Foundational Investment Theory - The Rule Of 72

By Zigfred Maceren

"The most powerful force in the universe is compound interest," said Albert Einstein. It is expressed in a mathematical formula called the Rule of 72.

Some people go as far as saying that Albert Einstein's greatest discovery was the Rule of 72, not the theory of relativity. Others say that the rule had been in existence even before Einstein was born. But most people agree that Einstein popularized it.

What is the Rule of 72 and why is it called the foundation of all investment?

You will appreciate the importance of the Rule of 72 as you use it to arrive at the following:

1.) What interest rate will quickly double your money? 2.) How many years does it take to double your money?

For the answer, divide 72 by a certain interest rate. The result is the number of years it will take to double your money. Expressed mathematically, the Rule of 72 is: n = 72 / I, where n is the number of years it will take to double your money while i is the interest rate.

For easier understanding, let us take this example: if you put your P100,000.00 in the bank, which gives only 1% interest rate, it will take 72 years for your money to become P200,000.00. (72 / 1 = 72).

So, you're thinking of putting it into a time deposit account because savings deposit earn at a very low interest rate. Time deposits in Philippine banks earn about 4% interest per annum. But even then, it will still take 18 years for your time deposit of P100,000.00 to become P200,000.00. (72 / 4 = 18).

Consider investing your P100,000.00 in a business that earns at 10% interest rate. In 6 years you would have doubled your money to P200,000.00! (72 / 12 = 6).

To determine how long it will take to triple your money, use the cousin of the Rule of 72 - the Rule of 115. Using the same formula, just replace 72 with 115. - 32163

About the Author:

Want to learn more about investing ? Visit the blog of Zigfred Diaz where he writes about the Rule of 72 and stock market investing.

Debt Collection - How Much Time Do Collection Agencies Have To Collect?

By Mallory McGuinness-Hickey

Many people are made painfully aware that they owe a debt that is being pursued by a collections agency, yet few know exactly how long creditors can go after that debt. Debt Collectors are guided by what is called the Statute of Limitations.

This means that after a certain length of time creditors can no longer collect from debtors. The length of the Statute of Limitations vary from state to state, the type of debt, if there is a signed contract or not among many other factors.

For example, the state of New Hampshire has the time alloted to collect a debt is 3 years. If it was a foreign judgement, the Statute of Limitations is as high as 20 years; on a domestic one it is also 20 years. For goods the Statute of Limitations is four years but with a written, legitimate and signed contract is is three years.

Debtors that do not believe that they owe the money, they can fight the creditors claim may actually withold information regarding invoices or balances due and request proof demonstrating the validity of the debt.At this point, collection agencies must present backup documentation to support their claim.

For more information regarding the Statute of Limitations, it is wise to speak to a legal advisor in your own state. While there are many collections agencies out there that use unreputable practices, there is also a number of legitimate agencies who are willing to help out. Agencies such as Rapid Recovery Solution are always willing to help out. For more information, consult rapidrecoverysolution.com. In this trying time of economic hardship don't be bullied by illegal tactics by illegitimate collection agencies. There are laws out there to protect debtors and everyone should know their rights. - 32163

About the Author:

Mallory McGuinness-Hickey is a representative for a Debt Collection agency. Mallory McGuinness-Hickey is working towards being a certified Collection Agent

Why Most People Like Investing With Options

By Johnny M Junior

When someone is looking for a great turnout with their investment, it is important that they know about how to do their investing with options. After learning about this technique and the best ways of earning a profit, they can either opt for puts or calls. This should only be done after the basics have been studied and the options are weighed. Options are very complex, so make sure you study before trading them.

If the stock that is being eyed is headed low, it is best to buy puts. Puts make money when the underlying asset drops in price. The way to find the direction of the investment would be to look up the price chart of the index or stock. The investor can use technical indicators and draw support and resistance lines to forecast a direction. The direction of the stock's value is the determining factor in whether the investor will use calls or puts.

Investment options are contracts with a strike and expiry date. Call options can become the right choice in the future if the stock goes up. If you own a call option, then you can purchase some stock at a defined, lower price which is the strike price.

With the expiration date of the options investment contract, you are purchasing what we call time premium. Each option has a certain amount of time before it expires. You can easily make money while investing with options if you learn advanced strategies, but you can lose too, so be careful and paper trade for a long time. If you are planning to buy Google's stock, then you might consider on buying Google calls instead. There are many choices on the option chain, but if you want the options to be similar to stock, then you can buy what we call "In The Money" contracts. These contracts won't lose as much time premium and will behave a little more like stock than some other options you can buy.

You can buy call or put options if you really believe that stock or any other security will go up or down before the expiry date. By using the conventional methods of investment, you can make more money with trading options. Most of the stocks do not have options exceeding than 2 years. Options that last that long are called Leaps.

