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In January 2008, Harvard Business Review’s editors Thomas A. Stewart and Gardiner Morse sat down with investment banker / businessman Bruce Wasserstein, who recently received Harvard Law School’s 2007 Great Negotiator Award.

The interview basically talked about how Bruce Wasserstein works as a deal maker. They discuss about his strategy as well as his perspectives in deal making and how he puts emphasis on creating value in his dealings and counseling duties for chief executive officers (CEOs).

The HBR interview is a useful tool not only for people who want to explore the mind of a successful businessman and deal maker, but also for those who want to learn a thing or two while trying to follow in Bruce Wasserstein’s footsteps. For instance, Bruce Wasserstein reveals that his approach to the art of deal making is similar to what he does when problem solving. He examines each deal and weighs whether it is sensible enough to warrant attention or interest before proceeding to consider his next step.

Bruce Wasserstein’s success, as indicated in the interview, is clearly a result of absolute brainpower and ingenuity coupled with his distinctive ideas and persistence. Clearly, these values are the main reasons why Bruce Wasserstein has been a major mover in the field of negotiations, mergers and acquisitions for more than 30 years.

Read the HBR interview with Bruce Wasserstein.

The Property Index site has a vast range of property for sale in Spain, view the range online.

Though the Property Index must be rated a rather young bureau, they were incorporated in March 2007, they have quickly gained in reputation. In point of fact a incredibly unpretentious bureau entirely focused on offering guidance to everyone intending to let, sell, rent or buy property in a global environment. Their avowal is to assist you pinpoint exactly what’s called for swiftly and, further, without hassle. Property is being offered in most parts of the world at the moment, one of the high-class areas being properties available in Spain. It should really be easy as one-two-three to specify the sensational properties available in Spain, the argument for picking property here is the houses and apartments on the market and the fun option of spending your life between such a great populace.

It’s one of the most trendy areas at the moment, and in view of the lovely landscape and the agreeable climate surrounding you, how could you conceivably say no! Property in Spain is steeped in history, this area of the world is and has always been home to more than a few sophisticated nations. Around twenty years ago there was very few of Britishers keen on properties in Spain. Just ask any person who has moved to Spain and they are certain to back it up. Many people would prefer to see it as a plain vogue and others prefer to see it as a more or less an infatuation… People who move to this area will range from young well to do couples keen on a bit of a new challenge to retirees who intend to enjoy themselves and rest.

There may be hitches when attempting to buy properties in a foreign market; you’ll want to cope with dozens of actions to care about whether plotting, paying a visit or purchasing. If you only miss one minor procedure that is sure to definitely generate sweeping hitches and, more importantly, a financial hammering. Obviously, as is to be presumed with this sought after destination, properties might well be unbelievably high priced in this area and that’s solely caused by the high demand. However, buyers doubtlessly are spoilt in a destination determined by merry topography and panorama. It can boast everything any of us could possibly yearn for and then some.

If you’ve already made the decision to go ahead and start
trading forex, the first step you need to take is to choose the
right forex broker. Currency brokers vary more than the U.S.
Investment houses, so you really need to do your homework before
making a decision. This is very important because your broker is
almost like your business partner. They need to not only treat
you fairly, but also execute when called upon. Here are some of
the most important aspects to consider when picking your broker:

Low Spreads. Always look for a broker that offers low
spreads (which are measured in pips). The spread is the
difference between how much you can buy or sell a currency at a
specific point in time. It’s very similar to the bid and ask
prices in the stock market. Since you don’t pay a commission to
a forex broker, they make their income through the spread. You
don’t get anything in return for paying the spread, so you’ll
save money on each trade if you pick a broker with low spreads.

Amount of Leverage Offered. Leverage is essential to
making big money in forex. When you’re making a profitable
trade, the amount of “increase” in what you’re holding amounts
to just fractions of a penny per unit. So if you’re not
investing tens or hundreds of thousands of dollars, your total
gain is minimal. To make a stock market comparison, assume that
you buy $5,000 worth of a stock for $20. A few hours pass, and
you sell it for $20 1/8. Total gain? A barely noticeable $31.25.
Now lets say you were able to borrow your brokers money, and buy
$500,000 worth of the same stock. Your gain would now be $3,125,
which is much more substantial. An equity broker would never
give you that much margin, but you can find some forex brokers
who will offer as much as 100:1, which means that you can borrow
up to 100 times the amount of your own capital invested.
Obviously, this can be risky because you can lose money as well.
Do your homework on how margin and margin calls work before
using it, but understand that it is the fastest way to big money.

