TIC, also known as Co-ownership of Real Estate (CORE), enables an investor to participate in the ownership of institutional-grade, professionally managed investment properties. The investor’s equity can be diversified amongst several different properties, geographic markets and real estate companies, potentially increasing both the value and safety of the real estate investment. TIC/CORE investments are designed to offer preservation of capital, predictable cash flow and long-term appreciation in institutional-quality investment property assets that benefit from greater economies of scale.

With its features and benefits, TIC/CORE is an increasingly popular 1031 exchange option for many real estate investors. However, 1031 exchanges and TIC/CORE transactions are very complicated, with both tax and legal issues topping the list of potential pitfalls. It is therefore essential that investors be knowledgeable about what to look for in a quality advisor. Financial advisors are required by securities law to be properly licensed in order to consult clients regarding TIC/CORE transactions and other investment interests in real estate. Financial advisors should hold both Series 7 and Series 63 securities licenses to qualify them as knowledgeable, well-rounded consultants in the investment process. It is essential that they have experience in the commercial real estate business, in addition to an understanding of personal investment objectives and client suitability issues.

But perhaps the most important component to look for in a TIC financial advisor is their intimate, trusted and deeply rooted relationships with key real estate companies. This attribute is critical to their ability to provide the best opportunities for their clients. There are almost 80 real estate companies across the United

States that are either already involved or considering involvement in the TIC/CORE industry as a real estate provider. As with any industry, these 80 companies represent varying degrees of acumen, experience and quality. To achieve the greatest potential for a client, a financial advisor should have consistent access to the top ten percent of these companies in order to provide their client access to the best properties available. Obviously, a new financial advisor with little or no experience or industry knowledge may not have access to the top real estate providers, as these providers prefer to work with experienced consultants that specialize in this unique segment of the market.

Investors should also be aware of how their financial advisor stacks up, looking for a history of successfully completed transactions. A long and proven track record indicates that a financial advisor is an experienced professional. An investor wants such an advisor in their corner asking all the right questions, making appropriate and suitable recommendations, understanding the nuances of successfully completing TIC/CORE transactions and providing answers to any and all tax and legal questions.

When considering a 1031 exchange or TIC/CORE investment, investors should ask the following specific questions of the financial advisor:

* What percentage of your business is 1031 exchange and/or TIC/CORE related?
* How many investors have you consulted that invested in TIC/CORE structured properties this year? How many last year?
* How long have 1031 exchanges and TIC/CORE been a focus of your investment recommendations?
* Do you have the appropriate licenses to complete this transaction (Series 7, Series 63 securities licenses)?
* With which real estate providers do you work most closely?

As customer demand continues to drive this segment of the real estate market, the emphasis on quality – quality consulting, quality property, and quality transactions – will be increasingly important. Part of the qualitative process is ensuring that financial advisors representing a client make appropriate recommendations for that client based on the client’s best interest and not based on any “bias.” A final issue that needs to be addressed is that it is not unusual for “referral” compensation to be paid between referring parties. This practice is illegal and a complete breach of ethics,. Therefore, if any form of compensation changes hands – disclosed or undisclosed – between financial advisors and Qualified Intermediaries, real estate companies or other unlicensed individuals derived from an exchange transaction, a felony may have occurred.

In short, investors should take the time to identify a reputable advisor who not only can provide acceptable answers to the above questions, but who will also have the relationships necessary to guide their clients into the appropriate investment. It is important to remember, firms or individuals involved in recommending, offering or selling 1031 TIC/CORE investments must be licensed with a broker-dealer, the SEC, the NASD and the state securities regulators in every state in which the firm or individual operates and in which the client resides. Any “unlicensed” firm or individual involved in recommending, offering or selling these investments is in direct violation of federal and state securities laws.

Co-ownership is the fastest growing option for 1031 exchange investors seeking suitable replacement property. Properly structured and presented, such investments can also generate new listing opportunities for real estate agents while satisfying both the IRS “like-kind” investment property requirements and the SEC and NASD securities regulations. The advantages of co-ownership of institutional-grade real estate are clear and compelling. When exploring co-ownership, smart investors need to seek out industry experts to guide them through the replacement property process. It is indeed the wise investor who is aware of his or her long-term goals that seeks experienced guidance to chart their course, thereby turning TIC/CORE investment opportunities into realities.

