Learn How to Invest Money - Market Makers and Volitility

Learning how to invest money in stocks is not difficult, but it is also not an easy task. The theory and methodologies are simple, but to make money consistently can be a challenge. There is no doubt that you will loose money, despite what all these companies promise with their computer software, strategies, and so fourth. What you need to do is invest and stay on a net positive by accurately predicting good opportunities to invest in. The trick is to figure out if you're investing in a market movement and not in a market makers?

Market makers typically use stock promotions methods such as email marketing to boost open market value. Market makers then sell off volumes of paper into the marketplace unnaturally swing markets and create shor, making profits by pulling investor funds out of the market. This short-term demand and inflated pricing caused by the promotion boosts a company's stock that has little or no equity, and the price crashes after the market maker ends the promotion.

Market movements and market swings (market volatility) we want to find are the natural movements in market price that are not artifically generated through marketing. Companies that hold equitible assets build value and thus sustaintheir market prices. We, as investors, want to locate companies with good price increases caused by aquiring assets. Market volitility will always be there, and the more swings you have, the more more money can be made. You as the investor want to be positioned on the winning side of the swing. How can you do this without a crystal ball? Buy low, sell high. Find companies that have low price to book (P/BV) ratios or price to equity (P/E)ratio.

P/BV= Stock Price / (Total Assets - Total Intagible Assets and Liablities)

P/E= Price Per share/Earnings Per Share

A low P/B ratio could mean the stock is undervalued. You should be weary about these ratios though as the denominator can easily be manipulated by creative accounting. Keep in mind, equity cannot be faked if the equity is hard tangible assets such as land, equipment, or infrastructure. All US GAAP standard bookable assets have value. It's not easy to locate a company that is undervalued, but if you do, then you've literally struck gold.

Fine Line Holdings is one of several companies that we have found. They're working on restructuring their company to build equity and shareholder value as per this article on market wire. Originally, Fine Line Properties was an animations company building itself to be the next "Walt Disney" of cartoons. Today, Fine Line Properties is part of Fine Line Holdings which is a holding company with several different assets under their umbrella,including Monarch Cancun a huge development project in Cancun that is sure to produce huge equitable assets. Robert Petrie, president of Fine Line Holdings is apparently going to be the first feature on Microcap Media, a new junior company awareness website.

How to Invest Money - Stocks vs Currency

What I know and understand is the similarities between stocks on the senior exchange (publically traded securites) and currencies.

To make this simple, I will outline how they're the same. Lets begin with the easier one: Currency.

Currency:
1. publically traded
2. internationally recognized
3. holds tangible value and can be traded for other goods and services
4. certificate of note issued by a governing body

What are stocks?

Stock:
1. publically traded
2. internationally recognized
3. holds tangible value in relation to currency
4. certificate of note issued by a governing body

A public enterprise that graduates to a nationally recognized senior exchange also has the ability to be leveraged by tier 1 banks and financial institutions similar to real estate, meaning you can hold onto the asset and borrow against it to acquire more assets.

Currencies are issued by a governing body, Bank of Canada in Canada or the Federal Reserve in the US. Stocks are issued by the corporate enterprise or the corporate entities that issues the stock. What's the difference? A stock certificate is basically cash as it has par value to its fair market value, and the value of the stock is dictated directly by the amount of currency it can trade for.

Stocks vs Currencies, or stocks equals currencies?

Learn How to Make Money - Stocks NOT Gambling

The stock market has long been seen as a form of gambling, yet many have found it to be a a great hub to make money. Some say throw darts at the charts to choose their stocks, others search for patterns and build systems on trend or expected demand. My philosophy, learn how to make money in stocks that are building equity.

The big boys play with millions of dollars causing pump & dump swings, as the rest think to manipulate by squeezing dollars out of dimes. This is where the problem lies. It is very seldom that the average person makes money because it involves a high cost of entry to get into something stable enough to pay dividends, or you just can't find the right companies to invest in until after the upswing. This is the common problem with any type of business or investing.

Think about it: real estate, t.v. shows, fashion.
1st stepn players benefit most because they are the ones able to caplitalize by building the emerging trends.
2nd step players who follow the uprising and play in the market on the climb upwards with the market early enough before the peak making good profits.
The unfortunate 3rd step players get in at the peak and find themselves caught in the downfall.

My strategy is simple. Invest in companies that are building equity, not blowing smoke. An idea is blowing smoke. An internet based company with no assets is more often than not, blowing smoke.By building equity through properly structured (US GAAP bookable), aquisitions similar to buying real estate, combined with long term corporate goals and viable growth expectations we create equity. Equity is not blowing smoke. The principles taught in every niche of investment, especially long term real estate, is about equity. Why equity? Because equity is worth money! What makes buying ownership in a company any different. Why not use those same principles similarly to qualify stocks in the open market for your portfolio?

Some of those principles as I've outlined below:
1. research your market and do your due dilligence on the stock
2. learn to read the financials
3. keep an eye on the team -control

Market Analysis:
Knowing the market is a very important part in your search for stock. Go backwards, learn the trends that lead to today, then look at current events, and learn the trends that are taking us into the future. Basic accounting knowledge is fundamental as an understanding of an income statement and a balance sheet are important in seeing the stock's value.

Corporate Analysis:
Keep an eye on the executive team. You want to know what each body in the company is doing to make the company better. Changes in the corporate structure are not necessarily bad, but too many changes for example can also cripple their effectiveness to grow.

