The lowest priced sort of life cover has always been term life insurance, at least from the time when it came on the marketplace in the 1970s. However even though the insurance itself is the lowest priced life insurance you are able to buy, there are a few ways to decrease costs and obtain insurance covers that are even less pricey. Here is how to obtain reasonably priced term life insurance.
Not all policies are produced equal, and not all agencies advertise the identical type of assurance, even though there is one key concept when it comes to term life: you purchase the plan for an agreed term, and this time period will help determine your month to month payments. Insurance plans may be obtained in steps of 5 years and they usually start off at 5 years then go up to 40 years.
Term plans are straightforward to work out, for the most part. You acquire a policy for an amount, and your loved ones obtain that sum should you pass away during the term the plan is in effect.
The fundamental cover is comparatively low-priced, nevertheless sometimes a service provider may include things you do not need or want and for that reason should not need to pay for. Ahead of signing off on your new insurance (you will need to sign your name to say you are agreeing the terms & conditions in the policy) make sure you understand what you are paying out for and what you are protected for. If you see things that include costs, ask to have them deleted before you undertake it in writing. You are searching for points like double indemnity payments which means if you die in a mishap, the face value of your policy doubles, or every now and then triples, and this is the total given to your loved ones. Needless to say, your premiums increase to reflect this payment as well.
Added features contain benefits for suicide or acts of conflict. A lot of providers will let you add these for not surprisingly, a higher premium, and a few companies simply routinely add them, and charge you accordingly. Peruse through your statement prior to agreeing it. You might be able to save yourself money by explicitly not including these options.
It is often less costly to purchase shorter term insurance policies. Clearly a 10 year plan is going to be lower than a thirty year policy, however dependant upon your age a ten year policy may just end up to be a waste of money. If you buy a 10 year policy at age twenty three, and you have no plans on renewing it at the end of the term, you may wish to reconsider the purchase. In view of the fact that statistically your chances of dying are pretty slim, this cover is likely to be a waste of cash.
Getting insurance plans on the web is a valid option for the reason that they are a lot less expensive. You won't get any actual special consideration however you will not need it. Just be informed of what you are forking out for and what it is the plan covers. Loads of "bargain basement" insurance firms give exactly the same coverage to all who submit an application. So even though they guarantee "cheap", it may well be far more advantageous if you didn't need to pay the higher charges to compensate for some others with health challenges.
These are what are known as "boiler plate policies" as everyone receives exactly the same one. These are the organizations that say, "We don't turn anyone away." Of course, the assurance company is earning money because even though they try to state you are guaranteed to be protected, (i.e. "We don't turn anyone away") to be able to obtain the policy you will be having to pay more than you would with other companies.
Sunday 28 February 2010
Just a few of the benefits of pre-paided insurance
The reason why we all need insurance is simple. It's for our own protection. Some people would say they won't use it anyway, so why pay for something that you wouldn't use? It's going to be a waste of money. Until something unexpected happens that's the time you'd realize that you do need insurance. It's too late. Damage has been done. What's worse is, your out of pocket would be so big that it would ruin your budget more so, might wipe up your entire savings. For that reason alone, you might want to continue reading as to why you would need Prepaid Insurance and what benefits will you get out of it. If you haven't heard of prepaid insurance before, it's very similar to having regular insurance. The main difference, as many would agree is the amount that a member pays to be covered. A prepaid legal insurance service plan provides consumers with some legal services at no cost, some on reduced rates by just paying the monthly premium, membership fee or other add on charges. When you avail of prepaid legal insurance service, you get to have access to a wide range of legal services at set costs. Prepaid legal insurance generally provide free unlimited phone consultations, document or will reviews and reasonable discounts on legal services, written fee agreements and grievance procedures. There are thousands of prepaid legal companies offering several types of plans, which offer different amounts of legal services at adjustable costs, to be able to meet a specific income need. Prepaid legal service insurance is a very good alternative to hiring a lawyer for many people or companies. If we were to avail of this prepaid legal insurance, what do we get out of it? Here are some of the benefits of having prepaid legal insurance. It is cost effective, simple, and pre-empts the law. Because most lawyers' fees except pro-bono are too expensive for most people, prepaid legal insurance service can take the burden out of hiring a lawyer. Lawyers' fees are most of the time too expensive for most people. Your bill can run into thousands of dollars and this is simply not affordable for most common working and middle class families. Having prepaid legal insurance plans, it's similar to paying your health or home insurance. It can start as low as $9 per month and won't exceed the $30 benchmark. There are a lot of fees very complicated to the common ear that lawyers charge. Contingency fees, statutory fees, flat fees and hourly rates make up what the lawyers usually charge you with. You have to get into the sophisticated details on how these fees are computed, like for example, how much is lawyer's commission on contingency fees? How about their regulatory nature? Who regulates the statutory fees and how do you know that these fees are in line with regulatory guidelines? There are other types of fees that can be as confusing as the two mentioned earlier. Lawyers would tend to incorporate all the overheads they incur, like secretary's salaries, parking expenses and other travel fees into their flat and hourly rates. They would also set a minimum number of billing units, like three tenths of an hour or 18 minutes, regardless of how long they will be able to solve your problem. This is just an example of what influences the lawyers as they charge various fees. They also consider different factors and other arrangements that apply. On the other hand, prepaid legal insurance service is much more straightforward and simple. You will sign an agreement to pay a fixed monthly fee or premium and that's it. If the service that you need is not covered under the list of services, just like ordering ala carte from the menu, you get to pay a little extra for that particular service. Provided you will be given a separate billing so that you know exactly how much you will be charged. Prepaid legal insurance service offers unlimited phone consultation and advice. The purpose of this service is to save you money, time and trouble in the future. Most legal problems that you face daily can be solved if you take the right steps in line with the law. With the sound advice and consultation with your lawyer, you can expose legal blunders before they even occur and would minimize the risk of court prosecution or proceedings. There's some companies offer prepaid legal insurance as part of their fringe benefits to their employees. This is called pre-paid group insurance. It is a low cost service and easily administered and has a high perceived value for the employees. The first benefit employers will expect from prepaid legal insurance plans is efficiency and increase in production. Most employees today are interested in a variety of benefits to balance their work with their lifestyle. Given that most American household had issues with the law might have led them to hire a lawyer, then it's only normal that a legal benefit would increase the employees' morale and work efficiency. Because of this benefit, employers can retain the best employees and hire better ones. In these times, most employment candidates base their career choices on the set of benefit package provided by the employers. Cost containment is also considered as a benefit. With less time and money to be used for personal matters, the company expects to make significant savings on administrative costs. On a nutshell, having prepaid legal insurance plans look like an excellent solution to face the majority of your company's legal concerns.
Wedding insurance is it a waste of money ?
Sometimes it seems that wedding insurance is just another way the insurance industry has worked out how to extract more money from us. With car insurance, health insurance, home insurance, travel insurance and strawberry jam insurance, there seems little left to insure.
Wedding insurance can often seem to be something of a waste of money, and since weddings are expensive enough already, isn't it just another unnecessary expense that you can easily skip? After all, it's not as though you're driving a car on a motorway with millions of other people, or entrusting your home to the elements and would be thieves.
A wedding is a happy, glorious occasion, and the people present are your family and friends. They wouldn't let you down, or let anything bad happen. But even if things do go pear shaped, you've still got health insurance and home insurance for your possessions, and you may even have remembered that items such as your rings were purchased on your credit card, meaning that they're protected by your card provider's complimentary insurance policy.
As you consider all of this, and remember that the cost of yet another insurance policy could well be the difference between having an extra guest, or a few extra flowers, or even another few bottles of wine, you may start to lull yourself into a sense of security, and leave it for now.
Over the months your wedding grows and your bank balance shrinks, and perhaps you have a few momentary worries about whether you should have taken out a wedding insurance policy, but you keep leaving it until a little later - there's no hurry after all, the wedding is months away, and you could easily take out a policy anytime you like. Let's see how things go.
Time ticks away, your plans start coming together, your bank balance continues to fall, and you start to think that perhaps you have invested quite a lot in one single occasion, and it all feels a little less certain and a little less safe than it did in the happy days months ago. But with the budget shrinking so rapidly, you need to leave some spending money left for your honeymoon, and some cash just in case.
So you don't take out wedding insurance, and you once again reassure yourself that it will be all right - nothing will go wrong, and even if it does the chances are high that one of your many existing policies will cover you.
Does this all sound either terribly familiar, or terribly like the sort of path you can see yourself taking? If so, it may be best to take a moment and realise a few hard facts, because whether you like it or not, weddings are not merely about love and romance. They're military operations with huge budgets and a very shaky foundation.
You enlist up to a dozen separate companies, caterers suppliers, businesses and the venue, any one of which could let you down by getting things wrong, getting the order wrong, the date, or even going bankrupt or double booking themselves.
Think it won't happen to you? Neither did the 50,000 couples last year who faced just these sorts of situations, every one of which resulted in huge expenses putting things right at the last moment.
Could you afford to replace your wedding cake if it got damaged in transit? Could you replace the rings if they got lost or stolen? Could you pay for the repair to one of the hired suits if it got damaged? Could you quickly find the money to pay for a new limousine or carriage if there was a problem with the one you had originally planned? Could you cope financially if one of the main wedding party members was taken ill and the whole event had to be postponed?
If you're in any doubt at all about even just one of these questions, do yourself a favour and get wedding insurance sorted. Once it's done you can sleep a little easier, and then you only have to worry about the Best Man's speech and remembering your partner's name correctly when it comes to saying the vows.
Wedding insurance can often seem to be something of a waste of money, and since weddings are expensive enough already, isn't it just another unnecessary expense that you can easily skip? After all, it's not as though you're driving a car on a motorway with millions of other people, or entrusting your home to the elements and would be thieves.
A wedding is a happy, glorious occasion, and the people present are your family and friends. They wouldn't let you down, or let anything bad happen. But even if things do go pear shaped, you've still got health insurance and home insurance for your possessions, and you may even have remembered that items such as your rings were purchased on your credit card, meaning that they're protected by your card provider's complimentary insurance policy.
As you consider all of this, and remember that the cost of yet another insurance policy could well be the difference between having an extra guest, or a few extra flowers, or even another few bottles of wine, you may start to lull yourself into a sense of security, and leave it for now.
Over the months your wedding grows and your bank balance shrinks, and perhaps you have a few momentary worries about whether you should have taken out a wedding insurance policy, but you keep leaving it until a little later - there's no hurry after all, the wedding is months away, and you could easily take out a policy anytime you like. Let's see how things go.
Time ticks away, your plans start coming together, your bank balance continues to fall, and you start to think that perhaps you have invested quite a lot in one single occasion, and it all feels a little less certain and a little less safe than it did in the happy days months ago. But with the budget shrinking so rapidly, you need to leave some spending money left for your honeymoon, and some cash just in case.
So you don't take out wedding insurance, and you once again reassure yourself that it will be all right - nothing will go wrong, and even if it does the chances are high that one of your many existing policies will cover you.
Does this all sound either terribly familiar, or terribly like the sort of path you can see yourself taking? If so, it may be best to take a moment and realise a few hard facts, because whether you like it or not, weddings are not merely about love and romance. They're military operations with huge budgets and a very shaky foundation.
You enlist up to a dozen separate companies, caterers suppliers, businesses and the venue, any one of which could let you down by getting things wrong, getting the order wrong, the date, or even going bankrupt or double booking themselves.
Think it won't happen to you? Neither did the 50,000 couples last year who faced just these sorts of situations, every one of which resulted in huge expenses putting things right at the last moment.
Could you afford to replace your wedding cake if it got damaged in transit? Could you replace the rings if they got lost or stolen? Could you pay for the repair to one of the hired suits if it got damaged? Could you quickly find the money to pay for a new limousine or carriage if there was a problem with the one you had originally planned? Could you cope financially if one of the main wedding party members was taken ill and the whole event had to be postponed?
If you're in any doubt at all about even just one of these questions, do yourself a favour and get wedding insurance sorted. Once it's done you can sleep a little easier, and then you only have to worry about the Best Man's speech and remembering your partner's name correctly when it comes to saying the vows.
Great reasons to get into the market now !
Time to Slaughter the Herd
I've had it up to here and I'm not going to take it anymore. The doom-and-gloom crowd has been bashing this market and economy for more than three years now. They are just as loud today as there were in 2008 - and yet 2009 will go down in the record books as one of the best years ever.
Many sectors were on fire: nonferrous metals were up 160%, the much maligned coal sector was up 129.1%, and precious metals were up 100%.
Heck, I recommended four triple-digit junior miners alone!
In the past month and a half, I've recommended one Mongolian oil stock that is up 67% and climbing, and another biotech that jumped more than 250%.
Smart investors don't ask me what they should stay away from... They ask me where they can find the most money, which sectors will give them the highest alpha.
Today, I'm giving my readers five reasons to be bullish...
Wall of Whining
The truth is that the market climbs a wall of worry. The more haters there are out there, the greater the possibility that the market will go up. And right now, economists and other market-watchers are griping about sovereign debt, housing, and unemployment, among other ills...
