Investment Grin Of The Day Google
How To Validate Your Business Idea With Crowdfunding
Continuation from yesterday……(The Secret Behind Validating Your Business Ideas)
Ask Your Friends or Associates If They Would Buy Your Product or Service Today.
Typically, most people ask for opinions. They tend ask their friends and associates if this might be a good idea. Do not fall into this trap. Understand one profound truth. About 95% of people you associate with will tell you that your product or service idea is the best thing since sliced bread. The truth is, they don’t want to hurt your feelings or tell you what they really think about your product. One way around this issue is to offer your product for sale as a “Pre-Order” to your family, friends and associates.
As soon as the money enters the picture you will, for the first time, get an honest feedback. If people begin to buy or pre-order, you must assume that you have a legitimate product idea on the table. Yet, if people begin to give a million different excuses, you must learn to read between the lines. What they are really telling you is…..”Your product or idea suck and we want nothing to do with it”. If that is the case you must go back to the drawing board and rethink your entire idea and approach.
Example: Create a one page flyer outlining what you Pet Smart Phone will look like and what it will do. Outline all of the benefits and selling points for the potential buyers. Include a picture of a finished product and a price. Approach everyone within your circle of influence, pass on the flyer and ask them to think about the idea for a day. Approach them the following day and ask for their feedback. If the feedback is good, ask them for a pre-order. If they are not ready to commit, your idea is not that good.
Build A Crowdfunding Campaign.
If the “Friend Test” above is successful it is time to find out what others think. The best way to do that is thought a quick crowdfunding campaign. If you are not familiar, crowdfunding is the practice of funding a project or venture by raising monetary contribution from a large number of people, typically via the Internet. In our case you would build a crowdfunding campaign for your Pet Smart Phone by outlining what you are planning to do, what the end product will look like, the benefits for pet owners and how much money you are looking for. In return, you would offer the completed product when ready. Essentially, you are taking pre-orders and using the money to build your product or service. To be delivered to your backers at a future date.
An important note: Do not attempt this step until you are ready and fully committed to going forward with your idea. Raising money from outsiders and not delivering on your promise or deciding not to go forward thereafter is not only unethical, it is borderline criminal.
There are a number of websites where you can build your crowdfunding campaign with ease. The two of the most popular sites are Kickstarter.com and Indiegogo.com . There are many others in almost every category imaginable. Simply Google crowdfunding to find the right website for your project. And while it is free to post your project, the sites offering the service will charge you a percentage of the money raised.
Once you have selected the site that best fits your needs, post your product or service idea on it. Outlining the product, the benefits and when you will deliver on your promise. Then use social media to promote your crowdfunding attempt and see what develops. If people believe it is a great idea they will start pre-ordering. The best part is, no one knows how successful your campaign might become. There have been numerous instances where entrepreneurs have tried to raise a few thousand dollars to get their projects started, only to raise a few million instead. All because others thought it was such a great idea as well. Who knows, your brilliant idea might be the next runaway hit.
To Be Continued Tomorrow…..(Why Am I Seeing This On A Financial Website?)
Rules For Trading Tenbaggers
Continuation from yesterday……(Rules For Finding Tenbaggers)
Rule #4: Use All 3 Analytical Frameworks:
As was suggested earlier, it would be incredibly difficult to make an investment in any one of our Tenbaggers through the use of a singular analytical tool. When fundamental, technical and mathematical analysis tools are used individually, they give very few clues that the underlying stock issue is about to surge higher. However, when we combine them and they all confirm the upcoming rise, our chances of success increase dramatically.
As was the case with Chipotle Mexican Grill in the late 2008. From the fundamental perspective alone the company was doing incredibly well and growing just about as fast as it could. Yet, the company’s stock price kept going lower throughout 2008. Mostly due to its general overvaluation at the time and the financial crisis of 2007-2009. If we were looking at the company from the fundamental perspective alone we wouldn’t be able to tell when the stock would bottom and when it would be an opportune time to go long. Yet, when we bring technical and mathematical analysis into the picture, it clears up. Giving us a number of signs that the stock price was bottoming and the time to take position was at hand.