(c) 2005, 1031 Exchange Options. Reprint rights granted so long as the article and by-line are reprinted intact and all links made live. This article is neither an offer to sell nor an offer to buy real estate or securities. There are material risks associated with the ownership of real estate. You must be an accredited investor. Securities offered through Sigma Financial Corporation, Member NASD/SIPC.

1031 Exchange and Tenancy-in-Common: Seeking the Right Advisor to Achieve TIC Investment Objectives is a post from: Finance Blogs | Sobrunei.com

1. Know your current financial situation. Know you debts level. Calculate your income and expenses by taking into account the following:

Mortgage repayments
Personal tax
Loans and overdrafts
Living expenses
Emergency funds
Car expenses
Entertainment
Holidays
School fees
Credit card debts
Family commitments

Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainny days. 10% is a small amount that you won’t feel a pinch. Save it until you have managed to build a “dam management funds”.

2. Prepare funds for dam management. This goes in line with point 1. You need to keep at least 3 to 6 months ofyou income as dam management. After you have managed to do that then additional money that you saved can be used to invest.

3. Protect yourself and your family first. By this point, I mean you should have the basic life insurance that insure you and your family against terminal diseases and accident. This is very important as even though you might loose all your money through investment and if you or your family members need medical attention, it will be well taken care of.

4. Know your risk level. If you are not able to take big risks, short term investment and swing trading is notfor you. It’s better to invest in mutual or trusts funds which will give a steady payout and have lower risk.If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.

5. Diversify your investment. Expert would tell you it is a must to diversify your investment. Your investments needto have a steady mix of stocks, mutual funds and/or bonds. Beside that, your should invest in different industryand/or different regions. This will help you minimize your risk as fluctuations in the markets will not have a big impact on your investments. Your ideal mix will be 20-40% stock and the rest mutual funds and bonds.

6. Do your homework before you invest. It is good to seek expert advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisors might have already worked it out all for you. This is to make sure you know what you are investing and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.

7. Do stock take yearly if not frequently. Your investment might already be reaping in profits. But, it is good to know how well you fare at the end of the day. Reinvest the profits and celebrate if you have success. This will serve as motivations for you and will make you more determined to acheive your financial goals.

7 Things You Need to Know Before You Start Investing… is a post from: Finance Blogs | Sobrunei.com

Still, with all the advantages of estate planning, many people make a great many mistakes in the process. The most common mistake when it comes to estate planning is not getting around to doing it at all. Make sure that you take the time to plan at least the financial portion of your estate so that you leave your loved ones behind with some amount of security. The following seven mistakes often put families into great difficulty after a loved ones passing.

1. Dont fall into the trap of thinking that estate planning is just for the rich. This is completely false as planning your estate is essential for anyone who has any amount of assets to leave behind. Many people dont realize that their estate is as large as it really is, especially when they fail to take into account the assets from their home.

2. Remember to update your will and to review it at least once every two years. Factors that can change information about your beneficiaries include deaths, divorce, birth, and adoption. As your family structure changes so does the change in your assets and who you want to leave them to.

3. Dont assume that taxes paid on your assets are set in stone. Talk to your financial planner about ways that your beneficiaries can avoid paying taxes on your assets. There are several strategies for tax planning so that you can minimize taxes or avoid them altogether.

4. All of your financial papers should be in order so that its easy for someone to find them. Make sure that one of your loved ones has information on where to find the papers necessary for planning after your death.

5. Dont leave everything to your partner. When you leave all of your assets to your spouse you are in reality sacrificing their portion of the benefit. Youll get an estate tax credit but will forfeit part of this if your spouse is your only beneficiary.

6. Ensure that your children are well planned for. Many people take a lot of time deciding what to do with their assets and forget that they need to appoint guardianship for their children. There are many details to take into consideration when it comes to guardianship.

7. If you dont have a financial advisor, get one. Financial Planners and Advisors are trained intimately in these matters and can provide asset protection well above whatever fees they may charge. If you need help selecting the right financial advisor, get the Financial Advisor Report.

The above mistakes are common when people are planning their estate. Take the time to plan for your death even though you think that you have years before it becomes an issue. The key to successful estate planning is being prepared.