At the end of the day, economists are wrong more often than they are right. That's why they call it the dismal science. Stock markets are a psychological beast, not an academic exercise.
That's why I love rampant pessimism. It provides fantastic buying opportunities for those who know where to look.
So, in the spirit of American optimism, I give you five reasons to be bullish:
1. Insiders are buying.
According to those who track insider buying activity, when corporate insiders buy, the market goes up; when they sell, it goes down. This makes sense. Think about it: Who knows more about a company than those who are running it?
Corporate bigwigs like CEOs and CFOs - as well as those that own more than 10% of a company's shares - must file buys and sells with the Security and Exchange Commission. And these players are pretty good at calling the bottom.
Data compiled by Insiderscore.com shows "Insider buying at companies in the small-cap Russell 2000 index (RUT) was at its strongest in the seven-day period ending Feb. 9 since the end of March 2009, shortly after markets hit a 12-year low."
Furthermore, "Corporate executives sold stock for much of last year as the S&P 500 index (SPX) rallied more than 67 percent from its lows. But now, with the Russell 2000 falling almost 10 percent in three weeks since hitting a 15-month closing high on Jan. 19, insiders at smaller companies are scooping up shares."
History has proven that small cap stocks tend to lead the market both into and out of bear markets. And the venerable Economist backs the data: "Buying in Russell 2000 companies is outstripping selling for only the third time since the end of the second quarter of last year."
2. Stimulus spending will arrive.
Forty percent of the now $862 billion package passed last year is set to be spent in 2010. Robert J. Barro over at the Wall Street Journal ran some numbers, and he believes that the additional government spending added 0.8% to GDP in 2009. You may remember that fourth quarter GDP growth came in at 5.7% - a fat number to be sure.
Mr. Barrio also believes that the spending will add 1.2% to GDP in 2010. I will grant you that the stimulus will be bad long term - as it takes power from the innovative private sector and gives it to the government - but over the short term, specifically 2010, it will be good for stocks.
One sector that will benefit is infrastructure. As much as the media hyped "shovel-ready" projects last year, we all know that the bureaucrats don't work that way. There are processes and impact studies that must be accomplished.
This year will be the year of big road and bridge projects. Add this to the pending Jobs for Main Street Act, and you will have a boom in bridges, roads, light-rail, Amtrak trains, and fuel-efficient vehicle for government fleets.
"Our research shows most of the funds have not left Washington, although they will in 2010. This year we are tracking 23,500 new projects in the pipeline, and there is $76 billion in stimulus funding that will reach contractors on these projects this year, creating 480,000 jobs in the construction industry. Indirect jobs lift the total to 900,000 in 2010," says Onvia, a contracting consultant.
The report goes on to say that the highway construction market will grow by 8%-10% in 2010. Companies like Caterpillar (NYSE: CAT), Granite Construction (NYSE: GVA), and Astec Industries (NASDAQ: ASTE) should benefit.
As an aside, you might want to wait a month or so, as all of these companies missed their earnings projections. Government spending always takes longer than you think. That said, there will be a buying opportunity as the cash flows in over the next three quarters.
3. It's all about the Benjamins.
At the end of the day, stocks are driven by earnings. And we have them.
4. Bullish technicals.
As I stated above, the small caps tend to lead the market. As you can see from the chart, the tri-directional indicator is just starting to slant upward in a parallel. This is bullish. The MACD crossed over below the center line - again, a bullish signal. The Stochastics show we may sell off for a few days, but you can't have it all...
That said, all major, U.S. Indexes are above their 200-day moving average and are hitting higher lows, if not yet finding new highs. You can make the argument that the SP500 broke its short-term up-trend, but it also broke its three-year down-trend.
5. NY Fed model says no double dip.
Over the past two years, money had been sitting on the sidelines in bond funds. According to the Investment Company Institute, "U.S. equity funds suffered about $46 billion of outflows from August to December 2009 while bond funds took in about $198 billion."
This suggests that retail investors are playing it safe - a bullish indicator suggesting there is money ready to return to equities.
In fact the money in bonds has increased the spread between 10-year and 3-month T-bill to 3.67%, the highest since May of 2004.
NY Fed Model
The New York Federal Reserve uses this to forecast its "Probability of U.S. Recession Predicted by Treasury Spread."
The Fed's model "shows that the recession probability peaked during the October 2007 to April 2008 period at around 35%-40%, and has been declining since then in almost every month. For January 2010, the recession probability is only 0.82% (less than 1%) and by a year from now in January 2011 the recession probability is only .043%, the lowest reading in more than 26 years (since September 1983)."
A spread above 3% is consistent with economic recoveries, as proven in the last two recessions. As you can see by the chart below, there is zero chance of a double-dip recession in 2010 or 2011.*
The bottom line is that it's much easier to make a bearish argument than it is to make a bullish one. Human nature is such that it seeks to play things safe.
That said, every successful person I've ever met was an optimist. The time to buy is when pessimism it at its highest. The time to sell is when everyone is bullish.
Now is the time to buy.
Sincerely,
Christian DeHaemer
Editor, Wealth Daily and Crisis & Opportunity
This article was originally found here: 5 Reasons to Invest in the Stock Market
I've had it up to here and I'm not going to take it anymore. The doom-and-gloom crowd has been bashing this market and economy for more than three years now. They are just as loud today as there were in 2008 - and yet 2009 will go down in the record books as one of the best years ever.
Many sectors were on fire: nonferrous metals were up 160%, the much maligned coal sector was up 129.1%, and precious metals were up 100%.
Heck, I recommended four triple-digit junior miners alone!
In the past month and a half, I've recommended one Mongolian oil stock that is up 67% and climbing, and another biotech that jumped more than 250%.
Smart investors don't ask me what they should stay away from... They ask me where they can find the most money, which sectors will give them the highest alpha.
Today, I'm giving my readers five reasons to be bullish...
Wall of Whining
The truth is that the market climbs a wall of worry. The more haters there are out there, the greater the possibility that the market will go up. And right now, economists and other market-watchers are griping about sovereign debt, housing, and unemployment, among other ills...
At the end of the day, economists are wrong more often than they are right. That's why they call it the dismal science. Stock markets are a psychological beast, not an academic exercise.
That's why I love rampant pessimism. It provides fantastic buying opportunities for those who know where to look.
So, in the spirit of American optimism, I give you five reasons to be bullish:
1. Insiders are buying.
According to those who track insider buying activity, when corporate insiders buy, the market goes up; when they sell, it goes down. This makes sense. Think about it: Who knows more about a company than those who are running it?
Corporate bigwigs like CEOs and CFOs - as well as those that own more than 10% of a company's shares - must file buys and sells with the Security and Exchange Commission. And these players are pretty good at calling the bottom.
Data compiled by Insiderscore.com shows "Insider buying at companies in the small-cap Russell 2000 index (RUT) was at its strongest in the seven-day period ending Feb. 9 since the end of March 2009, shortly after markets hit a 12-year low."
Furthermore, "Corporate executives sold stock for much of last year as the S&P 500 index (SPX) rallied more than 67 percent from its lows. But now, with the Russell 2000 falling almost 10 percent in three weeks since hitting a 15-month closing high on Jan. 19, insiders at smaller companies are scooping up shares."
History has proven that small cap stocks tend to lead the market both into and out of bear markets. And the venerable Economist backs the data: "Buying in Russell 2000 companies is outstripping selling for only the third time since the end of the second quarter of last year."
2. Stimulus spending will arrive.
Forty percent of the now $862 billion package passed last year is set to be spent in 2010. Robert J. Barro over at the Wall Street Journal ran some numbers, and he believes that the additional government spending added 0.8% to GDP in 2009. You may remember that fourth quarter GDP growth came in at 5.7% - a fat number to be sure.
Mr. Barrio also believes that the spending will add 1.2% to GDP in 2010. I will grant you that the stimulus will be bad long term - as it takes power from the innovative private sector and gives it to the government - but over the short term, specifically 2010, it will be good for stocks.
One sector that will benefit is infrastructure. As much as the media hyped "shovel-ready" projects last year, we all know that the bureaucrats don't work that way. There are processes and impact studies that must be accomplished.
This year will be the year of big road and bridge projects. Add this to the pending Jobs for Main Street Act, and you will have a boom in bridges, roads, light-rail, Amtrak trains, and fuel-efficient vehicle for government fleets.
"Our research shows most of the funds have not left Washington, although they will in 2010. This year we are tracking 23,500 new projects in the pipeline, and there is $76 billion in stimulus funding that will reach contractors on these projects this year, creating 480,000 jobs in the construction industry. Indirect jobs lift the total to 900,000 in 2010," says Onvia, a contracting consultant.
The report goes on to say that the highway construction market will grow by 8%-10% in 2010. Companies like Caterpillar (NYSE: CAT), Granite Construction (NYSE: GVA), and Astec Industries (NASDAQ: ASTE) should benefit.
As an aside, you might want to wait a month or so, as all of these companies missed their earnings projections. Government spending always takes longer than you think. That said, there will be a buying opportunity as the cash flows in over the next three quarters.
3. It's all about the Benjamins.
At the end of the day, stocks are driven by earnings. And we have them.
4. Bullish technicals.
As I stated above, the small caps tend to lead the market. As you can see from the chart, the tri-directional indicator is just starting to slant upward in a parallel. This is bullish. The MACD crossed over below the center line - again, a bullish signal. The Stochastics show we may sell off for a few days, but you can't have it all...
That said, all major, U.S. Indexes are above their 200-day moving average and are hitting higher lows, if not yet finding new highs. You can make the argument that the SP500 broke its short-term up-trend, but it also broke its three-year down-trend.
5. NY Fed model says no double dip.
Over the past two years, money had been sitting on the sidelines in bond funds. According to the Investment Company Institute, "U.S. equity funds suffered about $46 billion of outflows from August to December 2009 while bond funds took in about $198 billion."
This suggests that retail investors are playing it safe - a bullish indicator suggesting there is money ready to return to equities.
In fact the money in bonds has increased the spread between 10-year and 3-month T-bill to 3.67%, the highest since May of 2004.
NY Fed Model
The New York Federal Reserve uses this to forecast its "Probability of U.S. Recession Predicted by Treasury Spread."
The Fed's model "shows that the recession probability peaked during the October 2007 to April 2008 period at around 35%-40%, and has been declining since then in almost every month. For January 2010, the recession probability is only 0.82% (less than 1%) and by a year from now in January 2011 the recession probability is only .043%, the lowest reading in more than 26 years (since September 1983)."
A spread above 3% is consistent with economic recoveries, as proven in the last two recessions. As you can see by the chart below, there is zero chance of a double-dip recession in 2010 or 2011.*
The bottom line is that it's much easier to make a bearish argument than it is to make a bullish one. Human nature is such that it seeks to play things safe.
That said, every successful person I've ever met was an optimist. The time to buy is when pessimism it at its highest. The time to sell is when everyone is bullish.
Now is the time to buy.
Sincerely,
Christian DeHaemer
Editor, Wealth Daily and Crisis & Opportunity
This article was originally found here: 5 Reasons to Invest in the Stock Market
Solar power from Germany is it any good ?
The World's Solar Panel Leader is Transforming
On July 1, the training wheels will come off Germany's world-leading solar panel industry. Will investors stay for the ride?
The feed-in tariff (FIT) that the biggest economy in Europe has used to stimulate its domestic photovoltaic (PV) market for the past decade is about to be cut by double digits. That move is partly a response to complaints from some constituents and conservative politicians, but Chancellor Angela Merkel and her center-right Bundestag (German parliament) colleagues hope to maintain market dominance despite the changes.
Here's how the drafted FIT shift breaks down:
* Rooftop solar PV installations will see a subsidy cut of 16%.
* Ground-based modules installed in yards and other open, non-arable patches of land will be 15% less funded by the changed FIT.
* PV projects at dumps and old army bases, which along with contaminated industrial plots are called "brownfields," are set for an 11% cut.
The most dramatic shift we can expect in the second half of 2010 is a complete elimination of incentives for large solar panel arrays on arable land. State news agency Deutsche Welle reports that farmers have been crying foul about investors snapping up fertile tracts to "harvest the sunshine." MP Peter Altmaier, a leader of Angela Merkel's own Christian Democratic Union party, insists, "There must be no more panels installed on arable land."
Aside from that apparent inclination toward a total prohibition, the expected FIT changes for H2 are just that - expected.
Don't Believe the FIT Hype
Though the catchier headline may be to say that Germany's government is yanking the rug out from under its homegrown clean energy champion, the entire point of a feed-in tariff program is to phase the industry to grid parity with its fossil-fuel counterparts.
Coal and natural-gas fired power plants generate electricity for about 20 euro cents per kilowatt-hour. Under the FIT - which is set up to pay a premium for energy generated by photovoltaic panels (the same system can be applied to other sources) - Germany has already gone from a whopping 57 euro cents (c) per kWh in 2004 down to 39c now.
