Investment Support

Introduction

Ever since I retired at the age of 28. I have been doing a lot of thinking into these Tough Cases of the investment world. What I present today hopes to unveil the most mysterious of them all, the Holy Grail of The Capital Markets and I will be giving you my argument as to why it truly exists and to help you find your personal Holy Grail of Trading and Investments by the time you finish reading this report.

So lets go treasure hunting

The Fabled HOLY GRAIL

We have heard it a thousand times; investors and trader, young and old have sought it for hundreds of years and countless more are attempting to create it everyday. It is the fabled, urban legend of the investment world the Holy Grail of the Capital Markets; A trading or investment system or strategy that will never fail.

Some believe in it, others dont and many maintained that such a strategy or system doesnt exist or simply impossible. Many have claimed to have perfected such a system but when tried by people other then themselves, it fell from Holy Grail to torn, leaking paper cup.

The Wrong Perception

There was once a warrior near the end of the dark ages whom heard of the power of a new weapon a weapon that can kill from ten paces away and can penetrate almost any known amour at that time a GUN. It was supposed to be an invincible weapon and he spent everything he had in order to acquire one of these weapons. Once he had that weapon, he wasted no time to duel the most powerful warrior known in that land. He fired many shots but missed and his life was taken under the blade of the veteran warrior.

Like the gun, we expect that the Holy Grail strategy to be invincible at all times. We imagine that we will never again lose money once we acquire that knowledge. We cant be more wrong. The question really is, are we suitable for this invincible weapon?

The Truth Behind The Holy Grail

We all think of the Holy Grail as a strategy that cant fail. However, we completely ignore the Human Factor! Study all the famous battles of any and all ages and we will see that many of the battles were lost not because of the strategy used but BECAUSE THEY ARE BADLY EXECUTED. Most of these strategies are good until screwed up by us HUMAN!

You are right. We, human, make and break every Holy Grail that ever existed. We are the Stand or the Base of the Cup.

Yes, we COMPLETE the Holy Grail through the effectiveness of our execution. We are truly the stand that completes the strategy and therefore we must all make sure we are the right stand for the right cup!

I am sure this sounds like you as much as it was me some time ago You purchased strategies that claimed to work wonders but no matter how hard you try, you bend some of its rules and end up hurt. Thats your prove that matching your psyche with the right strategy is so important. (Here is a free to download psychometric test to see what kind of trader you are and what kind of strategy you are suited for. Go now to http://www.mastersoequity.com/MOE_FREE_REPORT.htm )

You tried to stick to the rules, didnt you? But what did you do when your portfolio starts going into the red and the rules says STOP OUT NOW, AT THIS POINT!? That is why we need to understand what kind of stand we are BEFORE trying to understand the cup and eventually the market!

What Cup to What Stand?

Now that you have found your stand, it is time now to find the right cup to complete your personal Holy Grail. Unfortunately, not all strategies are worth the title Holy Grail. Many of these strategies are fundamentally unsound or that they have not been molded in the flames of real life trading. Therefore, a worthy cup to complete your personal Holy Grail needs to be:

1) Tested and True in real life trading with proven track record
2) Fundamentally sound
3) Logically sound
4) Tested and developed in your market of interest!

That last point got some of you baffled didnt it?

Yes, if you want to trade the US markets, your strategy needs to be developed and proven in the US markets and if you want to trade Asian equities, your strategy needs to be developed and proven in the Asian markets. Why is this so? Due to fundamental differences between the markets such as liquidity, investor sentiments and behavior, level of participation of institutional players and investor sophistication. Most strategies need to be optimized for the market it was developed for and therefore using it in other markets may result in a terrible loss due to different price behaviors that results in making your profit or loss taking point obsolete.

So why do I trade only the US markets? I trade the US markets due to the fact that it has the highest level of sophistication and its investors execute strategies which are little known in other markets. This makes sure that whatever you try to do in this market, It has the LIQUIDITY to ensure your profitability! It is akin to a huge departmental store whereas some other markets are small grocery stores at best.

And hey, we all know that there are more promotional and good value items in a department store than most grocery stores can afford to give, dont we?

Convinced why the US markets are our best choice yet? Good.

Where to Find YOUR Cup?

While there are a lot of good strategies out there, I wish to recommend that you go to www.mastersoequity.com/MOE_startradingsystem.htm (for aggressive traders) or www.mastersoequity.com/MOE_ridetheflow.htm (for long term traders). Both of these strategies are:

1) Tested and True with proven track records
2) Fundamentally sound
3) Logically sound and
4) Developed and tested in the US Markets!

CONGRATULATIONS, you have now in your possession, your personal Holy Grail of trading and investments!

If you’re trying to build a nest egg that won’t crack, it’s important to establish a safe and dependable investment strategy. Yet last year alone, millions of Americans lost their life savings through investments that looked safe. In some cases, people lost both their jobs and their pensions when companies failed.

