Stock Trading Advice. Stock Investment Success

Stock Trading for Bold Brave Investors. Stock Investment Success In 2008 Stock Market

Stock trading is one of the last true meritocracies. All that matters for your investment success are your own decisions. Stock trading is a precision-based activity and one tiny mistake in judgment could send you plummeting right to the bottom and result in a huge loss.

Likewise, the opposite could happen. You may make a great buying decision that will put you on the path to riches. Traditional stock trading is done at stock exchanges, which are places where buyers and sellers meet and decide on a price, although electronic trading is gaining in popularity. Stock trading is affected by how well the economy is doing and by basic supply and demand considerations.

Stock Trading is a get rich slow process. Money can be made, but it takes time. Stock trading is something that interests many people because it offers them a chance to make money without breaking into a sweat. In addition, it has a lot of excitement attached to it especially when using short term strategies that help pit traders against the stock market.

Stock Trading is trading stocks and shares of different types of companies and organization at the stock exchange. In every country, there is a stock exchange where various companies get their shares listed, when they arrange to raise required funds by means of issuing shares.

Stock trading is a very competitive field and in order to succeed you need to FOCUS on a set of simple strategies that you can implement without hesitation. The real "secret" of the stock market game is enclosed within the trading set ups and market signals you rely on to decide when to buy or when to sell shares. Stock trading is a business (because it is done for making money).

So as in a business, in stock trading, one needs to complete solid planning before making any buy/sell/trade. Stock trading is viewed by some people as a very complicated matter. This is regarded by many as an arena better reserved for those who have extensive exposure and experience in stock trading.

Stock trading is a game in which you cannot afford to be average. Thousands of new and inexperienced traders are being charged hundreds, even thousands of dollars by scam artists and self proclaimed experts for dubious stock picking services and mechanical buy and sell signal generators.

Stock trading is a relatively simple activity compared with other professions, particularly with the tools available in today's Internet world. It is certainly within your abilities, and as you educate yourself on and build your skills, you'll find that your fears subside as your confidence grows.

Researching a stock and then buying online it is one part of the story. The other part being how to plan a trade with an exit strategy? You must research the risks attached to online trading to make sure you are prepared for the worst. Be determined and goal orientated.

Exchange traded funds are good to use for trading and investing. By keeping trading simple, there is less stress and more opportunity to profit. Exchange Traded Funds, also known as ETFs, are index funds traded on the major stock exchanges just like stocks. An index fund involves a collection of securities, much like mutual funds, except that ETFs differ from mutual funds in some distinctive ways.

Options are bets about the future price movement of exchange traded securities. The prospect of unusually high returns always signals unusually high risk so be careful about trading options. Timing is everything.

Options are a great way to both earn and lose a lot of money. If you're interested in involving yourself in the more unpredictable, risky, and spontaneous part of the stock market then trading options is something you should investigate. Option strategy is about selection of the best stock opportunities and following your signals. Here, you can achieve success if you are acquainted with the correct option trading strategy .

There are online resources available that will provide you with free simulated stock and option trading. You will easily find enough information to start your trading venture. You can practice trading stocks, options, spreads, futures, short sells, and so forth. Just run a search for "demo stock trading accounts" and you will find a good list to research.

Stock and option trading is a big game in many ways. But as it is a game involving the exchange of money if you play you need to take the game seriously.



Best Stock Trading Software. Worden Stock Finder

Free Featured Worden Notes, Reports, and Videos:
Check here for the latest featured charting lessons and trade candidates from Peter and Don Worden. If you want EVERY note & report just minutes after they're written, then download TeleChart for FREE and get your first 30 days of service FREE.

The brand new StockFinder 4.0 is the latest in a line of Worden products that have been voted the "Best Stock Software" in their categories since 1993 by the readers of Stocks & Commodities magazine. StockFinder combines simplicity with "rocket science" ability. If you can see it on the screen, you can rank it, scan it, count it, and compare it to anything else you see with one or two clicks of the mouse. StockFinder comes with hundreds of indicators you'd expect and hundreds you've never seen--like analyst ratings, sales and cash flow, earnings estimates, and industry rank studies. In seconds you can scan, filter or rank by any rule you can dream of. Click here for the Worden best stock trading software

Nothing's easier for finding crossovers, breakouts, and statistical divergences--live during market hours or at the end of the day. Ask about a free trial and free nationwide training. Click here for the Worden best stock trading software

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To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Penny Stock Buying. Viable Stock Method To Get Rich

Penny Stock Buying. Viable Stock Method To Get Rich



There is surely no better way to make massive returns on your money than in penny stock investing.

