Q & A  2010

 

Dec 16th, 2010 - Any financial dream can be reached via the activity of trading .. what does it take ?

Hi Brian,


I'm a divorced mother of two children, ages 14 and 8. I don't know anything about investing, but I know it would make sense to have my money work for me. I have a somewhat small nest egg, and I'm thinking of taking around 10,000. and investing it somehow. My ex-husband suggests Fidelity investments. I'm currently collecting unemployment and looking for work. My background is in the restaurant business. I've also been looking into opening my own cafe-I'm starting over in life and want to make my dream come true! It's challenging and I know my confidence needs building. I've had several experiences in the last few years-twice came close to making a deal and once helped someone with a start-up. am looking for a working partner and will invest another small portion of my money into the business and raise the rest. I'm very good at certain aspects of this business, however accounting and finance have always been a bit of a weak area for me there as well.
I'm not sure if these are the right kinds of questions or not, but there you have it!
Sincerely,
Patricia

 

Greetings Patricia ...

I am pleased to hear from you ...

You asked me if your questions are the "Right" kind of questions ...

I would say that all questions are the right kind of questions ...

The first question I have for clients when we engage in the first session .... "Master Plan"

is .... what is your dream ?

and you have stated that you wish to start a restaurant ....

So what we do first of all is identify your dream and then we attach a "Dollar" number to it ....

this number is the number that would give you the

freedom to manifest your dream into reality today ...

The second part of the "MasterPlan" process is to create a general trading activity plan that would give you an idea of how much personal time you want to put into it (trading activity) and secondly how much seed money you want to put into your self finance project ...

So that is all that is required that you do ... to summarize ...

1) Identify the amount of money you want to create (can be any amount)

2) Figure out how much personal time you want to commit to your trading activity ( 15 minutes to 6 hours per day)

3) Decide How much seed money you want to put into your self finance project ( 2k to 5k )

You may call me if wish to talk to me in person ...

Warmly,

Brian

 

 

Dec 13th, 2010 - Although these results may not be " typical " ... here is an email I just received from my client Josh ....

Josh Wrote:

Brian,

Today was awesome! I made $1830 today!!! I got prepared, did my lineals, and stuck to my plan. Day trading has been so much fun, I've almost forgotten about swing trading. Lol...
~Josh

Brian Wrote:

Hey Josh ...

I am really pleased that you are getting a good feel for what it takes to fit a trading style into your life ...

I am hoping that you will soon see the value of being able to "Day Trade" ... "Swing Trade" and act in a "Hybrid Mode" too .....as you can well imagine .... that is what I personally am forced to do most of the time because of the busy schedule I create in my life .....

By developing all kinds of styles now ...while you are studying this ...it will really pay off for you handsomely in your life because you will always be able to at least keep a toe in the market sort of speak ....regardless of what life throws at you ... for example ... time constraints with kids when you get married .... or tons of time as you approach a retirement age ...

Go where the fun is for you in this .... and I am sure you will do extraordinarily well for yourself !

Congrats Josh ... it is a joy working with you ..

Brian

 

Dec 4, 2010 - "Everyone has their own personal tolerance for speculation ... a conservative investor prefers to minimize speculation"

Elinor Wrote:

Brian

I was told about the Iraqi currency, I believe, or another in the Middle East that is right now valued at 1/10 of 1 cent but is about to be revalued at $2. Have you heard of anything to this effect? Do you trade in these types of things?

If you have time to answer I will appreciate it, if not, I fully understand. Happy Holidays!

 

Elinor

 


Brian Wrote:

Greetings Elinor ...

Your question is a very good one because it touches on two key issues that deserve attention by anyone that is looking to be serious at investing ....

First the issue of speculation and second the topic of Foreign Exchange (FOREX) ....

Everyone has their own personal tolerance for speculation ... a conservative investor prefers to minimize speculation and of course at the same time wishes to maximize return on investment ... may I suggest that you watch the power point show that I created on the "Classic Investment Concept" .... click HERE ... to watch it if you have not already done so ... the idea is to implement a "20/80" rule in your over all investment strategy so the majority of your "return on Investment" comes from a small percentage of your total net worth ....

For instance if your Net worth is 500,000 dollars the majority of your annual investment profit should be generated from say 5 to 20 percent of your total net worth .... so in this case you should only expose say 25 to 50 thousand dollars to "speculative environments" ....

Now my view in the power point states that if we become proficient at "Self Managing" then we should "Self Manage" the speculative portion of our portfolio's by becoming educated and skilled at an environment that can support large return objectives ... for instance the activity of trading "Stock Options" ... I believe this way we minimize speculation by creating a self managed environment that allows us to customize our activity to a level of personal tolerance for speculation ...

