What Exactly is an Investment Club?

The concept of Investment clubs has been around for many years and there are literally thousands of these clubs scattered across the nation. There are many of these clubs, which are actively trading today and do so with a reasonable rate of success.

These types of clubs exist in the United States and many other countries around the world. You have likely heard of this sort of club where friends gather on a regular weekly basis to discuss their strategies and their stock picks for the upcoming trade. Possibly you may have even thought about joining and becoming a member of one of these clubs yourself, but really were unsure of the process.

Generally these clubs are run by a group of friendly investors who like to learn about the stock market and in testing in general with a group of fellow investors whom are enjoyable to be around socially. Normally the group meets on a weekly basis, and sometimes the actual meeting is held at one of the members home. All the members will rotate whose home they will meet at so that everyone has an opportunity to host the investment group in their home.

Typically investment meetings are kept as an informal as possible, however real business is discussed and taken care of during these meetings. Most groups are comprised of 10 to 15 members and will either meet weekly, biweekly or on monthly basis. There are some investment clubs that have even started with a onetime physical meeting, and then communicated thereafter with Online. Members can have a meeting and never even leave the comfort of their home.

This is an ideal solution since many of these investment groups have working mothers who are work-at-home Moms as the primary members. With the group meeting Online, it allows for the group members to be home and still carry on the club business. Peoples time is more effective in this way.

Maybe you believe that investment clubs are a way to get rich quick, then you do not fully understand the function of these groups. A normal club will make a group stock purchase and a hold on to it for a number of years before deciding to liquidate the stock. All stock purchases are carefully considered and well researched by the members. Once a club has been established they rarely allow any new members to come into the club, and will only allow a new member should one member leave the group.

On the basis that you have been thinking about getting into the stock market and trying your hand at trading stocks and bonds, then maybe an investment club would be the right ticket for you to begin trading experience. Not only will you learn a wealth of knowledge about the subject of stocks and trading, you get to mix with people that you like and will appreciate the overall experience.

More on the Four-Bar Variation of the Evening Star Candlestick Pattern

One of the outstanding attributes of Japanese Candlestick financial price reporting is its quite uncanny ability - most of the time, but not all the time - to accurately predict major changes in the direction of price trend. Some Candlestick formations are deemed to be complete with a single price bar; some are complete with two; and some with three or even four.

The "Bearish Engulfing" pattern is one of my favorites. It is quickly spotted when it appears, and very often it is right on target in calling a reversal. The classic Bearish Engulfing pattern is a three-bar formation, and is seen at the top end of an extended advance in prices. It is characterized by a tall white candle as the first bar, indicating that prices advanced during the time period which the bar represents. The second bar of the three will display tight price disparity between the opening price and the closing price (the "real body") and is located above the real body of the first bar. That second bar is the "Star" of the Evening Star pattern. The third bar will be a tall black candle, indicating a meaningful decline in prices from those of the Star. The entire construction is considered bearish.

My particular thesis has to do with a Four-Bar Variation on the Evening Star, which is a pattern not recognized in the literature as a separate pattern, or even as a Candlestick pattern at all. I respectfully maintain otherwise, because it appears relatively frequently and seems to possess the same reversal predictive capacity as does the classic Evening Star. I know that I watch for it all the time, because in my experience it has proven to be worthwhile to pay attention to it.

In a typical four-bar variation of the Evening Star, it will be identified as such if it appears only at the top end of a lengthy price advance, just as in the classic version. Likewise, the first bar will be "classic" in that it will be a tall white candle. The next part makes the difference: instead of a single Star between the tall white candle and the tall black candle, there will instead be two Stars, the closing prices of which will most likely be higher than the closing price of the tall white candle and the price ranges of which will be constrained between opening and closing - that is, they will have small "real bodies" - just as in the classic version. The fourth bar will be a tall black Candle, indicating a substantial fall in prices, exactly like the third bar in the classic.

To my mind, the two small Stars (being the second and third bars) only add to the potential power of the pattern, in that for two days in a row, not just one, investors try to drive prices higher but their effort results only in indecision. The pressure for a downturn (or the lessening of pressure for continued price rise) has been building one day longer; and when the turn comes, it seems to have the potential, at least, of greater force to drive prices lower.