Reputation of the Firm. All forex brokers should be
registered with the Futures Commission Merchant and the
Commodity Futures Trading Commission. You should verify that
your potential forex broker is in fact registered before giving
them any money. Also, because of the massive amount of capital
required in the foreign currency market, brokers are usually
owned or operated by large banking institutions. Verify their
financial stability to ensure the safety of your investments.

Account Types Available. Small investors should look for
brokers that offer mini accounts. A mini account usually offers
a high amount of leverage (otherwise it would take decades of
successful trading to grow $300 into anything significant).
Every broker should have standard accounts which need $2000 to
start the account with and offers more leverage options. The
third type of account is a premium account, which will offer
access to more powerful tools, services, and research. The
amount of capital needed for a premium account will vary based
on institution.

Quality of Tools and Research. Just as in online stock
trading accounts, the quality and availability of tools and
research will vary greatly between brokers. Most will have real
time charts, news, & data, along with technical analysis tools.
Some will have expert analysts writing articles and reports. You
can look these analysts up on Google to see how credible they
are. Also look for technical trading tools, economic indicators,
and good customer support. I suggest starting a demo account at
several brokers to get a feel for their platforms and see what
type of system is most comfortable to you.

Choosing a forex broker is a very important decision, so take
your time and do your due diligence. If you end up with a good
one, you’ll have everything you need to succeed and will be able
to focus solely on trading the forex.

Even though inflation has been relatively quiet in the U.S. since the late 1980’s, there now appears to be some strong evidence that it may be starting to heat up again with an expanding economy, combined with skyrocketing oil and housing prices in certain key regions of the country. While the Federal Reserve has been raising key interest rates citing the threat of rising inflation, the cautious message coming out from the Feds are that, inflation is still benign and not yet a threat. Inflation is benign? Excuse me, but the cheapest gas I can find anywhere in this area is $2.23 a gallon, which is up almost 50% from last year and housing prices in my Howard County, MD neighborhood have more than doubled in the past five years.

Inflation should really be a major concern for all investors because it reduces the value of their savings over time. History has also shown that traditional investment in financial instruments, such as stocks and bonds typically fare poorly in the face of sharply rising inflation, as evidenced by the savage decline experienced during the last bout of serious inflation during the 1970’s.

Fortunately for investors, there have been quiet a bit of improvements made in the financial markets since the 1970’s, and investors now have a great deal more options available to help protect their portfolio from the scourge of inflation. One of the best and easiest ways investors can diversify their portfolio is through the use of Exchange Traded Funds, commonly referred to as ETFs. ETFs you might recall are similar to passive index based mutual funds, but they can be bought and sold in the market just like stocks. There are currently more than 170 different ETFs (and still growing!) that investors can choose from, and these ETFs cover the full gamut from domestic stock index to fixed income, international and even real estate and commodity related.

An easy way to inflation proof your portfolio then would be to replace a portion of your portfolio holdings from domestic equity based securities, such as S&P500 type stocks and traditional bonds, with an Inflation-protected bond ETF and Real Estate or Gold ETFs.

Table 1

Inflation Protected Bond ETF:

• iShares Lehman TIPS Bond Fund (NYSE:TIP)

Real Estate Index ETF:

• Vanguard REIT VIPERs (AMEX:VNQ)
• iShares Cohen & Steers Realty Majors Index Fund (AMEX:ICF)
• iShares Dow Jones U.S. Real Estate Index Fund (AMEX:IYR)

Gold ETF:

• streetTRACKS Gold Shares (NYSE:GLD)
• iShares COMEX Gold Trust (AMEX:IAU)

By adding these alternative asset classes into their portfolio mix, investors will realize not only significant benefits from diversification as these asset classes have a very low correlation with domestic equity and fixed income assets, but protection from the risk of inflation as well. For a full listing of Exchange Traded Funds, check out the Nasdaq market website at http://quotes.nasdaq.com/asp/ETFsCompare.asp

Mr. John J. Lah, MBA, CFA is a Principal at Waverly Financial Group (http://www.my-finance.net), a no commissions, no product sales, Fee-Only financial advisory firm located in Ellicott City, MD, specializing in portfolio management with Exchange Traded Funds. Mr. Lah received his MBA from James Madison University in Harrisonburg, VA and is a CFA charter holder. For more information on the CFA designation, please visit the CFA Institute (http://www.cfainstitute.org).