Now the "Foreign Exchange" (FOREX) arena boasts the potential of high returns in the activity ... some people do this activity for their large ROI objectives ... personally I do not ...

I feel that since the advent and implementation of Exchange Traded Funds ... "ETF's" ... the NASDAQ and NYSE exchanges have more than enough vehicles, that allow me to trade, major global currency, commodities and of course stocks ...

My opinion on the idea of trading on hearsay, news and all other second and third hand information is simply that I do not do it ....

All of my self managed "speculative activities" are initiated by analyzing and trading from real time streaming sources that come directly from the New York Stock Exchange .... there is a tremendous wealth of opportunity just from this source alone that in my opinion allows me to position my speculative activity quickly and easily into the best opportunities with impeccable timing, from REAL current to the minute data ... opposed to news or hearsay .... which for the most part is not timed appropriately ...

Now to answer your question " Have you heard of anything to this effect? Do you trade in these types of things? " in a more direct manner ...

Yes I have heard of it .... I categorize it as "hearsay" and possibly a FOREX promotion ... that may or may not pay off to some people that get lucky ....

and no I do not trade in these types of promotions .... I feel that my self managed activities on the market are much more manageable ... and for me more lucrative ...

I hope that helps you Elinor .....

Wishing you an awesome Holiday season as well !

B

 

Dec 3, 2010 - "So there is always opportunity ... it is just that wise traders know how to choose their work days "

 

Barry Wrote:

Hi Brian

This is a good question as I struggle with a sideways market. But, I’ve learned that there’s always movement and there are good option trades available each day – as confirmed by the volume of activity each day, regardless of trend. Also, trends are based on some timeframe – a day, a week a year, etc. So, depending on the strategy, again, I feel each day presents opportunity. That said, though, trading within a clear bull or bear trend is easier.

What are your thoughts?

Barry

Brian Wrote:

Hi Barry

I am pleased to see that you discovered that it is harder to trade a sideways market than a raging BULL or BEAR market..... a suggestion I have .... if you insist on working in a flat market .... is to attempt to find a specific stock that is trending in a strong BULL or BEAR direction in spite of the over all weather ...and play it out to a pivot .... If you do not find such a stock then you have to live with the fact that you must work harder in a flat market ... I find that sometimes for this reason alone it is wise to take the summer off ... like the rest of the world ...lol

B

 

 

Dec 2, 2010 - "The biggest question for most novice investors is .. When should I get into the market ? "

Brian Wrote:

Tony, Do you think it may be a good time to be assertively trading stock options?

B

Tony Wrote:

Based on my limited knowledge we make our biggest gains when the market is volatile with either down wards or upwards trends and lots of movement I think you may call this going into a flat channel and would not be assertively trading stocks options unless I had a good system for channel trading.

Let me know if I am totally out too lunch on this....lol

Tony

Brian Wrote:

This is a bit of a "trick question" with the intent to make you think about it ....

generally speaking we are looking for "MOVEMENT" ...

a strong BULL market is very good ...

a strong BEAR market is very good …

and a flat channel can be very good if the channel is WIDE enough to give us the volatility we require ....

B

 

July 21, 2010 - The concept of "Self Finance" is to create money for all our own purchases ...

Josh Wrote:

Brian,

This is Joshua. I know we haven't spoken in a while, mostly because of how busy I am these days. Could I get your advice?

 

I have been approved for a medium sized loan ($6000) and I would like to leverage it without jeopardizing the original loan amount.

In other words, I would like to know what you think is best way to accrue interest and leverage on this loan to break even, if not come out in the black.

How would you go about it? (You're about the only one I can trust to ask this that will give me wholesome and sound advice.)

I look forward to speaking to you soon!

Thanks in advance,
Josh


Hello Josh ..

My back ground as a business man and entrepreneur has given me values that are very "Black and White" when it comes to loans....

The value system is that we eliminate all personal debt and only borrow if absolutely necessary for business purposes ... for instance sometimes it makes sense to borrow money to buy a cash flowing property .... and the exception to the rule on personal debt is that it is better to pay on a mortgage than to pay rent .....

So the simple formula would be to calculate the cost of the loan .... if the "Return on Investment" is less than the cost of the loan we simply do not do it ....

I have created my "Self Finance" training for the purpose of training people to create blocks of money for themselves from the activity of "Day Trading" or "Swing Trading" on the stock market ... so that they do not use the route of "Personal Debt" as the first source of money for large personal or business purchases ....

