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Arise Sir Fred, the Queen of England said in 2004 after tapping the kneeling Fred Goodwin lightly on the shoulder with her sword. This archaic ceremony is the conferring of knighthood by the Queen of England. If you are a citizen of the UK or one of its dominions then you can call yourself  "Sir". Fred Goodwin was the CEO of the Royal Bank of Scotland in its boom years. An unknown, middling bank in Scotland (where's that for Gods sake), he took it to become one of the largest banks in the world. First the acquisition of Natwest, a big British bank much bigger than RBS. And then the mega takeover of ABN Amro, just as the financial crisis was unfolding. The bank was growing wildly through mega acquisitions and was cheered on by all and sundry - the shareholders, the market and even the government, including Gordon Brown, the then Prime Minister of the UK. Hence the knighthood. Sir Fred could do no wrong. Of course the party couldn't last. It came crashing down with the

This video is talking to us why the subprime mortage can drive US and the world economy to  crisis. Very clear explanation about this crisis causes and i wonder what us goverment will do to solve this problem. Because if this problem does not solved immedeatly all the country in the world will take this effect to. As a fundamental trader i really like this video. This video are the challengin for the value investing  that is an theory invented by William Graham and still use by his own student Warrent Buffet that they use to pick a stock in the market. Is this old theory are not signficant againt to use in this 21th century economy or just because all the crisis is a big scenario from the Big Boys in the market so they can control the economy in the world. For long time investing in real estate are really good stuff people just thing that every month the valuae of a mortage will be rise like a gold because the number of human are increase rapidly in the otherside the number of home

Romans 5:1-2    1  Therefore, since we have been made right in God’s sight by faith, we have peace with God because of what Jesus Christ our Lord has done for us.  2  Because of our faith, Christ has brought us into this place of undeserved privilege where we now stand, and we confidently and joyfully look forward to sharing God’s glory. (NLT)

If we talk about value investing , there are usually two Grand Masters as the reference, namely Benjamin Graham and Warren Buffett. Graham is the pioneer and Buffett is the most brilliant students. Philosophy of value investing espoused by Ben Graham started when investor funds under management be dragged Great Depression of 1929 that hit the United States and even the world. We ourselves are usually familiar with the name of the great depression era malaise. Graham was so blow that he put security on the investment fund's first priority before the targeted profit. Screening is so strictly enforced by Graham to ensure the security of investments. To understand how Graham thought, we must put ourselves into the post-Great Depression era. At that time, very few people are willing to invest in the stock market. Investors who think shares of trauma as an investment instrument that is very dangerous. No wonder then the shares traded at a very low price. In this condition, although Grah

The focus of value investing is basically a strategy to pick a stocks by Benjamin Graham that choose a stock that sell below their fair price. Usually, the main source of information when making the hunt is by looking at the value of PER (price to earnings ratio) and P / BV (price to book value). Common assumption that is often used is to compare the two ratios with other stocks in the same industry. At the point tersebutlah, investors sometimes face value trap. Shares are considered cheap as cheap as it was not suspected. In normal conditions, stock prices will be efficiently follow the true value. Thus, it is possible the shares which are rewarded with low PER or PBV as there are strong reasons underlying it. Then how do I avoid it? Market will become less efficient when there is a bubble or a crash. In both conditions, market participants will be overreaktif. Stock prices are not only influenced by the fundamental condition , but also by the psychological condition of the perpe

In the 1920s, DuPont Corporation pioneered one of the methods of analysis of company performance up to this time known as the DuPont Analysis. In essence, DuPont analysis done by splitting the return on equity (ROE) into several parts. Why is ROE? ROE describe the magnitude of rate of return earned by shareholders. By splitting the calculation of ROE, we can find out how a business is profit. As we know the formula for ROE is In   DuPont   analysis ,   ROE   is broken down   into 3   parts: or can also be written: ROE = Net profit margin x Assets turnover x equity multiplier Every business has the characteristics of each to get a high ROE. Basically, the industry can be divided into 3 groups: 1. High turnover industries Industries that have high turnover one of which is retail. Competition in this industry is so tight that a high ROE can not be obtained by wearing a premium price to the consumer. To obtain a high ROE they play in the volume of sales. Characteristic of this industry (i