Clue #4: When fundamental, technical and mathematical analyses confirm each other, the chances of the stock surging higher increase exponentially. Therefore, companies that have all three analytical frameworks agree on the direction of the underlying stock price are the companies that warrant possible investment. Assuming that all other investment requirements are satisfied.
Rule #5: Wait For a Technical Confirmation:
When we initiate a position in any given stock is about just as important as IF we make an investment at all. A proper entry point can make all the difference between generating substantial gains almost immediately and losing money on the trade. At its worst, an improper entry point can force us to liquidate a position at a loss and at exactly the wrong time. Right before the stock begins its run up. As such, it is always important to wait for a technical confirmation before taking a position. Typically, the confirmation will come in a form of a higher high after a certain bottom is reached or a break above/below a trend line. As a matter of fact, all of our entry and exit points in this book were timed in such a way.
Clue #5: Wait for a technical confirmation before taking a position in the underlying stock.
Rule #6: Trade In and Out of Your Positions (Particularly in a secular bear market):
If anything, one proposed “Truth” has been drilled into investor’s psyche over the last 50 or so years. Buy stocks for the long term and hold them forever. As nice as this catch phrase might sound, it doesn’t work under all circumstances. We deal with uncertain and unpredictable world on the daily basis. As a result we must have the ability to shift our opinions and positions at a moment’s notice. And in doing so, we gain the ability to minimize the risk while maximizing the returns.
Further, it was shown that by trading in and out of our positions at the right times we can easily double or even quadruple our overall Tenbagger performance. Assuming a long enough time frame. All while avoiding soul crushing 50-80% declines and uncertainty associated with such fast growing stocks. In fact, trading in and out becomes the only prudent approach to investing in Tenbaggers over a long period of time. Particularly in bear markets.
Clue #6: Don’t hesitate to trade in and out of the stock when the technical and mathematical analyses call for it.
To Be Continued Tomorrow……
What Will The Catalyst For The Upcoming Stock Market Crash Be?
8/27/2014 – A mixed day with the Dow Jones up 15 points (+0.09%) and the Nasdaq down 1 point (-0.02%).
Some well researched bears are anticipating a quick 30-60% crash in the near future……‘Complete turmoil’ in upcoming correction: Pro As accurate as such bears might be, they are nothing but a laughing stock for most of the investors out there. For them, this bull market will never end.
Yet, both sides miss the entire point when they start talking about various catalysts that can cause any significant (if any at all) market declines.
Both are wrong. They won’t be a catalyst. Trying to figure out which catalyst will cause the stock market to decline is like looking up the horses ass while trying to see its teeth. It won’t work. The market is the catalyst in itself. It precedes ALL fundamental reasoning. And while a crash is certainly possible, no one will see it coming. The market will simply crash 30-60% in a matter of days and be done with it. It is only after the fact that financial media talking heads will try to identify the so called “catalyst”. Missing the entire point in the process. In other words, you have been warned.
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. August 27th, 2014 InvestWithAlex.com
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What Will The Catalyst For The Upcoming Stock Market Crash Be? Google
Killing Stress
Continuation from last week…….Is there a way to prevent this?
Absolutely. You can put a complete stop to all of your past and future thoughts and negative STRESS energies associated with them by…..
1. Being aware of how your thoughts and your mind work
2. Shifting your mind to the state of NOW.
If you are fully aware of how your mind constantly stirs up trouble in either the past or the future, by creating imaginary negative scenarios that have no place in the real world, you will be able to stop it with ease. Only your awareness is necessarily.
This awareness of your own negative thoughts and associations will allow you to shift to the state of NOW. The state of NOW is identical to being in the state of Universal Consciousness. When you begin to observe your own thoughts in the state of NOW, something curious happens. All of your thoughts, positive or negative, come to a complete stop. Leaving you thoughtless and emotionless.