It's all part of a process initiated back in 2000, when the Bundestag passed its Renewable Energy Act. "Cleantech" hadn't dawned yet, and oil was far from record highs it reached later in the decade.
So Germany was ahead of its time and has reaped the benefits of a steroid-injected clean energy economy. Berlin's goal was always to wean producers and installers off the government juice, and that's what we're seeing now.
The come-down hasn't caused the German solar industry to fall flat on its face. Rather, companies like Q-Cells - whose facilities I toured in summer 2008 - are staying on their toes.
The FIT plan will be taken up again on Friday, at which point investors will have a more certain basis for what to do with their money. In the meantime, shares of Q-Cells (Frankfurt: QCE) rose on Tuesday, February 23, a day after draft FIT changes leaked.
Q-Cells investors turned bullish after the company announced that at the end of 2009, its cash position was nearly 65% better than they anticipated.
That stockpile leads me to believe that German solar companies are padding themselves for a blow. Their dominance as producers is due to the size of the market that was created by government mandates, not the other way around.
For installers at all levels - household, commercial, and large-scale "solar farm" developers - now is the time to get capacity in place.
Q-Cells says it's sold out of panels for the first half of 2010, and analyst reports I see every day from solar power suppliers around the world (especially China) indicate that nearly all shipments are being directed to Germany to feed the frenzy. That shift in focus for the first half of 2010 is going to be one of many in the full year and years to come.
German FIT Changes Spread Far and Wide
It costs about 1 billion euros per month to subsidize new solar schemes, and relief for rate-payers must be part of the political calculation going into the finalized FIT cuts. However, the government maintains its target for 66 GW of solar power capacity by 2030 - up from 9 GW today.
Gordon Johnson of Hapoalim Securities thinks the less-than 3 GW per year growth that the 2030 target implies could set solar stock buyers up for a fall, since analysts have based estimates on higher annual increases.
The fact of the matter is that even German companies aren't putting their eggs in one basket these days. If anything, the government has done German solar panel producers the favor of forcing diversification.
The Desertec initiative to get 15% of Europe's electricity from North Africa by 2050 is being led by ten German companies, and in mid-February, Desertec CEO Paul van Son contrasted that undertaking with Germany's rural unrest over solar.
"There's a vast amount of sunshine" in North African countries like Morocco, Tunisia, and Algeria, points out van Son, "and there are vast amounts of space."
Germany is big, but of course it's much more fertile than the Sahara, and no one will tell you it's sunny.
On the other hand, Italy is making long strides toward grid parity between its solar capacity and fossil-fuel plants by virtue of its Mediterranean climate. Look for that country to draw some of the salespeople out of Germany after July.
The point is that international solar power companies - from polysilicon providers up to module makers -all have their heads on a swivel right now. Average sales price (ASP) will be a concern as any national subsidy cut directly affects the money being pumped in from the top.
Long-term solar power bulls are in a good position here, as some stocks and funds like the Claymore/MAC Global Solar Index ETF (NYSE: TAN) appear oversold.
The Williams Percentage Range indicator gives a heavily oversold reading, and TAN is breaking below its lower Bollinger Band. You can see that the last time W%R was at this level, we didn't see a recovery... but reports about the German FIT were coming in unfiltered flurries at that time.
Now, we have more information, and it's reasonable for investors to look ahead at how companies will adjust to new subsidy conditions, rather than just freaking out and running for the exits.
I'll get back to you with even more complete information next week after the Bundestag session takes the FIT changes from rumor to reality.
Regards,
Sam Hopkins
International Editor
This article was originally found here: Change Coming to German Solar Industry
On July 1, the training wheels will come off Germany's world-leading solar panel industry. Will investors stay for the ride?
The feed-in tariff (FIT) that the biggest economy in Europe has used to stimulate its domestic photovoltaic (PV) market for the past decade is about to be cut by double digits. That move is partly a response to complaints from some constituents and conservative politicians, but Chancellor Angela Merkel and her center-right Bundestag (German parliament) colleagues hope to maintain market dominance despite the changes.
Here's how the drafted FIT shift breaks down:
* Rooftop solar PV installations will see a subsidy cut of 16%.
* Ground-based modules installed in yards and other open, non-arable patches of land will be 15% less funded by the changed FIT.
* PV projects at dumps and old army bases, which along with contaminated industrial plots are called "brownfields," are set for an 11% cut.
The most dramatic shift we can expect in the second half of 2010 is a complete elimination of incentives for large solar panel arrays on arable land. State news agency Deutsche Welle reports that farmers have been crying foul about investors snapping up fertile tracts to "harvest the sunshine." MP Peter Altmaier, a leader of Angela Merkel's own Christian Democratic Union party, insists, "There must be no more panels installed on arable land."
Aside from that apparent inclination toward a total prohibition, the expected FIT changes for H2 are just that - expected.
Don't Believe the FIT Hype
Though the catchier headline may be to say that Germany's government is yanking the rug out from under its homegrown clean energy champion, the entire point of a feed-in tariff program is to phase the industry to grid parity with its fossil-fuel counterparts.
Coal and natural-gas fired power plants generate electricity for about 20 euro cents per kilowatt-hour. Under the FIT - which is set up to pay a premium for energy generated by photovoltaic panels (the same system can be applied to other sources) - Germany has already gone from a whopping 57 euro cents (c) per kWh in 2004 down to 39c now.
It's all part of a process initiated back in 2000, when the Bundestag passed its Renewable Energy Act. "Cleantech" hadn't dawned yet, and oil was far from record highs it reached later in the decade.
So Germany was ahead of its time and has reaped the benefits of a steroid-injected clean energy economy. Berlin's goal was always to wean producers and installers off the government juice, and that's what we're seeing now.
The come-down hasn't caused the German solar industry to fall flat on its face. Rather, companies like Q-Cells - whose facilities I toured in summer 2008 - are staying on their toes.
The FIT plan will be taken up again on Friday, at which point investors will have a more certain basis for what to do with their money. In the meantime, shares of Q-Cells (Frankfurt: QCE) rose on Tuesday, February 23, a day after draft FIT changes leaked.
Q-Cells investors turned bullish after the company announced that at the end of 2009, its cash position was nearly 65% better than they anticipated.
That stockpile leads me to believe that German solar companies are padding themselves for a blow. Their dominance as producers is due to the size of the market that was created by government mandates, not the other way around.
For installers at all levels - household, commercial, and large-scale "solar farm" developers - now is the time to get capacity in place.
Q-Cells says it's sold out of panels for the first half of 2010, and analyst reports I see every day from solar power suppliers around the world (especially China) indicate that nearly all shipments are being directed to Germany to feed the frenzy. That shift in focus for the first half of 2010 is going to be one of many in the full year and years to come.
German FIT Changes Spread Far and Wide
It costs about 1 billion euros per month to subsidize new solar schemes, and relief for rate-payers must be part of the political calculation going into the finalized FIT cuts. However, the government maintains its target for 66 GW of solar power capacity by 2030 - up from 9 GW today.
Gordon Johnson of Hapoalim Securities thinks the less-than 3 GW per year growth that the 2030 target implies could set solar stock buyers up for a fall, since analysts have based estimates on higher annual increases.
The fact of the matter is that even German companies aren't putting their eggs in one basket these days. If anything, the government has done German solar panel producers the favor of forcing diversification.
The Desertec initiative to get 15% of Europe's electricity from North Africa by 2050 is being led by ten German companies, and in mid-February, Desertec CEO Paul van Son contrasted that undertaking with Germany's rural unrest over solar.
"There's a vast amount of sunshine" in North African countries like Morocco, Tunisia, and Algeria, points out van Son, "and there are vast amounts of space."
Germany is big, but of course it's much more fertile than the Sahara, and no one will tell you it's sunny.
On the other hand, Italy is making long strides toward grid parity between its solar capacity and fossil-fuel plants by virtue of its Mediterranean climate. Look for that country to draw some of the salespeople out of Germany after July.
The point is that international solar power companies - from polysilicon providers up to module makers -all have their heads on a swivel right now. Average sales price (ASP) will be a concern as any national subsidy cut directly affects the money being pumped in from the top.
Long-term solar power bulls are in a good position here, as some stocks and funds like the Claymore/MAC Global Solar Index ETF (NYSE: TAN) appear oversold.
The Williams Percentage Range indicator gives a heavily oversold reading, and TAN is breaking below its lower Bollinger Band. You can see that the last time W%R was at this level, we didn't see a recovery... but reports about the German FIT were coming in unfiltered flurries at that time.
Now, we have more information, and it's reasonable for investors to look ahead at how companies will adjust to new subsidy conditions, rather than just freaking out and running for the exits.
I'll get back to you with even more complete information next week after the Bundestag session takes the FIT changes from rumor to reality.
Regards,
Sam Hopkins
International Editor
This article was originally found here: Change Coming to German Solar Industry
Saturday 27 February 2010
How to make money using facebook
How to make money with Facebook? Is it really possible to make money with facebook? It seems like making money with facebook is on everybody's mind these days. If you are one of those people who want to know how to make money with facebook, here are some ideas to help you get started in making money on facebook.
These methods don't require you to buy anything or pay someone to tell you the "secrets". As a matter of fact you can start making money with your facebook right now without having to spend any money at all. These are no "secrets" for making money on facebook. Simply some very basic methods that people use to make money elsewhere, but with a little work and patience you can apply the same methods to make money on facebook
Of course, like any other method to make money, you need a market for it. In this case the market would be facebook friends. The more facebook friends you have, the more chance you have of making (more)money. What if you don't have much facebook friends?...Fortunately it's very easy to create a massive market (friends for facebook) simply by searching and inviting others to be your friend. But, if you want to take it to the next level and automate the finding and adding friends process, there are some software that can do just that.
Ok, lets get to the point and see how you can make money on facebook. Here are some proven ways you can use to make money on facebook.
Showing ads on Facebook With all the facebook applications that make it easy and a snap to start showing ads on your facebook, there is no excuse for not taking advantage of this method, specially if you are popular amongst your facebook friends, and have a big audience to show your ads to. Using adsense, chitika and other PPC advertising companies you can easily setup your ads and customize it to your liking. Make sure to set it somehow that it serves ads related to product and services that you know your facebook audience is interested in.
Writing a Facebook book (How To...) Facebook is attracting more and more members everyday. And lets face it, not all of these people are facebook savvy. And even though getting started with facebook for you and I might be simple and quick, many people have problem with the basic things. Write a small and to the point e-book about facebook and how to use it. Maybe a simple step by step instruction for getting started with facebook. Or an e-book about how to use different application to make facebook experience a better one. There are many possibilities. With the huge amount of facebook apps and all the new ones that are added daily, this can be quite big. You don't even have to pay to promote your e-book, simply use your own facebook or better yet create one for your e-book and start promoting it.
Affiliate marketing on Facebook It's the same idea as showing ads, but in a more direct way. Register for free with affiliate networking sites such as clickbank, Maxbounty and etc, and pick a product relevant to your facebook audience interest to promote. You will be provided a simple code which is a link with your affiliate id embedded in it. Whenever someone clicks on that link and buys the product or service, you make money by getting a commission.
You can create an entirely new facebook for that product and start promoting it there. A friend of mine is actually doing it for 4/5 different weight loss product. He created a facebook page for each product and started adding friends to his facebook. He writes short posts about the product and posts it on his facebook with his affiliate link in it. Hi is making a couple of hundred dollars a month doing this. I know it's not much, but for something that doesn't cost you a dime and takes about 30 minuets to setup, and takes about 20 minutes or so a day to run, I don't think it's a bad deal.
Blogging about Facebook There are already some people doing it. But there is always room for new voices. Get a free blog over at blogger and use Google adsense (which is already integrated in blogger, so even if you don't know how to show ads on your blog, you can set it up with couple clicks) to show ads on your blog and make money that way. When you established yourself as an authority and a trusted person for anything related to facebook, you can get some sponsor and maybe use affiliate networking sites to find and promote facebook related product.
Create and sell a Facebook application If you are savvy enough and know your way around, why not use your skills to make a facebook app of your own and sell it to facebook users? Again, once you made it, you can use the same strategies mentioned above (blog or a facebook page for the app) to promote your app.
There you have it, 5 ideas you can use to make money not only on facebook, but you can also apply the same ideas to Myspace, Twitter and other social networking platforms to make money. If you know of any other ways to make money with facebook, please use the comment box below to share it with us.
About the Author
Satrap is the founder and author of controversial blog, blogstash.com. A blog full of great how-tos and information about making money online. Visit blogstash today to get your share of this valuable information and learn some easy ways to make money online.
These methods don't require you to buy anything or pay someone to tell you the "secrets". As a matter of fact you can start making money with your facebook right now without having to spend any money at all. These are no "secrets" for making money on facebook. Simply some very basic methods that people use to make money elsewhere, but with a little work and patience you can apply the same methods to make money on facebook
Of course, like any other method to make money, you need a market for it. In this case the market would be facebook friends. The more facebook friends you have, the more chance you have of making (more)money. What if you don't have much facebook friends?...Fortunately it's very easy to create a massive market (friends for facebook) simply by searching and inviting others to be your friend. But, if you want to take it to the next level and automate the finding and adding friends process, there are some software that can do just that.
