Tired of Stock Market Losses? 3 Tips to Know When to Get Out of the Market

Tired of seeing losses in your investments? Ever sell at the bottom? Do you wish you could’ve gotten out sooner? Let’s face it. Most of us are terrible at timing the market. But that shouldn’t be an excuse to head for the hills. Wouldn’t it make more sense to know when not to be involved in the market, and more importantly, when you should get back in? Picking when to enter into the market can be just as important as what you pick.

Of course, it may seem easier to avoid the market altogether by just investing in bonds or real estate. But getting out of the market forever is not necessarily the best thing to do. After all, the stock market has outperformed the bond market and real estate over the long term. And the most likely way for us to fulfill our investment plans is by getting the highest possible returns necessary without too much risk.

Besides, unless another investment vehicle becomes a better reflection of economic growth like the stock market, I am afraid we are stuck in investing in the market in order to get better returns in good times and bad. Or are we?

Knowing when to get in

While I have earlier suggested what investments we should focus on, we didn’t discuss when it’s a good time to buy. And that’s very important to know. Think about it. Do you just go out and buy a car any day? No, you wait for a sale or go at the end of the month when the dealers need to make their sales quota. How about clothes? Again, most wait for a sale. This is the same concept you should have with investing in mutual funds, ETFs or stocks. You wait for a sale. Here are 3 indicators I use that can help me determine when the market on “sale.”

Indicator #1: The economy

Unfortunately, “red hot sales” in the market are more or less dependent on economic growth. For example if we expect an economic slowdown over the next 6 months or longer, the stock market will most likely sell off. Why? An economic slowdown means most companies will grow less. Would you pay more for a stock in a company that will grow less? Not me!

So, one indicator to let us know whether we may want stay in the market is to ask ourselves if the economy is going to grow, to slow or to maintain its current course. To figure this answer out, you could talk with your broker or read some monthly finance magazines. Magazines like Money, Forbes or Klinger’s will have columnists dedicated to writing a one pager discussing the economic outlook. Remember, don’t make this complicated. You are just looking for a couple of professional opinions, so you can make your informed decision.

Unfortunately, looking at the economy is not good enough, since this is a very slow and vague indicator of how to handle our money. I think we can do better…

Indicator #2: Market Volatility

There is an old Wall Street adage: Stocks tend to sell off 3 to 4 times faster than they climb. Why? There are many people who already own stocks who need to get out, and are looking for buyers. No one wants to be the first one to buy when a stock or the market seems to be in trouble. Would you? So stocks fall faster than they rise.

When stocks sell off faster, volatility (which is a fancy word for measuring how much a stock’s price moves) increases. When the entire stock market sells off, the volatility across many stocks start to rise. To help see this increase in volatility across the board more clearly, volatility indicators, like the put/call ratio and the VIX, were created and can be tracked much like an index.

Here’s how it works. If the market has sold off recently, I would see a rise in the VIX index. The more the market goes down, the higher the VIX indicator climbs, just like playing on a seesaw when you were a kid. When the VIX rises to a certain point, I exit the market. I make it that simple! In my guide, I go through an example using the VIX and show specific points and strategy I use to get in and get of the market. Obviously, my timing is not perfect, but I also miss long term corrections too!

While this is a good and clear indicator, it only works when the markets get more volatile. What if you want to get in the market when it is calm or starting to rise? There are shorter term indicators that can be used.

Indicator #3: Technical Analysis

Technical Analysis is just looking at your stock’s price and volume movements on a graph, and then drawing a conclusion. It basically tries to predict future price movements from previous price movements. For example, let’s say if the stock market had a big run up or just has experienced a big sell off, you can use a technical indicator to help you determine if or when the stock market may turn around.

Unfortunately, there are literally dozens of indicators to learn, none of them work perfectly and it takes time and commitment for you to master. But for me, I do my best to focus just on combining just a few long term indicators discussed in my guide. While there is no panacea to which technical indicators work best, I found that using a combination of few indicators proves to be better than the alternative of just simply guessing when to get in or out of my positions. Many discount brokers will also offer their clients free education to help them out.

Putting it altogether

By taking a look at the overall health of the economy, a few volatility indicators and some technical analysis, I am able to better determine when to get out of my positions. In fact, I use the combination of all three. It may not be perfect, but following each approach has really helped me determine when the market goes on sale or when it’s time to get back in.

The next time you decide to get into an ETF or a stock, first ask yourself at what point should get in. If the answer is “because it feels right,” think about better ways to make that decision. And as always, have a stop program to make sure small losses don’t become catastrophes. The best investors in the world tend to be better because they not only know what to get into, but often when. Become a better investor!

Scam or Review You Can Trust? Searching for Real Home-Based Business Information

When you want to buy a book online, you try to find a seller with 100% positive reviews, but when you research options your for home-based business, you are almost certain to encounter some contradictions. A home-based business opportunity leading one person to make hundreds of thousands of dollars is condemned by someone else as a scam. How can you decide who is worth believing? Maybe you decide to check a reputable sounding website that promises to review home-based businesses and reveal which ones are scams. But is this comparison website itself a scam or review that should command your attention? With all the competing and conflicting reviews out on the web today, it is difficult to sort out which ones can be believed.

What makes these so-called reviews so tricky is that they may even recommend more than one thing. While it may seem that not favoring just one means the reviews are impartial, the real reason may be that whoever is sponsoring the website or writing the review is involved in several different affiliate or multi-level marketing programs. It is common for people to be in several programs at once, so if they are featuring several of their own, whatever one you choose will be profitable for that person.

