Friday, 28 March 2008
Avoiding Madness Led to Place in History...
Posted on 10:44 by Unknown
19th century British scientist Peter Mark Roget lived into his 90's, but his family was cursed by mental illness, depression, and suicides.
He was able to cope with tragedy by making lists...
This led to his famous Roget's Thesaurus, and his place in history...
He was able to cope with tragedy by making lists...
This led to his famous Roget's Thesaurus, and his place in history...
Thursday, 27 March 2008
Internet Marketing Courses - Extract Everything Before Buying More
Posted on 20:42 by Unknown
Marketing expert Ed Rivis has a good post about internet marketing:
1. He goes over some simple steps that can lead you to success.
2. He cautions against investing in more ebooks, courses, and seminars (including his own) until you have fully studied and implemented everything you can out of your existing materials.
This is very good advice. Most people, including me (and, according to Ed, himself), buy a lot of Ebooks and courses, but then fail to follow through. We have a lot of info on our hard drives, but have not really taken advantage of it.
1. He goes over some simple steps that can lead you to success.
2. He cautions against investing in more ebooks, courses, and seminars (including his own) until you have fully studied and implemented everything you can out of your existing materials.
This is very good advice. Most people, including me (and, according to Ed, himself), buy a lot of Ebooks and courses, but then fail to follow through. We have a lot of info on our hard drives, but have not really taken advantage of it.
Wednesday, 26 March 2008
Following A Proven Path to Make Money
Posted on 14:35 by Unknown
I recently got an email from someone who bought my book Stock Trading Riches.
He complained that my book and trading system were nothing new and exciting.
Well, yes, that's the point.
As I related my story two years ago in the first post of this blog (Welcome from a Born-Again Simpleton), the search for get rich quick excitement cost me a heck of a lot of money (both actual and from lost opportunity).
I then developed my trading system, which lies midway between passive buy/hold, and hyper-active trading. It is based on re-balancing formulas.
Absolutely, there is nothing new about re-balancing. But it works. It has a sound basis. It has an edge.
My system's "twist" is that it applies one type of re-balancing (constant value) at the individual stock level, and another type (constant ratio) at the portfolio level.
It trades volatility at the stock level, and captures compounding and growth at the portfolio level.
I want people to be clear about what my book offers. It does not offer the latest whiz-bang, cutting edge technical trading indicators. There's no "Tradestation" gymnastics.
Instead, I'm giving you a proven trading system that has made money for me in real life. I trade my personal money with this system, and I love it. This is the only system I recommend to my friends and family. I sleep completely peacefully at night.
This book is not meant to entertain and dazzle you with my brilliance. It's not designed to teach you something "sexy" to discuss with other traders online. It's meant to teach you a simple, proven trading system. My goal is for you to "use" it and make money.
He complained that my book and trading system were nothing new and exciting.
Well, yes, that's the point.
As I related my story two years ago in the first post of this blog (Welcome from a Born-Again Simpleton), the search for get rich quick excitement cost me a heck of a lot of money (both actual and from lost opportunity).
I then developed my trading system, which lies midway between passive buy/hold, and hyper-active trading. It is based on re-balancing formulas.
Absolutely, there is nothing new about re-balancing. But it works. It has a sound basis. It has an edge.
My system's "twist" is that it applies one type of re-balancing (constant value) at the individual stock level, and another type (constant ratio) at the portfolio level.
It trades volatility at the stock level, and captures compounding and growth at the portfolio level.
I want people to be clear about what my book offers. It does not offer the latest whiz-bang, cutting edge technical trading indicators. There's no "Tradestation" gymnastics.
Instead, I'm giving you a proven trading system that has made money for me in real life. I trade my personal money with this system, and I love it. This is the only system I recommend to my friends and family. I sleep completely peacefully at night.
This book is not meant to entertain and dazzle you with my brilliance. It's not designed to teach you something "sexy" to discuss with other traders online. It's meant to teach you a simple, proven trading system. My goal is for you to "use" it and make money.
Tuesday, 25 March 2008
Dedicated Sales Page and Affiliate Promotion Tools!
