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Surviving the “learning curve” to eventually profit in the market is the most difficult thing that many of us will ever do. Here are some tried and tested elements for successful trading that should help you through the process: The first fundamental is; “Know thyself!” Think about the outcome that you expect from your trading activities and your portfolio. Are you normally a conservative person or do you feel comfortable traveling at warp speed? How will your type of trading affect you emotionally? Can you handle the volatility of day trading or are you happier with long-term, conservative plays. Once you determine your risk/reward attitude, you can construct your positions and plays accordingly.
Next, you must understand (completely!) any strategy that you are using and what your specific goals are for that particular trade. You can’t make good decisions without knowing the mechanics of a specific technique. Don’t use complex or advanced methods simply because they are intriguing. The BEST strategy is the simplest one that accomplishes your goals! Once you have a candidate in mind, do your homework! Know the company and the calendar (any upcoming events, earnings dates, scheduled announcements etc).
When you have a good knowledge of a stock and its industry, you are way ahead of the investor that buys and sells on rumors or tips. Remember, “knowledge is power!” and with the tools on the Internet, there’s just no excuse for not being well informed about any company or industry group. When you are ready to trade, use simple proven techniques! One of the oldest phrases is; “Buy on down days, Sell on up days” and it is really not that difficult. Successful traders develop target prices for all potential plays and they know their exits before going in. They take the human factor out of trading by using STOPS and GTC orders. When news or events change the character of the play, they make the necessary adjustments. Learn to trade on YOUR terms, not the markets’!
After you take a position in a particular issue, stay informed by monitoring all the news and announcements affecting your play. This is one of the easiest rules to follow with all of the online information now available. Determining when to exit a play is a matter of personal preference and YOU are the only one who can decide how you will trade. Most professional traders are happy with consistent monthly returns of 5%-10%.
The most painful lesson comes when you close a losing trade. It’s very difficult to learn to close out losing plays early but the simple fact is; There is no reason to hang on to a losing position when there are so many other profitable plays that deserve your time and money. Accept your losses, learn from your mistakes (and evaluate each one critically) then move on! Success will come when you create a favorable balance between hard work and patience. Too many traders give up after a few losing plays, long before they have time to learn (and absorb!) the various methods required for profitable trading.
As your portfolio increases, diversify! There is always something to be said for becoming an expert on a few specific issues but don’t confuse the basic ideas. By spreading out across industries (and instruments), you can avoid the agony of violent swings in a particular stock or sector and limit losses when the unexpected occurs. Just remember the Titanic…
Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.
More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
For a trial Subscription of The VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE
The VR Gold Letter is available to Platinum subscribers for only an additional $20 per month, while for Silver subscribers the price is only an additional $70.00 per month. Prices are going up very shortl, so act now! Separately, the VR Gold Letter retails for $1500 a year! The VR Gold Letter is published WEEKLY. It is 10 to 16 pages jam-packed with commentary and charts. Please call or email us right away. Tel: 928-282-1275. Email: mark.vrtrader@gmail.com .
Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.
More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
For a trial Subscription of The VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE
Surviving the “learning curve” to eventually profit in the market is the most difficult thing that many of us will ever do. Here are some tried and tested elements for successful trading that should help you through the process: The first fundamental is; “Know thyself!” Think about the outcome that you expect from your trading activities and your portfolio. Are you normally a conservative person or do you feel comfortable traveling at warp speed? How will your type of trading affect you emotionally? Can you handle the volatility of day trading or are you happier with long-term, conservative plays. Once you determine your risk/reward attitude, you can construct your positions and plays accordingly.
Next, you must understand (completely!) any strategy that you are using and what your specific goals are for that particular trade. You can’t make good decisions without knowing the mechanics of a specific technique. Don’t use complex or advanced methods simply because they are intriguing. The BEST strategy is the simplest one that accomplishes your goals! Once you have a candidate in mind, do your homework! Know the company and the calendar (any upcoming events, earnings dates, scheduled announcements etc).
When you have a good knowledge of a stock and its industry, you are way ahead of the investor that buys and sells on rumors or tips. Remember, “knowledge is power!” and with the tools on the Internet, there’s just no excuse for not being well informed about any company or industry group. When you are ready to trade, use simple proven techniques! One of the oldest phrases is; “Buy on down days, Sell on up days” and it is really not that difficult. Successful traders develop target prices for all potential plays and they know their exits before going in. They take the human factor out of trading by using STOPS and GTC orders. When news or events change the character of the play, they make the necessary adjustments. Learn to trade on YOUR terms, not the markets’!
After you take a position in a particular issue, stay informed by monitoring all the news and announcements affecting your play. This is one of the easiest rules to follow with all of the online information now available. Determining when to exit a play is a matter of personal preference and YOU are the only one who can decide how you will trade. Most professional traders are happy with consistent monthly returns of 5%-10%.