There is no point in joining the party too late. You need to get in before the crowd are aware of this penny stock investment. As soon as word is generated about a company, the price of the penny stock soars until it no longer falls in the category of penny stocks at all. So how do you get this kind of information if the media isn’t disseminating it to the public yet?

The first thing you can do is research on your own. Penny stock companies usually post their financial data for investors to find, even if they’re not being blasted over the airwaves just yet.

You have to become a Sherlock Holmes of the penny stock investment world. Sniffing out the very best opportunities. Sometimes you’ll get wind of a small news item where stocks aren’t even mentioned and it gives you just enough information to leverage an investment of penny stock before the company starts heavily promoting their stocks in connection with the news.

Creating wealth in penny stocks means doing your due diligance and then acting on it with total commitment. Some investors prefer to wait and see what will happen with a company before they buy stock.

This kind of approach nullifies the opportunity they have to take advantage of the low stock cost, because once investors know for sure that a company is on the rise, everyone will be scrambling for a share and the stock prices will rapidly trend.

One way to stay abreast of up-and-coming penny stock companies is to join one of the many penny stock advice forums on the Internet and watch what others have to say about the choices available to penny stock investors.

Always make sure you do your own investigation into the company as well, but having other investors with a like-minded attitude can help you learn what to look for before shelling out too much money as a unwise.

Best Stock Trading Software. Worden Stock Finder

Free Featured Worden Notes, Reports, and Videos:
Check here for the latest featured charting lessons and trade candidates from Peter and Don Worden. If you want EVERY note & report just minutes after they're written, then download TeleChart for FREE and get your first 30 days of service FREE.

The brand new StockFinder 4.0 is the latest in a line of Worden products that have been voted the "Best Stock Software" in their categories since 1993 by the readers of Stocks & Commodities magazine. StockFinder combines simplicity with "rocket science" ability. If you can see it on the screen, you can rank it, scan it, count it, and compare it to anything else you see with one or two clicks of the mouse. StockFinder comes with hundreds of indicators you'd expect and hundreds you've never seen--like analyst ratings, sales and cash flow, earnings estimates, and industry rank studies. In seconds you can scan, filter or rank by any rule you can dream of. Click here for the Worden best stock trading software

Nothing's easier for finding crossovers, breakouts, and statistical divergences--live during market hours or at the end of the day. Ask about a free trial and free nationwide training. Click here for the Worden best stock trading software

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programsClick Here

Best Stock Trading Software. Worden Stock Finder

Best Stock Trading Software. Worden Stock Finder

Free Featured Worden Notes, Reports, and Videos:
Check here for the latest featured charting lessons and trade candidates from Peter and Don Worden. If you want EVERY note & report just minutes after they're written, then download TeleChart for FREE and get your first 30 days of service FREE.

The brand new StockFinder 4.0 is the latest in a line of Worden products that have been voted the "Best Stock Software" in their categories since 1993 by the readers of Stocks & Commodities magazine. StockFinder combines simplicity with "rocket science" ability. If you can see it on the screen, you can rank it, scan it, count it, and compare it to anything else you see with one or two clicks of the mouse. StockFinder comes with hundreds of indicators you'd expect and hundreds you've never seen--like analyst ratings, sales and cash flow, earnings estimates, and industry rank studies. In seconds you can scan, filter or rank by any rule you can dream of. Click here for the Worden best stock trading software

Nothing's easier for finding crossovers, breakouts, and statistical divergences--live during market hours or at the end of the day. Ask about a free trial and free nationwide training. Click here for the Worden best stock trading software

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programsClick Here

Stocks, Hedge Funds, Forex. October 2008 Wrapup

Stocks, Hedge Funds Forex. October 2008 Wrapup

As we wait for indications that the bottoming process is working through, we had another bad week. The Dow fell 473 points over the week ended last Friday, more than erasing the 401 point gain the prior week. And international equity markets started out this week badly, with Hong Kong’s Hang Seng equity index down 12.6%, Japan’s NIKKEI 225 index down 6.4%, the FTSE index down 1.7% and so on. Emerging Markets have really been hammered, especially equity markets in countries that have a heavy reliance on energy, materials, or precious metals production and sales. In Brazil, for example, the Bovespa stock index fell 6.5% and is down 64% in dollar terms so far this year.