Selecting stocks is often associated with something as complex and causes a lot of people assume that the ability to pick stocks can only be done by professionals in that field. It is not entirely true. Indeed there are some conditions that cause the need for special treatment to analyze a stock. Fortunately, in many cases are not like that. Joel Greenblatt is the one who introduced the "Magic Formula", a method for stock selection. Joel Greenblatt is the founder of a hedge fund namely "Gotham Capital". The word 'magic' itself can cause a variety of interpretations. Joel Greenblatt himself coined the term "magic formula" because he could show that stock selection process can be done simply. "Magic Formula" was introduced by Joel Greenblatt in his book entitled "Little Books That Beats The Market". This method is far more modest when compared with the methods of Benjamin Graham's stock selection style that has been discussed

Here are some investment advice from Peter Lynch, one of the best fund managers. This advice is aimed at individual investors. For me, a lot of lessons to be drawn. The advice of Peter Lynch is writing in Worth magazine in 1997. I translate freely as if translated directly would confuse and numb. For each stock we have, continue to follow the story and write in a notebook. Record the latest developments and closely watch earnings. Whether classified as growth stocks stocks, cyclical stocks or value stocks. Performance of good stock or bad there must be a reason. Make sure we know what the reason. Pay attention to the facts, and not a prediction. Ask yourself: how much return we get if you are right and how much potential loss if you are wrong. Look for stocks with the risk-reward ratio of 3 s / d 1 or smaller. Before investing, check the balance sheet to find out whether the company is financially strong. Do not buy options and do not buy on margin. If we buy options, time will become

Glitter of the stock market can often make people complacent. Naturally people will feel more comfortable if you follow the joint opinion. Unfortunately the stock market, togetherness can sometimes plunges us into the deepest abyss. Euphoria dot.com stocks in the United States in the late '90s was the result of collective mistranslation caused havoc for most participants. Something similar happened during the great depression hit the world in 1929. Market participants have been 'forgotten' that stock prices can not rise forever, especially if not backed by strong fundamentals . This is where stock valuations we will be footing to be able to be rational in the midst of the hustle and bustle of the stock market. To my surprise, the valuation method used is very simple, especially if we compare it with the screening process is done to look for study fundamental of stocks . Benjamin Graham argues that he is trying to use a magic formula and aim to get results close to the res

No doubt that Benjamin Graham was a pioneer of value investing. Benjamin Graham looked at the stock as a business and not just as a commodity trading. According to Benjamin Graham, investing is an act that through a thorough analysis, promises safety of our capital and provide a satisfactory yield. Actions that do not meet these requirements are speculative. Benjamin Graham itself tends to be cautious and conservative in selecting stocks. This may be because the market panic of 1907 has led to bankruptcy for his family due to speculative action in the stock market. Benjamin Graham himself did not escape the great depression in 1929, which led to the investment funds it manages customer be dragged along with other investors. Departure from where Benjamin Graham started laying the foundations of conservative investment philosophy and aims to protect the security of capital. The fact proves that Benjamin Graham only takes five years to recoup its customers while the DJIA took 25 years to

There are several components that we can make a first step before performing company analysis. Similar analysis as we analyze a business, although there are differences with the usual business analysis. When we do analysis of a company, it helps us pay attention to the relationship between corporate performance with the behavior of its shares on the stock. As was mentioned earlier, in the short term would likely occur with the discrepancy between the value of its stock price. By knowing the prospects of a business and its true value, we can obtain a satisfactory yield. Some basic things that used to analyze a company are as follows: 1. Nature of business.   At this stage we learn how a business is run. What are its products, who marketnya segment, anybody competitors, how the potential for business continuity, how its management. In short, we try to find out how a company operates. Regarding the relationship between business management, there are several possibilities. Sometimes we wo