7 Common Mistakes of Estate Planning is a post from: Finance Blogs | Sobrunei.com

1. How to Turn an Idea into $100,000

Do you ever wonder why some people seem to get all the lucky breaks in business while others struggle to barely get by? They seem to be in the right place at the right time.

Fact is, maybe theyre not at the right place at the right time; maybe they just know how to make things happen.

As a business advisor I often see people begin and end a business before they have given it a chance to grow. For some reason, they seem to think that all they have to do is have a product or service to sell and the rest magically takes care of itself.

Nothing could be further from the truth. For any business to succeed there are steps that must be taken.

2. The Steps from Product Idea to Product Success

Michelangelo once said that his statue of David was embedded in the block of marble and he merely chipped away the edges to reveal it. Is your product idea inside your mind just waiting to come alive? Or, is your product already formed and you need only to smooth out the edges?

Using my Market-Step process your idea will come to life as we progress in the following steps from idea to launch:
1. Self-Evaluation
2. Concept Evaluation
3. Prototype Evaluation
4. Product and Market Planning
5. Product Development and Marketing Tactics
6. Product Launch, Marketing and Selling
Please use this roadmap as a navigational tool to guide and monitor your progress.

3. Is This the PR You Thought You Were Getting?

You know, where you do something positive about the behaviors of those outside audiences that MOST affect your organization? And where you do so by persuading those important external folks to your way of thinking, then move them to take actions that help your department, division or subsidiary succeed?

Yes, thats right, its where you use the fundamental premise of public relations to produce external stakeholder behavior change the kind that leads directly to achieving your managerial objectives.

What it boils down to is
(1) your public relations effort must involve more than special events, brochures and news releases if you really want to get your moneys worth, and
(2), the right PR really CAN alter individual perception and lead to changed behaviors that help you succeed!

4. How to Easily Increase Your Profits

Do you remember the last time you went into a shop and the person serving raced over to you, greeted you with a lovely smile, heaps of enthusiasm and said, Welcome to our store, what can I help you with today? And then listened attentively to what you had to say?

Doesnt happen very often does it? In fact, while I was writing this, I couldnt recall when I had experienced it. Im sure I must have yet it would have been so long ago, I cant remember.

Let me tell you what happened this week
I belong to a well-known trade exchange which I have found very useful for my business. I wanted to purchase a suitcase from a particular store which usually takes trade dollars.

From time-time the store will limit the use of trade dollars if they have reached their maximum for the month. Anyhow I quickly discovered this wasnt going to be my lucky day.

5. A Simple Formula for Success

Leaders in the business world need public relations big time, and they show it every day.

How? By staying in touch with their most important external audiences and by carefully monitoring their perceptions about the company, audience member feelings about hot topics at issue, and the behaviors that inevitably follow.

Could there be an angle here for your business?

What I mean is, once you interact with, then learn what that key target audience of yours believes about you and your organization, a corrective public relations goal a specific behavior change — can be established.

Which then requires that you identify a strategy. There are just three choices here, create opinion where none exists, change existing opinion, or reinforce it.

6. Attracting Clients With Ease

Whether you are already running your own business, or still thinking about starting your own business, I suspect that deep down you know you have gifts and talents that can really make a difference to others.

In an ideal world, you’d spend the majority of time doing the work you love to do, with a steady stream of clients knocking at your door as and when you want them. The reality, however, can be somewhat different, and the whole process of finding new business can be a time consuming challenge full of uncertainty.

Some would be entrepreneurs are so intimidated by the idea of finding clients that they never put their dreams into action. Others start promising businesses, yet give up disillusioned by the frustrating lack of clients. Some die-hards persist, but at great emotional and financial cost as the uncertainty about attracting and maintaining clients takes its toll.

Just imagine! You can use these articles to build, promote, advertise, write articles, newsletters, build autoresponder messages and much, much more for your business. These articles are loaded with good keywords for search engine rankings and they are yours for the taking as long as you leave the resource boxes in tact. If you want to read the rest of the articles above and to read more about internet marketing, than this is the place to do it!

Steve Pike, is a internet infopreneur and author who is interested in the internet marketing world. At the age of 49, he has become interested in writing, selling online, and managing online businesses:

This is a “Shareware” Article
(what’s that? read on…)

This article is shareware. Give this article away for free on your site, or include it as part of any paid package as long as the entire article is left intact including this notice. Copyright 2006 Steve Pike.