Another valuable thing is leverage. Buying a put option can be safer than selling short a stock. This is because the put contract will have limited risk. For each seller of an option there is a buyer. The market maker makes the spread between the bid and ask. Options Clearing Corporation has a watch over the option contracts and all rules and regulations should be followed as per their norms. - 32163

About the Author:

Find out how you can go about investing for your retirement. Through the options field and other choices that you face. Make that money grow for you today!

The Stock Market: Top Tips And Guidelines

By Jimmy Villaruel

Two well known traders discuss entry and exit points and stock market tips are discussed. They also answer a question about how to find good momentum trades.

David: We have been asked a question concerning entry points. 'Every entry I make, the trade seems to go against me. I've tried every indicator known to man and different timeframes. I've tried other people's systems and they don't work either.'

Stuart: It's often not the entry that's at fault. Often it's the exit that's at fault. We may be using an inappropriate exit and not allowing the conditions that got us into the trade work their magic and do what we want them to do for us in the trade.

Probably the entry is too complicated and perhaps they were changing it or shifting it because it was too complicated. Ditch the indicators. They'll work for some people and that's fine. My personal opinion is to ditch them because they don't provide much for me. Keep things simple, and it may be worth looking at the exits more than the entries.

David: The next question is: out of the thousands of stocks that are out there, how do I pick a few that have moved with a chance of high probability each day every day without scrolling through each one.

Stuart: You have got to have a way to narrow them down. I remember this when I started out. There are two thousand stocks on the ASX and I only want four or five to get going. How do I narrow it down to four or five? I think the easiest way, and one of the best stock market tips, is to get software that allows you to input you own entry criteria, the conditions you want to see in stocks. Software and PCs now does it within minutes or seconds and presents you with a small list for you to then assess yourself each chart by itself.

Software is needed which allows you not just to bring up the chart, but to go through data, perform calculations and identify your own criteria.

David: If you can't have access to charting software, come up with a trading method that is calculated, based on some data you might find in newspapers. Some newspapers will mark which stocks are making new six month highs or fifty-two week highs. That might be a way to thin the thousands of stocks to a few. But get yourself a charting package.

Stuart and I use Metastock, but there are plenty out there, and one can start with that.

The next question is how to find good momentum trades.

Stuart: Find stocks that are already in well established trends. I do that all the time. I just buy things that have gone through that period of consolidation and have now started to move up. Look for higher peaks, higher troughs, sitting above their medium term moving average whether it be 30, 50, 60 day moving average and showing the capacity and the potential to keep moving higher. With a fifty week high, clearly this stock has an upside, because with a fifty two week high there must be great demand for this stock. This is the simpler way of doing that.

David: The next question is entry and exits - what is a good stop? For entry, have a methodology to identify what's going up. Exit points - choose an appropriate one. For good stops, you can use percentage, ATR or technical and the lowest low.

Find the appropriate entry and exit points and buy some software to sort out the best stocks to buy. These are the best stock market tips for any beginner trader. - 32163

About the Author:

Want to learn more about trading and profit? Visit www.tripletradingprofits.com today.

Financial Bandits Need Not Apply

By Myer Thompson

The death of the stock market, contrary to popular opinion, has been wildly exaggerated. The market is still firmly entrenched and despite horrendous losses, still maintains a fair amount of the nation's invested wealth. Volatility in the marketplace has become an acceptable risk. The Las Vegas mentality is now an investment mainstay and you either know how to legally game the system or you don't.

The players who face the greatest amount of risk are the day traders. These investment mavericks have flaunted the cumbersome need for brokers and brokerage houses. These financial do-it-yourselfers want tangible control of their hard-earned cash. That is understandable. The logic of losing money you invested yourself is far more palatable than being informed via a statement of telephone call that someone else has lost your money.

Any qualified online stock trading professional can tell you that day trading is a big mistake. In most cases, they are spot on. Day traders experience a disproportionate amount of losses when compared to professional services. This is undoubtedly due to the fact that professional traders undergo a rigorous training regimen. Moreover, the gravity of buying and selling stocks with other people's money is never lost a dutiful trader.

The training is necessarily complicated. Though much is made about the endless string of financial terms -- they are very real terms and are, indeed, very complicated. It's easy to pigeonhole bankers and brokers and Wall Street -- and for good reason -- but it's important to remember that these institutions create real wealth for real people. Yes, bankers do indeed profit, but so do shareholders. Say what you will about Trickle Down economics, but wealth can indeed beget more wealth.