I am trying to get people to realize that it is not really necessary to borrow money ....

My suggestion is that you calculate what the payments on the loan would be on a monthly basis .... make those payments into a "Brokerage" account to yourself instead of the bank .... and then learn how to "Swing Trade" with the cash that you accumulate into the brokerage account ....

Hope that helps you Josh ....

The best to you always !

Brian

 

Feb 20, 2010 - Interesting how perception works .... hmmm

Kim Wrote:

I was wondering if the stock market crashed what happens to the funds there? i have gold/resources fund in RRSP contributions which I don't want to lose. if i take them out to something insurable like a GIC then i have to cash them in don't I? What happens if the banks fail - currency crash - to the funds in the bank? the FDIC couldn't sustain the blow? I understand JP Morgan & Chase have exited from FDIC as of Jan 1st.

Hi Kim

I love questions like this because it has to do with the very basis of the financial system which in turn has to do with some very deep issues that stem from "Human Values" and Global politics .... which of course can easily "Boggle the Mind" .... sort of speak ... lol ...

Well in fact in October of 2008 we did see a systemic collapse of the financial system .... I was trading in real time .... that was very very scary because I watched everything literally cease up for 10 minutes .... the world was very fortunate that we have communication systems in place that allow world leaders to respond and take action to emergencies very quickly ....

The global leaders were able to move fast enough to stop a global financial collapse that would have made the depression of the thirties look like a field day .... lol ....

enough joking aside now to really answer your question ...

In my opinion it is very important that each individual look at the definition of money from a "Birds Eye" view ...sort of speak and take the appropriate action to protect him or herself accordingly ...

Money is in fact in my opinion a "symbol" that defines (PERCIEVED VALUE) of the flow of human activity ....

that activity manifests itself in things we manufacture and of course in the "on going" services that support the process of same ...

I am a "Bottom Line" kind of guy in business and like to see my clients take the same kind of attitude in their personal financial affairs ....

So I would suggest that people really understand what has "VALUE" to themselves and then go ahead and move resources into those things that are most valuable ...

The stock market is the "Biggest Auction Sale" on the planet ... as a result it is simply a process that attaches the "SYMBOL OF PERCEIVED VALUE" to anything that can be in existence resulting from our actions as human beings

A generic principle that I usually suggest to people is .....

first of all "Eliminate all personal Debt" and secondly .... create "Passive Income" ....

I personally believe that human beings are creative enough to be able to maintain some sort of order in their ability to do commerce .... after all our survival depends on it .....

In a worse case global collapse scenario the individual who has most of his holdings in something that has high perceived value will become extremely wealthy in a down turn ....

Perceived value of things can have a lot to do with the "Culture" of the local demographic you are physically residing in ..

If you have ever watched that popular TV series "Survivor" you may have noticed that it is an extreme dramatic demonstration of the dynamics involved when our hierarchy of "Needs" is put to the test ....

So to give a hypothetical answer to your situation .... I would say that you may want to speculate on what you think a guaranteed global method of exchange might be and then make sure you have a sufficient amount of that purchased at a low cost.... an example might be taking physical delivery of Gold and Silver wafers ....

Many people are currently doing this however in my opinion it is still necessary for people to be able to buy these commodities with some semblance of intelligence because the prices can fluctuate quite wildly at times ...

and that is what I can provide people .... the knowledge to be able to "time" their purchases of positions they choose to take over a long period of time or over a short period of time ....

 

January 30th 2010 - Very good question that I believe must be posted here....

Gina Wrote:

Hi Brian,

I was wondering if you knew how to set up to trade on the Frankfurt, Germany exchange.
Gina

 

Hi Gina

I see a lot of confusion in the regard about "Trading on specific Exchanges" .... in reality if a person decides to buy any specific stock the person will in essence be forced to go to the exchange where that particular stock is listed.

For example I know of many stocks in the oil industry that are Junior stocks that are listed on TSX in Toronto. If I wish to purchase any of those stocks I must first figure out what the stock symbol is.

Then I will log into my "Brokerage" account and fill out the screen describing my transaction. My broker will then put my order into the que. This order will be routed to the particular exchange where the stock is listed.

Pretty much all of the stocks I choose to trade happen to be trading on NYSE and NASDAQ. Therefore NYSE and NASDAQ are benefiting from my activity.

So to make a long story shorter. If the stocks you choose to trade are listed exclusively on the Frankfurt exchange I would suggest that you simply go to that exchanges website and get the Symbols of the stocks that you choose to trade there.

Then you should be able to trade that stock through any trading account on the planet if the trading account has adequate services.

 

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