The most painful lesson comes when you close a losing trade. It’s very difficult to learn to close out losing plays early but the simple fact is; There is no reason to hang on to a losing position when there are so many other profitable plays that deserve your time and money. Accept your losses, learn from your mistakes (and evaluate each one critically) then move on! Success will come when you create a favorable balance between hard work and patience. Too many traders give up after a few losing plays, long before they have time to learn (and absorb!) the various methods required for profitable trading.
As your portfolio increases, diversify! There is always something to be said for becoming an expert on a few specific issues but don’t confuse the basic ideas. By spreading out across industries (and instruments), you can avoid the agony of violent swings in a particular stock or sector and limit losses when the unexpected occurs. Just remember the Titanic…
Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.
More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
For a trial Subscription of The VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE
The VR Gold Letter is available to Platinum subscribers for only an additional $20 per month, while for Silver subscribers the price is only an additional $70.00 per month. Prices are going up very shortl, so act now! Separately, the VR Gold Letter retails for $1500 a year! The VR Gold Letter is published WEEKLY. It is 10 to 16 pages jam-packed with commentary and charts. Please call or email us right away. Tel: 928-282-1275. Email: mark.vrtrader@gmail.com .
Marks VRTrader Silver Newletter covers Stock, TSE Stocks, Bonds, Gold, Base Metals, Uranium, Oil and the US Dollar.
More kudos – Mark Leibovit was named the #1 Intermediate Market Timer for the 10 year period ending in 2007; the #1 Intermediate Market Timer for the 3 year period ending in 2007; the #1 Intermediate Market Timer for the 8 year period ending in 2007; and the #8 Intermediate Market Timer for the 5 year period ending in 2007. NO OTHER ANALYST SURVEYED APPEARED IN ALL FOUR CATEGORIES FOR INTERMEDIATE MARKET TIMING AS PUBLISHED IN TIMER DIGEST JANUARY 28, 2008!
For a trial Subscription of The VR Silver Newsletter covering Stocks, Bonds, Gold, US Dollar, Oil CLICK HERE
Syndicating (or pooling) of your money with others to buy larger commercial real estate projects is a great idea – if executed well . It is a proven path for wealth creation – if bought at the right price and managed well. Not all real estate classes are created equal – and not all operators are equal either – and this recession is a case in point. There are eight typical mistakes in real estate syndication projects that you must avoid !
What are they ?
1. Overpriced Assets sold to innocent investors at a huge premium. Often an asset is purchased by the syndicator, and then sold to the “innocent” public for a lift up from a low of 20% to several 100% on some land deals. This used to be OK in a very strong market. Let’s use an office or retail syndication as an example: An office tower or larger retail center is bought for $10M which was perhaps fair market value in 2006 or 2007 or 2008. It carries a 70% LTV mortgage, say $7M. $6M is now raised .. $1M in cost for commissions and for other soft costs like marketing and legal expenses, and $5M to syndicate the asset for $12M. OK if it cash-flows and maybe can be exited in 5 years for $15M … however roll forward to 2009 and with rising office vacancies and higher CAP rate demands by banks this asset today is now worth $9M .. down only 10% .. in some cases perhaps down 20% to $8M. Deduct the $6.5M mortgage (now paid down a bit) and you see equity of $1.5M .. a 75% drop in equity from $6M raised !! There are some private REITs out there or some office syndicators that pretend the world still looks like 2008 with low CAP rates and flat values. HELLO. Let’s assume the asset was bought in 2006. Roll forward to 2011: the 5 year mortgage is now due. It is now maybe $6M. The asset is worth $8M. Most lenders today would not lend 70% on a retail or office tower. Maybe 60 to 65%. Thus, a $5M mortgage can be obtained .. $1M short in a relatively normal market. A recipe for bankruptcy .. and in any case huge investor losses despite a minor correction of value of only 10% to 20%.
Thus: check the true asset value if you intend to invest .. and do not accept their excuses for uplifting the building value because there isn’t any ! Then hopefully you can co-invest with one of the many ethical syndicators out there !
2. Inexperienced Operator with NO OPERATING TRACK RECORD.
Many a syndicator has had some success raising funds, sometimes for flow-through tax deals or other parties. They make a commission only. Hey, let’s open up a syndication firm they say. Buy an asset and manage it and take commission and an operating profit. Big mistake in many cases as it takes years to understand how to buy, even more years how to buy well and not overpay .. and even more years to manage an asset well .. especially in a more normal less heated economy !
Thus: check their track record and depth of knowledge in the asset space they operate
3. Excessive Fees – usually upfront – independent of project success !
Some syndicators charge in excess of 10% commission. 10% seems to be the norm but is still high as it has to be made up through asset performance which takes a few years. Also an annual asset management should probably not exceed 0.5% on the asset value or 2% of the cash invested … otherwise it is too rigged towards the syndicator and not the investor. It has to be win/win !
Thus: Lower is better !