With the carnage overseas, U.S. equity markets finished with the Dow dropping “only” 2.4% today. There are some grounds for this better relative performance. We are energy and commodity importers, so those price declines will benefit our economy down the road. Also, while the dollar exchange rate has been rising, it remains well below the 2002 peak and still offers, in my opinion, a solid competitive advantage to U.S. companies that export and compete with foreign companies. Finally, Federal Reserve and Treasury programs aimed at restoring our financial system are starting to kick in. Today one, in my opinion, very important program started – the Federal Reserve’s Commercial Paper Funding Facility (CPFF). This program will provide a backstop to qualified issuers of commercial paper (CP), giving these issuers the ability to get three-month CP loans from the Federal Reserve at near-normal rates. CP borrowing had fallen by $366 billion (25%) over the last six weeks, another credit area that seized up after the AIG/Lehman failures and that has created much stress on many traditional borrowers. There are more programs coming. It is nice to see that not everything barreling around the corner at us is bad news.

So why have equity markets continued to have so many bad days? There are a whole host of factors, but two now stand out. First, the swift fall in oil and other commodity prices has had an immediate negative impact on the producer economies and stocks, but the benefits to consumer economies and stocks, importers or users of energy and commodities, tend to show improvement only after a lag of six months or so. Second, a new source of downward pressure on markets appears to have come from hedge funds.

Hedge funds that actually hedge risk and thereby reduce risk have generally done relatively okay (though most are still down). However “hedge” funds that were actually using leverage to make long risky bets on all sorts of things, like troubled debt, long energy, and other commodity bets or risky positions have been hit very hard by the credit crisis, and now their investors are reported to be fleeing in droves. No one has a full view of this market, because it is yet another unregulated part of the global financial system that will likely have to be completely rebuilt and subjected to significant regulatory oversight. However, for now I, among others, am guessing that there has been a lot of forced selling.

These leveraged “hedge” fund portfolio price declines coupled with investor demands for redemptions have delivered a double whammy to equity and fixed income markets around the world. It appears that managers of such troubled “hedge” funds have had to throw everything not bolted to the deck overboard to keep their funds afloat. One problem is that the stuff bolted to the deck is likely to be the really risky junk assets, the “illiquid” assets that cannot be sold (or liquidated) easily. Meanwhile, the relatively good or “liquid” assets are being sold. These managers appear to be selling all sorts of securities without, in my opinion, much regard to price. AAA municipal debt securities, equities with low valuations, investment grade corporate bonds, etc. have been dumped at what look to me like fire sale prices.

And while we have heard from bunch of hedge fund managers that they are okay and have raised a lot of cash, there is no way to know for sure, and given the lack of regulatory oversight, in the main I tend to distrust much of what is said. I have heard way too much from way too many financial institutions over the last year that just was not true. One important gauge I am watching here is, strangely enough, the Japanese yen exchange rate.

Many “hedge” funds used something called the “carry trade” to borrow money to lever up their portfolios. The idea was to borrow in Japan at a very low interest rate and use the yen denominated proceeds to buy assets anywhere in the world for their portfolio. This process in effect put the funds in a short yen and long some other currency exchange rate position. So, as they have been selling stuff out of their portfolios, they have been eliminating the short yen exchange rate positions. As a result, the yen has soared since the beginning of September, rising 17% against the dollar and 37% against the euro. A slacking in the yen appreciation may mean hedge fund selling is tapering off. So far, that has not happened. And, hedge funds still foolish enough to have that carry trade on their books are getting hammered by the appreciating yen. Good grief, another bad movie script!

All of these bad movie plots we have seen play out over the last few months have common themes: high prices (housing, energy and other commodities) followed by a price crash, very bad security selection with very high leverage, hidden problems, deep flaws in the financial system, and a lack of regulatory oversight. Alan Greenspan, in testimony last week, said he was astonished at how bad things were at many large supposedly sophisticated financial institutions at the heart of our financial system. While I deplore the lack of regulatory oversight on his watch as Fed chairman, I have to agree with his astonishment. So, is there more bad news likely to come barreling around the corner at us? Almost certainly. But there will also almost certainly be good news as well. And we just have to deal with what the markets have already priced in.

