Monthly Archives: October 2008

It would be difficult to imagine a more interesting and chaotic time in the financial markets.

We’re seeing stock market characteristics (daily ranges, reversal patterns, etc.) that are literally unprecedented. The volatility (as measured by Average True Range or ATR) of almost every major trading instrument is at all time highs. It doesn’t matter if you’re looking at stock indexes, bonds, oil, gold, currencies, etc. It seems that the only broad groups of instruments not trading at their highest volatilities ever are the smaller commodities that don’t have big hedge fund and institutional interest- things like coffee and orange juice.

This volatility expansion is significant for several reasons:

It is broad-reaching. As mentioned above, it is hitting practically every traded instrument.

It is persistent. The markets are no strangers to volatility spikes. We see them come and go when particularly juicy reasons for fear or greed enter the markets. But this volatility explosion has not subsided. Depending on how you measure “persistence”; the volatility “spike” has lasted four to six weeks, not just for a few days.

It is huge. Back in April of 2000, we made the previous volatility highs when the Internet bubble started to collapse. Then volatility (as measured by 14 day ATR) was 3.0% of price. Last Wednesday, this same ratio showed ATR at an astonishing 8.3% of price!!

To punctuate the truly wild nature of the recent market volatility-here’s an interesting market tidbit: today is a “Fed Day” (FOMC meeting announcement) and after dropping both key rates by 50 basis points, it looks like the market will have a day within only 2/3rds of its recent range!

I think that the market is giving us some really important information through this language of high volatility. The message is this: the uncertainty of where the markets are heading next has never been higher. With the slightest whiff of negative news, the market free falls. When even a shimmer of hope comes along (like the Fed strongly hinting that the rate cut was real yesterday, sending the markets up 10%), the markets jump through the roof.

It’s like a cat on a hot tin roof… after drinking a can of Red Bull. Every move is over exaggerated.

One of the questions that I get most often is ” when will the market return to some sense of normalcy?” It’s hard to predict this, of course. But one key indicator will be when the volatility settles way down from its current unprecedented highs. It’s okay if the market is directional; I don’t think we’ll see a traditional basing / consolidation period from here. But what IS needed is a sense that the markets don’t jump every time someone whispers, “Boo”. And a volatility contraction will be a good (and maybe the best) indication that this is happening.

There is simply no denying that we are living in times of financial uncertainty and economic worry, but of course that does not necessarily mean that you run and pull out all your stock and hide your money in an old mattress, right?

Robots are still cool. Especially stock market trading software that automates your money-making process and consistently provides you with top stock picks. When you were a youngster, you probably just wanted to automated piece of steel so you wouldn’t have to make your own bed, but nowadays, you probably realize that your very own stock robot can not only get you a housekeeper to make your bed and keep the floors clean, but it can also get you the ability to work from home, prepare for your children’s college education, give you nice vacations, and let you enjoy your retirement years.

With its fast, user-friendly, and focused attention on the history of a stock, a stock’s current pricing and performance, it just makes sense to use this new tool. Many of the big brokerage houses have been using stock market software for years, but now, Stock Assault makes it available to anyone and everyone who wants a little advantage when it comes to trading.

With Stock Assault 2.0, you can sit back and let it watch over your picks, trace stock history, analyze current behavior, and tell you when to buy the hot stocks and when to let them go.

It almost seems as if it is impossible to lose; thousands of private day traders – people like you and me – have discovered the secret and are raking in more profit than they ever imagined. Yes, even in these tumultuous financial times, they are pulling in consistent money. Instead of floundering around wondering where to put your money next, you should consider how to maximize your profits with Stock Assault 2.0.

For more information on this great Stock Trading System visit http://www.squidoo.com/stockmarketguide.

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Especially in these times with the economy looking as it is – people are searching for that opportunity that will give them financial freedom and security in the future. There are quite a few money making options out there including property, stocks, business, home based business and many more. Before going ahead with your chosen ‘vehicle’, keep in mind the following 3 points:

1. Passion and interest is more important than how much money the opportunity will make you. I know this may seem like a pretty bold statement – but if you want to make sure this is going to last the long term you have to have a vested interest and an eventual love for what you do. Speaking from my own experience, I used to focus on the money – I started studying stocks and kept procrastinating because I really had no interest in it. However I forced myself for the money – eventually time and money wasted, I realised I didn’t enjoy it and turned to the next opportunity.

Ask yourself – can you learn to love the money making vehicle you choose? Are you passionate about the way you are going to make money, if so – that is the first point checked off the list!

2. Ensure that it is a proven system. This is very important if you want to increase your chances of success. Yes, you may be starting a business that hasn’t ever been done before, but in that case make sure you have done a thorough business plan, including competition analysis, contingency plans and research with proven statistics. The more proof you have, the better the option. This goes for following a Stock Market system, Home Based Business, and Property Investing. Look for proof that it has worked in the past, and don’t just take one persons advice – call another industry smart person and ask them.

Rather than wasting your time, stress levels or money – do the investigations needed to prove that this really is going to work for you, and make the money promised.

3. Lifestyle and Freedom Goals are the reason you are looking at a financial opportunity – so make sure you know what they are! Don’t get caught up in the excitement of the potential success you are going to have, until you have checked that this opportunity will give you exactly the lifestyle you want. I mean it is all well and great if the property investment scheme is going to give you money in 10 years, but if you wanted an opportunity that will help you escape the rat race now, then you need to look at the next one. This also goes for home based businesses – you may be looking to be at home with the kids, but if you have to be in your home office from 8am until 8pm, then that won’t work either.