A good recent example of this Four-bar Variation of the Evening Star occurred in the Russell 2000 Index on October 31 and November 3, 4, and 5, 2008. The pattern is as I've described it: first, it occurred at the top end of a long price advance; second, a tall white bar emerged, which was followed by two small stars, both exhibiting higher closing prices than the first bar; and the pattern was completed by a tall black bar signifying a substantial decline in prices. The decline from the top price of the second Star to the bottom of the subsequent tall black Candle was 166.44 points. On a closing-to-closing basis, the decline was 29.4%, accomplished over a 12-day trading period.

The long and short of it is that this Four-bar Variation of the Evening Star Candlestick Pattern appears to have the same predictive price-reversal capacity as the classic three-bar pattern - possibly more so. I submit that it deserves recognition as a legitimate variation of a classic Japanese Candlestick pattern.

Why is Everyone Talking About Kiva?

My son came home from work yesterday and was going on and on about this new Entrepreneurial website called Kiva. He thought it was genius, pure genius. (He's 19). He explained that it allows individuals to make loans to entrepreneurs in developing countries which they can use to start up or continue their small businesses. I entered my car today and switched on the XM Satellite radio and there on the NPR station was an interview being played with Matt Flannery, Co-founder of Kiva. Hmmm, coincidence or not?

Kevin, along with his wife, Jessica, fought against a lot of naysayers in 2005 to get his site started. Friends said it just wouldn't work. An attorney told him it was illegal to give money to people in third world countries and then have them mail their loan payment back. So, Kevin researched the case law and policy on this topic, but could not find anything illegal about it. Venture capitalists did not see how anyone could make enough money on this type of deal. Foundations would not support the idea because it did not appear to be charity but instead, a type of commerce.

Kevin and Jessica went ahead with their plans for the site. Today, Kiva is one of the hottest sites on the web. When you visit, you can look up struggling business owners around the world and see their pictures. They receive recommendations by other Kiva uses. You are able to read their profile and decide if their business is something you would like to support. A tally shows how much money they need and how much they have received to date. You can start teams among your friends/family to give as a group. Team tallies are also displayed on the site.

Some loaners have even gone as far as visiting the Kiva entrepreneurs they have loaned money to. The site has been featured in every major magazine and many news shows. (Where have I been?) This site is hot because it lets a loaner feel like they are really helping a specific person. You actually feel like you are forging a connection with someone in Senegal, Peru, or the Ukraine. For example, Justina, Ayacucho, Peru is 48 years old and married with five children.

he sells potatoes from a stand in the Las Americas market, she also travels to regional fairs to sell clothing and buy grains. She is requesting a loan of $275 to buy more potatoes. As of today she has received $75. You can see her picture on line. She is just one of thousands of individuals affiliated with the site. You do not get this same kind of feeling when you donate to a big charity. You just don't. Check out the site. This is an amazing "Feel Good" site. You'll be talking about it, too. Very cool!

Assets, Owning Them the Wrong Way

Most of us have been taught that a dollar saved is a dollar earned. The use of coupons can save families quite a few dollars a year and add up to something substantial if invested properly.
This brings me to my point. Retirees own many of there assets like there home, and bank accounts in joint tenancy with sole right of survivorship. While this is a simple way to own assets. It could be a huge mistake if:

Your marriage goes down the tubes, your bank accounts could be cleaned out.

If one of you has a liability problem you both could lose everything.

I am not saying this is going to happen, I am saying review your situation.

One of the biggest ways retirees jeopardize their assets is by putting them in joint ownership with the kids. I know most people want to avoid the fees of going through probate which could save them thousands of dollars. When you think about it from the kids point of view putting their name of a valuable asset is a no-brainer. The problem could come when a kid runs into financial difficulty.

Creditors will get an opportunity to take this jointly owned asset from you to settle the debts. Yes it could all be gone.

Changing the registration of ownership to include the kids will trigger what is called a deemed disposition. In other words even though you did not sell the security the government will have considered you to have sold it and tax you on the capital gains.

You have to look at the way you own your assets in context of your whole financial situation. Asset ownership is a serious yet often overlooked area that can turn into a gigantic mistake that can jeopardize your retirement finances.

Gold Coins Make Great Investments For More Than Just Collectors

The value of the dollar is dropping, but gold continues to hold steady and even increase slightly in value. All this amidst some of the worst times the American economy has seen in many years. With the future of the economy in question, it seems like the perfect time for many to begin buying gold coins.

These coins have been popular with collectors for a long time, but today they are also seen as a way to protect one's savings. Adding gold to an investment portfolio is a very good idea, especially now.

