InvestWithAlex.com 

Subscribe Today
My Account

Category: Invest with Alex

Posted on

Killing Stress

business meditation

Continuation from yesterday…..(Why Your Own Mind Is Your Worst Enemy)

Perhaps my own life offers a perfect illustration of what is possible through meditation.

Since about the age of 10 I have been driven. First in sports, then in school and finally in my business pursuits.  While it might sound admirable, this mindset came with one significant drawback. Massive amounts of STRESS were introduced into my life from an early age. At first, my attention was entirely on making the Olympics in swimming.  And while I was fairly good, I never approached a level where I needed to be.  As months and years flew by and my competitive times failed to improve, no matter how hard I worked, I found only failure, disappointment and STRESS in my pursuit of excellence.

And as soon as I hung up my Speedos, this pursuit was replaced by taking 20-25 units a semester to get out of school as fast as possible. Of course, this amount of course work inadvertently comes with massive amounts of STRESS built right into it. Yet, my mind was just getting warmed up.

Shortly after graduating from the University I started my own investment business at the age of 21. And as was suggested earlier in the book, outside of being in an active combat zone or perhaps beings an emergency room physician/nurse, active financial market participation is about as stress crammed of an environment as anyone can imagine.  That is why so many in the industry turn to drugs, alcohol or other questionable behaviors. They are just trying to cope with massive amounts of STRESS associated with the pursuit of making money in financial markets.

In other words, from about the age of 10 to 26 I continuously added more and more STRESS into my life. Culminating in a near suicide attempt described earlier in the book.  That was my bottom.

Today, those who knew back then would not even recognize me anymore. All STRESS and STRESS associated energies no longer exist in my state of consciousness.  In fact, I am so far along the path that most things, internal and external, no longer impact me.  All negative thoughts, feelings and emotions bounce off of me as they were rubber balls bouncing off the ground after a 10 story drop.  And that becomes quite handy when it comes to my primary profession of being a money manager. All thanks to meditation.

The following quick story about Buddha should drive the point home.

One of Buddha’s disciples (I don’t recall the name, but let’s call him Bob) asked Buddha.

Bob:  “Master, can I go and preach your message in the “New World”. I believe I am ready. People there have never heard of such a beautiful message before. I will deliver it to them. “

Buddha:  “This is not a good idea. It is a very dangerous place.  People there are very angry and violent.  You will disturb them with my message. You might even get hurt. They might even kill you. “

Bob: “Master, believe me, I am ready.”

Buddha:  “If you are ready, answer the following three questions. First, what will you do if they hate your message?  What will you do if they insult you, spit in your face and threaten you?

Bob: “I will thank them for being such wonderful people. All they are doing is insulting me. They could have beaten me, they could have murdered me. Their kindness knows no end.”

To Be Continued on Monday…...(Why Am I Seeing This On A Financial Website?)

z33

Killing Stress Google

Posted on

How To Borrow Money

borrowing money

Continuation from yesterday……..Why You Should Never Ask Your Friends And Family For Money)

Borrowing Money:

There are some important pluses as well some noteworthy minuses associated with borrowing money. First, if your enterprise is a huge success the cost of borrowing money becomes somewhat negligible. The best part is; your equity stake or the only part of the whole thing that will make you truly rich remains intact. As such, borrowing becomes your best bet outside of raising money from friends and family or self financing.  The downside is; if your business fails you would have to pay everything back with interest.  Nevertheless, you have a number of options here.

  • Borrowing From Friends & Family: This is still your best option. Instead of equity financing discussed in the previous section, borrow money from friends and family based on a fixed interest rate and a predetermined payment schedule.  Don’t forget to negotiate with your friends and family in order to get the best interest rate that you can. Sign a contract clearly outlining the loan and terms associated with it. That way there are no questions or fraudulent claims later on.
  • Home Equity: If you own a home, this is your next best option to get easy, fast and competitively priced financing. And even though getting a home equity loan is a lot harder now than it was just a few years ago, it is still possible. If you have a good amount of equity in your home, it would be advantageous to take out this loan at today’s low interest rates (2014). Of course, discuss the matter with your significant other prior to taking this step. A fixed rate and a known repayment schedule are a big plus here.
  • Collateral Loans: Just as you can get a home equity loan against your home, you can oftentimes get loans against land, insurance policies, stocks, bonds and numerous other assets. Essentially, such assets act as collateral against the possibility of your default. If you have such assets and would like to use them in order to get a loan, approach your primary bank to initiate a conversation. If they won’t be able to underwrite such a loan, ask your bank to point you to the right people or to a bank that can. In most cases they will.
  • Credit Cards: Oftentimes, credit card financing is the most talked about option for young inspiring entrepreneurs.  Yet, the option has a number of drawbacks. If you have no other way to finance your business and this money would really help you get going, go for it. At the same time, please understand. The interest rates on credit cards are so high that most of the time it would be very difficult to payback. Especially if your business fails. Meaning, if you are to exercise this option, the probability is fairly high that you will end up defaulting on your credit card loans.  Ruining your credit in the process.