So, is there a safe place to put your money? Analysts say yes, but it’s important to learn a few facts first.

For instance, real estate has long been known as a secure, tangible investment because it generally appreciates over time. But most would-be investors are not real estate experts, and many of us don’t have enough money to fund the purchase of an investment property-let alone to fix up a run-down home. However, there is another strategy. It’s called cash flow investing and it allows people to benefit from secure and profitable real estate investments without buying or selling properties.

Put simply, a real estate cash flow note is a private mortgage created between two individuals instead of between a buyer and a bank. What many people don’t know is that one in 13 American homes is sold this way. Much like banks, which buy previously created mortgages, private individuals can buy cash flow notes to build returns of 20 percent or more. Here’s how it works:

Let’s say I sold a house for $100,000 and my buyer had $50,000 to use as a down payment. I can draw up a contract that takes $50,000 down and finances the remaining $50,000 over 30 years. I now have a cash flow note that generates monthly payments of $299.78 each month secured by real estate.

As a note holder, I have two options. I can take advantage of the monthly income and interest, or I can sell the note to another investor for instant cash. This is where you, as an investor, come in to make money. Let’s say you’re an investor with $35,000 to invest. I might not be willing to wait 30 years for my money, so I’ll sell you my $50,000 cash flow note for $35,000. Many investors find they can buy notes at great prices just because the original note holder wants to “cash out.” Now you’re receiving a steady monthly income of almost $300 and you’re in a position to make a 30 percent return on your investment-even before interest.

Best of all, unlike stocks and bonds, your cash flow note investment is secured by real estate-one of the most solid investments in the world.

These days, you cant retire without using the returns from investments. You cant count on your social security checks to cover your expenses when you retire. Its barely enough for people who are receiving it now to have food, shelter and utilities. That doesnt account for any care you may need or in the even that you need to take advantage of such funds much earlier in life. It is important to have your own financial plan. There are many kinds of investments you can make that will make your life much easier down the road.

The following are brief descriptions for beginning investors to familiarize themselves with different kinds of investment options:

401K Plans

The easiest and most popular kind of investment is a 401K plan. This is due to the fact that most jobs offer this savings program where the money can be automatically deducted from your payroll check and you never realize it is missing.

Life Insurance

Life Insurance policies are another kind of investment that is fairly popular. It is a way to ensure income for your family when you die. It allows you a sense of security and provides a valuable tax deduction.

Stocks

Stocks are a unique kind of investment because they allow you to take partial ownership in a company. Because of this, the returns are potentially bigger and they have a history of being a wise way to invest your money.

Bonds

A bond is basically a promise note from the government or a private company. You agree to give them a set amount of money as a loan and they keep it for a set number of years with a predetermined amount of interest. This is typically a safe bet and one that is a good investment for a first time investor because there is little risk of losing your money.

Mutual Funds

Mutual funds are a kind of investment that are based on the gains and losses of a shareholder. Basically one person manages the money of several or many investors and invests in a list of various stocks to lessen the effect of any losses that may occur.

Money Market Funds

A good short-term investment is a Money Market Fund. With this kind of investment you can earn interest as an independent shareholder.

Annuities

If you are interested in tax-deferred income, then annuities may be the right kind of investment for you. This is an agreement between you and the insurer. It works to produce income for you and protect your earning potential.

Brokered Certificates of Deposit (CDs)

CDs are a kind of investment where you deposit money for a set amount of time. The good thing about CDs is that you can take the money out at any time without paying a penalty fee. We all know life isnt predictable, so this is a nice feature to have in your option.

Real Estate

Real Estate is a tangible kind of investment. It includes your land and anything permanently attached to your piece of property. This may include your home, rental properties, your company or empty pieces of land. Real estate is typically a smart and can make you a lot of money over time

The capital that makes up your mortgage/ loan can come from a number of sources including other people’s deposits and savings, stored up in the bank and other investors, all of which make up the Capital Markets. Of course, there isn’t enough cash in the general consumers accounts to make up the capital needed for the mortgage markets so the majority comes from investors looking to buy debt instruments, which in this case are bonds.

The buyers of these bonds are looking for a good return on their investments, which is of course completely opposite to people looking for a low rate mortgage. In effect, you’re borrowing money from an investor at a given rate (for you an interest rate and for the investor a rate of return). Of course, the investor is only willing to invest a certain amount of capital in such low yield bonds.

Now, the rates on a mortgage fluctuate from month to month and this rate is determined by how well ‘mortgage bonds’ are selling. A rise in sales will see a drop in yield and a drop in sales will see a rise in yield, thus attracting investors back into the market. The result of the average mortgage holder will be the opposite though. When investors leave the bond market, they will see a rise in mortgage interest rates.

Of course, the mortgage market is driven by a number of external factors, such as supply and demand but the greatest factors is that of inflation. Where inflation is low, the return for the investor is high, but when inflation increases, it devalues the investment and at the same time the mortgage. Suddenly a $120,000 mortgage can seem far less of a burden.