I know that, in this global financial market meltdown, fundamentals do not matter to many investors, but I do think that fundamentals will become important once again when forced selling and panic selling subside. For example, by my calculation, the stock market value of all U.S. non-financial corporations is now down to about 44% of their aggregate net worth. The municipal debt market appears to be pricing in widespread defaults on AAA general obligation bond defaults. Meanwhile, despite facing huge new issues of Treasury debt that will be coming to finance the Treasury and Federal Reserve programs, the yield on the two-year Treasury note is only 1.5% and the 10-year Treasury note has a yield of only 3.75% (compared to a 10-year AAA general obligation yield of 4.5%). While I do not think it is time to step in and buy more risk, I also do not think it is the time to be a seller of risk either. With a longer-term view, “risk free” securities look overpriced and therefore actually more risky, and “risky” securities generally look increasingly underpriced, therefore becoming less risky as their prices fall.

I will continue to try to offer what insight I can into what is driving the markets, and where we may be in the bottoming process, how long or deep this recession will be, and how well or badly government agency efforts to return our system to better functioning are working.

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Buy Stocks Now. Follow Warren E. Buffett Advice

Buy Cheap Stocks Now. Follow Warren E. Buffett Advice

THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.

Buying stocks cheap is now a great option. But be sure you know what stocks to buy and when. Take time to learn!!!! What am I talking about? Click here to learn what stocks to trade If you see a “sold out” message when you get to that page, please put your name on the waiting list. If the developer decides to ever offer this course again, you may be among the first to be contacted. However, it may be 4, 5, 6 months or more before this happens.

So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.



Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.

A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.

Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.

You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.

Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”

I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.

By WARREN E. BUFFETT
Published: October 16, 2008 Warren E. Buffett is the chief executive of Berkshire Hathaway, a diversified holding company.

Buying stocks cheap is now a great option. But be sure you know what stocks to buy and when. Take time to learn!!!! What am I talking about? Click here to learn what stocks to trade If you see a “sold out” message when you get to that page, please put your name on the waiting list. If the developer decides to ever offer this course again, you may be among the first to be contacted. However, it may be 4, 5, 6 months or more before this happens.

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Stock Market Best Trades Video, Get The Stock Market Trading Edge

What successful traders do in today's market

The big question most traders around the globe are asking is:

"How do I trade in a market like the one we're in the midst of right now?!"

Watch the stock market mastery video by clicking here

That's a fair question, IF you don't have a set of good trading methods.

However, the select groups of traders who DO have good trading methods aren't even thinking about that question.

They just follow the rules of their methods, which, BY DESIGN, keep them out of the market for the most part when it behaves like it has in recent weeks. Watch the stock market mastery video by clicking here

* And that is the difference between a successful trader and a trader who consistently loses.

HOW SUCCESSFUL TRADERS MAINTAIN THEIR 'EDGE'

To see how successful traders handle markets like we're in right now, watch this brand new, short video that spotlights a few recent trades that were picked off a week BEFORE the market tanked on 9/29. Watch the stock market mastery video by clicking here

You'll see:
* James River Coal Company (JRCC)
-Went short 9/22
-Hit 10% profit target a few days later
-Then grabbed another profit with a special technique
smart traders use. (You have to see this.)

* Mosaic Company (MOS)
-Went short 9/23
-Hit 10% profit target very quickly
-Using the same technique as with JRCC, collected even
more profit as the market continued to tank.

So where's the market heading next?
* Amateurs lose sleep when they think about this question.

* And successful traders, honestly, DON'T CARE where the market is headed next... because they have step-by-step rules that let them spot profit potential NO MATTER WHAT HAPPENS.

Watch the stock market mastery video by clicking here

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Buy The Right Stocks In Today's Stock Market

Learn To Buy The Right Stocks In Today's Stock Market

Will you be one of the 'Final 50' mastery traders?

Have you calmed down yet? Many traders have, so hopefully you have, too.

What am I talking about? Click here to learn what stocks to trade

* The non-stop media blitz of FEAR that we've been pounded with over the past several weeks.

It's been very interesting to watch the polarization in the stock trading education community.

Here's what happened:

* The experienced, collected stock trading "pros" who've been around the block did their best to calm down the easily-excitable individuals...

They did this with encouraging words, trading videos, and even some complimentary training to demonstrate how NOW is potentially one of the best times in our LIFETIME to get in on the coming profit potential the market is about to serve up.

In my opinion, 30+ year trader Bill Poulos did one of the best jobs trying to "pour cold water" on the media hysterics last week when he released a huge amount of multimedia training material.

It was all solid, actionable stuff, and it tied directly into his new Market Mastery Protege Program home study course.

Many traders took advantage of it and are now "locked in" to his charter group of students he's already begun to work with to show them how to navigate through today's markets, and how to spot profit potential again & again... click here to learn what stocks to trade

-but many traders missed out, too.