The reasons for adding gold to your portfolio are numerous. Gold is one of the oldest forms of money, dating back thousands of years. It is a stable, tangible item, which means that it will be able to retain or increase in value. Another reason that people should add gold coins to their portfolio is that they are easy to obtain. They are also practical.

Another great thing about the coins is that they are quite easy to sell. Because of the ability of gold to retain and increase in value, you won't have trouble getting your money's worth when the time to sell comes. In addition, it is easy to determine the value of your coins at any time because the price of gold is tracked on the open market.

While the value of the gold itself is easy to monitor, one of the great things about coins is that they can be worth more than the gold they are made of simply because they are rare.

With all of the benefits that gold coins offer to the investor, it is easy to see just why they are so popular with investors. With the current state of the economy, it might just be a good time to start gathering coins.

Long Term Investing As an Optimist

It does pay to be a long-term optimist as I am. The easiest way to show the importance of staying invested is with the Rule of 72, which illustrates how compounding builds long-term wealth. To see how many years it will take to double your money at any compound growth rate, just divide 72 by that rate. Assuming a 7% compounding rate, your money will roughly double in 10 years. Over 50 years, you will have five doubles -with the last 20 years being the most important doubling points because you are working with a greater principal amount.

For example, $1 million compounding at 7% will grow to almost $32 million ($29.46 to be exact) in 50 years. In the first decade your money will double from $1 million to $2 million, in the second decade from $2 million to $4 million and in the third decade from $4 million to $8 million. Then it starts to get really interesting because the dollar amounts you are doubling are so much greater. In the fourth decade your money will double from $8 million to $16 million and in the fifth decade from $16 million to $32 million. If you can compound your money at 14%, then your $1 million will grow to more than $700 million in 50 years. In such case, your money will double about twice as fast- about every five years, not every 10 years- and so you will have almost 10 doubles over a 50-year period. This is why it is so important to stay invested.

Here are some of the best investment minds in the country offering their wisdom and insights on the issues confronting all investors:

-"Diversification is an established tenet for conservative investment." Benjamin Graham

-"To refer to a personal taste of mine, I am going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the "Hallelujah Chorus" in the Buffett household. When hamburgers go up, we weep. For most people, it is the same way with everything in life they will be buying -except stocks. When stocks go down and you can get more for your money, people don't like them anymore." Warren Buffett

-"Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves." Peter Lynch, former Fidelity Magellan Fund manager.

-"Your success in investing will depend in part on your character and guts, and in part on your ability to realize at the height of ebullience and the depth of despair alike that this too shall pass." John Bogle, Chairman of Vanguard.

Many people are disappointed with investing over the last year. Even if equities deliver long-term returns in the mid single digits as they have in the last decade building a solid long term investment portfolio is still possible. From the quotes above, you can see that you must invest for the long term- that is a minimum of 10 years or more. Focus on the Rule of 72 and the stick with your plan and successful results are sure to follow no matter what the economy does.

HYIP Investments - Right Way to Earn a Million

Just about everyone would love to get rich quick, but finding a way to do so is not always easy. One way of earning a lot of money in a short time is through a hyip program. Hyip is short for high yield investment program and it basically does what the name says. A hyip investment will generally bring a much higher return on money invested than what is considered to be a usual rate.

Of course not every hyip program is good and there are some that are more legitimate than others. Finding the best hyip is not always an easy task and in order to do so you will need to do a lot of research on the company before making the final decision to invest money. However, it must also be kept in mind that luck and work on your part may also play a big role in how successful your hyip investment will end up being.

Another way of determining the best hyip is to read their terms of service and understand what they promise and to see if it is something that is feasible. Reading various forums on hyip is also a good thing to do before actually putting money into a certain program. There are often reviews of the hyip available now and many will tell you what they think is the best hyip to join. Since these writers have firsthand experience with the programs you have an even better chance of making the right investment.

A hyip monitor can also be a great help when trying to get the most out of a hyip investment. Going to a hyip monitor website can give you an idea of which hyip are the best available. You may also find a new hyip program that seems promising and if you get in fast, you can even increase the return on your investment. A hyip monitor is not just good for finding a potentially good program, but also to promote them. By creating your own hyip monitoring website you can advertise for the programs you are already a part of and by doing so will also gain referrals.
A good hyip investment can make you a lot of money, but since there are so many programs available you will have to think things through carefully before taking action. Taking the time to learn about a particular hyip program is not wasted since you will soon see a profit.