Investors Look at Philippine Apart-Hotel or Condotel Property Investments

PLC International Marketing Networks has revealed that some institutional investors are trying to diversify their property portfolios through areas like Southeast Asia, China and beyond – with the Philippines heading the list, then Thailand, Japan, China, and Singapore property investments featuring in some portfolios.

In the UK, “Investors are moving to new areas to find value” said Beth Collingz, Global Marketing Director of PLC International Marketing Networks based in Metro Manila and Cebu in the Philippines. “More and more of clients for Condotel Investments are coming from the UK. There has been a distinct market shift from US based clients over the past few months and we see that trend continuing over the winter months of 2006 and on into 2007 has Sterling continues its increase in value over the US Dollar.

?A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too.

Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on today?s purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit?

Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster – The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila – fits the bill with all it offers to International buyers.

Accessibility is also a factor. ?Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and it?s easy to see why this area is becoming an international community.? Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with it?s flagship Lancaster Condotel Developments fit?s the bill.

Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel [“Condotel”] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.

For further information about Philippine condo hotels please do not hesitate to contact us:

Beth Collingz
PLC International Marketing Networks

Gear up your tax planning with mutual funds. Smart tax saving tips and recommendations – 2008

Tax planning has changed radically over a period of time. Since its time for filling income tax returns for 2007-2008 as the end date (31st march? 08) is approaching. As a tax payer you need to understand the best way through which you can make use of the exemptions provided by the government. Earlier people had limited choice of tax saving instruments to be used for the purpose of tax planning. But now with the ELSS (Equity Linked Saving Schemes) launched by most of the mutual fund companies, the whole approach towards tax saving has changed. With mutual funds tax planning had become more important part of over all investment planning. With equity linked saving schemes the tax exemptions can be used in a manner such that you not just disciple your investments but also create good corpus through equity investment.
Tax planning for resident Indians
We recommend tax saving funds, also referred to as Equity-Linked Saving Schemes (ELSS). One such reason is that their benefits are too much to ignore as they hold almost all the benefits of an equity mutual fund.
For one, they do not have any restrictions. If you choose to, you can invest the entire Rs 1 lakh available under Section 80C in these ELSS funds.
They give you the benefit of higher returns. You can get 8 per cent with your PPF and NSC. But if you can get a 40-50 per cent return, coupled with a tax benefit, what?s wrong with it?

How do you invest in an ELSS scheme? It is as simple as investing in any other mutual fund schemes. You just need to fill the form of particular ELSS scheme in which you want to invest. Submit it through any transaction point with the required document i.e. usually PAN card and KYC form. That?s it your work is done. You can know more through website. In this you can get the understanding of selecting any scheme and filling the form.
The benefit 3 Years lock in period for ELSS schemes.
Secondly, if you hate blocking your money for years on end, then this one surely made for you. The lock-in period for ELSS funds is just three years. When you sell after three years, you pay no capital gains tax. So, you get the tax benefit when investing and you pay no tax on your profits.
The best way to invest in a mutual fund is investing systematically through out the year using SIP. So you commit to putting away a fixed amount every month in mutual funds. This is an automatic savings habit that will hold you in the long run and help you not only to save but also invest regularly and continuously in the capital market through equity linked saving schemes (ELSS).
You need to be consistent in your investments to do well. The wonders which a disciplined investment can do cannot be replicated by even the best of investment strategies.
Want to know about the top mutual funds for Tax Saving?
Most of the Mutual fund companies have come out with tax saving funds. They are Equity Linked Saving Schemes (ELSS). The funds collected under this tax saving schemes are invested in equity instrument, thus providing better returns. Many of these ELSS funds generate as much returns as a diversified equity fund. With the awareness been increasing among the investor class, the equity linked saving schemes are gaining popularity among the investor class. To know more you can visit Godmind and get the collection of recommended tax saving funds which is been provided by Godmind advisors. Also you can ask the Mutual fund Advisors on which ELSS (Equity linked saving scheme) fund to invest in.
Take step towards informed mutual fund investment by investing with care and due diligence.