Ok, lets get to the point and see how you can make money on facebook. Here are some proven ways you can use to make money on facebook.
Showing ads on Facebook With all the facebook applications that make it easy and a snap to start showing ads on your facebook, there is no excuse for not taking advantage of this method, specially if you are popular amongst your facebook friends, and have a big audience to show your ads to. Using adsense, chitika and other PPC advertising companies you can easily setup your ads and customize it to your liking. Make sure to set it somehow that it serves ads related to product and services that you know your facebook audience is interested in.
Writing a Facebook book (How To...) Facebook is attracting more and more members everyday. And lets face it, not all of these people are facebook savvy. And even though getting started with facebook for you and I might be simple and quick, many people have problem with the basic things. Write a small and to the point e-book about facebook and how to use it. Maybe a simple step by step instruction for getting started with facebook. Or an e-book about how to use different application to make facebook experience a better one. There are many possibilities. With the huge amount of facebook apps and all the new ones that are added daily, this can be quite big. You don't even have to pay to promote your e-book, simply use your own facebook or better yet create one for your e-book and start promoting it.
Affiliate marketing on Facebook It's the same idea as showing ads, but in a more direct way. Register for free with affiliate networking sites such as clickbank, Maxbounty and etc, and pick a product relevant to your facebook audience interest to promote. You will be provided a simple code which is a link with your affiliate id embedded in it. Whenever someone clicks on that link and buys the product or service, you make money by getting a commission.
You can create an entirely new facebook for that product and start promoting it there. A friend of mine is actually doing it for 4/5 different weight loss product. He created a facebook page for each product and started adding friends to his facebook. He writes short posts about the product and posts it on his facebook with his affiliate link in it. Hi is making a couple of hundred dollars a month doing this. I know it's not much, but for something that doesn't cost you a dime and takes about 30 minuets to setup, and takes about 20 minutes or so a day to run, I don't think it's a bad deal.
Blogging about Facebook There are already some people doing it. But there is always room for new voices. Get a free blog over at blogger and use Google adsense (which is already integrated in blogger, so even if you don't know how to show ads on your blog, you can set it up with couple clicks) to show ads on your blog and make money that way. When you established yourself as an authority and a trusted person for anything related to facebook, you can get some sponsor and maybe use affiliate networking sites to find and promote facebook related product.
Create and sell a Facebook application If you are savvy enough and know your way around, why not use your skills to make a facebook app of your own and sell it to facebook users? Again, once you made it, you can use the same strategies mentioned above (blog or a facebook page for the app) to promote your app.
There you have it, 5 ideas you can use to make money not only on facebook, but you can also apply the same ideas to Myspace, Twitter and other social networking platforms to make money. If you know of any other ways to make money with facebook, please use the comment box below to share it with us.
About the Author
Satrap is the founder and author of controversial blog, blogstash.com. A blog full of great how-tos and information about making money online. Visit blogstash today to get your share of this valuable information and learn some easy ways to make money online.
Interested in small business courses online
At one time or another, we all have probably seen those online business opportunity advertisements on the television, internet, or in print and thought of how nice the opportunity sounded. Then, we fell back to reality and thought that it was too good to be true. A lot of Internet and web business opportunities are scams. However, there are also so many online business opportunities that are legitimate.
For a lot of us, the idea of owning our own web business and working from home sounds perfect. You just need to know which online web business opportunity is a true opportunity and which ones are being advertised by opportunists. Fortunately, there exists a wide range of small business online courses that can guide you on starting an Internet business or a web business.
What to look for in a Web or Online Business Opportunity
Sometimes, it is not always easy to tell whether or not an online business opportunity is legitimate or a scam. However, there are certain things that you can look for in order to help you determine whether the opportunity is a scam or legitimate. Here is a list of positive things to look for:
See if the online business opportunity is credible. For instance, a lot of websites have received seals and other acknowledgments from business websites, magazines, etc. Normally, these are displayed on the website right where you can see them. If you do not automatically see them, scroll to the bottom of the page and see if there are any. If there are, research their acknowledger. This could be a good sign.
Check to see if the business online opportunity is registered with the Better Business Bureau. The Better Business Bureau now has a website and provides a seal to websites. However, just because a web business opportunity is registered does not mean that it does not exist. It still could be legit, but a registration with the Better Business Bureau is a positive sign.
Check to see if the Internet business opportunity offers you any free reading material, a small business online course or instructional DVD. If so, take them up on that opportunity.
See if you can speak to a representative directly over the phone. Have the representative answer any questions or concerns that you may have.
Things to Avoid in an Online Business Opportunity
Now that we have seen a list of positive things to look for in a web business opportunity, let's get started on the list of things to avoid in a business online opportunity:
Avoid unrealistic claims. These can be claims of "getting rich quick", "getting rich overnight", "get rich by working from home with little or no effort" etc.
Do not buy in to testimonials. People tend to believe testimonials, even when they look staged just because it is illegal to have fake testimonials. Do not buy in to testimonials. Fake testimonials are illegal, but they still happen, a lot.
Just because an Internet business opportunity claims to be certified and trusted does not mean that it is. What is the opportunity certified with and trusted by who? Do your research.
If an opportunity tells you that you can begin making a lot of money, and it is all for free, you had better think again. We have all heard the old sayings: "It takes money to make money" and "nothing in this life is free." Any real business takes some work to make money and taking up online business courses will help you differentiate the "wheat from the chaff".
Don't let promises of lots of money, yachts and fancy cars take you for a loop.
For a lot of us, the idea of owning our own web business and working from home sounds perfect. You just need to know which online web business opportunity is a true opportunity and which ones are being advertised by opportunists. Fortunately, there exists a wide range of small business online courses that can guide you on starting an Internet business or a web business.
What to look for in a Web or Online Business Opportunity
Sometimes, it is not always easy to tell whether or not an online business opportunity is legitimate or a scam. However, there are certain things that you can look for in order to help you determine whether the opportunity is a scam or legitimate. Here is a list of positive things to look for:
See if the online business opportunity is credible. For instance, a lot of websites have received seals and other acknowledgments from business websites, magazines, etc. Normally, these are displayed on the website right where you can see them. If you do not automatically see them, scroll to the bottom of the page and see if there are any. If there are, research their acknowledger. This could be a good sign.
Check to see if the business online opportunity is registered with the Better Business Bureau. The Better Business Bureau now has a website and provides a seal to websites. However, just because a web business opportunity is registered does not mean that it does not exist. It still could be legit, but a registration with the Better Business Bureau is a positive sign.
Check to see if the Internet business opportunity offers you any free reading material, a small business online course or instructional DVD. If so, take them up on that opportunity.
See if you can speak to a representative directly over the phone. Have the representative answer any questions or concerns that you may have.
Things to Avoid in an Online Business Opportunity
Now that we have seen a list of positive things to look for in a web business opportunity, let's get started on the list of things to avoid in a business online opportunity:
Avoid unrealistic claims. These can be claims of "getting rich quick", "getting rich overnight", "get rich by working from home with little or no effort" etc.
Do not buy in to testimonials. People tend to believe testimonials, even when they look staged just because it is illegal to have fake testimonials. Do not buy in to testimonials. Fake testimonials are illegal, but they still happen, a lot.
Just because an Internet business opportunity claims to be certified and trusted does not mean that it is. What is the opportunity certified with and trusted by who? Do your research.
If an opportunity tells you that you can begin making a lot of money, and it is all for free, you had better think again. We have all heard the old sayings: "It takes money to make money" and "nothing in this life is free." Any real business takes some work to make money and taking up online business courses will help you differentiate the "wheat from the chaff".
Don't let promises of lots of money, yachts and fancy cars take you for a loop.
Great ideas to make money online
How To Make Money Online
How many times have you paid to receive information on how to make money online but later realized it was a total waste of your time and money.
There are a lot of ways that anyone can use to make money online, but there are also a lot of scams out there that guarantee your financial success but the only person making money is the one who sold you the plan.
You can do a Google search for the term, "How To Make Money Online" and it will return over 174 million websites with information on how to make money online and unfortunately the ones that will supposedly show you how for a fee will be no help at all. You might as well throw your money out the window.
There are 3 major keys to making any online business succeed and they are:
1) A product that meets a need 2) Good quality targeted traffic to that website 3) A good landing page that will convert visitors into buyers
Of the three things listed above, the hardest one of all is getting the targeted traffic.
You could pay for hits to your website that will rack up the visits on your hits counter, but the hits aren't from targeted visitors they won't do you any good because they won't buy your product.
Targeted visitors are visits from people who are specifically looking for what you have to offer. So if you are selling an ebook on how to loose weight, you want visits from people who are looking for a way to loose weight. They would be targeted visitors.
Getting random hits anyone is a waste of time and money if you are paying for them. For example, you pay for 5000 hits to your website then most of them will see your website as a pop up or pop under from another website that they visited. So if they aren't looking for a way to lose weight they aren't even going to look at your product.
No matter what niche your are promoting, you need targeted traffic. If you are selling bicycle parts you don't want to pay for traffic that is looking for a cake recipe, you want people who are looking for bicycle parts to visit your site.
The best way to get that kind of traffic if you have the money to pay for it is with PPC (Pay Per Click) That's where you bid on certain keywords and key phrases. Say you are bidding $.50 on the phrase "How To Make Money Online." When ever someone typed in that phrase in the search engine and they saw your ad, you would pay $.50 every time someone clicked on your link in that ad.
Another great way to get targeted traffic which is absolutely free is by writing and submitting articles. This is called Article Marketing.
There are a lot of article directories that allow you to submit your articles for free and you can have a link at the bottom that leads to your website. You will not only get traffic from people who read your article on the article directory's website, but publishers may use your article for their ezines and newsletter. And webmasters may also use your article for content on their website and when anyone uses your article for a website, ezine or newsletter thay must leave your link in the article.
Over time, one article can bring in a lot of traffic that can last for years to come. The key to success with article marketing though, is not just one article but hundreds of them.
If one article could bring you only 10 targeted visitors a month think what would happen if you wrote one article a day for a year for a total of 365 articles. At 10 visitors a month per article (which is being very conservative) you would be getting 3,650 targeted visitors a month.
If you wrote and submitted 2 articles a day for a year, at 10 visitors a month each you would be getting 7300 targeted visitors a month. And if you were paying $.50 a click for these visitors via PPC, your monthly cost would be $3,650.00
So no matter which online business you want to promote, targeted traffic is a must.
How ever you choose to get that traffic is up to you but it won't come by itself. You either have to pay for it or you have to work for it.
How many times have you paid to receive information on how to make money online but later realized it was a total waste of your time and money.
There are a lot of ways that anyone can use to make money online, but there are also a lot of scams out there that guarantee your financial success but the only person making money is the one who sold you the plan.
You can do a Google search for the term, "How To Make Money Online" and it will return over 174 million websites with information on how to make money online and unfortunately the ones that will supposedly show you how for a fee will be no help at all. You might as well throw your money out the window.
There are 3 major keys to making any online business succeed and they are:
1) A product that meets a need 2) Good quality targeted traffic to that website 3) A good landing page that will convert visitors into buyers
Of the three things listed above, the hardest one of all is getting the targeted traffic.
You could pay for hits to your website that will rack up the visits on your hits counter, but the hits aren't from targeted visitors they won't do you any good because they won't buy your product.
Targeted visitors are visits from people who are specifically looking for what you have to offer. So if you are selling an ebook on how to loose weight, you want visits from people who are looking for a way to loose weight. They would be targeted visitors.
Getting random hits anyone is a waste of time and money if you are paying for them. For example, you pay for 5000 hits to your website then most of them will see your website as a pop up or pop under from another website that they visited. So if they aren't looking for a way to lose weight they aren't even going to look at your product.
No matter what niche your are promoting, you need targeted traffic. If you are selling bicycle parts you don't want to pay for traffic that is looking for a cake recipe, you want people who are looking for bicycle parts to visit your site.
The best way to get that kind of traffic if you have the money to pay for it is with PPC (Pay Per Click) That's where you bid on certain keywords and key phrases. Say you are bidding $.50 on the phrase "How To Make Money Online." When ever someone typed in that phrase in the search engine and they saw your ad, you would pay $.50 every time someone clicked on your link in that ad.
Another great way to get targeted traffic which is absolutely free is by writing and submitting articles. This is called Article Marketing.
There are a lot of article directories that allow you to submit your articles for free and you can have a link at the bottom that leads to your website. You will not only get traffic from people who read your article on the article directory's website, but publishers may use your article for their ezines and newsletter. And webmasters may also use your article for content on their website and when anyone uses your article for a website, ezine or newsletter thay must leave your link in the article.
Over time, one article can bring in a lot of traffic that can last for years to come. The key to success with article marketing though, is not just one article but hundreds of them.
