from a broker as if you went directly to the lender yourself.
* In Fact, because or their volume, many brokers are able to offer their clients better deals than you can get by talking to the banks on you own.
* With an experienced construction loan broker you can shop dozens of the most competitive banks nationwide, work with wholesale pricing and can negotiate on rates and pricing. Also by submitting multiple loans at the same time you will not lose extra points on your FICO score.
3. When Should you lock in your construction loan before you start building or let the interest rate float?
If the rates are heading upward, lock. If the rates are stable, relax. If the rates are headed downward, float.
Right now interest rates are at an all time low and can only go up. Locked into the best interest rate with the ability to float downward.
Inexperienced loan officers will offer their customers an enticing low adjustable rate during construction without an upfront lock-in and the customer may end up having to lock into higher interest rates when the home is completed. Or the customer is sold on a higher rate during construction with a float down option after the home is built. Again, the rate could be much higher when the home is completed. Meanwhile the loan officer has been paid and has moved on to the next loan. The only time you want this type of loan is if it's the only loan you qualify for.
Most loan officers do not explain this to their customers until it's too late (Closing). Always ask. Is the construction loan rate locked upfront or floating during the construction loan period? Then ask, is the rate during the construction loan the same rate when the loan converts into the mortgage period.
How do I qualify for a construction to perm loan, and what are the procedures?
The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture.
The completed loan application will tell the loan officer many things including,
1. What type of loan you want.
2. How much money you need.
3. Your social security number.
4. Your current employers.
5. A list of all you assets (money) and liabilities (bills).
6. How much money you make.
7. How much real estate you own.
Once the loan officer has your loan application in hand they can determine whether you can qualify for a loan. One of the first items pulled is your credit report. The credit report is going to tell 3 main important things.
* Show your current credit score. The credit score can range from 500 to 800.
* Show a complete list of all your monthly liabilities (bills).
* Show all past credit problems including bankruptcies, foreclosures and late payments.
With this information the loan officer will do an analysis to determine if you can qualify for the loan amount that you're looking for. This analysis determines a ratio called the (income to debt ratio) and depending on the banks underwriting guidelines this ratio will usually range from 36% to 45%. The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income. Some banks will allow you to exceed this ratio if you have an excellent credit history and excellent credit score. The current and the most popular method of qualifying for a loan today is the stated income loan.
Stated income allows you to qualify without verifying your income on your tax returns, W 2's or pay stubs. The only thing the bank verifies when applying for a stated income loan is your credit score, liquid assets and that you're employed.
4. "Bait and Switch" Don't be taken by one of the oldest tricks in the book
The mortgage lending business is notorious for baiting and switching. Baiting and Switching is when a loan officer or advertisement offers you one thing and then tries to sells you something else.
Typical signs of baiting and switching are obvious, some basic examples are:
* Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
* You are offered a construction loan with no points and no loan fee's. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
* You are told that you will not have any payments while you're building. What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount.
Remember three important facts and you will always be in good shape.
1. If it sounds too good to be true there's usually a reason.
2. Always get your quote in writing, (ask for a good faith estimate).
3. If you are satisfied with the rate and construction loan program that you are quoted, ask to lock it in upfront.
On the flipside, it is very important to realize that most loan products typically go hand in hand with banking guidelines. These guidelines are provided to loan officers to coincide with the customer's qualifications.
For example, if you have a very high (FICO) credit score with land free and clear, you have more loan options than the person with a very low (FICO) score and no land equity.
5. Banks really don't want you to know this!
All banks have access to the same rates and the only reason everyone ends up with a different rate is directly related to how much your loan officer and bank is going to profit from you.
You should probably read that one again.
Your loan officer gets paid like all sales people either by:
* Salary plus commission
* Commission only
It doesn't matter if you walk directly into a bank or work with a broker, basically everyone gets paid the same. If you walk directly into a bank the loan officer most likely gets a basic salary and a percentage of the loan origination fee (points and yield spread premiums). If you work with a broker the broker usually works on a straight commission (points and yield spread premiums). Becoming a broker allows the loan officer the ability to offer their customers the best loans with the most options.
It always amazes me when I see TV commercials or hear radio commercials advertising $395, zero closing costs. I always wonder if people understand how they can do that.
Ok, here is how it is done.
The inside secret is that in exchange for these low or zero closing costs the lenders will make their profits and cover the costs of the loan by charging you a higher interest rate.