Best Car Insurance Company – How Is A Person To Choose?

How is the average insurance buyer ever going to determine which car insurance company is the best? That sounds like a nightmare instead of a shopping comparison. Insurance agencies are located in every major city and suburb in America. These agencies are either independent agents that represent several insurance companies or exclusive agents that represent one company. These are insurance companies that use the agent distribution as their method of marketing their products.

Some insurance companies have chosen to eliminate the agent and use the mail, the telephone, or the internet to sell their products. The property and casualty companies are always in a battle for market penetration. The insurance companies have to walk a fine line between new acquisitions and expense to do business. This is important information for the consumer because they are the ones making the final decision on who is winning. The best insurance company for you may be completely different than one preferred by your next door neighbor. Time and experience have a way of guiding you to your choice of companies.

Things to Consider?.

1. Insurance Agent ? The car insurance agent has been the single most successful means of insurance distribution in insurance history. The neighborhood agent has ties to the community and is easily accessible. That is a great value to a great many people especially with people who want person to person advice and counsel.

2. Direct Distribution ? This is the name that we will give to the insurance companies that sell you insurance with 800 telephone numbers or through the internet and mailing services. They sell direct to you and you are serviced by them through customer service call centers. The direct distributor claims to have lower rates because they have eliminated the agent.

Once you determine how you want to be serviced then you can begin a search for those types of insurance companies. AM Best is a rating guide that you can find in your local library that gives you the financial strength of each insurance company.

Study: Many Lack Basic Investment Knowledge

How much does the average person know about investing?

According to American Century Investments’ “On Plan I.Q. Quiz,” a 10-question test taken by more than 800 investors, knowledge of some of the most basic investment concepts is poor. On average, participants selected about half of the correct responses on the multiple-choice test, which was given to individuals who have investments outside of a company retirement plan.

“While the trend over the last few decades has been for Americans to assume more ownership of their financial futures, many still don’t grasp some of the most essential investment concepts, leaving them ill-equipped to achieve their financial goals,” said Doug Lockwood, vice president of investor guidance at American Century Investments.

According to the survey, portfolio rebalancing is the concept that confuses investors the most. When presented with three statements about rebalancing, only 13 percent selected the correct response.

While the largest proportion of respondents recognized that rebalancing returns the portfolio back “to its ideal asset allocation mix,” participants failed to grasp other aspects. Test takers appeared most confused by the notion that rebalancing often entails selling some of the investments that have performed best and buying more of those that have lagged.

Though the test participants also struggled with definitions of other common investment terms and concepts, investors scored better on questions related to basic investment practices. For example, 71 percent understood that a “well-diversified portfolio will experience less volatility.”

Regardless of their investing knowledge, investors are about evenly split between those who are confident they’ll reach their long-term savings plan and those who are not.

“Financial empowerment begins with quality financial education and guidance,” said Lockwood.

Investors Chasing Uranium Mining Stocks, Again: A Favorite Emerges

Fifty years ago, uranium fever hit Wall Street. It was then just a few years after a Navajo shepherd in New Mexico, by the name of Paddy Martinez, discovered ?yellow rocks? on his property, mistaking them at first for gold. An avalanche of 1950s dollars (more valuable than the ones we have today) poured into mutual funds and uranium mining stocks, sending their values to astronomical levels. Get ready for d?j? vu all over again, as Yogi Berra once said. Trend spotter, James Dines, editor of The Dines Letter, believes uranium mining stocks could become just as hot, or hotter, than the Internet stocks of the 1990s. (Editor?s note: StockInterview.com interviewed James Dines on July 20, 2004, when he forecast a ?buying panic in uranium.? Since then, spot uranium (U3 08) prices have nearly doubled. Over the past 35 years, Dines has successfully predicted mega trends in gold, internet, palladium and uranium price movements). And now investors are chasing uranium mining stocks again.