Day traders are the salt of the earth. But if you're going to take a stab at it, you have to know the pitfalls and perils. Yes, you are in more control of your money -- but unless you are a professional, you won't enjoy some of the fail-safes and protective measures meant to protect larger financial institutions. The Federal Trade Commission can ensure your stocks are recorded and rewarded correctly, but they can do little if you happen to be defrauded or scammed. Stick with the professionals. They're not the bandits the media would have you think they are. - 32163

About the Author:

The key to profitable online stock trading is having it professionally managed. Don't squander what precious little you might have left doing on your own.

A Mini Forex Trading Account Is For Training

By Bart Icles

The fast paced, never ending, ever changing world of Foreign Exchange, or Forex, can be very exhausting, intimidating, even pocket poking at first but in time it'll be easier. That's where the mini forex accounts come in. Mini forex accounts are usually offered by brokers to help an interested individual be trained in the field of foreign exchange. Just like any other forex accounts, the mini forex account works the same way. The only difference is that investors only has to put small amounts of money as capital, as low as $100 or $200 since regular accounts usually cost $1000 or more.

The advantage of having a mini forex account is that it gives you a feel of what the market is like. With this, you can actually experience having an account without really putting that much money at risk, just a couple of hundreds, which is small compared to the actual accounts. Like the regular accounts, you will also experience taking risks with a mini account.

Also, there are psychological benefits attached to having mini forex accounts. Some people lose money in the market because they hang on to losing prospects hoping that the trend would suddenly, magically turn around. If the trend doesn't turn, then that's goodbye to their money, but with a little stroke of luck and the trend actually does turn, well, that'll be big money for you. Still, a lot of people lose a lot of money n the market because of emotional attachments.

Mini forex may sound like its still going to be a big risk for now, but when you've mastered this, you'll soon realize that they're only training wheels that you will eventually take off for bigger fish. You're not actually losing that much in a mini account. It's more of a practice area for you to, as stated above, get the feel of the market. In order for you to have good preparation in the real world of forex trading, the mini account was made.

An additional benefit of mini forex trading is that it can be used by people who only want to get that kind of excitement in their skin. Ideally, the mini forex trading platform was made originally for training and for preparation, but if you are comfortable with having to stay with a mini account, then that's fine. It can be used by traders who can't really see themselves in the big market rather they can only stay in the small market. - 32163

About the Author:

Good free forex courses starts with a desire to learn and a drive to become a great trader. Using forex course reviews is a smart idea because forex courses take dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Tips For Beginners: ETF Trend Trading

By Patrick Deaton

When first beginning ETF trading a person will find that there are many websites that offer services and programs that provide the technical analysis required to be effective with ETF Trend Trading. However, before deciding on a service or program, it will be important to learn how trend trading works and decide how much of an investment in tools and resources will be needed.

When doing an accurate technical analysis a person will need an analytical tool. There are many available that will give the detailed information that will help to identify trends and patterns in a sector. The programs usually are broken into short term, intermediate, and long term trends within a sector. Some of the programs offer other charts and graphs that provide information on the trends that are occurring within trends.

When a person uses one of these tools, it is important to remember that without other indicators, the information shown on the trend may not be providing all of the information that one will need to make successful trades. A trend may show a significant drop, for instance, if there is a major executive level change in a major business within a sector during a short term trend. When this occurs the trend may show a downward flow for up to two years.

When a significant event occurs with a major business within a sector, it often impacts the trend for that sector. This event may be a one-time occurrence that happens to fall during a rise in the stock that makes a great enough impact to disrupt the entire trend line for that sector.

The idea of ETF trend trading is to jump in when a stock is on the rise or fall with the idea that is going to continue in that direction for a period of time. When the stock is rising a person takes a long position. When it is dropping a person takes a short position. In either case, when the trend begins to reverse, a trade is made. The most closely that the beginning and end of a trend can be predicted, the better the gains will be on the trade.

When an individual is going to begin doing the necessary analytical work to make effective trades they will want to take a holistic approach. Including historical data, current market climates in that sector, and any anticipated significant changes to that sector will all act to make trades more successful.

When first beginning, it is a good idea to set buy and sell limits so that an opportunity does not slip past. When trend lines indicate a reverse in a trend, a person needs to act on that indicator if they feel that the trend is getting ready to reverse.

There is a lot to learn when one wants to delve into ETF trend trading. It is very helpful to visit websites and forums run by successful traders to use different types of trading, methods, and strategies to widen the base of knowledge that one has about trading. By getting information from people who are successful, it is much easier to develop a technique and strategy that will be most effective in making the successful gains that are possible with ETF trading. - 32163

About the Author:

Learn how it's very possible to make 6% per month in your investment accounts using etf trend trading! "Big A" is a recognized expert in the world of etf trend trading system and reveals etf secrets that have been kept under wraps by hedge traders for years. Get his free report and webinar today!