Posted on 15:43 by Unknown
Update 04/15/2008: I have discontinued the Ebook version. I found that offering it hurt my sales conversion rate. It looks like I need to keep it simple and only sell the original paperback version.
Stock Trading Riches Now Available in Ebook Format
Posted on 15:42 by Unknown
Update 04/15/2008: I have discontinued the Ebook version. I found that offering it hurt my sales conversion rate. It looks like I need to keep it simple and only sell the original paperback version.
You Can't Go Broke Selling to Celebrities Like Demi Moore...
Posted on 15:05 by Unknown
They have a lot of money and seem to be dumb enough to buy anything...
or, at least, desperate to keep their looks...
or, at least, desperate to keep their looks...
It's a Small World, After All...
Posted on 14:10 by Unknown
Monday, 24 March 2008
Business Skills of a Basketball Coach
Posted on 13:21 by Unknown
Forbes Magazine had a profile on John Calipari, the head coach who turned around the University of Memphis basketball team.
The Memphis basketball problem endured losing seasons, fired a coach who had an affair with an undergraduate student, and had the lowest graduation rate in the NCAA: 0%. Their attendance averaged 8,000 out of 20,000 seats, and the athletic department only had $2.5 million a year in donations.
Calipari succeeded by being more than just a great coach. He had to use business skills off the court:
1. He got Fred Smith, the CEO of FedEx (which is headquartered in Memphis) to offer summer internships to the basketball team.
2. Calipari is always selling - he speaks to booster groups 30 times a year. He sold 1000 season tickets at a $500/plate barbecue he hosted at his mansion.
3. He boosted the graduation rate from 0% to 79% by requiring class attendance, and hiring academic advisers to travel with the team.
The on-court success (187-63 record) and off-court moves have helped him recruit good players. "What I sell now is simple: You have a chance to graduate, a FedEx internship to prepare you for life after basketball and a chance to maybe play in the NBA."
The Memphis basketball problem endured losing seasons, fired a coach who had an affair with an undergraduate student, and had the lowest graduation rate in the NCAA: 0%. Their attendance averaged 8,000 out of 20,000 seats, and the athletic department only had $2.5 million a year in donations.
Calipari succeeded by being more than just a great coach. He had to use business skills off the court:
1. He got Fred Smith, the CEO of FedEx (which is headquartered in Memphis) to offer summer internships to the basketball team.
2. Calipari is always selling - he speaks to booster groups 30 times a year. He sold 1000 season tickets at a $500/plate barbecue he hosted at his mansion.
3. He boosted the graduation rate from 0% to 79% by requiring class attendance, and hiring academic advisers to travel with the team.
The on-court success (187-63 record) and off-court moves have helped him recruit good players. "What I sell now is simple: You have a chance to graduate, a FedEx internship to prepare you for life after basketball and a chance to maybe play in the NBA."
Some Manufacturing Companies Also Have Exposure to Credit Markets
Posted on 12:58 by Unknown
According to a recent article in Forbes, it is not just financial companies (like Citi and Merrill Lynch) that have exposure to the credit markets.
A growing number of manufacturers now offer financial services, mostly for customer financing of their products.
For example, in the 3rd quarter of 2007, Harley-Davidson achieved 13% of its pretax earnings from loans and leases. In a recession, not only may people stop buying their expensive motorcycles, but customers who previously bought motorcycles may default on their payments.
GE gets 34% of its pretax earnings from financial services. Deere (tractors), Caterpillar (earthmoving equipment), and Pitney Bowes (postage meters) all get more than 12% of their earnings through financing.
So, there is a danger if the sub prime / mortgage problems spread to other kinds of lending.
A growing number of manufacturers now offer financial services, mostly for customer financing of their products.
For example, in the 3rd quarter of 2007, Harley-Davidson achieved 13% of its pretax earnings from loans and leases. In a recession, not only may people stop buying their expensive motorcycles, but customers who previously bought motorcycles may default on their payments.
GE gets 34% of its pretax earnings from financial services. Deere (tractors), Caterpillar (earthmoving equipment), and Pitney Bowes (postage meters) all get more than 12% of their earnings through financing.
