Profit in Any Market

You can make money when markets are going up. You can also make money when markets are falling. And believe it or not, there are ways of making money when the market is moving sideways or doing nothing at all.

The catch?

You need to have a view on where the market is headed.

How can you determine market direction?

Here I’ll show you my top three trading tools to help give you some ideas.

Trading tools I use

Now, the way I chose to trade isn’t for everyone. I prefer to trade quality companies which are trading at cheap multiples, showing signs on the charts that there is strong demand.

I like to look at economic conditions, fundamentals of the stock as well as using technical analysis or charting.

So what should you look for?

Economic conditions

I’m going to start by looking at economic conditions because it is the one thing that many traders overlook.

Low interest rates are one of the most beneficial conditions for the sharemarket. It encourages movement from cash to more risky investments. If the cost of borrowing is lower it encourages growth. This impacts valuations because the risk-free rate is lower.

Conversely, rising interest rates make it more difficult for companies to grow.

There are other indicators to look at as well. The economy moves in cycles and the troughs and peaks (highs and lows) are often defined by the unemployment rate. This is a lagging indicator but has the benefit of helping you define the highs and lows.

So it’s useful to understand where we are in the economic cycle using unemployment rates.

For almost 30 years you can see that, generally, falling unemployment is good for the market.

Sounds basic I know, but it’s amazing how the basics are often overlooked for more complicated, difficult and often less meaningful concepts.

Fundamentals of the stock

It’s important to know what a company does and what profit it makes as well as how much its profit grows.

If you think about the sharemarket as a market full of businesses, you can see that some businesses are great and some are simply dreadful. If someone knocked on your door and asked you to invest $20000 into their business, there would be many questions that you’d probably ask before you opened up your wallet.

Yet when it comes to the sharemarket, often investment decisions are made without more than a couple of minutes thought or on the back of a tip.

So it’s important to answer a few important questions, like ‘what’s the underlying business’ and ‘why is it a good investment?’

Charting

Finally, there are psychological aspects to the sharemarket. You might not know what moves the market but you can see how the market moves.

This area is called charting or technical analysis.

Being able to read the charts helps you read the optimism or pessimism of the markets.

This is important, because if the dominant market vibe is optimistic, then a rising tide tends to lift all ships and almost all stocks tend to rise. That optimism or pessimism is often also called greed and fear.

At the moment, the Australian sharemarket looks like it has gone past a significant psychological barrier of 4350. The key here is that we’ve seen a definite break of that level and now we need to watch and see if that holds.

Volumes have been improving which is a positive sign. The pain may not be over but in the short-term, things are looking good.

So, if you can determine market direction using strategies or tools like the ones I’ve outlined, you might just be able to profit no matter what the sharemarket is doing.

Investment – Choice Between Direct Investment in Stocks and Investment in Mutual Funds

Basics

Mutual Funds (MFs) are primarily engaged in investing in stocks. Then why should not one invest in stocks directly and what is the need for these funds? This question is answered below:

As investors, our priority always will be to focus higher profits in the shortest time. With this goal in mind, we look upon the avenues open for investment.

Time management

To directly invest in shares, one should require expertise to analyse and compare financial statements of the companies where we invest. By investing in mutual funds, one is essentially hiring a professional manager at an especially inexpensive price. It would be stupid to think that one knows more than these managers who have been around the industry for a long time and who have proper academic credentials. This not only saves our precious time but also provides the expertise.

Risk focus

With shares, one worry is that the company invested may go bankrupt. With mutual funds, that chance is next to nil. Since they typically hold anywhere from 25-5000 companies, all of the companies that it holds would have to go bankrupt.

By pooling a lot of shares (in a stock fund) or bonds (in a bond fund), MFs reduce the risk of investing. If one company in that sector has a bad manager, or a losing strategy, it is balanced by other companies that are performing better. This lowers the risk, thanks to diversifications.

Scope & schemes

Mutual funds operate variety of schemes-say Equity market, Bond Market, Debt market and so on. Once an investor invests in MF, he has the option of ” SWITCH” which means that he can change his risk perception periodically depending on the Economic Scenario which is not possible if one invests directly in Share Market. Secondly, most of them have the scheme of “SIP” that is Systematic Investment Plan whereby one can invest a fixed amount over a period of time and reap the benefits of price changes of shares over the period.

Liquidity

Investment in MF is as liquid as investment in stocks or better than that as some scrips can be sold only in market lots. That is no so in the case of investment in MF. Stocks can be much more difficult depending on what kinds you have invested in. CD’s offer no liquidity (not without a hefty fee) and bonds can be difficult, too. Some mutual funds also carry check writing privileges.

Consumer Direct Inc – MLM Health and Wellness at Its Finest

Durk Pearson and Sandy Shaw have for years been extremely popular folks. These 2 are renowned nutritive analysts and writers, who’ve single handedly been credited for launching today’s anti-aging revolution, after the successful release of their highly-popular and best-selling book, Life Extension: A Practical scientific Approach, in 1982. Today, Durk Pearson and Sand Shaw continue to be fertile and successful diet and wellness product marketers, and own / manage a company called Consumer Direct Inc.

What Have Durk And Sandy Been Doing These Years?

Durk Pearson and Sandy Shaw co-wrote the highly-popular book Life Extension: A Practical Scientific Approach in 1982. They also co-wrote The Life Extension Weight Loss Manual, as well as the Freedom of Informed Choice: FDA vs Nutrient Supplements in 1993.

These two savvy nutritional researchers and authors have also wrote numerous articles in cognitive enhancement, life extension, anti aging, weight loss and other nutrition topics and concerns. These two eminent fellows also have appeared in over three hundred television programs, from several appearances on CNN’s Larry King Live, to a number of documentaries on aging and wellness on such favored international TV networks like BBC, Canadian Broadcasting concern and on Japanese television.

The pair released the Life Extension Video in 1988. The video was made to completely explain a big selection of ideas and information, which were taken from their top selling works on weight loss, nutrition and anti-aging.

What Are The Products Of Consumer Direct Inc.?

Durk Pearson and Sandy Shaw’s Consumer Direct Inc. produces and markets a wide array of leading edge health and wellbeing and anti aging products and additions. Their products go from the Direct Health product line, Durk Pearson and Sandy Shaw Designer Foods, and the Direct Health Junior product line for kids.

The majority of the company’s nutritional formulations contain precise nutrient co-factors, which act together with the product’s principal nutrient. The corporation’s health, well-being and age-defying products do not contain synthetic fillers, corn, soy, yeast, synthesised colours, pollen, glucose, sucrose, artificial sweeteners and wheat, which may cause allergic responses

Selling Revolutionary Health and Wellbeing Products Through MLM

Because Durk and Sandy have in depth experience in formulating nutritive supplements and in studying body metabolism, they have designed nutrient supplement formulations, without getting any reference from the usual complicated biochemical charts. Durk and Sandy, as well as the company itself, are absolutely committed to revolutionizing the market place, by introducing a new wave of nutritive and wellness products.

Consumer Direct Inc. is completely committed to manufacturing high-quality but cheap nutritional products, while at the same time permitting customers to support one another and achieve independence and wealth. The company markets its nutritive products though internet promotion or M.L.M.

Durk and Sandy note that if you use the products and achieve the desired results, all that you need to do is tell your success story to everybody, and the results will. Sell the products. The sole investment you want here is to sign up for automated cargo of your product orders, and effectively lure others to join your business too.