If one article could bring you only 10 targeted visitors a month think what would happen if you wrote one article a day for a year for a total of 365 articles. At 10 visitors a month per article (which is being very conservative) you would be getting 3,650 targeted visitors a month.
If you wrote and submitted 2 articles a day for a year, at 10 visitors a month each you would be getting 7300 targeted visitors a month. And if you were paying $.50 a click for these visitors via PPC, your monthly cost would be $3,650.00
So no matter which online business you want to promote, targeted traffic is a must.
How ever you choose to get that traffic is up to you but it won't come by itself. You either have to pay for it or you have to work for it.
Friday 26 February 2010
A quick look at googles adsense
One of the fastest ways to earn money online is through the Google AdSense program. You can sign up for a freely hosted website or blog, write some keyword-rich content, plug your AdSense codes to it, drive targeted traffic to it, and start earning within minutes. Wouldn't that be great! Let's examine the various ways you can increase your AdSense earnings.
1. Placement of AdSense ads block
Some AdSense ads block placement strategies have proven to be better earners than others. A well designed AdSense block which fits the style and layout of your website or blog can substantially increase your Click Through Rate (CTR) and your earnings. Which of the high CTR block formats you choose to display on your site would depend on the layout and color of your site. However, three formats stand out as real earners:
- the 160 x 600 skyscraper with text ads, placed on the left or right side of the page. - the 336 x 280 rectangle with text ads, placed on top or at the middle of the page. - the small square with text ads, placed immediately below your forum avatar (where it is allowed).
2. Color of the AdSense ads
The color of your AdSense ads is an important aspect of your site CTR. Using the right colors that blend the ads with the color of your page will make the ads appear as though they are part and parcel of your page content. In genral, using the right colors tends to increase the CTR of your AdSense ads. Be reminded though that it is against Google policy to trick the visitor in any way into clicking on your ads.
3. Using high paying keywords as page content
Most AdSense publishers tend to ignore this important aspect of earning power. When writing the content of your webpages, it is important to use high valued and rich keywords. This way, you are sure that the AdSense ads with high paying keywords will appear on your pages. Hence, you will earn more for each click. Be careful though not to overload your pages with the keywords as that may be considered as spam by the search engines, and may attract some penalty. A generally agreed keyword density is 3%.
4. Search Engine Optimization (SEO)
A SEO-friendly website helps to boost the site's rankings, traffic deliverability and your overall earning potentials. You should therefore ensure that the following elements of your website are properly done SEO-wise:
- Page title: use a short but very descriptive title for your site as this is one of the first things search engines see when they crawl your site. - Meta tag and meta title: use these to define and indicate the contents of your web pages. - Site map: Create a site map file to let Google know about all the pages on your site, including URLs that may not be discoverable by Google's normal crawling process. - Robot text file: Create a Robot.txt file which allows you to hide files or directories that you don't wish the search engine spiders to find. This is an often overlooked but very effective SEO method. - Navigation: It is generally known that a navigation menu that is placed on the left side is more effective than the traditional top menu bar.
5. Google AdSense costume search box
You can place Google's search box right on your website. This way, you are not only giving your visitors a convenient way of searching Google right on your site, but also gives you an opportunity to earn money through any click generated by the users on AdSense ads displayed on the search engine results page (SERP). It's really like having your own Google search site and getting paid for searches performed on it.
6. Google AdSense ad links
Google recently added this feature to the AdSense income potentials. Using relevant keywords to determine the content of your pages, Googlebot is able to insert a couple of different ad links as part of your page content. You earn when visitors click on the ad links. Ordinarily, most visitors would not be able to distinguish the links from other page content, thereby increasing your chances of getting more clicks on those ads.
7. Targeted traffic
Having successfully implemented the above six steps, the last but in no way the least is to drive targeted traffic to your site. Naturally, the more traffic your site gets, the higher the CTR will be.
Note that not all traffic will convert into clicks, but only quality targeted traffic is what increases CTR. This is because these visitors are already looking for the information offered by the AdSense ads displayed on your site. These visitors have used the keywords/phrases you have used as content for your pages to land on your site. They are more likely to click on AdSense ads, thus increasing your earnings.
1. Placement of AdSense ads block
Some AdSense ads block placement strategies have proven to be better earners than others. A well designed AdSense block which fits the style and layout of your website or blog can substantially increase your Click Through Rate (CTR) and your earnings. Which of the high CTR block formats you choose to display on your site would depend on the layout and color of your site. However, three formats stand out as real earners:
- the 160 x 600 skyscraper with text ads, placed on the left or right side of the page. - the 336 x 280 rectangle with text ads, placed on top or at the middle of the page. - the small square with text ads, placed immediately below your forum avatar (where it is allowed).
2. Color of the AdSense ads
The color of your AdSense ads is an important aspect of your site CTR. Using the right colors that blend the ads with the color of your page will make the ads appear as though they are part and parcel of your page content. In genral, using the right colors tends to increase the CTR of your AdSense ads. Be reminded though that it is against Google policy to trick the visitor in any way into clicking on your ads.
3. Using high paying keywords as page content
Most AdSense publishers tend to ignore this important aspect of earning power. When writing the content of your webpages, it is important to use high valued and rich keywords. This way, you are sure that the AdSense ads with high paying keywords will appear on your pages. Hence, you will earn more for each click. Be careful though not to overload your pages with the keywords as that may be considered as spam by the search engines, and may attract some penalty. A generally agreed keyword density is 3%.
4. Search Engine Optimization (SEO)
A SEO-friendly website helps to boost the site's rankings, traffic deliverability and your overall earning potentials. You should therefore ensure that the following elements of your website are properly done SEO-wise:
- Page title: use a short but very descriptive title for your site as this is one of the first things search engines see when they crawl your site. - Meta tag and meta title: use these to define and indicate the contents of your web pages. - Site map: Create a site map file to let Google know about all the pages on your site, including URLs that may not be discoverable by Google's normal crawling process. - Robot text file: Create a Robot.txt file which allows you to hide files or directories that you don't wish the search engine spiders to find. This is an often overlooked but very effective SEO method. - Navigation: It is generally known that a navigation menu that is placed on the left side is more effective than the traditional top menu bar.
5. Google AdSense costume search box
You can place Google's search box right on your website. This way, you are not only giving your visitors a convenient way of searching Google right on your site, but also gives you an opportunity to earn money through any click generated by the users on AdSense ads displayed on the search engine results page (SERP). It's really like having your own Google search site and getting paid for searches performed on it.
6. Google AdSense ad links
Google recently added this feature to the AdSense income potentials. Using relevant keywords to determine the content of your pages, Googlebot is able to insert a couple of different ad links as part of your page content. You earn when visitors click on the ad links. Ordinarily, most visitors would not be able to distinguish the links from other page content, thereby increasing your chances of getting more clicks on those ads.
7. Targeted traffic
Having successfully implemented the above six steps, the last but in no way the least is to drive targeted traffic to your site. Naturally, the more traffic your site gets, the higher the CTR will be.
Note that not all traffic will convert into clicks, but only quality targeted traffic is what increases CTR. This is because these visitors are already looking for the information offered by the AdSense ads displayed on your site. These visitors have used the keywords/phrases you have used as content for your pages to land on your site. They are more likely to click on AdSense ads, thus increasing your earnings.
Is self publishing for you
Are you an author who has a book that you would like to see published? If you are, you should know that you do have a number of different options. While the most common approach taken involves relying on a third party publishing house, you do also have the option of self-publishing your own book.
When an author makes the decision to self-publish a book, he or she has complete control over the whole process. In fact, that is just one of the many pros or plus sides to self-publishing, as many authors like having complete control over their works of art. As for the responsibility of an author in terms of self-publishing, an author must write the book, edit it, find a company to manufacturer the printed book, and sell it. Although the process does seem relatively easy to most, it is important to remember that there are a number of pros and cons to self-publishing.
As it was previously stated, a self-publisher is responsible for the sale of their book. For many this is a difficult process. When a third party publishing house is used, they take on most of the work associated with selling a book, such as marketing. This is not how self-publishing works. Many self-publishers set up websites where they list their books available for sale. Even then, however, that website must be marketed so that visitors will find it. Self-publishers also have the option of approach retailers, including bookstores, hoping to get their books available for sale locally.
Another con or downside to self-publishing is the cost. Technically, you could say that even when using a third party publishing house, you still pay for the cost of getting your book published. This is because your publisher does take a fee out of the amount of money that you are paid; however, many authors don't even take this cut into consideration. Even though it will cost money to have your book transformed into print, there are steps that you can take to reduce the cost. The most common approach involves having your book printed on demand, instead of having books on hand.
As previously stated, some self-publishers find it difficult to sell their books. Yes, this process can be difficult, but many other self-published authors have seen success. When you put the proper amount of time, research, and energy into selling a self-published book, you stand the most chance of making the biggest profit. This is because, aside from the cost of your expenses, you are able to retain all of your profits. There is no one else that must share your profits, unless of course you decide to hire help.
Another pro or plus side to self-publishing is the fact that unknown authors are given the opportunity to shine. Some of the best selling books today are written by authors who already have an established history or name. In fact, unless you have an absolutely amazing book or a well-known name, there is a good chance that many publishing companies will not want to take a chance on you. This doesn't mean that your book is a poorly written one or that it has a bad story line. It just means that the publishing market is a tough one.
One of the biggest signs that self-publishing may be right for you if you believe that you have a book that will sell, but you still receive multiple rejection letters from well-known publishing houses. Self-publishing is also an ideal approach for authors who write books that will sell, but books that only have a limited targeted marketed. For example, if you are interested in writing a book on your city or town, your targeted market may be quite small and publishers may not want to take a chance with that.
Since there are a number of pros and cons to self-publishing, you should take the time to decide if self-publishing is right for you. Additional research can help you determine if self-publishing is truly your best option.
When an author makes the decision to self-publish a book, he or she has complete control over the whole process. In fact, that is just one of the many pros or plus sides to self-publishing, as many authors like having complete control over their works of art. As for the responsibility of an author in terms of self-publishing, an author must write the book, edit it, find a company to manufacturer the printed book, and sell it. Although the process does seem relatively easy to most, it is important to remember that there are a number of pros and cons to self-publishing.
As it was previously stated, a self-publisher is responsible for the sale of their book. For many this is a difficult process. When a third party publishing house is used, they take on most of the work associated with selling a book, such as marketing. This is not how self-publishing works. Many self-publishers set up websites where they list their books available for sale. Even then, however, that website must be marketed so that visitors will find it. Self-publishers also have the option of approach retailers, including bookstores, hoping to get their books available for sale locally.
Another con or downside to self-publishing is the cost. Technically, you could say that even when using a third party publishing house, you still pay for the cost of getting your book published. This is because your publisher does take a fee out of the amount of money that you are paid; however, many authors don't even take this cut into consideration. Even though it will cost money to have your book transformed into print, there are steps that you can take to reduce the cost. The most common approach involves having your book printed on demand, instead of having books on hand.
As previously stated, some self-publishers find it difficult to sell their books. Yes, this process can be difficult, but many other self-published authors have seen success. When you put the proper amount of time, research, and energy into selling a self-published book, you stand the most chance of making the biggest profit. This is because, aside from the cost of your expenses, you are able to retain all of your profits. There is no one else that must share your profits, unless of course you decide to hire help.
Another pro or plus side to self-publishing is the fact that unknown authors are given the opportunity to shine. Some of the best selling books today are written by authors who already have an established history or name. In fact, unless you have an absolutely amazing book or a well-known name, there is a good chance that many publishing companies will not want to take a chance on you. This doesn't mean that your book is a poorly written one or that it has a bad story line. It just means that the publishing market is a tough one.
One of the biggest signs that self-publishing may be right for you if you believe that you have a book that will sell, but you still receive multiple rejection letters from well-known publishing houses. Self-publishing is also an ideal approach for authors who write books that will sell, but books that only have a limited targeted marketed. For example, if you are interested in writing a book on your city or town, your targeted market may be quite small and publishers may not want to take a chance with that.
Since there are a number of pros and cons to self-publishing, you should take the time to decide if self-publishing is right for you. Additional research can help you determine if self-publishing is truly your best option.
Business plan for selling ebooks
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The real trick with succeeding and apt wealthy promotion e-books online is to hit upon a rabid promote and donate them come again? They need otherwise dearth. You may possibly induce critically rich promotion digital books, but, what with whichever other issue opportunity, how much you appoint depends on the amount of effort you situate into your issue. As it comes to promotion, I think generally digital books writers and promoters struggle. Here are several various ways to appoint cash and several various marketing strategies that can subsist considered.
Promotion digital books on eBay, and making whichever meaningful profit from responsibility so, is apt new and new trying. As you are promotion e-books, you are promotion the same mainframe rasp larger than and larger than again. Your electronic report presented all the rage this way want symbolize a much superior treasure than the traditional way of promotion them on eBay and therefore you can ask a much superior penalty than you would otherwise. Promotion digital products on eBay and elsewhere is a splendid way to appoint a little added dollars and as well proliferate the word vis-?-vis whichever businesses otherwise websites you dearth to promote.