As an investment instrument, the basic   fundamental analysi s of stock can indeed be viewed from different sides. Shares are traded every day on the stock market so the price will continue to change depending on the market sentiment. Shares, which in essence is a sign of ownership of an enterprise (company), can be viewed as a commodity. A fairly wide range of trade each day allows us to profit by buying and selling at the right time. If we look from this side, we position ourselves as a trader. No doubt many traders who managed to get the advantage of using this way. But if we want to be a purist and view the stock as ownership of a business, so before you start investing in stocks, we should know how a company's business is run. If we can take advantage of trading, why do we bother doing fundamental analysis of a stock? After all, by observing the chart, we can make a good analysis as well. One thing to remember, in the short term, the market is a voting machine, whereas in the

Read the News, watch the Chart Read starting today, if you do not understand read every day, surely one day you'll understand. If there are terms that are not understood, the information providers usually include also the meaning of the terminology used. Do not be surprised if the term in the news business are always new. There TARP , GSE , but do not worry because in every article must be explained clearly meant. It is aimed so that you understand and can take investment actions. Once accustomed to reading the news you will be able to feel that sometimes there is a shocking news, such as Lehman Brothers went bankrupt. But there is also news that have been predicted or already in the price in the term, such as the GM bailout. Different degrees of surprise can only be enjoyed by those who keep abreast of business news from day to day.Watch what happens in today's market there accidently shocking because a high impact news release. Hold the capital that has high value, sales are

Value of two entities does not necessarily change. USD does not suddenly become more valueable than EUR only because the European Central Bank lowered interest rates 100 bps, as well as published in the November NFP numbers were pretty staggering -533.000 tokh, the American people still think stocks are too cheap and still want to sell and buy SHARES with their dollar inthe financial sector. Again, this is a matter of value and whether we are able to read the values. In the era 1995 - 2000 USD is stronger than USD, and there was a very unexpected event, 9 / 11 attack, that's the turning point of the EUR / USD, since that date until this moment stronger than EUR into USD. There are two things we can learn from this fact:  Let's see chart EUR / USD, we can prove that reversalnya does not happen immediately, it took almost two years for people (professional traders realize ahead) began to understand that the EUR will be strengthened and the USD will weaken. In fact, changes in val

As a trader we buy something we think has more value and we sell something we think is less / no value in the future. Is it that simple? The reality is NO, when people buy the real estate he hopes that someday the real estate will be worth more than money that he paid .... OK this makes the analogy of investing OK, then people buy phone, jewelry, computers, motorcycles, whether it includes investing activity? I think yes and no, yes if all were bought for working capital or labor support, but not if this luxurious stuff it was purchased only for fashion or just to keep the image and lifestyle. In trading this principle also applies. When we took off our dollars and buy shares DOW JONES or when we buy and sell EURO DOLLAR, do we have to think very carefully that the value of the goods we buy are going up? Maybe you think so, said the market reality is not a majority. Subprime mortgage one of them caused by the housing bubble, the housing prices soared faster than inflation due to the s

Traders or gambler? I have to include this topic as fundamental because many are unaware of its role in world trade. In trading we have become a trader and not a gambler. There is a story of Elder Alexander I always remember: Elder daughter is  very good at playing backgammon. Then Elder challenging his son to duel with betting money backgammon. The children use his pocket money as her capital  to bet with Elder and Elder just use a small part of his money from his huge capital because he is very rich. He intends to teach their children about gambling and speculating. At the beginning of the match so that the child always win so  her capital continue to grow Elder diminishing returns. At his peak confidence (overconfidence) Elder offers the new rules, which is double the bet on each game. Then there is what I call psychological Climax. The child began to lose, then at double the stakes, the child's stress, lose again, lose again, concentration is lost and without realizing his mone