A look at industry leader, Cameco (NYSE: CCJ), which money manager Robert Mitchell called the ?Saudi Arabia of uranium,? shows a three-year gain of more than 700 percent. Over the past few years, Australian-traded Paladin Resources, skyrocketed from under a dime to over $2/share (A$). A recent Forbes magazine cover story, entitled Going Nuclear, analyzed uranium?s recent price surge, ?One reason the price of uranium should keep escalating is that producers are only starting to ramp up to meet the strong demand. Utilities globally need 180 million pounds of uranium annually, but at this point a mere 108 million pounds are coming out of the ground.?

Why the sudden jump? A Morgan Stanley institutional report, published in December 2004, explained that through the 1990s, uranium oxide prices stayed low because surplus uranium came into the market from weapons decommissioning. That surplus inventory worked its way through the market. The Morgan Stanley analyst forecast a ?deep supply-side shortage? of uranium, citing that new mining production hasn?t yet come online to remedy the deficit. In the year-ago forecast, the uranium deficit was expected to grow to nearly 20 million pounds this year (from a surplus of 6 million pounds in 2003), and then leap to a peak deficit of more than 35 million pounds in 2006. Deficits in excess of 30 million pounds were also anticipated for 2007 and 2008. According to the Morgan Stanley analyst, $50/pound may be possible in the spot price for uranium oxide, known in the trade as ?yellowcake.?

Mining Newsletters Favor Strathmore Minerals

What?s that mean for uranium stocks? Higher prices should be anticipated as more investors, mutual funds and hedge funds search out the best returns. While the lion?s share of investment dollars is likely to chase Cameco?s price higher, the robust percentage gains in that stock may have already peaked. Generally, new money searches for well-capitalized junior mining stocks with solid uranium projects in their portfolio. One of those most frequently recommended among mining newsletter writers is Strathmore Minerals Corp, trading on the Toronto Venture Exchange (ticker symbol STM.V). Prominent among Strathmore?s projects are in-situ leach mining operations proposed for Wyoming and New Mexico, plus an aggressive exploration program in the world?s richest uranium areas, Saskatchewan?s Athabasca Basin (home to uranium mining giant, Cameco).

In September, letter writer Lawrence Roulston of Resource Opportunities recommended Canadian-based Strathmore Minerals (TSX-V: STM), writing, ?The company is systematically adding value to the projects most likely to be significant in the near term, especially those with near-term production potential.? Also in September, Resource World contributing editor, Alf Stewart, wrote, ?The two deposits Strathmore is developing were ?cherry picked? from the inventory of Kerr McGee, largest private explorer of uranium prior to that industry grinding to a halt in the early 1980s. As these properties are largely drilled off, Strathmore may be considered more of a uranium development company than an explorer.? This past June, money manager Adrian Day recommended uranium stocks in his research report, writing, ?So I am focusing on four main areas in uranium, with one or two buys in each? top exploration companies that have the goods and are likely to bring properties into production. Strathmore Minerals, with technically strong management, lots of properties, and a strong balance sheet, is arguably the best.?

New Uranium Discovery in the Athabasca Basin?

Here?s one of the stronger reasons why investors might anticipate a strong rally in Strathmore?s share price over the coming twelve months: In a November 16th news release (http://biz.yahoo.com/bw/051116/20051116005591.html?.v=1), Strathmore Minerals announced a discrete conductor, more than 30 miles long, after completing an airborne geophysical survey on the company?s Davy Lake property, in the north central portion of the Athabasca Basin. According to the company?s news release, ?The conductor’s profile response indicates a deep and in places, broad source.?

Virtually all the significant unconformity uranium deposits known in the Athabasca Basin are directly associated with fault structures associated with graphitic conductors. Deposits such as Key Lake, Cigar Lake and McArthur River were found by drilling electromagnetic conductors located within magnetic lows.