However, you may have a 'second chance'...

THESE FOLKS CALMED DOWN

Bill recognizes that a lot of traders were indeed "spooked" last week as otherwise sane individuals "froze up" and weren't able to make any kind of decision around what to do in the markets...

After spending last weekend answering emails from his readers, he received more than a few "pleas" asking if there were any more openings in his program.

* So he decided to let 50 more traders into his now sold out Market Mastery Protege Program.

If you were one of the individuals who was "on the fence" last week about this program and missed out, here are the details:

* From now until Thursday, October 16th, at 11:59pm Eastern (New York time), you and 49 other students can get in.

That's it.

If you miss out this time, sorry, but Bill needs to move on and focus on the traders who DID take action to better their future by joining his Market Mastery Protege Program.

To see the latest inventory count and to reserve your copy, check here: click here to learn what stocks to trade

Good Trading,
Bonnie Burns

p.s. Bill currently has no plans to release large numbers of this course any time soon, so if you want to be one of the "Final 50", please reserve your copy now here: click here to learn what stocks to trade

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Learn The Best Stocks To Buy During In This 2008 Stock Market

Learn The Best Stocks and FOREX To Buy During In This 2008 Stock

After five consecutive years of stock market advances, 2008 has certainly proved to be a difficult investing environment. The result is that you are likely seeing sizeable negative total returns in your quarterly portfolio statements, and may even be wondering if the stock market is the right place to be invested. More than ever, I want to be sure that you are still comfortable that your investment strategy you created feels like the right one to meet your goals and needs.

WHY IT MAKES COMPLETE SENSE TO BUY STOCKS NOW. If you're still struggling with the stock market, ESPECIALLY with what's been going on in the market recently, or are just sick and tired of staring at your computer like a zombie for 2, 3, 4 hours a day or more...then I really encourage you to take 30+ year market veteran Bill Poulos's Market Mastery Protege Program for a test drive. Click here to learn about Poulos's Stock Market Mastery Program

The markets have been pushed down before and have repeatedly demonstrated resiliency to turn short-term challenging periods into long-term upside opportunities. While fear and emotion, fed by constant media stimulus, are natural feelings during these difficult times, it is patience and a commitment to your investment plan that can ultimately turn these short-term market challenges into potential long-term investment success.

Although it is not what hits the headlines, most successful investment strategies use any market correction to purchase investments when current prices are lowered by market forces. In many instances, lowered prices may not reflect the investments’ fundamental values. Staying invested, and potentially investing more money strategically, presents opportunities for investors to position their portfolios to take advantage of improvements in the market that follow declines like this. Over the lifetime of any investor, there is only a handful or so of excellent entry points into the market which can act as a springboard to propel future portfolio success. 2008, as difficult as it is to go through, is one of those periods. Together we can determine what current market opportunities may be right for you.

In the midst of these difficult financial conditions, it is best to maintain a well-diversified portfolios. You may have learned that your tolerance for risk has changed in the face of recent market events. Or, you may have new questions in the face of these short-term losses and want to discuss your overall investment strategy, and I encourage you to contact me.

I urge patience and calm. We will come out of this crisis intact and return to rising economic growth and financial market stability.

WHY IT MAKES COMPLETE SENSE TO BUY STOCKS NOW. If you're still struggling with the stock market, ESPECIALLY with what's been going on in the market recently, or are just sick and tired of staring at your computer like a zombie for 2, 3, 4 hours a day or more...then I really encourage you to take 30+ year market veteran Bill Poulos's Market Mastery Protege Program for a test drive. Click here to learn about Poulos's Stock Market Mastery Program

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Dow. S&P 500. NASDAQ Stock Crisis Wrapup

Dow. S&P 500. NASDAQ Stock Crisis Wrapup
The Great Depression II...NOT YET!

Stock Market Profits Video. S&P 500 Stock Market Trade VideoIf you’re scared or confused about what’s been happening in the market and the economy over the past week…then you need to see this brand new stock trading video… See it here by clicking here

Today, we endured a full scale global financial panic. The main stock market indices, the Dow, the S&P 500, and the NASDAQ finished down about 4 percent each. It was much worse earlier in the day. Last night and this morning we saw similar drops in Asia and Europe. This selling was indiscriminate; all of the major S&P sectors were down by like amounts. Oil and other commodity prices were also down sharply. While declines in oil prices provided a rare piece of good news for U.S. consumers, emerging nation stock markets were down sharply, especially for commodity producing nations like Russia and Brazil.