Is the BIG BOYS exist? YES YES AND YES Do they manipulate the market? YES YES AND YES Let's go to chart the A / U, G / U, E / U on M5 timeframe Then see this candle: 17 December 2008, 17:10 (Broker: Broco Trader / WHC Trader) At A / U candle has spread (the difference hi - lo) 50 pips G / U 60 pips E / U 40 pips all full-time bearish candle occurs at nearly even on the SAME MINUTE You also observe another important candle with the following characteristics: 1. Wide spread (the difference between hi-lo high) 2. High volume Compare also with the NZD / USD. This is the correlation that I have found, there are several other inventors such as Tom William, who found a correlation between volume and market reversal extremely high volume and identify it as proof of participation in the market big boys. Back again to the problem of the above statistics. In the capital market, which determines the big boys season (trending or sideway), they also determine whether today's rain / no (bull

Trading is all about statistics My statistics professor Vanderman teach me like this,   Q: What is the probability that tomorrow will rain? A : Theoretically, the answer to this question was 50/50 or 50% of rain. How to answer this question by using an analysis based on certain conditions?for example Q: What is the probability that tomorrow it will rain if this month is the month of December? A : Possible answers could still be 50% but may be 50 +% since December is the rainy season. Then he asked again, Q : What is the probability that tomorrow it will rain if this month DES and this rainy day? A :  I think the answer can be increased significantly to 60-70% Calculating the probability is a technical problem, knowing when the rainy season and whether today's rain / no is the fundamental problem. So, the indicators we can only give 50/50 chance of winning, only and only if we know how to read the global market situation we could add a few percent probability confidence in our victo

Usually when a new person's first foray into the world of trading, he will choose the trading strategy used by other people that we can find for free on the internet, or learn from friends who've run it. Some problems will soon arise if we start trading as a career with this way because: The confidence can never be transferred. So that   when we adopt a system, confidence from the inventor of this system does not come transferee. The lack of confidence is the greatest torment as a trader. Almost all of the system only provides a technical analysis without fundamental basics. So ussualy there will be a problem when the system that he use meet a deadlocked the newbie traders will be confused and disoriented. In my other articel I will give descriptions of the importance of fundamental knowledge in trading. And hopefully you all can experience true success of trading, restore your loss and most importantly to me that the world trading was not viewed negatively by those who are S

Newbies have to be broken in. If you throw them at the deep end, they'll simply die of shock. This blogger has a substantially inflated opinion of himself and proclaims expertise in matters that he knows precious little about. But even he readily admits to being a complete newbie in one matter . And he was very privileged to be broken into the said field by two acknowledged experts.It must be clarified right here that this blogger has not indulged in this activity for some 30 years and therefore approached it with some trepidation. They were very kind. They chose the shallow end of the pool for the first dip of the toe. Apparently this specimen which I was introduced to is not "typical".  But was sufficient to give a good general idea. They prefaced the experience, by a good nourishment of the body (otherwise called lunch) in preparation for nourishment of the mind. As it started, they very helpfully explained who was who. I was advised that the sum total of people in the

Time for the reveal! Here is the "after" shot of the dresser I made over for E's room. Remember the "before"? A tad different, isn't it?  I found this dresser at the thrift store two weekends ago for $15...yep, that's right! They were having a 50% off sale on all furniture. I almost had a heart attack thinking someone else would try to swipe my pet fur, mouse poo & dust infested dresser before I had the chance...but luckily, no one else was interested:o) So I started by deconstructing the whole piece. That was the easy part:o)  The tough part was making the MDF box to go in the center of the dresser. This was my first attempt at using a table saw, and let me just say that there was a lot of heavy praying going on while using it. On three different occasions, MDF literally shot off of the table saw..thankfully I wasn't on the receiving end!  Since we currently are no longer in possession of a miter saw, I had to use a miter box to cut the trim pie