If you are interested all the rage making cash by promotion e-books on eBay, the lovely news is that it is unadorned and fun to fix. It is likely to appoint enormous profits, provided that you fix it all the rage the precisely way. Maybe all the rage 5 otherwise 10 years, but in support of at the present, in support of generally electronic books authors, is likely to subsist fewer profitable than promotion i-pod books. The preeminent way to reap superior profits is to develop lone of your own. Promotion electronic books can subsist very profitable what the expenditure of obtaining them, otherwise indeed prose them physically, are smallest so the cash standard in support of their garage sale is almost all out-and-out profit.
Prose and promotion e-books say develop into lone of the generally profitable production at family businesses on the web. Open files a short time ago a marketing ploy to plug new paper books otherwise a viable archetype, in support of promotion electronic books that the have a rest of the industry must adopt online sources. To induce ongoing with on eBay, you need to build up a insignificant collection of e-books. If you are finding in support of ways to appoint cash online otherwise to open out your existing family issue, promotion digital books may possibly subsist a short time ago come again? You need. Thousands of relations are supplementing their returns by learning how to appoint cash online promotion digital books.
An additional myth otherwise mix-up relations say is that it takes a ton of cash to advertise and appoint serious cash. Here are approximately relations who believe that electronic books are merely lovely in support of promotional purposes, but I believe that if your prose an electronic report in support of the precisely kind of person, you may possibly appoint a decent amount of cash. Well you are at this time what you dearth to knowing the preeminent way of making cash online, digital books say been around at the present in support of numerous years and approximately relations say been making a tidy living from promotion, But not a soul wants to expose here secrets on how to appoint real cash.
Nice long story for you to enjoy
"You're no fun, no fun at all," whimpered my little six-year old sister as she slipped under the branches of the weeping willow in our farm house back yard. Elaine always wanted to play some girlie game about house or dolls. If only she were like my cousin Eloise who'd be ten like me in a couple months. We played cowboys and indians whenever she and her brothers came over, a whole lot more fun.
I wished I had brothers like Eloise's, but whenever I asked Mommy about it she'd look sad and shake her head. Then she'd get teary and walk away. Mommy and Daddy were gone to St. Paul on this particular day in late August. They planned to get back in the middle of the afternoon. "We're bringing a big surprise," Daddy said.
"What is it?" I asked, wiggling with excitement.
"Wait and see," was all he said as they drove off.
A little bored, I decided to try a few more pages of "Lad, a Dog," one of the wonderful Albert Payson Terhune books about collies Mommy encouraged me to read.
I had barely started when I heard our Chevy's tires scrabbling down our gravel driveway. I ran from the porch to meet them. What had they brought me?
Mommy smiled as she opened the car's back door.
A kid, maybe three inches taller than me, stepped out. This was my surprise? He had the tiniest head I had ever seen, with beady, blue eyes behind little, round, wire-rimmed glasses. His black hair was slicked straight back, sticking out over his ears and all around his shirt collar. His faded blue shirt and baggy cotton trousers appeared to be about two sizes too big. He looked very shy, hanging on to a little cardboard suitcase with gnarled hands, gazing down at the sidewalk like a rabbit looking for a hole.
I must have had a pretty puzzled look on my face, because Mommy said, "Alvin, don't just stand there frowning. Say hi and show Eddie to his room."
"Uh, hi," I said. Then turning to Mommy, I asked, "His room?"
"The one at the top of the stairs," she replied. "Eddie is going to work for us."
"Oh," I said. This skinny creature was going to be our hired man? He didn't look strong enough to throw hay bales, let alone lift eight gallon milk cans. "Follow me," I said.
Eddie's room had only a single bed, a wobbly chair, a little dresser and a tiny closet. "This is it," I said. "This is your little room."
Eddie gazed around. I noticed his lip was trembling, like he was about to cry. In a shaky, squealy voice he said, "I ain't never had my own room." "Why not?" I asked. "We all got rooms up here. Mommy and Daddy sleep downstairs, next to the kitchen."
"I slept on a baggy mattress on the floor. My sister slept with my mother on another one in the corner. We cooked and ate in the kitchen."
"You must have been pretty poor. Didn't you have a daddy?"
Eddie snuffed and wiped his nose with his left hand. Then, smearing it on his baggy pants, he said, "I had a daddy a long time ago. He was always drunk. Then he left. I never saw him again."
I wondered what it would be like without a daddy. "How'd you get enough money to eat?"
"My mom cleaned hospital floors, but then she got sick. They said we was too little to go to the hospital."
"What did you do?"
"I don't wanna talk no more," is all he said.
"Up to you," I replied. "Put your stuff in the dresser. I gotta go."
I hurried back down to the kitchen. My German Grandma was kneading some bread dough. "Is dis kid staying for supper?"
Daddy came out, slipping one strap of his overalls over his shoulder. "Ma, Eddie's gonna work for us. He's our hired hand now."
"He don't look big enough to be no hired man," she muttered as she greased three loaf pans with lard.
"We'll have to fatten him up wit your good bread. It's been real tough for him, like lots of people in dese depression times."
"Looks like a dumb ting to hire somebody like dat," she replied as she pushed dough into her pans.
Mommy tied the strings of her apron as she entered the kitchen. "Eddie needs us," she said. "There's lots of kids like him these days."
Grandma only sighed. "I'm gonna work in my flower garden," she said.
"I have to buy Eddie a couple pairs of overalls and shirts and some decent shoes," Mommy said.
"How much is dat gonna cost?" Daddy asked.
"Oh, don't worry. I have some egg money saved up."
"OK," Daddy said over his shoulder as he tromped down the back door hallway steps. "When you get back, send him out to da barn."
I turned to Mommy. "Can I ask something?"
"Of course, as soon as you help put away groceries."
I handed her boxes and cans from the paper sacks on the kitchen table. Then she asked, "How about a piece of apple pie?"
"Wow! In the middle of the day?"
"Sure. Call Elaine in too."
As soon as we were seated, Elaine asked, "Who's that funny looking boy?" "I want to talk to both of you about Eddie," Mommy replied as she handed us our pie. "We'll talk more about it later, but while he's still upstairs I want you to know that Eddie is an orphan. He has no parents. The state of Minnesota looks after him. They asked us to give him a place to stay and some work. That's why he's come to live here."
"Mommy," I asked, "why are his hands all twisted? Did he hurt them?"
She smiled and wrinkled her forehead at the same time. "Eddie has what the doctors call rickets. When you don't get enough milk and the right food your bones don't grow right."
"Will they get better?"
"Sure, but they'll never be completely straight. With lots of the right food, sunshine and love he'll be fine."
Elaine chewed a bite of her apple pie while she asked, "Is he coming to school with us?"
"No sweetie. Eddie is sixteen and will grow a little more with good farm meals, but he's limited. He can read a little, but the farm will be his school from now on."
At that Mommy looked up. Eddie stood in the doorway, still clutching his little suitcase. "Come on in, Eddie," I said. "Have some of Mommy's apple pie. Then we can go together to buy you some new clothes."
This was very strange. Eddie wasn't going to be my brother, but maybe, I thought, I could be the brother he never had.
"Oh, Alvin," Mommy said, with a sly smile. "I have another suprise for you." She reached to the top of the refrigerator to bring down a book. "It's second hand and a little worn, but still in good shape. It's called "Buff, A Collie." _______________________________________________
Author's note: Eddie Roberts was a real person who came to work on my parents' farm in southern Minnesota in the 1930s. He lived and worked on their farm for over a decade before they quit farming and moved to St. Paul where my father began his insurance business. Even then Eddie stayed with them and worked as a floor sweeper in a local factory. He died in his mid fifties. In my novels Eddie is the source for my character Orville. - Alvin Franzmeier (www.freyaschild.com).
I wished I had brothers like Eloise's, but whenever I asked Mommy about it she'd look sad and shake her head. Then she'd get teary and walk away. Mommy and Daddy were gone to St. Paul on this particular day in late August. They planned to get back in the middle of the afternoon. "We're bringing a big surprise," Daddy said.
"What is it?" I asked, wiggling with excitement.
"Wait and see," was all he said as they drove off.
A little bored, I decided to try a few more pages of "Lad, a Dog," one of the wonderful Albert Payson Terhune books about collies Mommy encouraged me to read.
I had barely started when I heard our Chevy's tires scrabbling down our gravel driveway. I ran from the porch to meet them. What had they brought me?
Mommy smiled as she opened the car's back door.
A kid, maybe three inches taller than me, stepped out. This was my surprise? He had the tiniest head I had ever seen, with beady, blue eyes behind little, round, wire-rimmed glasses. His black hair was slicked straight back, sticking out over his ears and all around his shirt collar. His faded blue shirt and baggy cotton trousers appeared to be about two sizes too big. He looked very shy, hanging on to a little cardboard suitcase with gnarled hands, gazing down at the sidewalk like a rabbit looking for a hole.
I must have had a pretty puzzled look on my face, because Mommy said, "Alvin, don't just stand there frowning. Say hi and show Eddie to his room."
"Uh, hi," I said. Then turning to Mommy, I asked, "His room?"
"The one at the top of the stairs," she replied. "Eddie is going to work for us."
"Oh," I said. This skinny creature was going to be our hired man? He didn't look strong enough to throw hay bales, let alone lift eight gallon milk cans. "Follow me," I said.
Eddie's room had only a single bed, a wobbly chair, a little dresser and a tiny closet. "This is it," I said. "This is your little room."
Eddie gazed around. I noticed his lip was trembling, like he was about to cry. In a shaky, squealy voice he said, "I ain't never had my own room." "Why not?" I asked. "We all got rooms up here. Mommy and Daddy sleep downstairs, next to the kitchen."
"I slept on a baggy mattress on the floor. My sister slept with my mother on another one in the corner. We cooked and ate in the kitchen."
"You must have been pretty poor. Didn't you have a daddy?"
Eddie snuffed and wiped his nose with his left hand. Then, smearing it on his baggy pants, he said, "I had a daddy a long time ago. He was always drunk. Then he left. I never saw him again."
I wondered what it would be like without a daddy. "How'd you get enough money to eat?"
"My mom cleaned hospital floors, but then she got sick. They said we was too little to go to the hospital."
"What did you do?"
"I don't wanna talk no more," is all he said.
"Up to you," I replied. "Put your stuff in the dresser. I gotta go."
I hurried back down to the kitchen. My German Grandma was kneading some bread dough. "Is dis kid staying for supper?"
Daddy came out, slipping one strap of his overalls over his shoulder. "Ma, Eddie's gonna work for us. He's our hired hand now."
"He don't look big enough to be no hired man," she muttered as she greased three loaf pans with lard.
"We'll have to fatten him up wit your good bread. It's been real tough for him, like lots of people in dese depression times."
"Looks like a dumb ting to hire somebody like dat," she replied as she pushed dough into her pans.
Mommy tied the strings of her apron as she entered the kitchen. "Eddie needs us," she said. "There's lots of kids like him these days."
Grandma only sighed. "I'm gonna work in my flower garden," she said.
"I have to buy Eddie a couple pairs of overalls and shirts and some decent shoes," Mommy said.
"How much is dat gonna cost?" Daddy asked.
"Oh, don't worry. I have some egg money saved up."
"OK," Daddy said over his shoulder as he tromped down the back door hallway steps. "When you get back, send him out to da barn."
I turned to Mommy. "Can I ask something?"
"Of course, as soon as you help put away groceries."
I handed her boxes and cans from the paper sacks on the kitchen table. Then she asked, "How about a piece of apple pie?"
"Wow! In the middle of the day?"
"Sure. Call Elaine in too."
As soon as we were seated, Elaine asked, "Who's that funny looking boy?" "I want to talk to both of you about Eddie," Mommy replied as she handed us our pie. "We'll talk more about it later, but while he's still upstairs I want you to know that Eddie is an orphan. He has no parents. The state of Minnesota looks after him. They asked us to give him a place to stay and some work. That's why he's come to live here."
"Mommy," I asked, "why are his hands all twisted? Did he hurt them?"
She smiled and wrinkled her forehead at the same time. "Eddie has what the doctors call rickets. When you don't get enough milk and the right food your bones don't grow right."
"Will they get better?"
"Sure, but they'll never be completely straight. With lots of the right food, sunshine and love he'll be fine."
Elaine chewed a bite of her apple pie while she asked, "Is he coming to school with us?"
"No sweetie. Eddie is sixteen and will grow a little more with good farm meals, but he's limited. He can read a little, but the farm will be his school from now on."
At that Mommy looked up. Eddie stood in the doorway, still clutching his little suitcase. "Come on in, Eddie," I said. "Have some of Mommy's apple pie. Then we can go together to buy you some new clothes."
This was very strange. Eddie wasn't going to be my brother, but maybe, I thought, I could be the brother he never had.