Switching your job? Retiring? Congratulations! A window of opportunity opens for you with the Rollover Individual Retirement Account or Rollover IRA.

In an era of corporate restructuring and outsourcing, Rollover IRA is among the most powerful means available for securing one’s retirement. Yet, its potential to enlarge one’s assets for the sunset years commonly remains under-appreciated.

The Rollover IRA dramatically increases the range of choices available to you for investing your retirement savings. By offering investment choices hitherto unavailable in employer-sponsored plans such as 401k, 403b, or Section 457 plans, Rollover IRA provides you the means to have direct control of and more aggressively grow your nest egg.

This article discusses the advantages of Rollover IRA over employer-sponsored retirement plans.

So, if you are leaving your job and have accumulated assets in the employer-sponsored retirement plan, continue reading this article to learn about your options and more.

Four Options

You have four options on what you can do with your savings in your employer-sponsored plan when you are switching jobs or retiring.

1) Cash your savings.

2) Continue with the retirement plan of your previous employer.

3) Switch to the retirement plan sponsored by your new employer.

4) Set up a Rollover IRA account with a mutual fund company and move your retirement savings into that account.

Unless you have a pressing need, it is best not to cash your retirement savings. First, cash withdrawals from the retirement plan will be subject to federal and state taxes. Second, your retirement savings diminish and you will have fewer assets to grow tax-deferred.

While the three other options will not erode your retirement savings and will allow it to grow tax-deferred, they are not equal in their ability to help you boost its growth rate.

Increased Investment Choices

Most employees earn meager returns on their employer-sponsored retirement plan savings. A Dalbar study reports that the average 401k plan investor achieved an annual return of just 3.5% during a 20-year period when the S&P 500 returned 13.0% per year.

Part of the problem stems from the fact that most retirement plans offer only a limited number of investment choices. A Columbia University study finds the median number of mutual fund choices in 401k plans to be just 13. The actual number of equity mutual fund investment choices however is less, since the median number includes money market funds, fixed income funds, and balanced funds.

With fewer investment choices, employer-sponsored plans limit your ability to take advantage of different market trends and to continually position your retirement savings in mutual funds with superior risk-reward profiles.

If you set up a Rollover IRA with a large mutual fund company such as Fidelity Investments, T. Rowe Price or Vanguard Group, you will break the shackles imposed by your employer-sponsored plan and dramatically increase the number of mutual funds available for investing your retirement savings. Fidelity, for example, provides access to several thousand mutual funds besides the more than 180 mutual funds it manages.

Setting up the Rollover IRA

Let’s say you decide to move your retirement savings to a Rollover account with a mutual fund company. How do you make it happen?

Contact the mutual fund company in which you wish to open an account and ask them to send you their Rollover IRA kit. Complete the form for opening the Rollover IRA account and mail it to the mutual fund company. Next, complete any forms required by the retirement plan administrator of your previous employer and request transfer of your assets into the Rollover IRA account.

You have two choices for moving your retirement savings to your Rollover IRA account. One is to elect to have the money transferred directly from the employer-sponsored plan to the Rollover IRA account. This is called direct rollover. With the indirect rollover alternative, you take the distribution from the retirement plan and then deposit it in the Rollover IRA account. Unless exceptions apply, you have 60 days to deposit the distribution and qualify for tax-free rollover.

Boosting Your Rollover IRA Performance

You need a well thought-out strategy to benefit from the wide range of investment choices available in the Rollover IRA. You can develop the strategy yourself or derive ideas from investment newsletters.

The investment strategy will enable you to maximize return and minimize risk by leveraging the potential of different investment vehicles within each asset class. For example, you can include sector funds among equity investments and international bond funds among fixed-income investments.

Adding to Your Rollover IRA

You can leverage the potential of your Rollover IRA further by adding to it each time you change jobs. With the Rollover IRA already set up, all you have to do is to instruct the retirement plan administrator of your last employer to transfer assets to the Rollover IRA. There is no limit on the amount of money you can transfer.

You may also add money to your Rollover IRA through regular annual contributions. They are however subject to the annual limit for IRA contributions.