And even though we constantly hear major success stories of an entrepreneur hitting it big after juggling 10 maxed out credit cards, such stories are an exception and not the rule.  In fact, if we are to consider new enterprise 2-3 year failure rate of 70-90% it would be safe to assume that the rest of the Entrepreneurs are not as lucky.  As such, only go with this option if you…..

  1. Truly believe in your idea and believe it will make you rich.
  2. Have no other option and
  3. You are Okay with defaulting and ruining your credit for at least 7 years.

To Be Continued On Monday…...(Why Am I Seeing This On A Financial Website?)

z32

How To Borrow Money Google

Posted on

The Circle Of Profits

Continuation from yesterday…..Buy Low, Sell High, Go Short & Cover Investment Strategy Rules)

  • Always keep detailed technical charts, long-term and short-term, for all of your stocks and the overall market. These charts will tell you when stock prices are about to break down.
  • Liquidate your long positions and go short as soon as the daily, weekly or monthly trends change from bull to bear. Typically, the exact points of exit will be based on your overall trading strategy and risk profile.
  • Go short at the same time and price.

These strict rules allow us to accomplish a number of things. First, they force us to be vigilant as we continue to scan for possible market, industry or stock specific corrections.  Minimizing our risk profile in the process. Second, the rules above force us to sell our long positions at the onset of corrections.  Preventing unnecessary and at times massive losses. Finally, these rules give us the ability to profit on the downside should a significant move down develop fully.

Rule #3: Cover Your Short Positions & Go Long When Technical and Timing Indicators Confirm (Trading) 

The rules found here are the exact opposites of Rule #2.

  • Always be ready to cover your short positions and go long if technical indicators associated with the underlying securities suggest that stock prices are about to break out. No matter how bleak the underlying fundamentals are at the time.
  • Always be ready to cover your short positions and go long at bear market or correction bottoms. No matter what you believe will happen to the overall economy in the meantime.
  • Always be ready to cover your short positions and go long when the underlying stock prices have experienced massive drops and could now be considered oversold or selling well below their intrinsic value. This rule applies to all market conditions. Bull and bear.
  • Always keep detailed technical charts, long-term and short-term, for all of your stocks and the overall market. These charts will tell you when stock prices are about to break out.
  • Cover your short positions and go long as soon as daily, weekly or monthly trends change from bear to bull. Typically, the exact exit points will be based on your overall trading strategy and risk profile.
  • Go long at the same time and price.

As you can very well imagine the rules above will complete the transaction and bring us back full circle. First, the rules above will help us with identifying market or stock specific bottoms. Giving us the ability to come in and assume long positions at giveaway prices. Second, these same rules will help us find stocks that are about to surge much higher and in many cases at X multiple to the market.  Giving us a fighting chance to walk away with massive gains. Finally, the rules above force us to change course at exactly the right price and time. Removing all of the emotional aspects associated with investing out of the picture.

Here is another way to look at the proposed Rules #1-3. They create a full circle of sorts. A circle that allows you to take an initial position at or near the bottom and ride what should be a massive rally all the way up into its eventual overvaluation bubble. Only to exist and go short as the stock price begins to collapse. In other words, this setup allows you to profit on both sides of the move.  All while maximizing your returns and minimizing risk in the process.  The best part is; your initial entry point on this cycle can be at any point. For as long as you understand exactly where on this proverbial circle you are coming in.

To Be Continued On Monday…..

Z30

The Circle Of Profits Google

Posted on

Is McDonalds The First Of Many Shoes To Drop?

daily chart Sept 11 2014

9/11/2014 – A mixed day with the Dow Jones down 20 points (-0.12%) and the Nasdaq up 5 points (+0.12%). 

Marc Faber thinks so and I agree with him 100%. Listen/watch the video and decide for yourself.

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. September 11th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Is McDonalds The First Of Many Shoes To Drop? Google

Posted on

Why Your Own Mind Is Your Worst Enemy

no mind

Continuation from yesterday…..(Killing Stress)

In fact, sometimes it takes years to regain complete control and to quiet the mind. In the meantime, expect the tag of war between your higher consciousness (the real you) and your mind to continue.  Yet, the rewards for those who are able to overcome this challenge will be substantial. Once your universal consciousness takes complete control of your mind and all of your thoughts, feelings and emotions a transformation occurs.  You become your own master where no outside factors can impact you in any fashion at all. You begin to exist in a state where all doors open up for you, a state where all things become a certainty.