6 Ways In Which You Can Easily Increase Your Profits is a post from: Finance Blogs | Sobrunei.com

Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.

Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a grim estimate to the house owner and bring down the cost of the property.

Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.

Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.

Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.

Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.

In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams.

5 Pitfalls To Avoid When Searching For Your Next Investment Property is a post from: Finance Blogs | Sobrunei.com

* Know your goals. Consider how much money you’ll need for your children’s education or your retirement. Whatever your vision for the future might be, set your goals and develop a concrete plan for meeting them.

* Define your investment time horizon. If you’re not planning on retiring anytime soon, you might want to have a portfolio that includes more long-term investments. If retirement is just around the corner, consider a more conservative approach.

* Determine your risk tolerance. Figure out your risk comfort level and compare that with what you can afford. In general, the longer you have to invest, the bigger risk you can take.

* Consult a professional. In order to avoid financial pitfalls later on, it is often wise to seek professional guidance when putting together a portfolio.

“Recent research shows that investors continue to grapple with some of the most basic investment concepts, suggesting a greater need for financial advice and guidance,” said Doug Lockwood, a certified financial planner.

To help investors meet their financial goals, American Century Investments has developed On Plan Investing, a program designed to help investors build and maintain diversified investment portfolios – at no additional cost.

Combining educational tools, advice, market insight and investment products, On Plan Investing helps investors develop a personal investment strategy, whether they are new to investing, seeking guidance but still want control over their investment mix, need help positioning their portfolios with a long-term perspective or need help understanding how the markets work.

4 Tips to Build a Successful Portfolio is a post from: Finance Blogs | Sobrunei.com

Firstly, Dubai as mentioned earlier is becoming a services hub and in particular a financial services hub, there is going to be an increase in the number of foreign professionals who are flocking there to work and with a high pay and tax free status over there, the average rental yields of properties there is above the average. Currently the single room studio apartments are doing the best in terms of rental since the expatriates that work in Dubai tend to be single individuals so this would be a great real estate investment tip to note if you intend to invest in Dubai.

Secondly, the cost of Dubai property relative to international standards is still very low and as a result the chance of a large capital appreciation increase is very high. Coupled with the bullish take on rentals as mentioned above, the prices of your real estate investment in Dubai will be set to soar in the next few months.

The reasoning cited by some real estate professionals is that when US and UK sourced money starts flowing into such properties, the value of the real estate will reach international standards and you would make a handsome profit from the capital appreciation.

Thirdly, there is currently a Disneyland attraction being built there and this would result in an increase in tourist visitors to Dubai. If your property is located near Disneyland, there is a chance that you will be able to rent out your property to people going there on holiday. As for problems with rental collections, most real estate companies double up as property mangers and developers so they will be able to handle most of the payment collections on your behalf.

In conclusion, Dubai represents one of the emerging markets where your investment dollar may make a lot more. Spending some time considering whether you want to investment in Dubai property may be worthwhile when considering the potential benefits involved.

3 Reasons To Invest In Dubai Investment Property is a post from: Finance Blogs | Sobrunei.com

You must learn how to appraise and find the true value of real estate this information will help you make better investment decisions. Realtors, appraisers, and banks determine what a property is worth by looking at comparable sales usually three to five sales of similar property that has recently sold in the same neighborhood. You must be able to do the same.

Getting a list of comparable prices of properties bought or sold (and when it sold) for the neighborhood you need information about, and asking active real estate investors in your area what the market is like will be helpful and making a better investment decision. What is the ideal market for investing?
There is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets if the market keeps rising the probability of selling the property quickly for a large profit increases. In contrast but when property values are falling more bargains become available.

You need to be able to assess the true value of properties based on when you expect to sell. Your purchase must be made at a good enough discount to allow for a profitable sale at a later date.
Leverage
Leverage is very important for investors because the less cash you put down on each property the more properties you can buy. If the properties go up in value your rate of return goes up. However if the properties go down in value and you have a lot of debt on the property this can result in negative cash flow.

Since real estate is generally cyclical negative cash flow is only a short-term problem and can be handled if you have other income or a cash reserves. This makes “Nothing down” investing very helpful to protect against negative cash flow for high leverage investor.