I expect we will see further emergency actions on the part of the Federal Reserve (the Fed) and the Treasury. I will be shocked if the Fed does not quickly cut the fed funds target rate again. Not that that matters all that much. We have already seen another huge expansion of the TAF program that allows financial institutions, now pretty widely defined, to park troubled assets at the Fed, and this change will likely generate another huge expansion of the Fed’s balance sheet. Bernanke is determined to meet surging demand for precautionary cash by banks as well non-financial companies with whatever sums are required. The Fed can expand the money supply without limit and, at least for now, is doing exactly that. I view this monetary policy to be doing the right things to quell this panic. And their actions are not hurting the dollar exchange rate. It has been moving sharply higher all through this crisis.

As for fiscal policy, last Friday (it seems like ages ago) Congress passed and the President signed the Emergency Economic Stabilization Act (EESA) aimed at steadying the financial system by, among other things, authorizing the U.S. Treasury to buy up to $700 billion in troubled financial institution assets with the Troubled Asset Relief Program (TARP). I expect that program will be up and running very quickly. There will be mostly positive but some negative outcomes to this measure.

I believe the EESA is necessary and will work. If the $700 billion proves insufficient, then more money will likely be authorized to help resolve the crisis. We are now fully engaged. Also, on the plus side, it includes about $150 billion in tax breaks and calls for changes in accounting rules. On the downside, this program could create more taxpayer risk due to expanded deposit insurance limits. While I do believe higher deposit insurance limits will help stabilize the current environment, I also see that taxpayers might be even more on the hook if, down the road, another large deposit insured bank fails.

One of the many, unhappy outcomes of the credit crisis has been, through various mergers and shotgun weddings, a major expansion of the super large, deposit insured, commercial bank system, resulting in an ever deeper integration of commercial banking with investment banking, insurance and other financial operations. This interdependence is not optimal. The extreme stress of recent months has exposed serious weaknesses in the structure of large, highly integrated financial companies. We have seen their failures to control risk, willingness to cut and run on their proprietary securities and markets, and from security issuers, a willingness to steer depositors into investments they never should have owned. Taxpayers have been put very much at risk by the “too big to fail” integrated financial institutions. I think it’s critical that we take a hard look at these structures that are clearly fraught with serious risks and conflicts.

There is a silver lining to this dark cloud. Bank lending is not “grinding to a halt” nor is there likely to be a wave of bank failures. The vast majority of small and medium size banks are handling the situation pretty well, continuing to provide loans and maintaining adequate financial controls. This is not the Great Depression II. I think small community banks and many regional deposit insured commercial banks do a lot of good and are very necessary. They know their customers, help them save, lend wisely, don’t lever up their balance sheets, help investors and the like—all good things. And the Fed, along with the FDIC, stands ready, unlike during the Great Depression, to stop deposit runs in their tracks and assist these banks.

And the financial system has been enduring increasingly heavy stress over the last month. Over the last two weeks, we have been experiencing a twist on the bank runs that accompany classic financial panics. Fearing failure, depositors have in the past started pulling money out of a bank in mass. Now we are seeing runs on the lending side, something new in my experience. Banks and other large financial institutions set up extensive revolving credit lines with companies. The credit lines provide guaranteed access to specified loan amounts at floating rates. Companies pay the bank a fee for the credit line, and normally it’s viewed as pretty good business. The banks never imagined that companies would all ask to draw down their credit lines at the same time, but over the last two weeks, that is what happened. Every CFO worth his salt called up the bank and drew down their credit line—a run on the lending side. The upward pressure on LIBOR and other lending rates was enormous, forcing the Fed to completely buckle and take hundreds of billions onto its balance sheet to stabilize short-term interest rates.

Last, I would like to briefly touch on the economic impacts of the credit crisis. They are likely serious enough to take the already weak U.S. economy into recession this quarter. Last Friday’s employment report for September showed a recession-size drop of 159,000 in payroll employment. And the Purchasing Managers’ Report, which until now I noted was not in recession territory, fell off the cliff in September. So now a recession appears to be underway. I do not think it will be deep if the financial crisis abates. And I think the actions taken by the Federal government and the Federal Reserve will restore order to the credit markets. Remember, there still is a lot of order out there. These problems, while complex, are still narrowly defined. I hope and expect they will stay that way.