In an interview with Jody Dahrouge, of Edmonton-based Dahrouge Geological Consulting Ltd, he told StockInterview.com, ?Early indications are that this conductor is similar with other known uranium deposits, graphitic conductors with magnetic lows.? On a scale of one to ten, Dahrouge rated the Davy Lake conductor a ten. ?It is a long conductor, cut by structures, with deep depth and associated by a late fault,? explained Dahrouge. ?It is a high quality conductor that continues to depth, and it is typical of those occurring that are associated with known uranium deposits.? Dahrouge described how the MegaTem II airborne geophysical survey was able to pinpoint the conductor as shallow as 600 meters and running deep to 1200 meters. Dahrouge made comparisons to other uranium deposits in the Athabasca Basin. ?The Sue Deposit near McLean Lake is associated with an electromagnetic conductor that is approximately 2.6 kilometers long,? he said. ?Based on our work at Waterbury Lake, we identified an 8 kilometers long conductor associated with the Midwest Deposit(s). The ‘P2’ conductor at McArthur River is approximately 13 kilometers long. This feature was first identified in 1984, by a ground Deep EM Survey. The Shea Creek deposits, located south of Cluff Lake, are associated with an approximately 25 kilometers long conductor, known as the Saskatoon Lake Conductor.? Dahrouge added, ?These deposits are located at depths similar to what we expect at Davy Lake.?

What is probably most significant is Strathmore?s gamble, by exploring away from the eastern parts of the Athabasca Basin, some 300 kilometers from the eastern Athabasca Basin, where the major discoveries have been made. ?It was virtually unexplored,? Dahrouge said with excitement in his voice. ?It?s really virgin ground.? While there is ample evidence suggesting multiple uranium deposits in the Athabasca Basin, other junior exploration companies are looking at the shallow parts of the eastern basin, which may not likely yield economic uranium ore. One pundit acidly questioned some of the current exploration activity in the Athabasca region, ?Are they really re-flying old ground that?s already been flown a hundred times, or are they just releasing old data to save money?? Dahrouge pointed out that the uranium appears to be running deeper for many of the newer discoveries, as he believes the Davy Lake property might hold true for Strathmore Minerals in the north central part of the Athabasca Basin.

Important features in many Athabascan uranium deposits are the cross-cutting fault zones. Dahrouge confirmed the Davy Lake conductor has cross-cutting fault zones with a sinistral (left-sided) fault about halfway along its length. According to Dahrouge, there is also a ?conductor extension which crosses the fault from west to east and ?flows? out into a small, sub-circular magnetic low.? As with many of the Athabascan uranium deposits, which tend to be found between overlying sedimentary units and underlying basement rocks, the Davy Lake conductor fits the bill. Strathmore Mineral?s president, David Miller, told StockInterview.com, ?the 50-plus kilometer geophysical anomaly appears to indicate a basement conductor.? However, Mr. Miller tempered the exhilaration in the air, ?A geophysical anomaly does not make an ore body. These exciting initial results will be followed up with infill geophysical lines, followed by ground geophysics, followed by shallow drilling, looking for alteration. When we have narrowed the target to drill, we will pull in the big rigs and test the conductor at the unconformity.? Dahrouge remains excited about the Davy Lake conductor, and said, ?Clearly this represents an excellent exploration target for unconformity type uranium deposits.

What does all that mean? It could explain why Strathmore Minerals might well be on the road to a world-class uranium discovery as further exploration more clearly defines how valuable those newly discovered conductors might become. Meanwhile, Strathmore?s New Mexico and Wyoming properties (amounting to potentially several million pounds of uranium resource) are in the preparatory phase of the permitting process. As the spot uranium price inches forward to the widely accepted short-term target above $40/pound, several of Strathmore Mineral?s properties may become instantly more valuable to a utility company who will someday need the company?s uranium oxide to fuel their nuclear reactor.