Summary

When you are switching jobs or retiring, the Rollover IRA opens a window of opportunity for you, widening the range of investment choices for your retirement assets hitherto not available in the employer-sponsored plan. The self-directed Rollover IRA empowers you to construct and manage a mutual fund portfolio to boost the growth rate of your retirement savings.

Notes: This report is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. This report does not have regard to the specific investment objectives, financial situation, and particular needs of any specific person who may receive this report. The information contained in this report is obtained from various sources believed to be accurate and is provided without warranties of any kind. AlphaProfit Investments, LLC does not represent that this information, including any third party information, is accurate or complete and it should not be relied upon as such. AlphaProfit Investments, LLC is not responsible for any errors or omissions herein.

Opinions expressed herein reflect the opinion of AlphaProfit Investments, LLC and are subject to change without notice. AlphaProfit Investments, LLC disclaims any liability for any direct or incidental loss incurred by applying any of the information in this report. The third-party trademarks or service marks appearing within this report are the property of their respective owners. All other trademarks appearing herein are the property of AlphaProfit Investments, LLC. Owners and employees of AlphaProfit Investments, LLC for their own accounts invest in the Fidelity Mutual Funds included in the AlphaProfit Core and Focus model portfolios. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from Fidelity Investments or other mutual fund companies mentioned in this report. Past performance is neither an indication of nor a guarantee for future results. This document may be reproduced only in its entirety including the author’s bio and hyperlinks to AlphaProfit’s web site.

Copyright © 2006 AlphaProfit Investments, LLC. All rights reserved.

Sam Subramanian, PhD, MBA is Managing Principal of AlphaProfit Investments, LLC. He edits the AlphaProfit Sector Investors’ Newsletter. The investment newsletter, ranked #1 by Hulbert Financial Digest, offers model portfolios that are popular with Fidelity 401k and Rollover IRA investors. To learn more about the investment newsletter, visit http://www.alphaprofit.com

If you have money to invest, you might contemplate investing in
mutual fund. What is mutual fund? Mutual fund is simply a
collection of stocks that are bought using money pooled from
various individual investors. Historically, average mutual fund
returns 2% less annually than a stock market index.

While the return is less than stellar, there are several
advantages of investing in mutual fund. They provide
diversification, economies of scale and liquidity. So, the
question you want to ask yourself is whether you want to have a
smaller return for the advantages mentioned previously.

While two percent difference looks small, it is not pocket
change. Investors who set aside $ 1 a day, would have $ 562,000
of savings in fifty years if he invests in stock index fund
growing at 10.5% per annum. The same investors would collect
‘only’ $ 271,000 if he invests in average mutual fund that grow
at 8.5% per annum.

There are also disadvantages investing in mutual funds. There is
a problem on how to choose the ‘right’ mutual fund. If average
mutual fund returns 8.5% annually, the below-average fund will
give you less than that. Just like picking a stock, you would
find some stocks that outperform the average and other stocks
that do not perform well.

The next question would be if we investors can do better than
stock market index fund of 10.5%? A lot of people believe they
can. But, the path ahead is full of obstacles. First, you need
to get educated about stocks in general and how to calculate the
fair value of a common stock. Next, you need to open a brokerage
account to execute your buy and sell order. Finally, you need to
keep abreast of new developments. Business comes and goes.
Industry rises and falls. Examples of industry that used to
dominate are: typewriters, cassette players, sewing machine and
traditional camera. If you don’t read often, you may predict
that certain stock has a high fair value even when the entire
industry is collapsing.

It all comes down to individual investors. Would they want to
learn more and get a few more percentage return each year? Or
would they let someone else manage their money? Me, I prefer to
learn how to manage my own investment. Sure, it is time
consuming. But giving a little bit of your time may give you the
potential to double your retirement money in fifty years. The
potential is rewarding and someday you might even manage someone
else’s money.

Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Smart financial journalists occasionally rat out fund managers for not educating the public in this regard. When this happens the mutual fund managers make a feeble attempt at self defense by pointing to something called the 5% rule.

This rule says that for a fund to market itself as diversified it cannot have more than 5% of 75% of the funds total assets in a single stock. In other words, a fund can have 25% of its holdings in a single stock, but the remaining 75% must follow the 5% rule. The 5% rule was created by the Investment Company Act Requirement. Fund managers claim that this hampers their performance instead of admitting that they are in the business just to clip you for high fees while the mutual fund under-performs the general market.