So, there is a danger if the sub prime / mortgage problems spread to other kinds of lending.
$1,350 for a Stale Corn Flake
Posted on 09:34 by Unknown
Two sisters sold their corn flake that was shaped like Illinois for $1,350 on Ebay...
As I mentioned in a previous email, Ebay had pulled their listing, because they don't allow you to sell food.
So, they auctioned a coupon for the corn flake...
As I mentioned in a previous email, Ebay had pulled their listing, because they don't allow you to sell food.
So, they auctioned a coupon for the corn flake...
Bear Stearns Not Quite the Steal...
Posted on 08:45 by Unknown
JP Morgan Chase raised their bid from $2/share to $10/share to get the employees (who own 1/3 the shares) to agree to the buy-out.
Bought Visa (V) This Morning, Part 2
Posted on 07:53 by Unknown
I am hoping that the Visa - Mastercard pattern is a replication of CBOT-CME.
When CBOT (Chicago Board of Trade) was going public, I saw that the CME (Chicago Mercantile Exchange) had previously gone public around $35-40, and had climbed into the $300's.
So, I bought CBOT. It went public in the 40's and I got filled at $85. I follow my book's re-balancing system, so I didn't get discouraged by the volatility. I ended up selling some in the 120's, buying more at $96, and then taking profits in the $200's.
Then, CME bought CBOT. Now, I have CME stock around $490.
So, I hope that Visa (V) will now track the success of Mastercard, the way that CBOT tracked CME.
When CBOT (Chicago Board of Trade) was going public, I saw that the CME (Chicago Mercantile Exchange) had previously gone public around $35-40, and had climbed into the $300's.
So, I bought CBOT. It went public in the 40's and I got filled at $85. I follow my book's re-balancing system, so I didn't get discouraged by the volatility. I ended up selling some in the 120's, buying more at $96, and then taking profits in the $200's.
Then, CME bought CBOT. Now, I have CME stock around $490.
So, I hope that Visa (V) will now track the success of Mastercard, the way that CBOT tracked CME.
I heard a couple of weeks that VISA was going to do an IPO.
I missed it - they went public on Wednesday at $47. They got the stock symbol "V".
I found out over the weekend, so first thing this morning, I bought it at $65.
I think it's still a good price - Mastercard went public in 08/06, around $40, and is now trading at $223.
Bought Visa (V) This Morning
Posted on 07:36 by Unknown
I heard a couple of weeks that VISA was going to do an IPO.
I missed it - they went public on Wednesday at $47. They got the stock symbol "V".
I found out over the weekend, so first thing this morning, I bought it at $65.
I think it's still a good price - Mastercard went public in 08/06, around $40, and is now trading at $223.
I missed it - they went public on Wednesday at $47. They got the stock symbol "V".
I found out over the weekend, so first thing this morning, I bought it at $65.
I think it's still a good price - Mastercard went public in 08/06, around $40, and is now trading at $223.
Friday, 21 March 2008
Importance of Testing Websites
Posted on 13:42 by Unknown
I have learned a lot about the importance of testing sales letters and websites, rather than just going with your preferences and instincts.
For example, in October, I published my book Stock Trading Riches. If you go to that site now, you will see the latest best performing sales page.
After I created the original version of this page, I started having remorse - thinking that this page was too amateurish. I became disheartened every time I saw more "slick" sales pages. So, I soon replaced this page.
I decided it would be cool to have a site with several short pages that were tied together with a menu.
By this time, I also had testimonials. Since I heard that they were very important, I added a few of them.
After a month, I saw that my sales had decreased!
I decided that maybe I should switch back to a one-page website. I then created a minimalist page. I decided to leave off the book cover, and tighten up the headlines and text. I also included the testimonials.
I thought this site would be great because it was simple and minimal, with "tight" action-oriented sentences.
Yet, the sales were also not as strong as the first page.
Luckily, I had added Google analytics to all the websites, and had 4+ months of data, with hundreds of visitors. After I analyzed this data, along with my book sales, I got a surprise!