This higher interest rate pays what they call in our industry a (YSP) yield spread premium.
By charging you a higher interest rate over the life of the loan the bank can easily afford the commercials, commissions, payroll, and cover the costs of the loan while still making a profit. Also the service is usually very poor and impersonal.
So the next time you see advertising with no closing costs you will know exactly how they are doing it.
So please remember that there is no such thing as a free lunch in any business. Business wouldn't be business if there were no profits. The most important thing is that you want the best loan available at a fair price with an experienced loan officer.
6. What are interest reserves and contingency funds doing in your closing costs?
The two things most customers do not factor into the cost of the building their new home are interest reserves and contingency funds.
Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built. The payments are made from this interest reserve account and no, it's not free. This reserve is added to your construction loan amount. Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built.
The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount.
If you do not want interest reserves added to your construction loan amount you can ask to make your own monthly construction loan payment. Contingency funds are added to the loan amount just in case you need more money to build your new home.
With all good intentions construction loans tend to have cost over runs. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances. If you don't need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home.
So when you apply for a construction loan ask your loan officer to provide you a copy of the estimated construction loan budget. The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.
About The Author:
F.Lanni is a Top Producing Realtor in The Million Dollar club http://orlandoreunionresorthomes.com http://orlandoreunionreorthomes.com/blog
1. What is a good construction loan?
A typical construction loan nowadays is a construction to permanent loan that may or may not allow you to lock-in today's low interest rates until the home is completed. If you choose a loan that does not allow you to lock in upfront, the interest rate may end up higher along with your monthly payment.
2. Should I use A Broker?
The most important thing when searching for a good construction loan is to find an experienced construction loan specialist that knows which banks are the best. A broker is a representative for hundreds of banks. Although the broker serves as middle-man, his or her services will not cost you anything extra. That's because brokers get loans at wholesale rates, and pass them along to their clients at retail prices, just like any other business.
* Wholesale and Retail- The difference between wholesale and retail is how brokers make money. Therefore, you get the same rate from a broker as if you went directly to the lender yourself.
* In Fact, because or their volume, many brokers are able to offer their clients better deals than you can get by talking to the banks on you own.
* With an experienced construction loan broker you can shop dozens of the most competitive banks nationwide, work with wholesale pricing and can negotiate on rates and pricing. Also by submitting multiple loans at the same time you will not lose extra points on your FICO score.
3. When Should you lock in your construction loan before you start building or let the interest rate float?
If the rates are heading upward, lock. If the rates are stable, relax. If the rates are headed downward, float.
Right now interest rates are at an all time low and can only go up. Locked into the best interest rate with the ability to float downward.
Inexperienced loan officers will offer their customers an enticing low adjustable rate during construction without an upfront lock-in and the customer may end up having to lock into higher interest rates when the home is completed. Or the customer is sold on a higher rate during construction with a float down option after the home is built. Again, the rate could be much higher when the home is completed. Meanwhile the loan officer has been paid and has moved on to the next loan. The only time you want this type of loan is if it's the only loan you qualify for.
Most loan officers do not explain this to their customers until it's too late (Closing). Always ask. Is the construction loan rate locked upfront or floating during the construction loan period? Then ask, is the rate during the construction loan the same rate when the loan converts into the mortgage period.
How do I qualify for a construction to perm loan, and what are the procedures?
The first thing your loan officer wants to see is your completed loan application. The loan application called the (1003) will tell a story of your financial picture.
The completed loan application will tell the loan officer many things including,
1. What type of loan you want.
2. How much money you need.
3. Your social security number.
4. Your current employers.
5. A list of all you assets (money) and liabilities (bills).
6. How much money you make.
7. How much real estate you own.
Once the loan officer has your loan application in hand they can determine whether you can qualify for a loan. One of the first items pulled is your credit report. The credit report is going to tell 3 main important things.
* Show your current credit score. The credit score can range from 500 to 800.
* Show a complete list of all your monthly liabilities (bills).
* Show all past credit problems including bankruptcies, foreclosures and late payments.
With this information the loan officer will do an analysis to determine if you can qualify for the loan amount that you're looking for. This analysis determines a ratio called the (income to debt ratio) and depending on the banks underwriting guidelines this ratio will usually range from 36% to 45%. The income to debt ratio is the percentage of monthly debt payments (including your new mortgage payment, taxes and insurance). This ratio should not exceed 36% to 45% of your monthly income. Some banks will allow you to exceed this ratio if you have an excellent credit history and excellent credit score. The current and the most popular method of qualifying for a loan today is the stated income loan.