Future of oil

In recent days oil market has witnessed surge in global oil price. Crude oil went to a two-month high on concern that U.S. refiners will fail to produce enough gasoline to keep up with peak demand this summer.

Short fall in supply of oil from Nigeria and uncertainty on Iranian nuclear issues are already keeping buyers of oil nervous. Delivery in May future hit $68 per barrel, a 20 pct jump from last years $56.5 per barrel, only $2.85 from August 2005 high’s of $70.85.

Since last 3 years oil market has been witnessing a substantial rise in the average price of oil. Last week number of oil analyst and agencies have one again raised their 2006 average forecast price to $63.

US Energy department Data reported that refineries are operating around 86 pct of their capacity. Analyst estimates that during same period last year, plants utilised 94 percent of their capacity. Not to forget that February, March & April are also crucial as all the maintenance work is done during these months.

There is difference of opinion as experts differ on whether the current soaring oil demand will outstrip the current supplies, and how quickly.

But for oil watchers, what could be more concerning is that if the current surging demand from China and India persists then Saudi Arabia, which has a known 25% global oil reserve, may see its oil reserves dwindle in twenty years time. Many leading oil analyst says Saudi Arabia is believed to be forced to over supply http://www.topsuppliers.com .

The country has the ability to produce 15 million barrels per day. Middle Eastern Oil analyst is of view that if Saudi Arabia produces 15 mbp, the lifespan of Saudi Arabia’s proven oil reserve of 260 billion barrel, 100 billion has already been used and therefore the reserves can be used in our lifetimes.

Meanwhile, last year’s impact of five major hurricane hitting United States of America still has the biting effect on the oil industry. Coastal oil refineries are still fighting to deliver maximum production.

Developing oil sands or natural gas-based diesel fuel is slower and more expensive proposition, though researchers are making every effort to produce an alternate to counter oil price.

US President George W Bush in his one of his State Union address in February, called for intense effort to develop more efficient fuel sources. The US Energy Department and the Agriculture Department spend tens of millions of dollars every year on biomass-based energy research and development. This is in addition to the billions of dollars. More than $4 billion was spent in 2004.The U.S. provides in subsidies for the production of corn, from which most domestically produce ethanol is derived.

Considering how ethanol is produced, corn or sugarcane is grown, harvested and delivered to an ethanol plant. Growing and harvesting the corn and heating the reheating the fermented corn of sugarcane to produce ethanol of a high quality to replace some of the gasoline in car requires enormous amount of energy.

According to researchers, it was found that it takes 30 pct more energy to top make ethanol from corn. Wood biomass takes 55 pct more energy. Swiss grass takes about 50 pct. Ethanol is just highly uneconomical product in the West, as compared in developing countries, also due to low labour wages. It also contributes to air pollution. Cars running on gasoline containing ethanol produce more air pollution than cars running gasoline alone.

Another research work on Pig manure is underway. One pig produces 10 pounds of manure to yield up to 21 gallon of crude oil. Hence, it is estimated manure from America’s 60 million pigs could produce 50 million barrels of oil a year. Framers can earn $10 per pig from manure.

There are all very expensive propositions. The researchers would continue to search for oil alternate, but substitute for oil may still be far away. With current pace of global growth, thirst for economic boom and demand incurring due to population explosion is unending.

I have very few reasons to believe that oil prices will fall to USD 50 per barrel and would rather like to argue that we would continue to see higher oil price trend. Without which search for new oil find could not be met due to high exploration cost. Oil price could also be kept high intentionally, to give investors incentive to explore oil and to developed alternate fuel find which requires billions of Dollars. With growing annual demand for 2 million barrel per day, most of it coming from Asia, one single event that disrupts oil production could send prices sky rocketing. Current demand for global oil is 84 million barrel per day. I expect the oil to trade in a USD 75-80 range in a short span of time. Not long ago talking of oil price averaging USD 60 was a sin. So let us get prepared for the next coming big move.

Best Auto Insurance – How To Find It The Right Way?