I found that the "amateurish" page converted 9.6% of each unique visitor into a book sale!
The multi-page site converted 4.65%.
The "tight" page converted 3.64%.
I then switched back to the "amateurish" page! ;-)
Now, the conversion rates were after the 3 sites were allowed to run about 5 weeks each, and each had over 100 unique visitors. So, these results might not have a high degree of confidence statistically (I need to start using a statistical package like MuVar), so I did 2 things:
1. Kept the other two sites.
2. Went back to the original site without modifications.
I plan to run the original site and collect more data. If it still gets better results than the other 2 sites, I will be confident and use the first site as the base.
Then, I can start to make and test incremental changes to ratchet up the conversion rate.
By the way, I would be interested in hearing any comments about why you think this website gets almost a 10% sales conversion rate.
My own guess is that it was written with passion, rather than in a "calculated" manner like the other two.
For example, in October, I published my book Stock Trading Riches. If you go to that site now, you will see the latest best performing sales page.
After I created the original version of this page, I started having remorse - thinking that this page was too amateurish. I became disheartened every time I saw more "slick" sales pages. So, I soon replaced this page.
I decided it would be cool to have a site with several short pages that were tied together with a menu.
By this time, I also had testimonials. Since I heard that they were very important, I added a few of them.
After a month, I saw that my sales had decreased!
I decided that maybe I should switch back to a one-page website. I then created a minimalist page. I decided to leave off the book cover, and tighten up the headlines and text. I also included the testimonials.
I thought this site would be great because it was simple and minimal, with "tight" action-oriented sentences.
Yet, the sales were also not as strong as the first page.
Luckily, I had added Google analytics to all the websites, and had 4+ months of data, with hundreds of visitors. After I analyzed this data, along with my book sales, I got a surprise!
I found that the "amateurish" page converted 9.6% of each unique visitor into a book sale!
The multi-page site converted 4.65%.
The "tight" page converted 3.64%.
I then switched back to the "amateurish" page! ;-)
Now, the conversion rates were after the 3 sites were allowed to run about 5 weeks each, and each had over 100 unique visitors. So, these results might not have a high degree of confidence statistically (I need to start using a statistical package like MuVar), so I did 2 things:
1. Kept the other two sites.
2. Went back to the original site without modifications.
I plan to run the original site and collect more data. If it still gets better results than the other 2 sites, I will be confident and use the first site as the base.
Then, I can start to make and test incremental changes to ratchet up the conversion rate.
By the way, I would be interested in hearing any comments about why you think this website gets almost a 10% sales conversion rate.
My own guess is that it was written with passion, rather than in a "calculated" manner like the other two.
Red Skeleton rehearsal with Martha Raye
Posted on 10:21 by Unknown
Here's a great clip of a Red Skeleton rehearsal with Martha Raye…
Have a grin…
Have a grin…
Monday, 17 March 2008
$800 Million Hit From Bear Stearns
Posted on 12:54 by Unknown
According to the WSJ, British Billionaire Joe Lewis has a paper loss of $800 million in Bear Stearns stock.
He owned about a 9.6% stake...
He owned about a 9.6% stake...
Bear Stearns Gallows Humor
Posted on 12:52 by Unknown
According to this Yahoo article, someone taped a $2 bill to their entrance...
Sunday, 16 March 2008
14 Tips For Giving a Great Business Speech
Posted on 14:16 by Unknown
Rich Karlgaard, publisher of Forbes Magazine, gave 14 tips on giving great speeches in his Dec. 10, 2007 column:
