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Wells Fargo

April 8, 2006

The overall market choppiness since the beginning of 2006 has made it tough for investors to find trading opportunities. However, there are a handful of developing bullish and bearish sector trends that are worth a closer look. All of these trends are based on weekly – and even monthly – data, which weeds out the day-to-day noise that has been unusually loud over the last month. As such, a day or two worth of contra-movement can’t be taken to heart. These ideas are much ‘bigger picture’.

The Stealth Rally

Although the NASDAQ has lethargically trailed the S

The Internet offers an abundance of information about investing, currency trading, forex market, about how, when and what to do to earn more money in the easiest way possible. The ?information highway? is practically a gold mine for traders that have a lot of experience and for beginners that need articles, tips and glossaries to get ahead. So much to see and so much to do?One should be worried that all these people (that are looking for information and for knowledge or are offering it) forget that behind the computers there are hearts beating and brains thinking, and blood pulsing through veins.

The useful information that is found on the Internet about foreign exchange, charts, capital risks, currencies, brokerage, and transactions isn?t just a virtual world separated from reality. It is other people?s experience, thoughts and feelings. The articles written about this subject represent their time and effort to supply novelty, to help, to guide their fellow readers. And those to whom they address their knowledge are people too. The Internet is actually people?s humanity, their strive to contribute, even a little to man kind.

Currency trading isn?t impossible to learn as one might imagine when encountering problems. Trading difficulties aren?t a reason not to invest anymore. These procedures and words were invented by people (who have weaknesses, who are sometimes foolish, sometimes too ambitious or who want to take advantage of your own faults), but for the people also. And, because you, the reader, are here to use their information you are proving yourself to be human. You should now endeavor to understand what others have so much worked to teach. Yes, you might stumble upon different terms that place you in a difficult situation: Wash trade, Whipsaw, vostro Accounts and abbreviations like: EDI, ECU, EMS, EFT, G7 or G10. But you will also find the answers to all of your questions from the same people that use these terms.

Currency trading speaks about money and finance and business, so about people and their wishes of great wealth. Trading in general talks about human psychology ? something that should be taken into consideration usually. The risk that exists in trading has a direct effect on the trader. Therefore bad transactions are made because of hesitation, fear of making a choice that might lead to loss of money and lack of faith. The advice: ?trade only as much as you can afford to lose? was given just because of these reasons. Currency trading has less to do with psychology than other trading systems, but it still reefers to people and the way they think.

So human weaknesses can be taken advantage of (you can profit from someone else or someone else will profit because of you). The good aspect of currency trading is that buying and selling currencies is safer than other risky markets because the psychological factor weights less here. But, if you want to make sure that you are in control of the situation, don?t Read more…

It caught my attention when I heard an analyst on a popular financial news program tell investors to sell a stock because too many analysts liked the company, citing the fact that there were no sell ratings.

It seemed perfectly logical to me that analysts wouldn?t be telling investors to sell 3M (MMM), which has one of the most consistent positive earnings records in the history of the stock markets. But being suspicious of conflicts of interest between brokerage firms and analysts I decided to do a bit of fact checking anyway.

While the stock did not have any sell ratings at the time of writing, there were quite a few hold ratings. Now I feel compelled to diverge here and say that the hold rating seems quite illogical to me. If a stock is good enough to hold it?s good enough to buy, and vice versa if you wouldn?t want to buy it then you shouldn?t want to hold on to it either.

As it turns out, the average analyst rating for 3M was only slightly and insignificantly better than the average for all stocks in the Dow Jones Industrial Average, of which the company is a component.

But what was most interesting about the ratings on Dow components was that, despite numerous and serious legal problems, AIG (AIG) was tied Read more…

When you invest, it simply means that you are putting your funds in products, in this case short-term savings vehicles, which will allow you to reap high financial rewards.

Here is a list of the more common short term savings products you should consider investing in.

Savings account: If you are getting your feet wet for the first time in investing, you should consider this, as it is the most popular banking product people use. The interest rates of a traditional savings account vary between 2.0% to 4.0. This is better than keeping them at home. Investing in a savings account is relatively risk free, as these products are protected by the federal deposit insurance. Generally, the government protects the money you have on deposit to a limit of $100,000. Some questions you?ll need to ask: What is the interest rate on your savings? Can the bank change the rate after you?ve opened the account? Will you pay a flat monthly fee? What if the balance drops? Is the ATM service free? Are the fees reduced or waived if you directly deposit your paycheck or government payments?

Money market funds: Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds. Its shares are designed to be worth $1 at all times. It?s a better product for investing in than the traditional savings account, with regards to the interest rate it will give you. But has a lower rate than certificates of deposit. However, the virtue of investing in the money market fund is that, while the interest rates may be lower, you can withdraw your funds when you see fit.

Certificate Read more…

If you know next to nothing, how do you go about the business of investing? The first thing you need to know about investing is, how much do you really know? If its? not much, then you will need to read extensively to educate yourself.

To become well-informed, you should read up on the basics. find out what a stock, a bond or a mutual fund is, and what the differences are between these three financial products and it?s variables. Read books on financing and investing.
Talk to savvy investors, watch video and live presentations. Once you understand the differences and the risks entailed investing in each particular vehicle, then you can move forward with confidence.

Now you can go to the second phase of learning about investing. Gain some experience, by investing in small stocks, and learn both from your mistakes and successes. However, find out first what kind of investor you are. Here are some pointers to help you get to the answers.