The truth is that the big killer is the herd mentality of active fund managers. They follow each other around buying and selling the same junk. They flock to the same familiar companies and often overlook the new, obscure companies that show great promise. They take great comfort in knowing that, even if their fund misses out on a great opportunity, most of the others in its group will too. They also know that they can pull their huge fees out during the whole time your retirement savings are parked in their fund. Over the years they spend a lot of marketing money to make you think that they actually care.

That is certainly not the attitude I want the manager of my retirement to have! You should be asking your self why the mutual funds don’t just mimic the same portfolio stock composition as a major index like the S&P 500 stock market index. Well, some have and those that are indexed out perform actively managed funds at the minimum management cost. For this reason I strongly recommend that if you can only buy mutual funds as in the case of the 401(k) then restrict your purchases to indexed funds like the Vanguard 500 (VFINX).

ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., a.k.a. “The Wallet Doctor”, is a successful futures trader, real estate investor, and stock investor. Dr. Brown holds a Ph.D. in finance from the University of South Carolina. His 1998 articles in Technical Analysis of Stocks and Commodities were prophetic in predicting an impending stock market crash. He has helped many people become profitable investors by teaching them to look out over many years to spot stocks that are low and primed for rise in the new bull market. His second article met with approval by Dr. Bob Shiller of Yale University. Dr. Shiller is the economist that Alan Greenspan most highly regards who coined the term “Irrational Exuberance.” In 1998 he shouted to the world to “get out” of the stock market but now he is shouting to everyone that it is time to “get in!” The Wallet Doctor is not only sought after for investment advice and coaching in stock investing but also in futures trading and real estate investing. Visit Dr. Brown’s site at http://www.BonanzaBase.com or sign up for his investment tips at http://www.WalletDoctor.com

Today’s society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other “-aholics”. What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.

As approximately 50% of U.S. households directly or indirectly invest in the stock market, it is likely that there already exists a goodly number of undiagnosed stockaholics.

Are you a stockaholic?

To find out if you are a stockaholic answer Yes or No to the 10 short questions below …

1. do you check your stocks every day?

2. are you depressed on weekends, because the market is not open?

3. do you hate to go away on vacation because you will be out of touch with the market?

4. do you subscribe to more than 3 financial publications?

5. do you dream about stocks?

6. do you daydream about making a killing in the stock market?

7. do you think your stock broker is your best friend?

8. have you tried different stock market strategies, only to find out they didn’t work?

9. do you wish you could consistently beat the market?

10. do you wish you could make more money in the stock market?

If you answered yes to all or most of the questions you are a stockaholic … or a very good investor. If stocks are interfering with your ability to enjoy life … or if you are not making enough money in the stock market … get help.

Alan Korber is a stockaholic and a very good investor. He is also the creator and publisher of the successful Korber Strategy, a simple easy-to-understand stock market investment strategy that can pinpoint stocks likely to go up 50%-100% in the next 12 months. His website is http://akorber.com

So you want to invest, and you are short on Cash or Credit NOT A PROBLEM…

Investing in PreConstruction Real Estate requires two main ingredients:

1. Ample Cash funds for reservation fees, down payments, closing costs and mortgage payments while marketing the property for the exit sale.

2. Ample Credit to qualify for a mortgage loan. (a minimum credit FICO score of 700 is required to participate)

Fortunately, one can still participate in PreConstruction Investment opportunities, even if they only possess Cash or Credit, but not both. No problem. One can partner-up to fulfill the missing piece of the success puzzle. Then once the profits are actually realized they are spilt up accordingly. This is a win-win proposition for both the novice and seasoned professional investor. This type of arrangement is quite logical for someone looking for above average returns on their investment dollars, leverage or limiting their risk exposure.

How does this work? For example, lets say a deal requires $20,000 in reservation fees, deposits, miscellaneous expenses and a loan. Investor #1 puts up $20,000 and investor #2 gets the mortgage loan using their credit. Then once the investment property is sold, the net profits are split according to the agreement made.

For those individuals seeking partners simply register with us using the form below. Perhaps we can assist.

Doug Lasley (Broker-Associate) BuyVacationCondos - LANDDepo
407-876-5771

info@BuyVacationCondos.com

http://www.buyvacationcondos.com

The financial markets provide us with the opportunity to grow in ways that most people probably do not even think about. We all know of the gains in wealth to be had buying and selling stock, bonds, commodities, currencies, and other instruments. One need not look far to find stories about the riches to be had. Successful traders, investors and portfolio managers like George Soros, Peter Lynch, and Warren Buffet have become household names. What is less commonly talked about is the personal development which takes place along the way.