"Oh, Alvin," Mommy said, with a sly smile. "I have another suprise for you." She reached to the top of the refrigerator to bring down a book. "It's second hand and a little worn, but still in good shape. It's called "Buff, A Collie." _______________________________________________
Author's note: Eddie Roberts was a real person who came to work on my parents' farm in southern Minnesota in the 1930s. He lived and worked on their farm for over a decade before they quit farming and moved to St. Paul where my father began his insurance business. Even then Eddie stayed with them and worked as a floor sweeper in a local factory. He died in his mid fifties. In my novels Eddie is the source for my character Orville. - Alvin Franzmeier (www.freyaschild.com).
Places to find ebooks to sell
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Promotion e-books by Amazon also for that reason you can ask a much complex estimation than you would otherwise.
Nearby are numerous options are on hand. But you would like toward determine the foremost top secret lying on how to promote an e-book definitely study at this section to understand 3 principal keys. Merchandising electric books online is one of the fastest rising household based big business dreams ever! here are numerous steps occupied into reaching your ultimate goal to receive ready money online. It can grow to be a very extremely profitable. The sincere truth concerning how population achieve hard cash online. Representing merchants books within Adobe PDF format, we have a PDF stamping feature with the intention of discourages sharing and be able to reduce a little new stuff the buyer be capable of accomplish together with their file.
This may support public who like to become additional hard cash online. It is becoming a good small business then you know how to earn a sizeable profits, If you appreciate how to promote the product. There is text on the web with the aim of will benefit community who like to churn out profits. I disgust it while I read the forums after that I be made aware relatives chat about with the intention of you can no longer selling e-books on eBay anymore. The prediction was with the aim of Apple would start downloading books, not with the aim of an important person could drop content into an app then propose it up designed for garage sale on the obtainable app store.
Profiles of standard associates who are profitably on the web.
Do you wish for your own digital products enterprise to put together currency? Here I am explaining how to get paid money online, nevertheless I may well be playing along with my youngster right now for all you go through. Nearby are dozens of public advertising products that to teach you how to achieve a profit. You will hear how to accomplish funds online. Additionally, you will learn moving stories of authors who are manufacture a income on the web. Our without charge electronic mail newsletter is packed along with helpful tips on literature.
Our weekly email newsletter is packed including ready to lend a hand tips.
eBay also Amazon give you with a customizable digital warehouse, and a web control panel to deal with it. If no one knows you before follows you, its ready on the way to be tough to assemble any true cash. I recollect how trying it was frustrating to figure everything out after I first began merchandising goods online, in addition to tackling Internet marketing also. A a small number of listings also you will feel absolutely at household by means of Turbo Lister next you will appreciate with the purpose of it speeds promotion e-books on eBay.
Not at all knew with the purpose of amazon was merchandising electronic books. How to a great extent cash can you receive with electronic books?
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Free of charge e-courses on e-zine publishing, small business shop and building money with the purpose of employment. At hand are some individuals who consider that e-books are just excellent intended for promotional purposes, nevertheless I think with the purpose of condition your text meant for the true variety of person, you may possibly manufacture a reasonable quantity of capital.
If you have by now planned to advertise a digital goods afterward I reason it is the greatest idea. eBay is a goldmine for many entrepreneurs, as they retail products online is wildly profitable. This truly makes marketing on Amazon top, because a classified classified ad listing stands ready from the pack. But you need to acquire into marketing on Amazon to achieve money online reason about your initial advantage. Because someone who makes a living along with eBay, allow me advise you something that you need to appreciate, except have yet to hear.
Promotion e-books by Amazon also for that reason you can ask a much complex estimation than you would otherwise.
Nearby are numerous options are on hand. But you would like toward determine the foremost top secret lying on how to promote an e-book definitely study at this section to understand 3 principal keys. Merchandising electric books online is one of the fastest rising household based big business dreams ever! here are numerous steps occupied into reaching your ultimate goal to receive ready money online. It can grow to be a very extremely profitable. The sincere truth concerning how population achieve hard cash online. Representing merchants books within Adobe PDF format, we have a PDF stamping feature with the intention of discourages sharing and be able to reduce a little new stuff the buyer be capable of accomplish together with their file.
This may support public who like to become additional hard cash online. It is becoming a good small business then you know how to earn a sizeable profits, If you appreciate how to promote the product. There is text on the web with the aim of will benefit community who like to churn out profits. I disgust it while I read the forums after that I be made aware relatives chat about with the intention of you can no longer selling e-books on eBay anymore. The prediction was with the aim of Apple would start downloading books, not with the aim of an important person could drop content into an app then propose it up designed for garage sale on the obtainable app store.
Profiles of standard associates who are profitably on the web.
Do you wish for your own digital products enterprise to put together currency? Here I am explaining how to get paid money online, nevertheless I may well be playing along with my youngster right now for all you go through. Nearby are dozens of public advertising products that to teach you how to achieve a profit. You will hear how to accomplish funds online. Additionally, you will learn moving stories of authors who are manufacture a income on the web. Our without charge electronic mail newsletter is packed along with helpful tips on literature.
Our weekly email newsletter is packed including ready to lend a hand tips.
eBay also Amazon give you with a customizable digital warehouse, and a web control panel to deal with it. If no one knows you before follows you, its ready on the way to be tough to assemble any true cash. I recollect how trying it was frustrating to figure everything out after I first began merchandising goods online, in addition to tackling Internet marketing also. A a small number of listings also you will feel absolutely at household by means of Turbo Lister next you will appreciate with the purpose of it speeds promotion e-books on eBay.
Not at all knew with the purpose of amazon was merchandising electronic books. How to a great extent cash can you receive with electronic books?
In piece of information, these guys would enjoy nothing more than a way to eradicate the aftermarket, and wholesale electronic book would prepare precisely that. The idea of this website is to benefit you become the as a rule of selling e-books going on Amazon. Understand how to make huge profits. This book want help citizens who intend on the road to get paid a vigorous source of revenue. I would remain interested in your belief of clickbank.
Free of charge e-courses on e-zine publishing, small business shop and building money with the purpose of employment. At hand are some individuals who consider that e-books are just excellent intended for promotional purposes, nevertheless I think with the purpose of condition your text meant for the true variety of person, you may possibly manufacture a reasonable quantity of capital.
Thursday 25 February 2010
Is china really a problem
Who's Winning the Cleantech Arms Race?
The United States is rarely referred to as a silver-medal nation. But that's exactly what we're becoming with respect to the race for clean energy.
There's been progress on domestic soil to be sure. Installed wind capacity has grown over 900% since 2000. Solar installations have kept similar pace.
But there's an unexpected place where clean technology is being deployed at a more rapid rate. A place often condemned for its perverse pollution; a country often decried as the world's biggest emitter of greenhouse gases (GHGs): China.
Enter the Dragon
As the U.S. continues its polarized debate around cleantech policy - diddling with implementing some type of carbon pricing, a federal renewable energy standard (RES), and a way to streamline large projects - the Chinese have quickly lept to a leadership position in the industry.
In 2006, they passed an RES calling for renewables to comprise 15% of the energy mix by 2020. But Shang Xiaoqiang, vice chairman of the country's National Development and Reform Commission (NDRC), recently said capacity could grow to 20% by that time.
Studies also show that by 2020, China could actually install three times its 30 gigawatt (GW) wind target. And they'll meet their 2020 solar target of 1.8 GW next year.
The U.S. hasn't even set national targets, so meeting or beating them is a moot point.
And when it comes to government investment, the Chinese have long pulled away. Our Recovery Act called for $80 billion to be invested in the sector. China has announced $217 billion for the next five years, and could invest upward of $650 billion in the next decade.
One recent report claimed they're spending $12 million per hour ensuring they emerge on top.
For the U.S., 'losing' could quickly turn into 'lost.' Fortunately for investors, stock exchanges are border agnostic.
The Cleantech Arms Race
In a very real way, democracy is hindering the States' deployment of cleantech assets. The infamous Cape Wind project has been stymied because it'll "ruin the view." Massive utility-scale solar installations in southwestern states have been delayed on behalf of reptiles.
And that's without mentioning the see-sawing in Congress as lobbyists on both sides of the issue wield their well-funded swords. A recent Reuters report succinctly noted:
"Beijing's top leaders have made clear their intention to have their nation dominate this new industry, up and down the value ladder. And in their quest for the prize, they are not burdened by concerns facing their Western counterparts - such as the impact of wind turbines on landscapes, higher energy prices for consumers, or investor returns."
Our leaders' inaction has not only delayed development of what could be a trillion-dollar domestic market - not to mention energy independence - but they've forced companies within that market to tread water by providing inconsistent incentives and policy guidance.
The evidence of this is abundant. But the issue really came to the fore when a Chinese company, A-Power Generation (NASDAQ: APWR), was selected to provide turbine parts for a $1.5 billion U.S. stimulus-funded wind farm in Texas.
Politicians on both sides cried foul before A-Power announced it would build a manufacturing facility in the U.S. that will employ 1,000 workers while cranking out parts for wind turbines.
So it's not only difficult for U.S. companies to get ahead, it's increasingly easier for China-based cleantech companies to row their boats ashore.
Made by China
China's laser-like focus on cleantech has thrust them squarely into a global leadership position.
Last year, Chinese companies produced about 50% of the world's solar cells. And that's likely to rise to 70% in the next few years, as costs continue to fall more quickly there than in Europe or the U.S. In fact, firms based in Germany - the cradle of the modern solar industry - have been finding it's cheaper to buy from the Chinese than it is to make their own solar cells.
And they're not just ramping up production; solar installations are also on the upswing. China will meet its 2020 target of 1.8 GW next year, and Greentech Media is forecasting installed solar capacity could actually hit 10 GW in the next decade, implying a 450% expansion.
Wind energy is witnessing a similar scenario. The Global Wind Energy Council (GWEC) has reported that China "doubled its entire installed capacity each year since 2005." Last year, they became the largest wind market in the world, installing 13 GW compared to 10.5 GW in Europe and 9.9 GW in the U.S.
That growth is largely due to a booming Chinese wind manufacturing market. Producers like Sinovel and Goldwind are already top ten globally, and could soon threaten companies like GE and Suzlon that currently inhabit the top five.
The Chinese cleantech production model is so robust that it's now being exported around the globe, in much the same way that other Asian countries have taken automobile manufacturing abroad.
A-Power - the company awarded part of a U.S. stimulus-induced wind project - is already setting up manufacturing on U.S. soil. Yingli Green Energy (NYSE: YGE) has announced plans to build a solar manufacturing facility on U.S. Turf; so has Suntech Power (NYSE: STP).
And, in the most revelatory example of all, the Wall Street Journal has reported that "Duke Energy Corp.(NYSE: DUK) is in talks with State Grid Corp., China's biggest electricity distributor, over a joint venture that may involve cooperating on power transmission lines in the U.S."
While we were distracted by health care, Tea Parties, and executive pay, China quickly pounced on what is proving to be the most vital and valuable industry of the 21st century. They've mastered the production side and, as the Duke example highlights, they're moving on transmission as well.
Our energy assets of tomorrow may not be made in China, but it looks like they'll made by China. And, as you can imagine, Chinese cleantech success is also apparent in public markets.
Rated to Outperform
Here in the States, First Solar (NASDAQ: FSLR) is by far the most recognizable solar name. The company still boasts one of the lowest costs per watt and highest efficiencies for thin film solar. But First Solar, too, is losing ground as Chinese firms continue making inroads. The stock is down nearly $200 from its 2008 high over $300.
The same holds true for Germany's Q-Cells, one of the largest solar cell producers in the world. The growing Chinese advantage in both cost and scale have led to a huge discrepancy in prices for stocks that share the same peer group, as companies like Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) have pulled investors away from traditional solar stocks.
That trend is being mirrored in the wind industry, where protectionism has forced billion-dollar development costs to remain on the balance sheets of Chinese companies. Though industry stalwarts like Vestas (COP: VWS) and Gamesa (MCE: GAM) are knocking hard on the door, failure to penetrate the Chinese market has caused investors to look elsewhere for wind-blown returns.
Most analysts and industry insiders - myself included - don't see this trend abating anytime soon. Feed-in tariff (FiT) cuts for cleantech in Europe, though a sign of industry maturation, are driving sales higher in China as installers race to buy turbines and panels at the lowest cost before subsidies are cut later this year.
And the lack of long-term policy guidance in the U.S. is forcing cleantech companies here into a holding pattern, hesitant to invest in new manufacturing capacity or asset deployment with uncertainties still rampant with respect to the tax code and incentives. With price parity still not reached, renewable energy developers sometimes don't even know if there will be an end buyer for their electricity.
China, on the other hand, passed a law last year requiring grid operators to buy all the electricity produced by renewable resources. What's more, the Chinese cost advantage is leading to rebranding, wherein a company like GE buys solar panels from a second-tier Chinese company and sells them as their own.
This is paving the way for many companies you've never heard of to emerge as global players. Yingli, JA Solar (NASDAQ: JASO), Renesola (NYSE: SOL) and others are already becoming household names. Yingli is even sponsoring this year's FIFA World Cup.
The initial public offering (IPO) market is also flooded with Chinese entrants. Blade maker HT Blade, polysilicon producer Daqo, and wafer maker JinkoSolar have all already filed.