Auto insurance is an insurance policy bought by the auto owner to safe guard his/her vehicle against theft, accident and any other loss incurred. You can buy auto insurance for any of your auto mobile such as car, truck or bus. Auto insurance not only covers insured vehicle and insured party, but some times it covers third parties also. Different auto insurance policies have different terms, norms and conditions under which, these items are covered.

Today large numbers of auto insurance policies are available in the market and it is really very difficult task to purchase the best auto insurance for the safeguard of your vehicle.

Here are some tips, which can be used to find the best auto insurance for your black boomer.

1. To locate best auto insurance, you are requested to make a search on your own. First of all go to local auto insurance providers. Compare auto insurance quotes provided by them. Most of auto insurance providers have their websites, you can go there and request for car insurance quotes online, if you own a car. Compare their quotes and find best auto insurance for your vehicle. Always remember that bargaining is the key to buy cheap auto insurance.

2. After comparing auto insurance quotes apply for the best one for you and your vehicle. While applying given them details as much as you can such as your name, address, zip code, your marital status, car?s annual commuting miles and safety features because as default they can offer you high quotes without any specific benefits. Hence, to buy a cheap and best auto insurance always give full details about you and your vehicle.

3. Sometimes insurance companies provide specific offers. Thus always look for offers, as they can deduct your premium from $200 to $400.

4. Before signing your application form read each and every point of fine print, as they can protect your right.

With keeping these simple tips in mind you can find best auto insurance policy.

Stock and Options Millionaire Principles

INTRODUCTION

Having been trading stocks and options in the capital markets professionally over the years, I have seen many ups and downs.

I have seen paupers become millionaires overnight…

And

I have seen millionaires become paupers overnight.

One story told to me by my mentor is still etched in my mind:

“Once, there were two Wall Street stock market multi-millionaires. Both were extremely successful and decided to share their insights with others by selling their stock market forecasts in newsletters. Each charged US$10,000 for their opinions. One trader was so curious to know their views that he spent all of his $20,000 savings to buy both their opinions. His friends were naturally excited about what the two masters had to say about the stock market’s direction. When they asked their friend, he was fuming mad. Confused, they asked their friend about his anger. He said, ‘One said BULLISH and the other said BEARISH!’”

The point of this illustration is that it was the trader who was wrong. In today’s stock and option market, people can have different opinions of future market direction and still profit. The differences lay in the stock picking or options strategy and in the mental attitude and discipline one uses in implementing that strategy.

I share here the basic stock and option trading principles I follow. By holding these principles firmly in your mind, they will guide you consistently to profitability. These principles will help you decrease your risk and allow you to assess both what you are doing right and what you may be doing wrong.

You may have read ideas similar to these before. I and others use them because they work. And if you memorize and reflect on these principles, your mind can use them to guide you in your stock and options trading.

PRINCIPLE 1

SIMPLICITY IS MASTERY

When you feel that the stock and options trading method that you are following is too complex even for simple understanding, it is probably not the best.

In all aspects of successful stock and options trading, the simplest approaches often emerge victorious. In the heat of a trade, it is easy for our brains to become emotionally overloaded. If we have a complex strategy, we cannot keep up with the action. Simpler is better.

PRINCIPLE 2

NOBODY IS OBJECTIVE ENOUGH

If you feel that you have absolute control over your emotions and can be objective in the heat of a stock or options trade, you are either a dangerous species or you are an inexperienced trader.

No trader can be absolutely objective, especially when market action is unusual or wildly erratic. Just like the perfect storm can still shake the nerves of the most seasoned sailors, the perfect stock market storm can still unnerve and sink a trader very quickly. Therefore, one must endeavor to automate as many critical aspects of your strategy as possible, especially your profit-taking and stop-loss points.

PRINCIPLE 3

HOLD ON TO YOUR GAINS AND CUT YOUR LOSSES

This is the most important principle.