Even seemingly informative articles can be slanted, while claiming to be a review. There may be some valuable information contained in the article, but when it comes down to it, should you believe that the author can really offer a superior alternative? Probably not–at least not right away.

Reviews, scam websites, and articles are all used in the attempt to steer people away from certain programs to competing opportunities. If you want to find information and opinions in reviews that will be helpful, keep digging and getting many perspectives on the options you are considering. If you are looking to be 100% certain that you can trust a review, give up now. There will inevitably be people contradicting one another. Even so, you can glean insights and begin to discover who is being more honest.

You may seldom, if ever find a truly unbiased review. But by continuing to read more reviews and by investigating the people writing the reviews and recommending their particular business opportunity, the picture will become clearer. You still must decide which opportunity to pursue and take a risk. Yet doing a thorough job of discerning whether the information you researched was a scam or review will help give you confidence that you have made the best choice. The more confident you are in your choice, the greater your potential for success with your legitimate home-based business.

What Women Should Know While Investing in the Stock Market

Women are gaining strongholds in all fields and it is not long when the stock market will be dominated by women. Women have rational thinking and they are known to be masters in multitasking. So do not be surprised if all the successful investors in the stock market are women. Women need to save money for retirement and the stock market can help you achieve this saving. You should not be too conservative, as equity markets require you to take some risks. Learn to practice asset allocation and diversify your portfolio to get maximum returns.

Here are some facts that women should know while they consider trading options. Women can be great investors, and ignore the saying that women are not suited for this business. It is easier for women to follow the stock market, and trade quickly because you just need an internet connection and everything is there online. There are many sites that will help you get the required information. Women can surely outsmart men by just investing wisely and following the market properly.

Women are generally cautious by nature and so fit perfectly into the stock market trading conditions. You should be up to date with the latest social, political, domestic and international news so that you can take the right financial decision at the right time. if women start investing at the earliest they will observe that they can amass a fortune if the trends in the stock market are their favor. Start with small investments and if all goes well, widen your horizon.

If you invest in too many conservative shares then tax and inflation can gobble up all your money. Take risks and you will see opportunities that can be converted into profits. Buy and hold on to good companies for long term and try and make short term profits depending upon the market sentiments.

Asset allocation is one of the terms that you have to study and increase your knowledge. Spread your money so that you are not at risk. One bad day and one bad stock trade can leave you devastated if you put all your money on a certain stock. Don’t be scared to invest, the stock market is not only for men, women too can earn a fortune with the right kind of investments.

Take expert opinions in case of doubt and you can get information about all the companies on the internet with a click of a button.

Building Your Coaching Business – Information Marketing – Lots of Clients

Here’s an answer to most of the problems experienced by coaches who are struggling to get more clients. Turn “no clients” or “few clients” into 20% to 70% of the people you touch giving you an appointment.

I do a lot of conference calls with struggling coaches. Here are the struggles that most coaches experience:

Typical Problems Experienced By Coaches

  • Can’t reach the decision maker – get sidetracked to HR and HR puts you in with ALL of the other coaches, consultants, trainers….you are a commodity in their view.
  • Can’t get the decision maker’s attention
  • When you do get to the decision maker, and they even seem somewhat interested, the bottom line statement is “Don’t have time,” “can’t afford that right now,” “I’ve got to keep my nose to the grindstone.”
  • Sending out pre-approach letters, but not getting any response.
  • Cold calling but not getting through, not getting returned calls from voice mail.

Do any of these sound familiar?

One Solution to That Problem

Here’s something that has been working extremely well with coaches I’ve worked with. Some have said they get 20% to 70% appointment setting rates when using this approach.

The first thing to note is to “stop selling” and “start helping.” Be an unlimited resource for everyone you touch, even if you touch them only once. You will become known as THE expert in that field, in your region.

First identify, your target market, if you haven’t already. Make that a narrow niche market. Even if you believe you can help the world, pick a narrow market for this approach and target the messages directly at them.

Send a letter to your target market that mentions that you’ve had significant results in ________ [name the target market], and then define a value statement around that. That means that you will indicate just how much impact you may have made on some people, or companies within that target market. Then tell them that you’d like to share some ideas that have worked with others like them, and will be sending them over the next few weeks.

Then, over 3-5 weeks, send them a printed article each week targeted to a specific problem in that industry. If you have been writing articles in an ezine, then you might also send them to that article online. It adds credibility when you can show that you are published, expert author.

At the end of 3-5 weeks, send a letter asking them how much value they got from your articles, and that you’d like to call some time to ask what they got from the article.

When you call, get them telling you just how much help that was. Ask them to put that into dollars and cents, or time saved. If they got any value at all, ask if you can set down with them over coffee to hear more about their business….

Notice, that at no time did I indicate I have anything to sell. This was all about helping them achieve their goals, and freely sharing information. The doors will be open…unless you go into the “sales” mode, at which time the door will slam in your face.

You have an appointment. Keep that appointment on “exploring their business” not on “selling.” This should get you setting down with 20% or more of your target audience.

What happens if you don’t get the appointment, but they did feel they had gotten some good information. Then ask if they’d like to continue receiving that kind of information. Add them to your newsletter, or email list for ongoing information. Many will find additional value from those emails. You will have another chance.

Upcoming articles:

  • We’ll discuss what to do and say in that meeting.
  • How to use that same approach, information marketing, in networking.