Inflation is kept under control by raising or lowering interest rates. When inflation is rampant, interest rates are raised, resulting in a rise in mortgage repayments.

Recent sub-prime mortgage lending issues in the US have had a knock on effect throughout the world. Billions of US dollars have been lost, simply because many of the associated bonds were bundled up and sold on to banks throughout the world. These mortgages were in effect over-subscribed in the states, with many people only able to afford a house with one of them. Unfortunately, the mortgages were being defaulted on and, having been sold on to UK, Hong Kong, German, French banks, they could not be easily recouped. The collapse in this market left many banks in serious problems. Losses could not be recouped and the bond market dried up as investors fled. New mortgages became difficult to find and their rates were much higher than previous. Interest rates have now been dropped so as to stimulate the market. Lenders have maintained bond rates at a higher level, giving them greater yield and the result will be a higher return for what is now percieved a greater risk.

Finance, in the sense in which it will be used in this article, means the machinery of money dealing. That is, the machinery by which money which you and I save is put together and lent out to people who want to borrow it.

Finance becomes international when our money is lent to borrowers in other countries, or when people in England, who want to start an enterprise, get some or all of the money that they need, in order to do so, from lenders oversea.

The biggest borrowers of money, in most countries, are the Governments, and so international finance is largely concerned with lending by the citizens of one country to the Governments of others, for the purpose of developing
their wealth, building railways and harbours or otherwise increasing their power to produce.

Money thus saved and lent is capital. So finance is the machinery that handles capital, collects it from those who save it and lends it to those who want to use it and will pay a price for the loan of it. This price is called the rate of interest, or profit. The borrower offers this price because he hopes to be able, after paying it, to benefit himself out of what he is going to make or grow or get with its help, or if it is a Government because it hopes to improve the country’s wealth by its use. Sometimes borrowers want money because they have been spending more than they have been getting, and try to tide over a difficulty by paying one set of creditors with the help of another, instead of cutting down their spending. This path, if followed far enough, leads to bankruptcy for the borrower and loss to the lender.

If no price were offered for capital, we should none of us save, or if we saved we should not risk our money by lending it, but hide it in a hole, or lock it up in a strong room, and so there could be no new industry.

Since capital thus seems to be the subject-matter of finance and it is the object of this book to make plain what finance does, and how, it will be better to begin with clear understanding of the function of capital. All the more because capital is nowadays the object of a good deal of abuse, which it only deserves when it is misused. When it is misused, let us abuse it as heartily as we like, and take any possible measures to punish it. But let us recognize that capital, when well and fairly used, is far from being a sinister and suspicious weapon in the hands of those who have somehow managed to seize it; but is in fact so necessary to all kinds of industry, that those who have amassed it, and placed it at the disposal of industry render a service to society without which society could not be kept alive.

The richest men in the world including Donald Trump and Howard Hughes have made billions investing in land for sale. Actually most investors have made fortune in land for sale. So if this idea has never crossed your mind then it is time to get a closer look at land for sale as an investment because it can produce great returns at very low risk.

Most investors have bought land for sale in the UK and this business has been a very profitable one making triple digit returns just in a few years. Many companies specialized in land have made it possible for foreign and UK investors to buy land for sale in UK with just $10,000.

If you are interested in investing by buying land for sale in the UK here are some hints of how you should get started.

UK land is a better investment than other (like properties, equities and derivatives) because the risk one takes is smaller in this case. Business with land for sale in the UK is and will be a good investment in the near future. Prices grow more and more everyday because UK is one of the most populated countries in Europe. The growth in population increases the pressure on house demand, so the investment business with land for sale in the UK can only profit from this aspect. The last few years, the land for sale in UK, near the city areas, has given investors a good opportunity to gain a lot in a short time.

If you want to know the secrets of capital growth through land for sale investments then you should keep on reading. The most important thing to keep in mind is the location. If you are looking to purchase a land for sale then you should buy one that will get a planning permission in the future. When you invest in a land for sale, your capital is guaranteed as soon as you obtain permission in building houses. The trick is that even if it sounds easy there is no guarantee that you will obtain the planning permission.

So there are some downsides but they are limited. There is no certainty that investing in land for sale in UK or any other country will make your capital grow. Lands value may not increase as much as you expect, but statistics show that land prices do grow so the risk is limited. On the other hand, land companies give investors the opportunity to turn their purchased land into money by giving them buy back options. This means that they can liquidate and bank their money quickly. So, the risks are reduced even more and it is very likely for the investor to gain profit.

This method — of buying land for sale in order to gain profit (called land banking)– is the easiest one because all one has to remember is to buy land for sale in the best location, obtain the planning permission and the investment is guaranteed.
In conclusion, investing in land for sale in UK or in other countries is a perfect example of how investors can triple their capital in a short amount of time, with low downside risks.