If you are to take away anything from this step, clearly understand the following. The only true purpose of meditation is to stop your mind. Get it done, no matter what or how long it takes.

Step 3: Meditate

Close your eyes, stop your thoughts/feelings/emotions and remain aware.  Attempt to remain thoughtless for the duration of your meditation session. If thoughts reappear, and they most certainly will, stop them and then shifting back into the state of quiet meditation.

And that’s all there is to it.

Now, be aware of the fact that the practice above is incredibly difficult. As was suggested earlier, it will take you months if not years to regain complete control of your mind.  It is instrumental that you remain patient throughout the entire ordeal. It will be challenging and at times frustrating.  In fact, it might be one of the most difficult things you will do in your entire lifetime. But do not deviate from the path. You must remain with the practice until a complete victory over your mind is achieved.

Why…..what’s the point of all of this……what will the outcome be?

The rewards of meditation and your eventual victory over your mind are too numerous to describe in this short book. Again, the state being that can be achieved through meditation is the pinnacle of human existence. No higher peak is available. Period. In fact, all the wealth and material vanities of the world are nothing but a pile of dirt when compared to this higher dimension of human consciousness. And we are but to combine the three of the most famous Bible verses to get to the same meaning.

“But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you. The kingdom of heaven is like a treasure hidden in the field, which a man found and hid again; and from joy over it he goes and sells all that he has and buys that field. Again, the kingdom of heaven is like a merchant seeking fine pears, and upon finding one pearl of great value, he went and sold all that he had and bought it.”

The “Kingdom of Heaven” that most spiritual and religious texts talk about is not some physical location, but rather, a higher state of consciousness that can only be achieved though meditations and subsequent destruction of your own mind.

To Be Continued Tomorrow…...(Why Am I Seeing This On A Financial Site?)

Z31

Why Your Own Mind Is Your Worst Enemy Google

Posted on

Why You Should Never Ask Your Friends And Family For Money

man-asking-for-money

Continuation from yesterday…..(How To Raise Money From Your Friends & Family)

In the industry, family money is oftentimes called “Dumb Money”.  It is dumb because the people who are making any said investment decisions are making them based on various emotional factors as opposed to an in depth analysis of your business idea and/or your business deal.

And in most of the cases the conversation goes something like this.  “Hi…. Mom, Dad, Uncle Bob or my best mate Jimmy, I have this wonderful business idea that will make me filthy rich, but I need money to make it happen. Can you give me $10,000 for 5% of my brand new company? When it succeeds over the next 6 months I will be worth billions and you will be worth millions. How about it?” Believe it or not, but in most cases this type of a conversation is good enough to start your capital raising process.

What’s more, everyone has a different type of a relationship with their friends and family. Whatever that situation is for you, these folks are still the easiest group to raise money from.  Remember, they trust you and they trust your judgment.  In fact, chances are, most of them would like to see you succeed.  If they like your idea and have extra money the probability of you getting that money is fairly high.

Now, and this is very important.

Just because it will be easy for you to raise money from this group doesn’t mean that you should nor does it mean that you should take advantage of their trust.  It is highly recommended that you approach your family and friends in a professional businesslike manner.  Just as you would any other investor. That means your “ASK” and the rest of the documentation should be ready to go. Finally, you must keep the following points in mind when trying to raise money from your friends and family.

  1. You are likely to lose this money. The failure rate at this stage of the game is very high. If losing your friends or relatives money will have a severely negative impact on your relationship with them, it is better that you reconsider. Better yet, decide what is more valuable. Your relationships with them or the money. If it is your relationships, DO NOT ask them for money.
  1. Only raise money if you are 100% confident in your business idea or product. If you are not entirely confident, keep working on it until you are. Never raise money from this group if you are going on a hunch. It is almost certain that you will regret it later on.
  1. Only ask those who can afford to lose it. Do not ask your 95 year old aunt Judy for a $5,000 investment into your HotGirWithSmellyArpits.com business idea if she relies on her social security for income and sometimes has to choose between her medication and a good meal. For god’s sake, have some consciousness.
  1. Anticipate paying back the money. Before you ask your friends or relatives for money, clearly understand that you will have to pay this money back one way or another. Even if you lose it. It is the only way you will be able to keep your relationship with them intact. That might mean working double shifts until all of your loan or investment accounts are settled (if your business fails).
  1. Approach you capital raising process in a legally correct format. Whether you are structuring an equity infusion or debt financing by your relatives, have all legal document properly structured and signed.  Yet, do not go crazy here. A one or a two page simple contract will do at this stage. Plus, you do not need an attorney to get this done as there are a lot of resources online.