4. Unrealistic ROIs using unrealistic assumptions
A common trick is to use unachievable future values of condos or land prices as a high ROI is easily achievable on a spreadsheet or in an ad. However this is now a lower demand world caused by more cautious and financially less wealthy baby boomers.
Although housing has shown feeble signs of recovery, this economy has been a wake-up call to investors who thought they could ride a never-ending real-estate bubble for condo projects, land sub-divisions or international real estate in hot markets like Costa Rica, Mexico or Belize. Then there’s commercial and office real estate, where many institutional investors have recently taken enormous losses.
Thus: are these future values achievable in the timelines advertised ?
5. False sense of security – syndications using terms such as “asset backed” or ” up to 18%+ interest on our mortgages” or “secured by a mortgage” .. since in many cases these mortgages are in 2nd or 3rd position and exceed by far the value of the underlying real estate. In construction or land development projects the investors money is often in 2nd or sometimes in 3rd position behind an expensive first position .. hardly security but a sham ! Don’t call it a mortgage if it is indeed equity or investment dollars.
Thus: security not in 1st position or exceeding going in prices, based on future speculative possible prices is not security .. it is false advertising !
6. Executives that were charged .. by the Alberta or BC Security Commissions or are embroiled in lawsuits with their current or previous investors.
Thus: check out the project and the people behind the project. What did they do before they did this venture ?
7. Big ads promising huge returns .. usually paid for with your own money as an expense to the business.
Thus: look for soft costs besides (huge) commissions too .. 2.5 % – 3.5 % of money raised is reasonable .. more is not !
8. Not taking ownership of the asset although promised by their marketing. Ensure that the investors actually own the asset ! Frequently .. and I invested in 3 such deals .. the asset is not held by the investment group but by a shadow company and the money is lent to them. It is now almost impossible to trace the money trail .. especially if this shadow company also co-owns many other assets with many mortgages. Thus, one collapsed and unrelated project can derail your project too !
In summary: it has to be win/win ! Are the operator’s profits aligned with yours, the investors i.e. usually at the end on exit? Or are they lining their pockets upfront regardless of asset performance ?
There are quite a few scams out there .. and many were in the news lately .. but even more exist that just exploit the legal loopholes .. but there are many honest folks like us too. Use these eight guidelines to distinguish between the honest and the dishonest operators .. and you too can successfully and profitably co-own a larger piece of real estate or a pool of hard assets with others !
Thomas Beyer, President
Prestigious Properties Group
T: 403-678-3330
F: 403-770-8885
Collectibles can include art, antiques, old coins, vintage cars, stamps, rare books, Persian rugs, baseball cards, bottles of fine wine and other items that offer the potential for appreciation in value. Unlike other investment vehicles, these items generally do not generate any type of cash flow during the time that they’re owned (unless the property is so rare and exquisite that you can open a museum and charge admission for patrons to view it). In addition, a number of other characteristics make collectibles investing significantly different from investing in financial securities.
First, specialized knowledge is necessary in order to be able to determine the value of a specific collectible, whether it’s a work of fine art, a rare book, or a vintage car. It can be quite easy to pay too much for a collectible if you don’t have the expertise and familiarity required to judge the particular item. You should therefore be knowledgeable about the factors that determine the value of the specific collectible.
Furthermore, the markets for collectibles are informal as well as unregulated. When buying or selling a collectible item, it’s important to have an idea of the worth of the item because you’re dealing with individual buyers or sellers. There are no current price lists as there are with stocks and other financial instruments. Similarly, there is no governmental body such as the Securities and Exchange Commission (SEC) that regulates companies who list their securities on the financial markets. You can easily pay too much or sell your collectible for far too little without being able to seek any recourse from an official regulator. Additionally, many collectibles are bought and sold at auctions, where prices can vary greatly.
Supply and demand generally determines the value for collectibles. For example, the supply of paintings of those artists who are considered to be the truly great masters is limited; it can, therefore, require huge sums of money to invest in these items. Think about it: what actually makes a work of art by da Vinci, van Gogh, Picasso, or Salvador Dali worth two million, twenty million, or a hundred million dollars? It’s the fact that they are others who are willing to pay those prices to acquire such works. By comparison, the works of unknown artists are much more available, thus they’re bought and sold and far lower price levels.
Investing in collectibles will also likely not bring particularly fast profits. As stated previously, there’s no underlying cash stream upon which to base the item’s value or return-on-investment. Returns are only realized when collectibles appreciate in value and are sold at a higher price than that at which they were purchased. This desired increase can often take a number of years – at the very least – to materialize.
Finally, collectibles must be characterized as illiquid assets because they’re not easily converted into cash. Added are the high transaction costs associated with liquidation of these items. Regardless, investing in collectibles provides a definite sense of pleasure and enjoyment for many individuals. If collectibles are of interest to you, there is any number of easily accessible books, magazines, and websites to provide you with specific information on the many different types of potential investments available. As with any investment, however, proceed with knowledge and prudence.
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