Markets are shell shocked over all these events. The equity markets fell on Friday despite the passage of the EESA, reflecting continued concerns about the banking system. The market earlier today reflected indiscriminant selling such as we have not seen since the crash of 1987 before bouncing back somewhat late in the day. At this point, in the middle of a full-blown financial panic, there is no attention being paid to fundamentals. Stock prices for what I consider to be perfectly sound companies are being hammered down. Yields on AAA rated municipal general obligation bonds have been pushed up to levels reflecting fears of default. And this situation is forcing some states to request emergency short-term assistance from the Treasury. If they need assistance, I am confident that they will get it. I very much doubt that there will be any state defaults on general obligation municipal debt.

It is important to remember that the vast majority of U.S. companies remain sound. We are in the midst of a financial crisis that is bringing on a recession, but not economic devastation. Stock prices are being driven down by what I consider to be indiscriminant selling that is not justified by the fundamentals to very low valuations, making it a very bad time to abandon the long-term plan for your portfolio. I urge patience and calm. We will come out of this crisis intact and return to rising economic growth and financial market stability.

Stock Market Profits Video. S&P 500 Stock Market Trade VideoIf you’re scared or confused about what’s been happening in the market and the economy over the past week…then you need to see this brand new stock trading video… See it here by clicking here

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programs Click Here

Stock Market Profit Made In 2008 Stock Market Crash

Stock Market Profit Made In 2008 Stock Market Crash

Last week, I alerted you to the charter release of the step-by- step Stock Market Mastery Protege Program course that totally took the stock trading community by storm...

Well, if you've checked the website lately, then you know that only 73 copies of the course remain and the offer will be closed for good on Tuesday, October 7th, at 11:59pm Eastern time.

See the latest inventory count by clicking here.

WHY IT MAKES COMPLETE SENSE

If you're still struggling with the stock market, ESPECIALLY with what's been going on in the market recently, or are just sick and tired of staring at your computer like a zombie for 2, 3, 4 hours a day or more...then I really encourage you to take 30+ year market veteran Bill Poulos's Market Mastery Protege Program for a test drive. Click here to learn about Poulos's Stock Market Mastery Program

Why? Well, I was thinking about what specifically it is that I like the best about this course and what sets it above most of the other methods and courses I've seen. Here's what I came up with:

** COMPLETE -- This is one of the most complete stock trading courses I've ever seen. Period. There's material to get beginners going quickly, and it's structured in such a way that more experienced traders can jump right into the "meat" of the methods.

Further, it's a multimedia powerhouse -- from the screen capture CD-ROM videos to the full color reference manual to the detailed "trading blueprints". It's designed to make sure you really understand all the concepts quickly and effectively.

** CLEAR -- Bill's teaching style is among the best I've ever seen. He speaks in a clear, nurturing way that steps you through all the material. It's very apparent why so many traders keep coming back to Bill's courses.

** CONSTANT -- I think of this as the "surprise" of the course. Bill constantly follows-up with his students after they get his course. He mentions this on his open letter, but I really believe this is the true value of his course. His students receive regular new bonus video lessons, and Bill is fanatical about offering concise, thoughtful answers to his students' questions.

So that's what stands out for me about the Market Mastery Protege Program. And frankly, I'll even go out on a limb and say that if you can't succeed in the stock market with Bill's course, then you probably never will. That's how powerful his methods are.

FAIR WARNING

I cannot promise that copies of the Market Mastery Protege Program will be available when you visit the web page - it may already be completely sold out.

If that's the case, please put your name on the waiting list. Bill has no immediate plans to release any more copies of this course, but after he gets through mentoring his initial group of 950 students, he may introduce a few more (but it could be months before that happens - I can't say when).

If any copies are left, you can claim one here

Good Trading,
Bonnie Burns

p.s. I just checked Bill's real-time inventory counter before sending this email to you and it now reads 67 copies available. Time is running out. You can check it here: Market Mastery Protege Program

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programsClick Here

Stock Market Profits Video. S&P 500 Stock Market Trade Video

Stock Market Profits Video. S&P 500 Stock Market Trade Video

If you're scared or confused about what's been happening in the market and the economy over the past week...then you need to see this brand new stock trading video... See it here by clicking here

* It shows you what usually happens when the market is gripped by fear, like it is now... and how smart traders can pounce on the coming profit potential...

-You're walked through the current S&P500 chart, and then you'll see an eerily similar situation that happened a few years ago. You may be surprised by what's going on...

