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Investing Idea
Besides educating yourself, the best way to find undervalued
investment is to have lots of investing idea. Having investing
idea allows you to compare investment alternatives and pick the
best one.
People sometimes lament that they seldom...
Investing in the Czech Republic - Outside of Prague - Part 1: Brno Property
Imagine if you had bought property in Prague 8 years ago....
Brno property has been getting a lot of exposure lately. And for
good reason. Attractive deals in Prague are getting harder to
find. Attention is beginning to turn elsewhere.
...
Investing Your Way To Retirement
Investing Upon Retirement
There is a lot a person can do even after retirement. It is an
end to one chapter in a person's life and the beginning of
another.
There are many things a person can do such as learn new skills,
take classes...
Pro's & Con's of Investing in Bonds
What are Bonds? A bond is a debt security, by which you are lending money to a government, municipality, corporation, federal agency or other entity known as the issuer. In return for investing in the bond, the issuer promises to pay you a...
The Inside Scoop on Mutual Fund Rip Offs
The bear market that showed up at the end of 2000 has every brokerage house-as well as the entire mutual fund industry-scrambling to find creative ways to boost both their image and bottom line. Unfortunately, this is often at the investors'...
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How Do You Rank in The Investing Hierarchy?
Copyright 2006 CashFlow Avenue
You probably have heard this saying before - "It is lonely at
the top." If you find yourself in this position, then you are
probably at the top of your own niche. Our society is made of
hierarchies. Most countries are headed by Presidents, and Prime
Ministers. It is them who make decisions that would affect the
nation's fate and success. Corporations follow the lead of their
Chairmans and Chief Executive Officers. Below these leaders you
would have the Vice Presidents, Deputies Vice Presidents, Senior
Managers, etc. A hierarchy essentially looks like a pyramid.
Whoever sits at the top of the pyramid normally makes the most
money as well as has the most influence in that "society." This
pyramid can also be applied to nature where they call this a
food chain. Predators are normally at the top of the food chain
while small defenseless herbivores are at the bottom of the food
chain. The higher you are in the pyramid the fewer predators,
(that may have you for lunch) are out there.
The same can be said in the Investing World. How do you, as a
retail investor, rank in this food chain? Let's try to
understand how the Investing Hierarchy looks like.
Stock prices are normally moved by information (good or bad).
Whoever can access and react fastest to these information would
be placed right at the top of the Investing Food Chain.
Capitalist and Entrepreneurs who manage to get their companies
public listed would be the first to know of critical information
that would affect their stock prices. One level below these
individuals is high worth individuals who would provide initial
capital to ambitious Entrepreneurs. Venture Capitalists, who
provide significant funding to take the corporation to higher
levels, are next on the hierarchy. One step below the venture
capitalists is the Investment Bankers who provide
Associated Websites
financing,
underwriting, and distribution to take a corporation public.
These individuals are the top predators in the world on
investing. They would have access to information that is not yet
made known to the investing public.
Do retail investors rank below these groups of people?
Definitely NOT!
Above the retail investors, we would have Financial
Professionals (Mutual Funds, Hedge Funds, etc) who would analyze
stocks for their clients. Brokers and Floor Traders are also
ranked higher than retail investors in the Investing Food Chain.
And finally, the retail investors are right at the bottom of the
food chain. No wonder more than 90% of retail investors end up
losing money. Ask yourself, how many times have you bought
stocks due to good news in the news or newspaper only to see it
go down as soon as you enter into position? Most of us have been
there before. By the time, this information reaches the public;
it is normally too late to buy. The big guns are already in
position weeks ahead and would be ready to take profit when
stock prices starts to move up dramatically.
Fortunately, through stock charting, retail investors have a
chance to interpret and to understand what the big guns are
doing in the stock. Heaving buying and selling by the elite
group leaves footprint and trails on the stock market. It is up
to us, as retail investors, to understand what the stock charts
are trying to tell us. Understanding charts can move us up in
the Investing Hierarchy.
However, a word of caution, technical analysis is an art and can
be very subjective. It should only be used as a roadmap or
guideline to enter and exit a position.
About the author:
CASHFLOW AVENUE is established to provide Low-Risk Options
Trading Recommendations to the common traders in their pursuit
of financial freedom and a better lifestyle.
http://www.cashflowavenue.com
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