Stated income allows you to qualify without verifying your income on your tax returns, W 2's or pay stubs. The only thing the bank verifies when applying for a stated income loan is your credit score, liquid assets and that you're employed.
4. "Bait and Switch" Don't be taken by one of the oldest tricks in the book
The mortgage lending business is notorious for baiting and switching. Baiting and Switching is when a loan officer or advertisement offers you one thing and then tries to sells you something else.
Typical signs of baiting and switching are obvious, some basic examples are:
* Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
* You are offered a construction loan with no points and no loan fee's. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
* You are told that you will not have any payments while you're building. What you're not told is that all construction loans have this option and it's called "interest reserves" and the payments are added to the loan amount.
Remember three important facts and you will always be in good shape.
1. If it sounds too good to be true there's usually a reason.
2. Always get your quote in writing, (ask for a good faith estimate).
3. If you are satisfied with the rate and construction loan program that you are quoted, ask to lock it in upfront.
On the flipside, it is very important to realize that most loan products typically go hand in hand with banking guidelines. These guidelines are provided to loan officers to coincide with the customer's qualifications.
For example, if you have a very high (FICO) credit score with land free and clear, you have more loan options than the person with a very low (FICO) score and no land equity.
5. Banks really don't want you to know this!
All banks have access to the same rates and the only reason everyone ends up with a different rate is directly related to how much your loan officer and bank is going to profit from you.
You should probably read that one again.
Your loan officer gets paid like all sales people either by:
* Salary plus commission
* Commission only
It doesn't matter if you walk directly into a bank or work with a broker, basically everyone gets paid the same. If you walk directly into a bank the loan officer most likely gets a basic salary and a percentage of the loan origination fee (points and yield spread premiums). If you work with a broker the broker usually works on a straight commission (points and yield spread premiums). Becoming a broker allows the loan officer the ability to offer their customers the best loans with the most options.
It always amazes me when I see TV commercials or hear radio commercials advertising $395, zero closing costs. I always wonder if people understand how they can do that.
Ok, here is how it is done.
The inside secret is that in exchange for these low or zero closing costs the lenders will make their profits and cover the costs of the loan by charging you a higher interest rate.
This higher interest rate pays what they call in our industry a (YSP) yield spread premium.
By charging you a higher interest rate over the life of the loan the bank can easily afford the commercials, commissions, payroll, and cover the costs of the loan while still making a profit. Also the service is usually very poor and impersonal.
So the next time you see advertising with no closing costs you will know exactly how they are doing it.
So please remember that there is no such thing as a free lunch in any business. Business wouldn't be business if there were no profits. The most important thing is that you want the best loan available at a fair price with an experienced loan officer.
6. What are interest reserves and contingency funds doing in your closing costs?
The two things most customers do not factor into the cost of the building their new home are interest reserves and contingency funds.
Interest reserves are added to your loan amount to make the monthly payment on your loan. Yes, you read that correctly, you will not have to make a monthly construction loan payment while your home is being built. The payments are made from this interest reserve account and no, it's not free. This reserve is added to your construction loan amount. Interest reserves were designed for the benefit of the customer. Most people building a new home are either paying rent or have an existing mortgage payment while their home is being built.
The last thing a customer needs is another monthly payment while building. So, banks created the interest reserve account by adding up the estimated interest payments over a 12 month period and add this to the loan amount.
If you do not want interest reserves added to your construction loan amount you can ask to make your own monthly construction loan payment. Contingency funds are added to the loan amount just in case you need more money to build your new home.
With all good intentions construction loans tend to have cost over runs. The bank adds 5% to 10% of the cost breakdown and adds this amount to the loan amount just in case you have cost over runs or need better appliances. If you don't need or use this extra contingency fund then it will not be added to your mortgage upon completion of your new home.
So when you apply for a construction loan ask your loan officer to provide you a copy of the estimated construction loan budget. The budget is created from your costs and includes every cost within the loan including land balances, closing costs, interest reserves, contingency and bank fees.
About The Author:
F.Lanni is a Top Producing Realtor in The Million Dollar club http://orlandoreunionresorthomes.com http://orlandoreunionreorthomes.com/blog
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