1. Avoid using PowerPoint. Tell stories instead.
2. If you must use PowerPoint, use it as a punch line.
3. Get away from the podium. Walk the stage.
4. Learn to speak without notes.
5. Look at individual faces in the audience.
6. Start a speech by polling the audience.
7. On the night before, use antiperspirant cream on your forehead, cheeks, nose, and neck.
8. Wear a blue shirt for TV. Wear a white shirt for a live audience.
9. If speaking outside your company, always wear a suit.
10. Use humor, but make it spontaneous and relevant. Never use bawdy humor or make fun of someone in the audience.
11. Let your energy and passion build during the speech.
12. You can't fake passion. It must be authentic.
13. Finish strong, and don't be afraid to accept applause.
14. Send handwritten notes and small gifts (if appropriate) to the hosts.
1. Avoid using PowerPoint. Tell stories instead.
2. If you must use PowerPoint, use it as a punch line.
3. Get away from the podium. Walk the stage.
4. Learn to speak without notes.
5. Look at individual faces in the audience.
6. Start a speech by polling the audience.
7. On the night before, use antiperspirant cream on your forehead, cheeks, nose, and neck.
8. Wear a blue shirt for TV. Wear a white shirt for a live audience.
9. If speaking outside your company, always wear a suit.
10. Use humor, but make it spontaneous and relevant. Never use bawdy humor or make fun of someone in the audience.
11. Let your energy and passion build during the speech.
12. You can't fake passion. It must be authentic.
13. Finish strong, and don't be afraid to accept applause.
14. Send handwritten notes and small gifts (if appropriate) to the hosts.
Coke Replaces Sweetener in Mexico
Posted on 14:10 by Unknown
After an outcry from Mexican consumer advocates, the Coca Cola company is replacing sodium cyclamate from the Mexican version of Coke Zero.
This sweetener has been banned in the United States for 39 years.
Coke claims the move had nothing to do with the protests, and they just wanted to make it taste more like Coca Cola Classic (right ;-) ).
It seems to me that Coca Cola was taking advantage of lax Mexican regulations, and got caught.
This sweetener has been banned in the United States for 39 years.
Coke claims the move had nothing to do with the protests, and they just wanted to make it taste more like Coca Cola Classic (right ;-) ).
It seems to me that Coca Cola was taking advantage of lax Mexican regulations, and got caught.
Sunday, 9 March 2008
Copywriting and Testing Website
Posted on 20:11 by Unknown
I am testing yet another iteration of my Stock Trading Riches Website.
This is the website I created to promote my book "Stock Trading Riches", which is available on Amazon.com.
Originally, I created a one-page sales letter.
I then created a site with several pages, including a table of contents, testimonials, etc.
The one-page sales letter actually lead to 20% more sales (4.9% conversion ratio vs. 4.1%).
I am now testing a new one-page website.
The differences:
1. Removed the rebate offer. Only a very tiny fraction of purchasers actually take a TrialPay offer.
2. Kept the testimonials.
3. Stressed benefits (fully automated stock market trading business with lucrative procedures) instead of features (minimalist Zen-like).
4. Rewrote the headlines using Glyphius. This is an ingenious piece of software from James Brausch that statistically rates your copy against a database of thousands of sales letters (both good and poor).
Now, I will see if I can beat my 4.9% conversion rate.
This is the website I created to promote my book "Stock Trading Riches", which is available on Amazon.com.
Originally, I created a one-page sales letter.
I then created a site with several pages, including a table of contents, testimonials, etc.
The one-page sales letter actually lead to 20% more sales (4.9% conversion ratio vs. 4.1%).
I am now testing a new one-page website.
The differences:
1. Removed the rebate offer. Only a very tiny fraction of purchasers actually take a TrialPay offer.
2. Kept the testimonials.
3. Stressed benefits (fully automated stock market trading business with lucrative procedures) instead of features (minimalist Zen-like).
4. Rewrote the headlines using Glyphius. This is an ingenious piece of software from James Brausch that statistically rates your copy against a database of thousands of sales letters (both good and poor).
Now, I will see if I can beat my 4.9% conversion rate.
Online File Storage and Downloads
Posted on 14:38 by Unknown
I came across box.net
Clear simple name and function.
You can store files, assign any URL, and give out password-protected links.
Clear simple name and function.
You can store files, assign any URL, and give out password-protected links.
Pure Zen Trading
Posted on 13:35 by Unknown
Pure Zen Trading
No Indicators, Charts or Parameters
Handle Any Market Condition
www.StockTradingRiches.com
No Indicators, Charts or Parameters
Handle Any Market Condition
www.StockTradingRiches.com
Very Funny "Who's Line Is It Anyway?" - With Richard Simmons!