See it here by clicking here

As a bonus, the video starts with 3 recent trades that set up this past Monday as the market plunged. 2 of them hit 10% profit targets already last week, and 1 didn't enter into a trade at all, so you can see the importance of having step- by-step 'risk rules' to keep you out of the trades you shouldn't even be considering.

I hope you enjoy the video.

Here's the page again: See it here by clicking here

To see all the exceptional Bill Poulos Forex and Stock Market training tools and programsClick Here

Forex Dollar Grows. Great Time To Invest In Forex

FOREX-Dollar on track for best week since 1992

Forex Dollar Grows. Great Time To Invest In Forex

* U.S. unemployment rate steady though employers shed jobs

* Euro set for biggest weekly loss vs dlr in its lifetime

* U.S. House vote on rescue plan awaited (Recasts, updates prices)

NEW YORK, Oct 3-The dollar remained on track for its best weekly gain against a basket of currencies in 16 years on Friday, after a report showed the U.S. unemployment rate remained steady in September even while employers shed jobs.

U.S. employers cut payrolls at the steepest rate in 5-1/2 years last month, according to a Labor Department report, slashing an unexpectedly large 159,000 nonfarm jobs as employment contracted for a ninth straight month.

But foreign exchange investors focused on the unemployment rate, which was unchanged from August at 6.1 percent.

The report added to the optimism surrounding the dollar, which was already on track for its best weekly gain versus the euro in the single currency's lifetime after the European Central Bank opened the door to interest rate cuts on Thursday.

"U.S. non-farm payrolls are slightly worse than expected, with a net revision to prior months ... along with the unemployment rate holding steady, which somewhat mitigated the weakness," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.

"The market is not showing any sign yet of abandoning the strong U.S. dollar theme of the week. I remain optimistic that we will get a TARP passage, ugly as it may be, and the market will embrace risk as an antidote to fear," he added.

The U.S. House of Representatives was due on Friday to vote on the $700 billion Troubled Asset Relief Program, known as TARP, the bank bailout measure passed by the Senate earlier this week.

In early New York trade, the ICE Futures index .DXY, which gauges its performance against a basket of six major currencies, was little changed at 80.458 .DXY, after earlier touching a 13-month peak of 80.933.

The dollar index, up 4.069 percent this week, was on track for its best weekly gain since October 1992 at current prices, according to Reuters data.

The euro fell 0.1 percent on the day to $1.3807 <EUR=>, after plumbing a 13-month trough of around $1.3704 on Thursday. The single currency was on track for its worst weekly percentage loss since its inception in 1999, with a 4.9 percent loss in the last five sessions, according to Reuters data.

The dollar rose to a session high against the yen after a report showed that while the sluggish U.S. service sector barely grew in September, it was in line with expectations.

Dollar/yen was last up 0.7 percent at 106.06 yen <JPY=>, just below the session peak of 106.116.

Against the yen, the euro was up 0.7 at 146.42 yen <EURJPY=>, well above a more than two-year trough of around 144.03 yen <EURJPY=EBS> touched earlier in the session.

BIG WEEK

The dollar has surged this week as the international nature of the financial market crisis was highlighted by the rescue of some major European lenders, including the Belgian-Dutch financial services firm Fortis (FOR.BR: Quote, Profile, Research, Stock Buzz)(FOR.AS: Quote, Profile, Research, Stock Buzz), this week.

"The U.S. authorities are extremely committed to solving this crisis. ... Europe would never be able to some up with such a huge stimulus package as they are talking about in the U.S., and that puts the euro area at a very high risk," Danske Bank senior currency strategist John Hydeskov said in London.

The deteriorating financial backdrop prompted the ECB, which left rates unchanged at 4.25 percent on Thursday, to open the door for its first rate cut in more than five years, with President Jean-Claude Trichet saying inflation risks have eased as financial market turbulence hit the euro zone. [ID:nL2205423]

"Trichet opened up for a rate cut, some would say that it's a bit late, but they (ECB) needed some time to change the mood of the board," Hydeskov said.

A squeeze in interbank lending, with banks reluctant to lend to each other given the climate of bank failures, is a major factor behind the dollar's gains, analysts say.

Against that backdrop, a slew of data this week showing the U.S. economy has likely fallen into a full-blown recession has done little to take the wind out of the dollar's rise, even as the Fed is seen likely to cut rates as well this month. (Additional reporting by Gertrude Chavez-Dreyfuss in New York and Veronica Brown in London; Editing by Leslie Adler)By Nick Olivari



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