Stock Markets Are Random

Posted on : 13-07-2010 | By : Michael Stokes | In : Dirty Filthy Lies and 101 Truths, Investor Education

Since stock markets are random – so it’s time to get over it.

If you invest in the stock markets, no one can “save” you from the down periods – NO ONE!

If markets were not random and unpredictable, they wouldn’t offer higher expected rates of return. Markets randomly and unpredictably go up and down.

So that always answers the question, “can anyone forecast the future of the market?” It’s obvious that many will claim they can, but the fact is, NO ONE can predictably and consistently forecast what’s going to happen next. If they did it accurately, why would they tell you?

Why are there those that will claim they can forecast the market? It’s simple – so you will buy into their “hype”.

When forecast is involved, who makes the money? You guessed it – the forecasters!

To learn more, download a copy of my Investor Awareness Guide right here!

Stock Market Predictions

Posted on : 06-07-2010 | By : Michael Stokes | In : Dirty Filthy Lies and 101 Truths, Investor Education

Make Enough Predictions and Something is Bound to Come True.

Stock market analysts, magazines and newspaper publishers are infamous for making a huge number of predictions about the future…

Which stocks are going to do well, what the economy will do, or where the market is going.

Because of the vast number of predictions, some of them are always going to become realities.

In future publications the soothsayers will only mention forecasts that happened and selectively “forget” forecasts that failed; leaving the investor with the illusion that the forecast as a shole was accurate and useful.

Be aware of the headlines on television, radio, and in the print. The facts are that most people (including professionals) cannot predict the market.

For a more prudent and Nobel-Prize Winning way to sesnsible investment strategies, read my Investor Awareness Guide. It will answer many of the question you have about investing.

Download my Investor Awareness Guide right here on our website.

How Can You Determine the Quality of Your Financial Advisor

Posted on : 22-06-2010 | By : Michael Stokes | In : Dirty Filthy Lies and 101 Truths, Investor Education, Investor Traps

Here is an article that is taken from Articlebase.com:

This is one of the most frequent questions we are asked by investors who use Paladin Registry services (PaladinRegistry.com) to find and evaluate financial planners and financial advisors. They want to know how they can determine the quality of financial professionals “before” they select them.

Wall Street companies make this process difficult because a high percentage of their advisors are inexperienced, poorly trained, and have histories of abusing investors to make money. If you had this information, you would not buy what these advisors are selling and that would have a negative impact on Wall Street revenues and profits.

Unfortunately, advisors do not have mandatory disclosure requirements. Wall Street companies spend millions on advertising telling investors they believe in full transparency for advisor backgrounds. Then, they spend millions on lobbyists fighting all forms or potential disclosure. Companies make more money when they do what is best for them versus investors.

Given this background, how do you determine the quality of advisors before you select them? Following are a few tips that will dramatically reduce your risk of selecting a lower quality advisor who omits or misrepresents information to gain control of your assets.

Advisor Characteristics
Be sure to review specific criteria that impact advisor competence and ethics.

  • Select advisors who are Registered Investment Advisors or Investment Advisor Representatives because they can provide financial advice and services for fees.
  • Do not select advisors who only hold securities licenses: Series 6, Series 7. They are limited to selling investment products for commissions
  • No matter what they say, they are not paid to help you achieve your financial goals
  • Select advisors who are acknowledged fiduciaries because they are held to the highest ethical standards in the financial services industry.
  • Do not select non-fiduciaries because they are sales reps who are held to lower ethical standards
  • Select advisors who have clean compliance records at FINRA.org.
  • Do not select advisors who have investor, company, or regulatory complaints on their compliance records
  • Select advisors who are compensated with fees for their knowledge, advice, and services and are willing to disclose all sources and amounts of their compensation.
  • Do not select advisors whose only method of compensation is commissions
  • Do not select advisors who refuse to divulge their total compensation from your assets

Read more: http://www.articlesbase.com/personal-finance-articles/how-can-i-determine-the-quality-of-financial-advisors-2569208.html#ixzz0rb2GXNhA
Under Creative Commons License: Attribution

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Real Control vs. Perceived Control

Posted on : 15-06-2010 | By : Michael Stokes | In : Dirty Filthy Lies and 101 Truths, Investor Education

Real Control is More Important Than Perceived Control

As humans, we all like to be in control. I feel better when I am in control driving the car instead of someone else doing so. I feel in control when I can order what I want off the menu rather than having someone order for me.

Being in control gives us the feeling that we are in charge of our own destiny. From a very early age we all wanted control of our lives and have always sought after ways both as individuals and as a society to be able to exert more and more control over lives and future.

Now throughout our entire human history it has primarily been new technology that we have developed to increase our perceived levels of control with a large variety of consequences both good and not so good.

Brokerage Firms and Financial Advisors like to create the illusion of control.

They do this by encouraging investors to generate activity by frequent buying and selling.

In a similar fashion, gamblers feel more in control of the outcome when they actively pull the arm of a slot machine rather than push the buttons.

Activity is NOT control. Buying and selling often feels “good” and proactive.

In reality, activity is often counterproductive. For most investors (99%), activity equals less control, reduced rates of return and investing anxiety.

To learn what you should be doing, download a FREE copy of my Investor Awareness Guide.