Compliance and Audit:
Trading in the open market is not as complicated as many believed, although an enlightend sense and understanding of its inner workings is helpful. The stringent regulations by the SEC, the importance of US GAAP standard accounting for constantly audited financials, as well as the constant updating of company profile and executive members makes for great transparency and security.

Emerging Investment Opportunity: Fineline Holdings Inc. (FNLH.PK)

Have you ever wanted to invest in stocks but did not know where to start?  Do you think you have to be a sophisticated investor to dabble in stocks?  It is simpler than you think.  Let me explain.

Let’s start with a key foundational element – the law of supply and demand.  If a product or service is in short supply and demand outweighs supply, the price will be driven up because individuals are willing to pay more for it.  Likewise, if there is an abundance in supply and supply outweighs demand, then the price will fall.  The same concept holds true in the world of stocks.  The stock market is much closer to home than we give it credit.  Familiar with the law of gravity?  Well, this law holds its validity in the stock world as well.  What goes up must come down.  Pull up a stock chart and you will notice that the movements are comprised of peaks and valleys.  A stock price that goes up will come down.  A stock price that goes down must go up.

We have covered the law of gravity alongside the law of supply and demand, which now leads us to the mechanism responsible for stock performance in the markets.  Many variables affect the way in which a stock performs. A public company that is dedicated to building shareholder equity and shareholder value is poised for success. Period. Nothing more, nothing less. There are key indicators that prove a company’s focus on building shareholder equity and shareholder value and ultimately what drives market performance.

Press Releases
The announcement of company news can make or break a stock.  Wall Street and investors alike react, whether it be positive or negative, to corporate press releases announcing a new technology, product, business venture or acquisition. 

Mergers and Acquisitions
A public company that is venturing out and purchasing assets is proof that they have an interest in building shareholder equity.  By building shareholder equity, shareholder value increases. 

Now a company that has been following this template in building shareholder equity and shareholder value via several recent asset procurements is Fineline Holdings Inc. (OTC:FNLH.PK).  Their continued efforts in asset acquisition is in alignment with building long term shareholder equity and shareholder value. These are good solid indicators for driving market performance.  Which means prices should reflect accordingly in the markets. Fineline Holdings Inc. (OTC:FNLH.PK) is clearly positioning themselves for success in the market.

Read the press releases yourself and you will soon see the extent to what their efforts are in positioning themselves for strong market performance.  According to Market Wire’s recent article titled ’Fineline Holdings, Inc. (PINKSHEETS: FNLH): Management's New Strategy to Build Shareholder Equity’ it states “In an effort to build shareholder equity and increase shareholder value, Fineline Holdings, Inc. (Other OTC:FNLH.PK - News) has acquired the exclusive option on $125,000,000 of fee simple land and property in the Monarch Cancun Resort Development. This Development will include three (3) Lanny Wadkins designed golf courses and various other amenities. Fineline Holdings, Inc. reserves the right as one of the Managing Partners to purchase, fee simple, the land and hacienda style homes being built in the development or it can act as the Vendor in marketing these units to the general public. Fineline Holdings, Inc. has also arranged the financing for its portion of the buildout on this project.  Monarch Cancun is the premier developer of residential tourism in Mexico."

Do NOT miss this opportunity.  Act NOW as this company begins its transformation.  Penny stock picks may be a risk, but ITS ABOUT TIMING!!

The timing for takeoff could not be better.  Don’t just realize opportunity.  Also realize the gain.

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Learn How to Invest Money – Save, But At What Cost?

Save your money. We are all very familiar with this saying. However, at the end of the day what is the true purpose of saving? Why do you save? What is your main objective when saving? Most individuals will admit to saving now in order to spend at a later date. They save to spend. But what true value-add does that create? Honestly it is nothing. Shouldn’t saving bring on stability, safety and security?

Once upon a time I was a save slave. I saved a portion of my pay check each pay period and continued on with this routine for a few years. I admit that saving does build discipline but it also develops a mental block in your paradigm. What I mean by this is sooner or later you will lose sight of your true purpose of why you are saving and start saving without focus, objective or cause. Simply put, save for the sake of saving.

In the investment arena, saving means not investing. Let me digress. If you are saving now, then you are not spending now and ultimately that equates to not “spending” your money on investment vehicles to improve and increase your financial position.

Do not retire your money by putting it into your savings account. Put your money to work in your quest in reaching financial freedom. Saving is an integral component of your investment strategies alongside your financial plan, but do not save for the sake of saving. If that is the case then you will just temporarily save your money to then go ahead and spend it later on. Save with cause, spend with purpose.

Some great sound advice can be found in the 2007 Consumer Reports Ultimate Money Guide (III) – Investing and Goals, it states that the steps to a golden financial future are as follows:

• Mind your spending: Create a spending plan to track monthly spending. If spending exceeds income, find ways to cut spending.
• Weigh your dreams: Jot down major financial goals and figure out how much is needed at specific times.
• Shave and save: Cut back on expenses and save each month in appropriate accounts in order to achieve goals.
• Know the deals: Know the pros and cons of each account: 529, 401(k)/Roth 401(k), and IRA/Roth IRA.
• Rainy day money: Plan for the uncertainty before it happens. Set aside three to six month’s worth of asset to cover the unexpected events.
• Ditch the debt: Use low-rate credit cards and pay off balance every month

Remember – save with cause, spend with purpose.