This process can be easily done though sites like LegalZoom.com or by writing your own contract.  Remember, it doesn’t have to be complicated. Just an outline and what they should expect out of the deal.  Should anything go wrong, it will protect both them and you from any unintentional developments.

That about covers raising money from your friends and family.  The next best option you have is borrowing that money from various sources.

To Be Continued Tomorrow…..(Why Am I Seeing This On  A Financial Website?)

z32

Why You Should Never Ask Your Friends And Family For Money Google

Posted on

Buy Low, Sell High, Go Short & Cover Investment Strategy Rules

Continuation from yesterday……..(Which Investment Strategy Is The Best)

Rule #1: Buy Substantially Undervalued Securities (Minimizing Risk & Maximizing Returns).

This particular rule applies to both value and growth oriented investments. In particular, we are looking for the following stocks or situations.

  • Stocks of companies that have declined in value 50-90% over the last few months or years. At the same time, the underlying business or industry conditions suggest that the things are about to improve. In other words, recent fundamental developments might be mitigating whatever issues had caused the stock to decline so much in the first place.
  • Stocks of companies that are growing at a fast pace (large or small), yet their market valuations are well below their intrinsic values. This situation typically occurs at bear market bottoms or after sudden market crashes.
  • Stocks of companies that are turning their fortunes around with new popular products, restructuring, asset divestiture, new management, etc….. Yet, their positive efforts haven’t been recognized in the marketplace thus far.

By concentrating strictly on the above areas, we zero in on the la crème de la crème available in the stock market at any given time.  In fact, the selection criteria’s above are so stringent that investors should not be able to find that many stocks satisfying all of the requirements. Especially in aging bull markets and/or at market tops.  For instance, as of today (August of 2014) I am unable to find a single stock issue that would match up to any of the requirements above.

What do we get in return when we implement such stringent requirements?

We end up identifying individual stocks that have the highest probability of experiencing explosive multiyear and multi bagger growth in its share price. As outlined in my book The Hunt For 10 Baggers.

Rule #2: Sell & Go Short When Technical and Timing Indicators Confirm (Trading) 

As mentioned earlier, one of the biggest mistakes investors make is they don’t know when to get out. The investment industry has done a fairly good job brainwashing people into believing that the best holding period is forever. So much so that nowadays everyone is trying to follow in Warren Buffett’s footsteps.

Unfortunately, the reality is quite different. Look at almost any stock chart and you will see even the most successful companies drop 50-90% at one time or another. For some it’s a regular occurrence.   Making the “hold forever” investment premise not only obsolete, but truly foolish.  That brings us to the next set of rules.

  • Always be ready to liquidate your long positions and go short if technical indicators suggest that the stock price is about to break down. No matter how great the underlying fundamentals are at the time.
  • Always be ready to liquidate your long positions and go short at bull market tops. No matter how resistant to such bear markets you believe your stocks or industries are.
  • Always be ready to liquidate your long positions and go short when the underlying stock price has experienced a massive run up and could now be considered in a highly speculative bubble. This rule applies to all market conditions. Bull and bear.

To Be Continued Tomorrow…….

Z30

Buy Low, Sell High, Go Short & Cover Investment Strategy Rules Google

Posted on

What You Ought To Know About Today’s Trading Range

daily chart Sept 10 2014

9/10/2014 – An up day with the Dow Jones up 55 points (+0.32%) and the Nasdaq up 34 points (+0.75%). 

In you haven’t noticed, the market has literally flat lined since August 21st ….. going straight to heaven or perhaps hell. Depending on whom you ask.

On a more serious note, the Dow has been stuck in very tight 150 point trading range over the last 14 trading days. Either distributing or consolidating. Whatever it is, one thing is for sure. The market is storing a massive amount of energy for an upcoming move. Whichever direction that move might be.

What’s more, despite a constant bullish hype surrounding today’s market, the Dow is up a miserly 2.8% year-to-date. In other words, I continue to maintain that the Dow has been storing a massive amount of energy since December 31st, 2013.

For what purpose?

For a very powerful move ahead. If you would be interested in learning exactly when this powerful move will start (to the day) and which way the market will break…..please Click Here. 

(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. September 10th, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

What You Ought To Know About Today’s Trading Range  Google