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Wickapedias' Contribution-1 of the Month:

The Shocking Truth About Making Lots of Cash

You have been lied to in regards to how to make lots of cash. When I say lots of cash I mean as much as 100% profits or more. If this amount of profits seem far fetched keep reading. I will tell you who lied to you, why they lied and what you can do to fix it and make a ton of money. I will even tell you where to earn big money now.

THE LIE

Investment fund managers and so-called analysts and experts have deceived the public into believing that earning 4% - 11% a year is good. They have suckered you into thinking that if they help you earn profits of 15% - 22% a year you should bow down to them and call them king or queen.

These liars want you to think that since they went to leading schools that they know best how to manage your money. I have yet to see a school really teach a person how to grow money. If these schools taught the liars how to grow money they would not have so much student loan debt.

I recently read a full page advertising for a major mutual fund company where they used an example, that if you invested $4,000 at the age of 35, hypothetically if your investment grew at 8% annually you would end up with $59,141 at retirement. In the small print they tell you that the ending value does not include taxes, fees, or inflation. You and I know that if you back out taxes, fees and inflation you would probably be left with your original $4,000.

The advertising goes on to tell the readers that they should not stunt their IRAs growth and should contribute every year. They want you to contribute to their fund of course. Why would you continue to contribute to their fund and at best end up with $59,141 for your retirement in 30 years? By the way, the advertising does not mention what the mutual fund actually made the previous year. This may be because the mutual fund actually made less than the 8% they talk about.

WHY THEY LIED

The liars lied to protect their own interests. The liars can comfortably invest your money without too much thought and earn single digit and sometimes low double digit profits for you. They can put your money in an index fund such as the S&P 500 or the Dow, which are a group of stocks that are supposed to mimic what the overall stock market is doing.

In taking this approach if they lose your money they can say, well everyone lost money because the overall market was down. In other words, you don’t really expect them to make you money even when others are losing money do you? Come on this would require too much work on their part.

It is easier for the liars to collect their fees from you regardless if you make money or not by simply investing in the same manner as their counterparts. This way they do not have to worry too much if you decide to take your money out and move it to another mutual fund, because for the most part there is little difference in the way they are all performing.

THE TRUTH

Wealthy people grow their money elsewhere and use the stock market to help preserve their wealth. You see wealthy people know that it takes far too long to get rich on small profits so they go where the big profits are. Where is this? It's in commodities. Crude oil, soybeans, corn, gold and cattle are just some examples of commodities.

How would you like to turn the tables on the liars and make big money? Okay, remember the lairs use the S&P 500 and the Dow to make money. You can beat both the S&P 500 and the Dow with one investment. I recommend purchasing contracts or call options in the gold market on the commodities exchange.

For example, on the day of this writing if you had invested $2,000 you would now have $3,400. This is a 70% profit. The best part of all is that this was done in one day. You could take your profits and you would have beaten the liars because they could not give you this amount of profits even if they had a year or two to do it.

Another piece of advice I’ll share with you is most stock traders buy when the investment is rising. This can be the worse time to buy. Wait until the price drops a bit, believe me it will, and then buy. You may be asking yourself two questions. The first is why wait and the second is how do I know the price will drop a bit?

The reason you buy on down days is because you get in at a better price. I realize this is contradictory to how most people invest. They usually buy on up days because amateur investors say that is the time to buy. However, it is best to buy when more people are selling and sell when more people are buying.

For example, today in gold more people are buying and that is why the price is up. I would tell you to take your profits and get out. You would be out with a nice profit. Tomorrow if the price goes down I would tell you to get back in. You would be able to get in cheap because more people would be selling and that would be why the price would be down.

The reason the price will surely drop sometime in the next few days is because eventually there would be massive profit taking. People would get out of the investment and take their profits. As more and more people began to see others take their profits they will do the same and it will drive down the price.

You and I would have already taken our profits earlier and now we would be looking to get back in as these other people are unloading their investment. You and I would get back in at a bargain.

Buy on down days and sell on up days. This is how real fortunes are made!

For more information visit www.themoneymotivator.com and order Wealthy Investing Secrets today. Much More Trading Success!

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Wickapedias' Contribution-2 of the Month:

Show Me The Money!

Breakouts through resistance are the most desirable of all commodity futures trading and stock market trading opportunities. (This discussion will be the buy opportunity discussion of breakouts. (An equal sell opportunity exists on breakdowns through support). A breakout is a penetration of resistance based on a pricing established over time with price reversals taken place at approximately the same price point in previous time periods.

Sounds easy. Well it sure sounded easy when that guy in the $1000 seminar told me about it. I also read how easy it was in the $90 book on trading that said would make me a wealthy independent trader.

Breakouts are wonderful if they continue. If they fail you can expect the pricing not to trend but to return to a range bound probably touching the lower pricing before it rises again. That price movement is probably beyond your stop loss and you will not be pleased.

This occurs more often than you want to believe. Since so many other people see the breakout they are as nervous about it as you are and you have a larger number of quick exits with the slightest wiggle. This is referred to as “buyers remorse” or a “bull trap”. What this really represents is a serious hit against your P&L.

Remember, breakouts are a product of an established range bound market. The continuation of the sideways market is the rule with a move away from support or resistance back into the trading range. That means a failed breakout is the rule. The breakout is the exception. Some traders believe the reverse is true. That can cost you a bundle of cash in trading losses.

Why do I find this interesting? Last night I was looking around the usual haunts online and what did I find? A conversation between someone whom had just bought a 300 dollar "trading course" and a seasoned trader. The newbie was convinced he could take his 30 grand and turn it into half a million in a very short period of time. The old timer laughed and suggested that Mr. Newbie should be ready to loose every penny of his 30 grand. Wow, what a comeback.

I've been in this game for many years now and let me tell you, it's not easy. Most pure daytraders implode in the first 4-months, loosing most of their capital. Yet they hold "money shows" and trading seminars all over the country, and at each one they tell you that all you have to do is pay up the seminar fee and you'll be on your way to making more money than you know what to do with. It sort of makes me ill. Most will fail miserably.

The old timer was right. It takes a long time to understand the markets. Go easy, trade small and research as much as you can. Nothing makes me feel quite as bad as seeing someone with a small capital base and a certificate from a trading "school", go belly up and loose his dollars. Yet it happens every day.

The Stocks2Watch® newsletter has been published since 1998.

Article Source: reprint permission from EzineArticles.com