In going about your business of investing, have a game plan and set definite goals. The answers to these questions will be valuable guideposts for you in your venture into investing your funds.

? What is your timetable for investing?

? What sectors of industries are you interested in investing in?

? What is the amount of funds you can safely use in investing in order to reach your goals?

? Have you considered your short term financial needs or goals?

? Do you plan to live off these investments in your retirement years?

Determine your investing style. Are you a risk taker? Or do you like steady gains? Consider this thought, Read more…

Motivational guru Tony Robbins teaches that the reason for doing something rates much higher than the methods you use to get the job done. In order to make your goal REAL, you need to attach severe, horrifying, intense and profound fear to failure.

Open up a notepad either on a desk or on your computer in a quite place and write a 50-page letter to yourself surrounding this question:

– What is going to happen to me 20 years from now if I do not learn the successful skills I need to know in order to become a brilliant or the best on line trader?

Write your answers in detailed pictured thoughts. I have found that writing in length brings out the hidden agenda into realms of things that are too painful to face. This pain aids you to move into a different direction.

Now do the same exercise for this question:

– Ask yourself ? Why do you want to become the best trader online?– What kind of trader do I want to become? Good proposal examples: online stock trader, online forex trader etc.– What trader market research would I like to pursue? The most popular illustrations: online daytrader, online swing trader etc.– What systems would I like to learn as a trader? A good example might be as an online fibonacci trader.

See, if you have a strong enough WHY that answers the following questions pertaining to trading ? then you will find a way, no matter how difficult the pain, to get the job done. Here are some ideas for your 50-page letter.

– Do you want to create a stream of passive income? — Do you want to create a sense of security for yourself about where your next check will come from?– Do you want to earn income that will act as an extra supplement source cash so that you can afford some of the finer things in life instead of living paycheck to paycheck?

In his ?Rich Dad, Poor Dad? series of books, Robert Kyosaki advises against anyone securing a part time job. Instead, Kyosaki suggests starting a part time business.

In my opinion, profitable trading is the perfect business and the best home based business opportunity. It is capitalism’s best kept secret that will allow you to work at home. The market makes no distinction about your wealth, educational level, ethnic background or any other aspect of your identity. There is no room for office politics, difficult bosses or tricky employees in this arena. You can trade from anywhere. Follow a few simple rules, and you can run your business as you see fit.

That said; if trading Read more…

Let?s see, he had some oats, fresh alfalfa and his vitamins. I know from the mixture that is great food and he will win the seventh race this afternoon. He can?t lose because of his diet and a great jockey will be riding him.

Kinda reminds me of what my broker (horse trainer) told me to do when I was selecting a mutual fund to buy. He said to check out what was in the fund (the mixture of stocks, like my horse?s breakfast) and to see if there was a good fund manager (the jockey). I did what he said and carefully read the annual report and the prospectus too. Sounds great so I bought it.

What I can?t understand is I did all the things the horse trainer said I should and “Rocket”, my horse?s name, still came in 6th in an 8-horse race. All I wanted him to do is come in first and I can?t say I?m crazy about that mutual fund either.

That fund has a 5-star rating, is managed by one of the great names on Wall Street and has 60 of the best known company stocks I can think of and yet it is going down. I am doing everything that conventional wisdom says I should, but I continue to lose. Is there and answer?

I am not so sure about the horse, but I know the conventional wisdom of Wall Street is mostly smoke and mirrors. I read the Annual Report, but I forgot that “annual” means that much of the information is over a year old. How much help can that be? And I forgot that the prospectus was not written to enlighten me, but for the bean counters in Washington. It is supposed to make available to me all the financial information I need to make a decision to buy. All of this research is nonsense, as it will not tell me the one most important Read more…

I do not profess to ?Know? what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today?s market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes. Statistical surveys of the mortgage market shows that the percentage of adjustable rate mortgages comprised over 60% of the loans obtained in the last fiscal quarter. Even though the traditional 30 year mortgage is still very low in terms of historical comparison, buyers and homeowners that are currently buying or refinancing are electing to go with the adjustable rate almost two thirds of the time. Does that mean that they expect interest rates to go down even more, or is it because they can no longer afford the Read more…

For years, people have been making millions. Many people think that it’s because they are lucky, and that luck hasn’t come by them yet, and if it has they believe it to be bad luck. The truth is everyone can make money, it depends on how hard you try and what you are willing to do. Stock investing has been around for years, and people are making lots of money, and also losing lots. In order to make a profit you have to have some inclination of what you are doing, never fly into something blind, your bound to crash.

Well, investing in stocks is not some big mystery that only a few people know. The knowledge is out there, you just have to obtain it. Like many things in life, there is no special way of investing, there are ways that work and ways that don’t work. The probability of you finding all the ways that do work, and none of the ones that don’t, are very very slim. You will come across your bad methods, and if your lucky come across some great ones.

There are a number of reasons why investors fail when trying to make a profitable investment. Probably the most common one is that the investor didn’t want to really invest in the first place. He, or she, heard that loads of money could be made in the stock market, and they thought that they were missing out. So the investor jumps in with little or no knowledge expecting to get some sort of gigantic return. Many individuals will also not cut their losses. They will either sell too early, or try and get out because they lost some money and can’t bare to lose anymore. Most will not pay for advice for a specialist, they believe Read more…