Posted on 11:01 by Unknown
Saturday, 8 March 2008
Good Article on Marketing
Posted on 19:57 by Unknown
Improving Websites: Split Testing Vs. Analyzing Other Sites
Posted on 15:58 by Unknown
Here is an interesting article that sums up James Brausch's approach to improving his websites.
Instead of split-testing a variable (ex: price ending in "7"), he describes the idea of compiling a list of profitable and unprofitable websites (based on longevity of adwords or other paid ads).
Once you have a statistically significant collection, you can then use this data over and over to test different ideas and claims.
Instead of split-testing a variable (ex: price ending in "7"), he describes the idea of compiling a list of profitable and unprofitable websites (based on longevity of adwords or other paid ads).
Once you have a statistically significant collection, you can then use this data over and over to test different ideas and claims.
James Brausch on Uncommon Customer Service
Posted on 15:45 by Unknown
I recently came across an older article on customer service from James Brausch.
It is a must-read for anyone interested in business, software, or internet businesses.
It is a must-read for anyone interested in business, software, or internet businesses.
James Brausch - Unconventional Thinker
Posted on 15:36 by Unknown
I'm a big fan of James Brausch, who designs and sells software tools and informational products for creating your own internet business.
James is completely different than most gurus. He doesn't hype stuff up or try to go for get rich quick schemes like Adsense and niche sites.
He stresses building a solid business, and automating procedures so you are not working a job. In fact, besides selling his software products, he also gives them away to people who volunteer for his intern program. In other words, you can pay him in time or money.
I joined his intern program and its great. It's a win-win situation: You learn how to run a real internet business, and he gets work done in his business, which frees him to spend time with his family.
James is completely different than most gurus. He doesn't hype stuff up or try to go for get rich quick schemes like Adsense and niche sites.
He stresses building a solid business, and automating procedures so you are not working a job. In fact, besides selling his software products, he also gives them away to people who volunteer for his intern program. In other words, you can pay him in time or money.
I joined his intern program and its great. It's a win-win situation: You learn how to run a real internet business, and he gets work done in his business, which frees him to spend time with his family.
Wednesday, 5 March 2008
Penalized For Bilingual Success
Posted on 13:24 by Unknown
Here is a prime example about how government bureaucracy can't tolerate out-of-the-box thinking - even when it actually benefits those people that the government is trying to help.
The Chicago Tribune had an article a few weeks ago about Diamond Lake School District 76 in Mundelein (a Northern suburb of Chicago).
Five years ago, the district modified their bilingual education program to teach children primarily in English. In other words, the teacher would only speak in the student's native language when first introducing a new topic, or if a student is finding a particular problem difficult.
Now, after five years, the policy has been proven successful. The bilingual students achieve higher test scores.
At first, the State Board of Education praised the school district. Once they learned about the policy change, however, they suspended all of the district's state and federal funding for the year - causing trims in summer school and other programs.
It seems that state law mandates that non-English speaking students be taught in their native language.
The school district is now trying to get state law-makers to rewrite the law.
The superintendent for District 76 replied, "I'm not saying bilingual education doesn't work. What I'm saying is, if another program is working, the district should be able to use the program without losing funding."
The Chicago Tribune had an article a few weeks ago about Diamond Lake School District 76 in Mundelein (a Northern suburb of Chicago).
Five years ago, the district modified their bilingual education program to teach children primarily in English. In other words, the teacher would only speak in the student's native language when first introducing a new topic, or if a student is finding a particular problem difficult.
Now, after five years, the policy has been proven successful. The bilingual students achieve higher test scores.
At first, the State Board of Education praised the school district. Once they learned about the policy change, however, they suspended all of the district's state and federal funding for the year - causing trims in summer school and other programs.
It seems that state law mandates that non-English speaking students be taught in their native language.
The school district is now trying to get state law-makers to rewrite the law.
The superintendent for District 76 replied, "I'm not saying bilingual education doesn't work. What I'm saying is, if another program is working, the district should be able to use the program without losing funding."