If you are a long term real estate investor leverage will work in your favor if the markets in which you invest appreciate in the long run and your income from the properties can pay for most of your monthly debt. Strategies to limit risk
To limit risk become educated in your local real estate market first by understanding the large scale trends from global down to national regional and specific neighborhoods. Learn about target neighborhoods with the help of successful real estate investors in your area along the way.

Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month or last year. With this information it will help you make better investment decisions.
Exit strategies
It is important not to guess the future of a local real estate market you need to have a clear plan in mind when purchasing property. As a real estate investor you must know exactly how you will exit the property before you buy. And have a backup plan or two in case the first course of action doesn’t work. You must know your market and your plan before you begin to invest. For more helpful information and online real estate corses from Donald Trump himself visit us today at http://www.TrumpUniversityCo.com

“Successful real estate investor tips” is a post from: Finance Blogs | Sobrunei.com

Esto significa que los periodistas financieros estn en el negocio en bsqueda de noticias o grandes historias para as proyectarse como la autoridad en la materia, no importa que se hable. El mercado de valores es un gran lugar para ellos buscar noticias sensacionalistas que alimenten al pblico. No verifican muy bien los hechos y algunas veces ni lo hacen. Esto significa que algn ejecutivo con informacin privilegiada (insider) que quiera provocar una expectacin falsa todo lo que tiene que hacer es mantener buenas conexiones con los periodistas financieros, patrocinadores y programas de inversin, o abiertamente comprar un canal de televisin como hizo Jack Welsh, director general de GE cuando l creo CNBC. Que gran manera para los ejecutivos manipuladores de controlar el flujo de informacin que el pblico recibe a travs de poseer uno de los pocos canales de televisin de noticias financieras! pero esto no es tan bueno para usted. Estos periodistas tambin avivan el fuego al traer a grandes expertos para hablar de los diferentes puntos de vista de un tema que los verdaderos expertos no consideran importante.

Esto solo hace ms confuso para el pblico poder entender que es importante a la hora de comprar o vender valores. Los programas en CNBC como Closing Bell, Kudlow & Company y Mad Money no hacen ms que confundir y dar una direccin errnea a la mayora de los inversiones que estn en el pblico. Peor aun, esto significa que las noticias financieras que salen a la luz pblica permiten a las acciones sobrevaluadas ser recomendadas va anlisis en el Intenet, cuando los ejecutivos manipuladores tratan de salirse del mercado. Esto hecho ocurri en el tope del alza del mercado del ao 1999. Para una gran descripcin histrica de lo que ocurri lea el libro de Maggie Mahar titulado Bull.

El famoso economista de la Universidad de Yale, el Prof. Bob Shiller , Ph.D. es particularmente duro con los medios en su libro Irrational Exuberance (Exhuberancia Iraccional). El Dr. Shiller es uno de los economistas ms respetados por Alan Greenspan (presidente ejecutivo de la Reserva Federal de Estados Unidos) y de quien obtuvo el trmino Exuberancia Irracional. El Dr. Shiller describe a los medios como un lugar en donde las opiniones superficiales son preferidas sobre el anlisis profundo. Estoy completamente de acuerdo con l y entiendo que tambin se hace solo porque la industria prefiere tener al inversionista individual confundido y emocionalmente vulnerable para que venda o compre cuando ellos quieran con total indiferencia de los mejores intereses del inversionista.

Las personas que haban invertido los ahorros de sus vidas en el mercado de valores fueron saqueadas porque las noticias financieras en los medios y los analistas exageraban lo que era una gran compra de acciones en el mismo tope del alza del mercado en 1999 y el 2000. Al mismo tiempo los ejecutivos corporativos manipuladores vendan todo lo que ellos tenan. Lo que es asombroso es que nuestro Gobierno Federal en la forma del Security Exchange Commission nunca hizo nada al respecto. Nunca hubo ningn caso o protesta en contra de estos ejecutivos, los cuales de alguna manera mgica, vendieron todas sus acciones seis meses antes de que el mercado colapsara.

He aqu un valioso consejo a considerar por parte suya: Si usted es un inversionista principiante es importante que NO VEA LAS NOTICIAS O LEA LOS PERIODICOS FINACIEROS! No permita que el mercado de acciones lo lleve a la bancarrota. No escuche lo que ellos quieren que usted escuche. Debe enfocarse en aprender lo que es importante del mercado de acciones antes de actuar. La prensa solo le va a confundir hasta que se haya educado.