While many people might dismiss this state as counterproductive, in reality this state of being represents the pinnacle of human existence. Once this state of being is fully realized, it becomes a beautiful experience far beyond anything available in the physical world. Allow me to put it this way. The fulfillment of the most desired sexual fantasy or a billion dollar winning lottery ticket in your hand will appear as specks of insignificant sand in comparison to this state of being. That’s how out of this world it is. You must now try it for yourself….
EXERCISE #2: As before, find a quiet and preferably dark place where you will not be bothered over the next 30 minutes. Leave your cell phone and all other devices behind. Once again, it is crucial that no one interrupts you over that 30 minute period of time. Sit down or lie down and get comfortable. Close your eyes and relax.
In Exercise #1 our primary objective was to observe your own thoughts. It was shown that a 3rd point of reference (outside of your mind and body) is needed in order to observe your own mind/thoughts. As it would be impossible for the mind to be aware of or to observe itself. We call this 3rd point of reference the real YOU or being in the state of Universal Consciousness.
Now, we will push this one step further. Instead of simply observing your thoughts I want you to stop them entirely. It will not be easy. As a matter of fact, it is incredibly difficult to do. While you might be able to do it for a few minutes at a time you will find that your thoughts tend to come out of nowhere and pollute your state of higher consciousness continuously. In other words, you might be able to stop your thoughts for 45 seconds followed by a number of random thoughts appearing out of nowhere and occupying your mind for a few minutes before you become aware, once again, that you are not supposed to have any thoughts. Particularly, if you are new to the whole process.
Nevertheless, I want you to try the exercise. It will give you a glimpse of what it is like to live in the NOW and not to have any thoughts associated with either the past or the future. It is truly a state of pure bliss.
When it comes to controlling your STRESS or STRESS associated energies, the state of NOW offers the ultimate solution. STRESS is simply impossible in a fully conscious state on NOW. Since your mind will not be able to generate STRESS related thoughts, past or future, STRESS will vanish into thin air.
To Be Continued Tomorrow…….(Why Am I Seeing This On A Financial Website?)
Investment Grin Of The Day
The Secret Behind Validating Your Business Ideas
Continuation From Monday…..How To Validate Your Business Ideas
Company Specific Research (Competitor Analysis):
In most cases your idea will not be 100% original. In other words, chances are, someone out there is already manufacturing or selling what you would like to offer. Find the company in question and research it to the best of your ability. Try to determine if the product or service in question is as profitable for this company as you anticipate it to be. Plus, if would be able to compete with them successfully.
Example: If another company already offers electronic gadgets for pets, determine the size of the company and the size of the market. Ascertain what kind of revenue the company is generating in this product category. What is the size of the company and what sort of a buying power they have within the industry. Do they anticipate expanding this business in the near future, etc…..
Product Specific Research:
Study competitor’s product and determine how your product will be different from what they are already offering. Ascertain if there are patents that would impact your potential product or service offering. Attempt to determine the cost of your product and if it would be possible to put it together without a substantial investment. Think about possible distribution channels, how your product will be sold and how it will be perceived by the customers.
Example: Determine how your pet gadget will be different from what is already on the market. It has to be substantially different or the chances of success diminish rapidly. Determine if there are patents that would prevent you from manufacturing or offering your Pet Smart Phone. Try to figure out how much it would cost you to manufacture one unit and how much it would cost to manufacture 10,000 units. Plus, would it sell best through the store, online or through the various distributors.
Discuss Your Idea With Industry Insiders:
Try to find someone within your network who is somewhat familiar with the industry or the product in question. Do not be afraid to share your ideas with them in full. Ask for their honest opinion and feedback. Determine what their initial reaction was and why. Ask for what they would do next and how they would approach this business. Attempt to extract as much information out of them as you possibly can.