American Century Ultra Fund: The Folly of Not Following Your Trading Plan
Posted on 09:50 by Unknown
Forbes Magazine recently wrote about the problems of the American Century Ultra Fund, and how this mutual fund's problems were caused by not following their plan.
The fund's trading plan was to pay any price for growth. This strategy can work but you have to accept the volatility. Growth funds that do an 'A+' job in bull markets will usually get an 'F' in bear markets.
Sure enough, during the 1990's, American Century Ultra was one of the hottest funds. Then, when the bear market hit, the fund lost money - as did all the other growth funds.
Unlike the other growth funds, however, Ultra's fund managers panicked, sold their holdings, and went conservative.
As a result, during the 2002-2007 bull market, American Century Ultra lagged all the other growth funds.
The Ultra fund's investors not only lost money in the bear market, but they failed to make it up in the next bull market. Investors bailed out, and Ultra's assets shrunk from $40 billion to $10 billion.
Forbes listed a few of their specific trades, including:
Buying Network Appliance at 38 and selling at 29.
Selling Amazon.com before it tripled.
I get excited when I hear examples like these, because they perfectly showcase the beauty of my simple trading system. Once I introduce a stock into my portfolio, my system takes over its management, and automatically self-corrects it to get in line with the market.
If, for example, I bought Network Appliance at 38, and it dropped to 29, my system would give me a specific amount to buy. This amount would be scaled to the magnitude of the change, so I will still have money in case the position declines further.
All trading systems break down if the investor panics. If you use an approach like mine, which spits out simple buy and sell orders automatically, it is much easier to stay calm.
The fund's trading plan was to pay any price for growth. This strategy can work but you have to accept the volatility. Growth funds that do an 'A+' job in bull markets will usually get an 'F' in bear markets.
Sure enough, during the 1990's, American Century Ultra was one of the hottest funds. Then, when the bear market hit, the fund lost money - as did all the other growth funds.
Unlike the other growth funds, however, Ultra's fund managers panicked, sold their holdings, and went conservative.
As a result, during the 2002-2007 bull market, American Century Ultra lagged all the other growth funds.
The Ultra fund's investors not only lost money in the bear market, but they failed to make it up in the next bull market. Investors bailed out, and Ultra's assets shrunk from $40 billion to $10 billion.
Forbes listed a few of their specific trades, including:
Buying Network Appliance at 38 and selling at 29.
Selling Amazon.com before it tripled.
I get excited when I hear examples like these, because they perfectly showcase the beauty of my simple trading system. Once I introduce a stock into my portfolio, my system takes over its management, and automatically self-corrects it to get in line with the market.
If, for example, I bought Network Appliance at 38, and it dropped to 29, my system would give me a specific amount to buy. This amount would be scaled to the magnitude of the change, so I will still have money in case the position declines further.
All trading systems break down if the investor panics. If you use an approach like mine, which spits out simple buy and sell orders automatically, it is much easier to stay calm.
Lost Silence
Posted on 09:47 by Unknown
In antiquity there was only silence. In the 19th century, with the invention of the machine, Noise was born. Today, Noise triumphs and reigns supreme over the sensibility of men.
-- Luigi Russolo
-- Luigi Russolo
Monday, 3 March 2008
Results: Enter My February Book-Selling Contest
Posted on 10:09 by Unknown
My February Book Selling Contest is now over.
While a lot of copies of Stock Trading Riches was sold on Amazon.com, nobody submitted a claim to get the extra commission.
Thus, there were also no winners of the $25 for selling the most books.
So, the contest idea did not work out.
I'm not too discouraged. This is how you achieve success. You have to keep trying new ideas - then repeat those that work.
Besides, my book still sold. In fact, in February, I was only 2 books short of the record sales I had in January.
While a lot of copies of Stock Trading Riches was sold on Amazon.com, nobody submitted a claim to get the extra commission.
Thus, there were also no winners of the $25 for selling the most books.
So, the contest idea did not work out.
I'm not too discouraged. This is how you achieve success. You have to keep trying new ideas - then repeat those that work.
Besides, my book still sold. In fact, in February, I was only 2 books short of the record sales I had in January.
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