Trading and investing, like any worthwhile pursuits, provide more rewards than just the obvious accomplishments. To paraphrase the old saying, the destination is not always as important as the path taken to get there and the things seen along the way. While it is true that the expansion of one’s portfolio is what ultimately indicates success or failure in the markets, how those gains are achieved can provide outstanding opportunities to learn important lessons about ourselves with far reaching value. These lessons reach across all areas of our lives.

Playing to Your Strengths

We all have our strengths and weaknesses and a kind of structure in which we operate based on the demands on our time, education, experience and an array of other factors. In the markets we need to make assessments about these things to help us decide what to trade, the timeframe in which to operate, and how to make our trading and investing decisions. Why? Because it is unlikely that we will achieve our objectives if we do not honestly judge ourselves and how best we can operate. For example, I am unlikely to be a good day trader if I cannot dedicate my days to watching the markets for long stretches and frequently buying and selling. I must either choose another course or alter my schedule to accommodate the demands of being a day trader.

It is the same in the rest of life. We must constantly consider our personal inventory and life situation. They dictate what we can do and how we can do it. That said, these are not static things. Just as I noted above that I could alter my schedule to allow for day trading, so too can we change things to expand our options. Education, in all its forms, is part of that equation. So too is seeking out new experiences, meeting new people, and even consciously changing our attitude toward things. If a goal is important enough, there are things we can do to make achieving it possible. Part of that is knowing what we have to work with and how to most efficiently apply it. The other part is knowing how to open up new avenues.

Knowing Who to Listen To

In the markets there is a vast array of information available. It comes in every form imaginable, from data released by the government to commentary by analysts to tips from Uncle Joe. Some of this information is useful to us. Some is not. A great deal of what came out in the aftermath of the stock markets collapsing in 2000 and after was the number of conflicts of interest those who provided “expert” opinions had. These people did not have the interests of those they spoke to about this stock or that at heart, but rather their own and/or their firm’s. Many, many people listened to these pundits to their detriment. Clearly, a hugely important element of successful trading is knowing what information is of value and which sources can be trusted, and what should be taken with a grain of salt.

The same holds true in all other areas of our life. All of us are constantly provided with information and advice. Some is solicited. Much is not. Before we can decide whether to make use of it all we must be able to assess the veracity of the source. Some people are trustworthy and wise. We can depend on what they say. Others do not have our best interests in mind. We must carefully consider what they say and the motivations behind it, before deciding whether it is worthwhile or should be ignored all together. Being able to effectively judge the input we receive from sources such as our family, friends, and peers is a priceless skill.

Being Disciplined

Success in the markets is achieved by doing what we know is the right thing to do. The single biggest reason people fail to consistently produce the returns they seek is that they fail to maintain a disciplined approach. Sound familiar? It is the same as anything else we do. Want to lose weight? You must be disciplined about diet and exercise. Want to learn how to play guitar? You must exercise the discipline required to practice the hours required to attain the skill.

Understanding Why You Fail, Knowing How to Succeed

Perhaps the single greatest thing about trading and investing in a meaningful fashion is that it provides a fantastic opportunity to see what you do which causes you to fail and what leads to success. The conscientious trader/investor has a plan and thereby a way to make evaluations. Whether things go to plan and profits accrue, or they do not go well, he or she knows why and what needs to be done going forward.

Achievement in life requires that one follow a similar course. No matter the objective or pursuit, we must understand what it takes to succeed and have ways we can judge whether we are doing those things or not. To do otherwise is to act in a random fashion, never sure if we are doing what is right and necessary.

These are just some of the valuable life lessons that trading and investing can provide. There are plenty more as worthwhile, to go along with the more commonly thought of value in understanding how the markets can be used to improve your financial well-being. And these lessons need not come at great expense either since modern trading and investing can be done with very small amounts of money - even none at all in the case of demo accounts. All the more reason to make the markets a source of both financial and personal growth.

John Forman is a near 20-year veteran of analyzing and trading the financial markets. He has professional and personal experience in a wide array of instruments and markets, and has written literally dozens of articles on trading methods and analytic techniques. His book The Essentials of Trading (Wiley), is based on this experience and his work teaching trading to students in the classroom.