Most stock and options traders do the opposite…

They hold on to their losses way too long and watch their equity sink and sink and sink, or they get out of their gains too soon only to see the price go up and up and up. Over time, their gains never cover their losses.

This principle takes time to master properly. Reflect upon this principle and review your past stock and options trades. If you have been undisciplined, you will see its truth.

PRINCIPLE 4

BE AFRAID TO LOSE MONEY

Are you like most beginners who can’t wait to jump right into the stock and options market with your money hoping to trade as soon as possible?

On this point, I have found that most unprincipled traders are more afraid of missing out on “the next big trade” than they are afraid of losing money! The key here is STICK TO YOUR STRATEGY! Take stock and options trades when your strategy signals to do so and avoid taking trades when the conditions are not met. Exit trades when your strategy says to do so and leave them alone when the exit conditions are not in place.

The point here is to be afraid to throw away your money because you traded needlessly and without following your stock and options strategy.

(For a disciplined and proven approach to stock and options trading, please visit http://www.mastersoequity.com/)

PRINCIPLE 5

YOUR NEXT TRADE COULD BE A LOSING TRADE

Do you absolutely believe that your next stock or options trade is going to be such a big winner that you break your own money management rules and put in everything you have? Do you remember what usually happens after that? It isn’t pretty, is it?

No matter how confident you may be when entering a trade, the stock and options market has a way of doing the unexpected. Therefore, always stick to your portfolio management system. Do not compound your anticipated wins because you may end up compounding your very real losses.

PRINCIPLE 6

GAUGE YOUR EMOTIONAL CAPACITY BEFORE INCREASING CAPITAL OUTLAY

You know by now how different paper trading and real stock and options trading are, don’t you?

In the very same way, after you get used to trading real money consistently, you find it extremely different when you increase your capital by ten fold, don’t you?

What, then, is the difference? The difference is in the emotional burden that comes with the possibility of losing more and more real money. This happens when you cross from paper trading to real trading and also when you increase your capital after some successes.

After a while, most traders realize their maximum capacity in both dollars and emotion. Are you comfortable trading up to a few thousand or tens of thousands or hundreds of thousands? Know your capacity before committing the funds.

PRINCIPLE 7

YOU ARE A NOVICE AT EVERY TRADE

Ever felt like an expert after a few wins and then lose a lot on the next stock or options trade?

Overconfidence and the false sense of invincibility based on past wins is a recipe for disaster. All professionals respect their next trade and go through all the proper steps of their stock or options strategy before entry. Treat every trade as the first trade you have ever made in your life. Never deviate from your stock or options strategy. Never.

PRINCIPLE 8

YOU ARE YOUR FORMULA TO SUCCESS OR FAILURE

Ever followed a successful stock or options strategy only to fail badly?

You are the one who determines whether a strategy succeeds or fails. Your personality and your discipline make or break the strategy that you use not vice versa. Like Robert Kiyosaki says, “The investor is the asset or the liability, not the investment.”

Understanding yourself first will lead to eventual success.

(To understand what kind of trader you are, there is a fun and easy to use psychometric test you can take at http://www.mastersoequity.com/MOE_FREE_REPORT.htm)

PRINCIPLE 9

CONSISTENCY

Have you ever changed your mind about how to implement a strategy? When you make changes day after day, you end up catching nothing but the wind.

Stock market fluctuations have more variables than can be mathematically formulated. By following a proven strategy, we are assured that someone successful has stacked the odds in our favor. When you review both winning and losing trades, determine whether the entry, management, and exit met every criteria in the strategy and whether you have followed it precisely before changing anything.

In conclusion…

I hope these simple guidelines that have led my ship out of the harshest of seas and into the best harvests of my life will guide you too. Good Luck.

(I have stacked the winning odds in your favor and removed all possible amateur pitfalls for you in the Star Trading System! Join us now at http://www.mastersoequity.com/MOE_sartradingsystem.htm)

Investors and Experts Propose Extending The Tax Cut on Dividends

“Investors love dividends,” and that, experts say, is one reason many Americans are showing deep support for a permanent dividend tax cut.