Por Qu Los Medios De Noticias Financieras Le Pueden Costar Dinero? is a post from: Finance Blogs | Sobrunei.com

Mastery in most areas of life includes learning to conserve extraneous movement and effort. When it is done right it looks simple and onlookers often say “Well, I could do that.” But the “wanna be” soon finds that it is not as easy as it seems. Trading can be frustrating and discouraging, but when the market seems to get you down and you feel like you will never get it, remember Sean Connery’s famous line, “Impossible, but doable.”

Too often, traders experience real highs and real lows. While the give and take is normal and expected, big swings are usually the result of changing stride or technique inappropriately. Finding your stride or niche can really make the trading life a lot more consistent and smooth and therefore, profitable. Getting to know a few terrific trading stocks rather than collecting all the potential candidates from recommendations and scans begins to overwhelm a trader and changes the rifle shot accuracy to a shotgun splatter.

So, a while back in a Trader Talk Live training a student wrote “- the past 7 days of trading have been absolutely fantastic. I have confirmed again the value of following just a few stocks and getting to learn (as much as possible) their behavior. PD is one of my all time favorites”. She was referring to a principle that is trained in the Trader’s Forge two day trading camp that I conduct once a month. I advise students to build a stable of good trading stocks and get to know them. Pick your favorite 6-10 and back trade them repeatedly. Learn to recognize the patterns of behavior. Does it behave in similar ways around earnings? Does it make clean or sloppy turns? Does it have a tendency to throw certain chart patterns? In doing so, you get a feel for the traders who influence the stock and improve your chances to repeatedly tap that stock for pattern trades.

The patterns we observe are the behavior of people. Key Traders are interacting with various levels of traders, brokers, fund managers and the public. This cast of players is unique in each stock or group of stocks, bonds, commodities etc. Hence, unique patterns develop and that is the key. Instead of flitting around like a butterfly from bush to bush looking for a new flower, you can find certain flowers that keep producing on a regular cycle. You develop a routine and learn the cycle so that you can just stick around and harvest over and over again.

I have a friend who taught me this principle in a dramatic way. He had a very narrow group of stocks that he got to know and not only did he learn the patterns, but he also studied the company’s behavior. He knew how they acted around earnings, what products they were releasing, and how their stock responded to economic news and events. One year alone, he made over $750,000 trading one company. It was interesting to note that others seeing his success always wanted to know, “What’s it going to do next?” Like the children’s story of the Little Red Hen, most fellow traders wanted to cash in on his valuable insight and very few asked him to teach them how to trade like he traded. It was folly to think that if he gave them the information, they would also gain the skill it took to glean the information. That, however, is human nature.

It is the nature of most folks to want to find the easiest way. Most want to find a secret or a magic strategy. A good deal of the GDP of this country is based on selling the sizzle, not the steak. We search for the fountain of youth, the short cut, and the edge so to speak, but in the end one universal constant remains. Working smart is better than working hard. And in the end, the magic is usually finding the key or core of the matter and developing some simple and specialized skills.

If you can find a piece of good ground that can be cultivated and harvested over and over again, you find one of the jewels of trading. The secret of most millionaires is finding a stream of residual income. Patterns are there because people are creatures of habit and the market is just people. With six to ten good pattern trading stocks in the price range you like, there will always be something ready to trade. When you run across a great stock, you can replace the weakest one in your stable and place it on the bench until it warrants taking a position on the starting lineup.

The problems come when a trader chases the latest hot stock or lets their field of vision widen too far. When you find an account size and a group of stocks and a few strategies that work, stick with it!!! And don’t mess with it and Dance with what ‘brung ya’.

I would love to have you spend a couple days with me in the Trader’s Forge. As a trading coach, that is where I can do the most good for you. I train folks in the Trader Talk Live mentoring workshops each week but that training is most beneficial to the folks who have been to the two day training of the Forge. Last week was a terrific training in Tampa. This month is Denver and then on to Detroit.

I hope to see you in the online web training classes held throughout the week and soon in a two day FORGE Trading workshop.

Ryan with Better Trade

“If it ain’t broke, don’t fix it” is a post from: Finance Blogs | Sobrunei.com