Sam Walton, the founder of Walmart was famous for his masterful execution of this skill. It was reported, by countless people, that Sam would ask 5 minutes of someone’s time and then proceed to extract decade’s worth of business related experience out of such unlucky souls in a matter of hours. One food mart chain executive had reportedly said “Sam drained me of all of the information I had after barraging me with questions for over 2 hours”.
Example: Find someone who sells pet products or pet gadgets directly to stores and approach them. Ask them for 5 minutes of their time and introduce your idea. Ask for their feedback and what steps they would take next. Worst case scenario, they might think that your idea is idiotic. Best case? You might get a distributor or even an investor.
To Be Continued Tomorrow….(Why Am I Seeing This On A Financial Website?)
Rules For Finding Tenbaggers
Continuation from yesterday…..What You Ought To Know About Finding Tenbaggers
Rule #2: Operational Improvements:
Again, just because the stock is undervalued or just because it had lost 80% of its value over the last 24 months, doesn’t mean the stock will turn around and go higher. If anything, it is highly probable that the stock in question will remain at the bottom of its trading range for the foreseeable future. Worst, it might go on to lose another 80% before the bottom is reached. Some sort of a catalyst is needed before the position is taken. Typically, necessary changes come from the following areas…
- Restructurings, Asset Divestitures, Mergers and Spin Offs
- New Products or Services with a Huge Growth Potential
- Management Changes
In essence, the company in question must have something that would allow it to grow faster over the next few years. Without such a clear catalyst, an investment in the company would not make sense as it underlying stock has no chance of appreciating. As was the case in our analysis above.
- Keurig Green Mountain (GMCR): Introduced a line of Keurig’s coffee system and K-Cups right before the stock price began to surge.
- Apple, Inc (AAPL): Introduced a line of extremely popular iPods before its stock price began to surge ever higher. Followed by iTunes, iPhone, iPod, etc….
- Best Buy Inc (BBY): Was working diligently on improving margins, restructuring its growth trajectory and trying out new store concepts that would outperform the competition.
- Bally Technologies Inc (BYI): Began a divestiture and restructuring process to simplify its balance sheet and to infuse capital into its otherwise dying business.
- Chipotles Mexican Grill (CMG): Was already firing on all cylinders and no change or catalyst was needed.
Clue #2: Some sort of a catalyst must be present. Otherwise the underlying business warrants no investments. The company’s management must be introducing new products, restructuring or doing something that has the potential to send the company’s growth trajectory higher.
Rule #3: Bet on Management:
While we paid very little attention to company’s management in our research throughout this book, it is not an accurate representation of how this issue should be approached. Company’s management and its CEO in particular are incredibly important. A CEO with an excellent track record, a strong drive for success and a high ownership percentage will oftentimes work miracles for the underlying business. As was the case with Steve Jobs and Apple Inc. Likewise, a management team with no previous successful track record and/or without a stake in the company is unlikely to do anything worthwhile.
Clue #3: Successful management team with a clearly defined and executable plan of action. A high ownership percentage in the company by the management team is always a big plus.
To Be Continued Tomorrow…..
Daily Stock Market Update, August 26th, 2014
8/26/2014 – An up day with the Dow Jones up 29 points (+0.17%) and the Nasdaq up 13 points (+0.29%).
With another up gap today, in addition to a number of other gaps leading all the way down to August 7th low, the market is suggesting some sort of a correction.
Plus, while most investors continue to celebrate another “Buy The Dip” victory, a number of red flags appear on the horizon. For instance, did you know that while the S&P closed above 2000 level for the first time ever, it did so on the lowest volume of the year. Not a good sign when the market is sitting at an all time high.
And while that in itself is not an issue, when we combine the metric above with flattening yield curve, obscene overvaluation levels, FED tightening, rampant speculation, etc……you have got to have at least enough common sense to pause for a second and scratch the back of your head. If history teaches us anything, it is that such market setups tend to end in crocodile tears.
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. August 26th, 2014 InvestWithAlex.com
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