According to results of a spot survey sponsored by Eaton Vance Corporation in March, seven in ten (70 percent) Americans polled agree that the current tax cut established by the 2003 Tax Act should remain.

These sentiments closely resemble those of the individual investors polled in Eaton Vance’s 7th annual investor study. A panel of experts at a recent luncheon hosted by the company concurred.

The event-Divining Dividends: The Past, Present, and Future of Corporate Cash Payouts and Implications for Investors-featured a panel of corporate finance, economic, tax, and capital market experts. Discussion focused on dividend trends and potential implications for the stock market and U.S. economy.

Panelist Alice Rivlin, former vice chair of the Federal Reserve, said she was not surprised by the favorable response from polled investors who want the lower tax rate on dividends to continue. “We need to broaden the tax base so that all tax rates can be lower and ensure that return on capital is taxed only once and not at rates that discourage investment,” stated Ms. Rivlin.

With the current tax cut reducing the maximum tax rate on qualified dividends from 35 percent to 15 percent, panelist, and senior research analyst at Lipper, Inc., Tom Roseen described how the tax cut has helped many mutual fund investors in recent years. “In 2004, funds in Lipper’s U.S. Diversified Equity (USDE) funds macro-classification distributed $12.9 billion more in dividend income than in 2002, but investors paid almost the same amount in taxes as they did in 2002,” declared Mr. Roseen.

Howard Silverblatt, senior index strategist at Standard & Poor’s, added to the panel discussion, noting, “The bottom line is investors love dividends. Quarterly dividends supply not just income to live on, but can also provide a convenient mechanism for dollar-cost averaging through dividend reinvestment programs.”

It is still unclear when Congress may make a decision regarding the tax cut extension; however, panelists shared their own predictions with the audience. “We won’t see a permanent solution this year, but political trade-offs are likely to lead to at least a one-year extension through 2009,” observed Mark Weinberger, former U.S. Assistant Secretary of Treasury for Tax Policy and current vice chair of Ernst & Young.

Yet, despite the uncertainty that surrounds the potential tax cut extension, moderator and executive vice president and chief equity investment officer for Eaton Vance, Duncan Richardson, added, “In many cases, the ‘right thing’ will be to return more cash to shareholders, through dividends, causing payout ratios to rise over the next decade. We see the coming period as a golden era of equity income investing.”

Eaton Vance Corp. is a Boston-based investment management firm whose stock trades on the New York Stock Exchange under the symbol EV.

Futures Trading

All futures contracts are generally made for the purpose of speculation or hedging. As such, the general procedure for settlement is the neutralization of the original contract by an opposite contract on settlement, so that only difference between the current and the contract price is paid or received. It is rare that actual delivery of the goods is taken, and the price paid in settlement of futures contracts.

Futures trading is the most notable feature of business activity on the commodity exchange. In fact, the commodity exchanges are organized mainly for futures contracts. The futures contracts are made for two distinct purposes: speculation and hedging. Accordingly, they are either speculative or hedging contracts. Speculative activity is such an important part of the commodity exchanges that commodity exchanges are sometimes referred to as the speculative market.

All speculation represents an attempt on the part of individual to peep far into the future out of the window of the present. Speculation refers to an attempt to estimate the future trend of prices and proceed on that basis, to result in profit. Commodities may be bought at the current price with the assumption of selling them at a higher price in future or vice-versa.

The line between gambling and speculation is very thin. On the surface both appear to be the same, but in fact speculation refers to the taking up of legitimate enterprise (purchase or sale of property, commodities, etc.) on the basis of an analysis of market trends and other factors that have a bearing on prices. When, however, people start speculating recklessly and blindly without applying their mind and intelligence, and without possessing the resources necessary to meet their commitments, it degenerates into sheer gambling.