Posts Tagged ‘wealth building’

ETF Piggyback Strategy

Posted in Other - Business & Finance on November 15th, 2009 by Ahmad Hassam – Be the first to comment

You will have to do a lot of research while selecting yours stocks for swing trading. Why not piggyback on the research done by wealthy fund managers and large financial firms. Name of the game is to find stocks that are not popular but have a great swing trading potential. Easier said than done! How do you find such stocks? Here is a very simple strategy that you can use to choose the hottest stocks best for swing trading. When a large financial firm builds an ETF, the first step is always to choose an index of stocks that is expected to outperform the market. The premise of the piggyback strategy is to use the large dollar research of the major financial firms to come up with new and fresh swing trading ideas.

ETFs are doing a roaring business these days. There are thousands of ETFs in the market now. New ETFs also get introduced in the market. ETFs have caught the imagination of the investing public. No doubt ETF investment is better than investing in a single stock. Large financial firms spend millions to choose the index on which they will base their ETF. The ETF is then based on this index of stocks. The price of the ETF then changes as the basket of stocks within the index moves. Why not piggyback on that research and save yourself a few millions? Cool, huh!

So what is this ETF piggyback strategy all about? How do you implement this ETF piggyback strategy? Have you been investing in ETFs before? No! Then you need to do some research to find the best performing ETFs. Your first step should be to analyze ETFs. You need to make a list of ETFs that have outperformed in the last 3 to 6 months. This will give you an idea where the big money is flowing and which ETFs have buying momentum behind them.

After making your list of top 20, narrow it down to the five top performers and choose a few areas worth trading. Choose the best performing ETF in your opinion to begin with. Now you need to analyze the top ten holdings of that ETF.

How do you research an ETF? Just go to the website of the ETF. You can also use ETF connect.com. Etfconnect.com is a great resource for information on ETFs and closed end funds. With thousands of potential stocks to choose from, the piggyback trading strategy allows you as a swing trader to choose stocks that have a buying momentum behind them. What makes this trading strategy great is that it often generates fresh ideas for swing traders.

Now another advantage of this piggyback strategy is that it can identify stocks that may not be household names to the average trader. ETFs can be utilized to find stocks for swing trading ideas that are based outside the US.

You will have a lot of option in choosing the right ETF for your investment. There are thousands of ETFs in the market now. Some are country specific, some are industry specific and some are market specific. The way to do that is to use the ETF piggyback strategy with either single country ETFs or regional ETFs. The single country ETFs invests 100% of their assets in one country. A good example can be the iShares MSCI Mexico ETF (EWW), an ETF that invests only in companies headquartered in Mexico.

You can choose industry specific as well as market specific ETFs as well. Country specific ETFs and region specific ETFs have been just used as an example to illustrate how to hedge your risk. Hedging your risk is what a good investment strategy is all about. Instead of putting all your eggs in one basket, you should try to diversify your investment. A regional ETF covers several countries concentrated in a region. The iShares S&P Latin America 40 ETF (ILF) invests in Brazil, Mexico and Chile. So if you want to find international stocks for your swing trading strategy than you should begin by picking the region or the specific country.

You must be thinking why you need to think outside of US Stocks. The traders who refuse to consider international stocks only hurt themselves because with the US in the mature business cycle, the real growth and volatility that you need as a swing trader can only come from international stocks. In addition to volatility that you need as a swing trader, international stocks also give you the ability to create some hedging strategies in combining US and non US Stocks into a pair trade.

Mr. Ahmad Hassam has done Masters from Harvard University. Try This Cash Printing Forex Signal Service From Heaven! First practice on your Forex Demo Account! Grab a totally unique version of this article from the Uber Article Directory

Tax Advantages of Forex Trading

Posted in Uncategorized on April 25th, 2009 by Hass67 – Be the first to comment

Forex trading allows you to have the best of both worlds. When stock prices go up, you can benefit from forex trading. When stock prices go down, you can profit from forex trading.

You can profit from forex trading whether there is inflation or deflation. You can profit from forex whether interest rate goes up or down.

For any investment in financial markets, you have to pay a capital gain tax. It can be a short term capital gain tax in case you take profit from a security within one year, taxed at your current tax rate.

And the capital gains will be considered as a long term gain if the security is held for more than one year before you take profit. In case of long term capital gain, you will be taxed at a rate of 15% only.

But if you invest in forex markets, 60% of your profits will be taxed as long term capital gains and only 40% will be taxed as short term capital gains whether you hold a currency for one minute, one hour, and one month or more.

Lets make it clear with an example. Suppose you make $10,000 investment in stocks and $10,000 investment in forex. Suppose your tax bracket is 33%. And lets suppose you made a profit of $10,000 in both stocks and forex each in six months.

Since, you are in 33% tax bracket and you took profit within six months on stocks, your profits will be taxed as short term capital gain. That means you will have to pay $3,300 as tax and your profit after taxes will be only $6,700.

In case of forex, even though you took profit within six months, 60% of your profit will be treated as long term capital gain and 40% will be treated as short term capital gains. That means 60% of $10,000 will be taxed at only 15%. This is (0.6) (10,000) (0.15) =$900.

40% of your profits will be taxed as short term capital gains at your current tax rate of 33%. This is (0.4) (10,000) (0.33) = $1,320.

The total tax that you pay on forex investment will be $900+$1,320=$2,220. Compare this with $3,300 that you paid on stock investments.

The tax savings on forex investment like these can add up fast and accumulate into a sizable amount in your IRA or other tax deferred accounts.

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Creating Residual Income From Home- Start Your Business in A Day or Less

Posted in Other - Business & Finance on April 23rd, 2009 by E.M. Parks – Be the first to comment

Okay so you want to start your own home based residual income business? Youd like to do that right away I assume so lets get started. How soon is right away you ask? Well right away to me means in a day or less. Are you up to the challenge?

As we think about how to begin your business venture in one day there are a few assumptions I’m going to make as to what your current situation is. First I’m going to assume that you have limited spending power. Next I’ll say that you’re not the type of person that wants to spend all day talking to customers in your business. Finally I’ll say that you’d like to use the best way in existence to drive targeted traffic to your new business website.

Locating a Business Partner- You’re going to need to find an affiliate program to partner up with in your new business. This has to be a partner that says they’ll pay you a reccuring monthly income for sales you make on their behalf. Make sure this affiliate program has a solid track record, good payment amount, and that it is free to join as an affiliate.

Creating a Squeeze Page- Your goal here is to have a website setup that allows you to collect the email addresses and first names of those people coming to your site.You could find these types of setups online just be going to your favorite search engine and typing in “lead capture page”. You could find some for as little as five bucks a month.

Freebies and Such- Now people aren’t just going to leave their names and email addresses with you for nothing. You must have something to give them in return for their info. This should be some type of free gift that adds value to their experience with you or solve a problem that they may be having. It could a report you or someone else has written or something similar.

Getting the Word Out About Your Business- The true way that you will get tons of traffic to visit your website is to use article marketing as your primary strategy. Once you write your articles just allow article directories to publish them and the traffic will soon follow.

There you have it. Now you know how to start a residual income business in a day on a very limited budget.

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Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan

Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan

Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan

Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan,Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan,Invoice Factoring, Discount Factoring, AR Factoring, Factoring Loan