Indeed, it looks like the global cleantech game will be dominated by Chinese players for the foreseeable future. And that's a vast departure from standard practice, where China has typically trailed European and U.S. companies in entering nascent industries.
In a recent talk at an industry conference in Washington D.C., President of GCL Solar Energy Hunter Jiang didn't mince words about his country's position. His company is now the third largest producer of polysilicon in the world. After ruminating on China's laggard position throughout modern history's industrial revolutions and commenting on how automobiles and computers were cradled elsewhere, he said, "Today we are the leader."
Call it like you see it,
Nick Hodge
This article was originally found here: China's Clean Energy Progress
The United States is rarely referred to as a silver-medal nation. But that's exactly what we're becoming with respect to the race for clean energy.
There's been progress on domestic soil to be sure. Installed wind capacity has grown over 900% since 2000. Solar installations have kept similar pace.
But there's an unexpected place where clean technology is being deployed at a more rapid rate. A place often condemned for its perverse pollution; a country often decried as the world's biggest emitter of greenhouse gases (GHGs): China.
Enter the Dragon
As the U.S. continues its polarized debate around cleantech policy - diddling with implementing some type of carbon pricing, a federal renewable energy standard (RES), and a way to streamline large projects - the Chinese have quickly lept to a leadership position in the industry.
In 2006, they passed an RES calling for renewables to comprise 15% of the energy mix by 2020. But Shang Xiaoqiang, vice chairman of the country's National Development and Reform Commission (NDRC), recently said capacity could grow to 20% by that time.
Studies also show that by 2020, China could actually install three times its 30 gigawatt (GW) wind target. And they'll meet their 2020 solar target of 1.8 GW next year.
The U.S. hasn't even set national targets, so meeting or beating them is a moot point.
And when it comes to government investment, the Chinese have long pulled away. Our Recovery Act called for $80 billion to be invested in the sector. China has announced $217 billion for the next five years, and could invest upward of $650 billion in the next decade.
One recent report claimed they're spending $12 million per hour ensuring they emerge on top.
For the U.S., 'losing' could quickly turn into 'lost.' Fortunately for investors, stock exchanges are border agnostic.
The Cleantech Arms Race
In a very real way, democracy is hindering the States' deployment of cleantech assets. The infamous Cape Wind project has been stymied because it'll "ruin the view." Massive utility-scale solar installations in southwestern states have been delayed on behalf of reptiles.
And that's without mentioning the see-sawing in Congress as lobbyists on both sides of the issue wield their well-funded swords. A recent Reuters report succinctly noted:
"Beijing's top leaders have made clear their intention to have their nation dominate this new industry, up and down the value ladder. And in their quest for the prize, they are not burdened by concerns facing their Western counterparts - such as the impact of wind turbines on landscapes, higher energy prices for consumers, or investor returns."
Our leaders' inaction has not only delayed development of what could be a trillion-dollar domestic market - not to mention energy independence - but they've forced companies within that market to tread water by providing inconsistent incentives and policy guidance.
The evidence of this is abundant. But the issue really came to the fore when a Chinese company, A-Power Generation (NASDAQ: APWR), was selected to provide turbine parts for a $1.5 billion U.S. stimulus-funded wind farm in Texas.
Politicians on both sides cried foul before A-Power announced it would build a manufacturing facility in the U.S. that will employ 1,000 workers while cranking out parts for wind turbines.
So it's not only difficult for U.S. companies to get ahead, it's increasingly easier for China-based cleantech companies to row their boats ashore.
Made by China
China's laser-like focus on cleantech has thrust them squarely into a global leadership position.
Last year, Chinese companies produced about 50% of the world's solar cells. And that's likely to rise to 70% in the next few years, as costs continue to fall more quickly there than in Europe or the U.S. In fact, firms based in Germany - the cradle of the modern solar industry - have been finding it's cheaper to buy from the Chinese than it is to make their own solar cells.
And they're not just ramping up production; solar installations are also on the upswing. China will meet its 2020 target of 1.8 GW next year, and Greentech Media is forecasting installed solar capacity could actually hit 10 GW in the next decade, implying a 450% expansion.
Wind energy is witnessing a similar scenario. The Global Wind Energy Council (GWEC) has reported that China "doubled its entire installed capacity each year since 2005." Last year, they became the largest wind market in the world, installing 13 GW compared to 10.5 GW in Europe and 9.9 GW in the U.S.
That growth is largely due to a booming Chinese wind manufacturing market. Producers like Sinovel and Goldwind are already top ten globally, and could soon threaten companies like GE and Suzlon that currently inhabit the top five.
The Chinese cleantech production model is so robust that it's now being exported around the globe, in much the same way that other Asian countries have taken automobile manufacturing abroad.
A-Power - the company awarded part of a U.S. stimulus-induced wind project - is already setting up manufacturing on U.S. soil. Yingli Green Energy (NYSE: YGE) has announced plans to build a solar manufacturing facility on U.S. Turf; so has Suntech Power (NYSE: STP).
And, in the most revelatory example of all, the Wall Street Journal has reported that "Duke Energy Corp.(NYSE: DUK) is in talks with State Grid Corp., China's biggest electricity distributor, over a joint venture that may involve cooperating on power transmission lines in the U.S."
While we were distracted by health care, Tea Parties, and executive pay, China quickly pounced on what is proving to be the most vital and valuable industry of the 21st century. They've mastered the production side and, as the Duke example highlights, they're moving on transmission as well.
Our energy assets of tomorrow may not be made in China, but it looks like they'll made by China. And, as you can imagine, Chinese cleantech success is also apparent in public markets.
Rated to Outperform
Here in the States, First Solar (NASDAQ: FSLR) is by far the most recognizable solar name. The company still boasts one of the lowest costs per watt and highest efficiencies for thin film solar. But First Solar, too, is losing ground as Chinese firms continue making inroads. The stock is down nearly $200 from its 2008 high over $300.
The same holds true for Germany's Q-Cells, one of the largest solar cell producers in the world. The growing Chinese advantage in both cost and scale have led to a huge discrepancy in prices for stocks that share the same peer group, as companies like Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) have pulled investors away from traditional solar stocks.
That trend is being mirrored in the wind industry, where protectionism has forced billion-dollar development costs to remain on the balance sheets of Chinese companies. Though industry stalwarts like Vestas (COP: VWS) and Gamesa (MCE: GAM) are knocking hard on the door, failure to penetrate the Chinese market has caused investors to look elsewhere for wind-blown returns.
Most analysts and industry insiders - myself included - don't see this trend abating anytime soon. Feed-in tariff (FiT) cuts for cleantech in Europe, though a sign of industry maturation, are driving sales higher in China as installers race to buy turbines and panels at the lowest cost before subsidies are cut later this year.
And the lack of long-term policy guidance in the U.S. is forcing cleantech companies here into a holding pattern, hesitant to invest in new manufacturing capacity or asset deployment with uncertainties still rampant with respect to the tax code and incentives. With price parity still not reached, renewable energy developers sometimes don't even know if there will be an end buyer for their electricity.
China, on the other hand, passed a law last year requiring grid operators to buy all the electricity produced by renewable resources. What's more, the Chinese cost advantage is leading to rebranding, wherein a company like GE buys solar panels from a second-tier Chinese company and sells them as their own.
This is paving the way for many companies you've never heard of to emerge as global players. Yingli, JA Solar (NASDAQ: JASO), Renesola (NYSE: SOL) and others are already becoming household names. Yingli is even sponsoring this year's FIFA World Cup.
The initial public offering (IPO) market is also flooded with Chinese entrants. Blade maker HT Blade, polysilicon producer Daqo, and wafer maker JinkoSolar have all already filed.
Indeed, it looks like the global cleantech game will be dominated by Chinese players for the foreseeable future. And that's a vast departure from standard practice, where China has typically trailed European and U.S. companies in entering nascent industries.
In a recent talk at an industry conference in Washington D.C., President of GCL Solar Energy Hunter Jiang didn't mince words about his country's position. His company is now the third largest producer of polysilicon in the world. After ruminating on China's laggard position throughout modern history's industrial revolutions and commenting on how automobiles and computers were cradled elsewhere, he said, "Today we are the leader."
Call it like you see it,
Nick Hodge
This article was originally found here: China's Clean Energy Progress
Bird netting ?? What is it ?
Bird Netting...an Effective, Humane Bird Deterrent
by Alex A. Kecskes
There are songbirds, lovebirds and pet birds. And then there are pest birds. Birds we can all do without. Birds we don't want to harm--we just want them to stay away. One way to do that is with bird netting.
Bird Netting for Facilities Managers
If you're a facilities or plant manager, you undoubtedly know that pest birds can cost you a ton of money and aggravation . They can easily invade your aircraft hangar, factory or warehouse, gathering by the hundreds in eaves, canopies and other large covered areas. Support beams make ideal landing, roosting and nesting areas for these pest birds. If you don't keep them out with deterrents like bird netting, you'll have to contend with all sorts of problems.
One of the biggest problems with pest birds is bird droppings. Aside from being unsightly and unhealthy, droppings can stop up gutters and down pipes. They can also "freeze up" ceiling windows and vents, as well as rooftop turbine ventilators and siding windows. Bird droppings can eat into corrugated metal surfaces, cover light sensors and security cameras, even block out those new solar panels you just installed to save energy. In fact, the acid in bird droppings can eat into electrical equipment to create a fire hazard. If you manage a warehouse, bird droppings can spoil finished products in loading bays and storage areas. They can damage goods, and ruin the appearance of expensive finished goods. And something few facilities managers think about are slip-and-fall hazards created by bird droppings--this can become a costly legal liability should a worker or visitor become injured.
All the more reason you need an effective bird deterrent like bird netting. The good thing about today's bird netting is that it's virtually invisible and blends in with the visual aesthetic of a structure's architecture.
Bird Netting For Growers
If you're a grower or farmer, you've seen the damage pest birds can cause to cornfields, fruit orchards, and vineyards. How quickly they can attack blueberries and blackberries, and how they can invade barns, stockyards and chicken coops. And because you deal in food, you know that bird droppings, bird nests and the mites that infest them can present a health hazard, carrying and transmitting any of 60 known diseases. Sparrows and Feral Pigeons, for example, can carry bacteria causing Salmonellosis. Feral Pigeons carry Ornithosis, which resembles viral pneumonia. You may have heard about bird netting, but you'd like to know more. If so, read on.
Bird Netting...Types and Sizes
So what kind of bird netting should you get? The good news is, there's a bird net for virtually every bird type and size. For large birds like pigeons and seagulls, you should go with a 1-1/8" to 2" mesh size. For smaller birds like sparrows and starlings, a smaller size in the area of 3/4" mesh would be best. Opt for ISO 1806 protocol mesh test netting for lasting strength. Some manufacturers will even custom cut the netting you need. Quality bird netting is U.V. stabilized, flame resistant and rot and waterproof. Not a bad idea if you install netting outdoors and leave it exposed to severe weather changes. It will also stand up to temperature extremes-these nets will have a flame resistant 250 degree F melting point and will also tolerate "sub-zero" temperatures. Bird netting is also non-conductive for areas where electrical conductivity or radio frequency interference presents a problem.
For aircraft hangars, garages, factories, warehouses, and large canopies, you should go with heavy-duty bird netting constructed of high strength polyethylene. If you're concerned about the appearance of netting and whether it will detract from your facility's architecture, not to worry. Today's bird netting comes in several colors, including white, stone and black. One note: Black bird netting won't discolor when it gets dirty or dusty. Installed properly, most bird netting is almost invisible. Resilient knotted polyethylene bird netting is available in U.V. treated twine for extended life. The burst strength on these nets can be as high as 40 pounds. Some manufacturers offer quality constructed bird netting that comes with a long guarantee--up to 10-years.
For growers, bird netting can keep pest birds from wreaking havoc in the field. For best results, drape the net directly over the crop (or over the trees). You'll want to affix the net to a structure overhead, which will allow you to completely enclose your orchard or vineyard. One bit of advice here: Make sure you drape your nets high enough to prevent birds from sticking their beaks through to eat your crop.
One last thing to remember about bird netting. If you need to cover an airplane hangar, warehouse or any large area, you'll need thousands of square feet of netting and special lifts and power gear. This kind of job calls for a professional bird control installer. If you don't install the bird netting properly, the net will sag and droop, leaving gaps for pest birds to sneak in.
by Alex A. Kecskes
There are songbirds, lovebirds and pet birds. And then there are pest birds. Birds we can all do without. Birds we don't want to harm--we just want them to stay away. One way to do that is with bird netting.
Bird Netting for Facilities Managers
If you're a facilities or plant manager, you undoubtedly know that pest birds can cost you a ton of money and aggravation . They can easily invade your aircraft hangar, factory or warehouse, gathering by the hundreds in eaves, canopies and other large covered areas. Support beams make ideal landing, roosting and nesting areas for these pest birds. If you don't keep them out with deterrents like bird netting, you'll have to contend with all sorts of problems.
One of the biggest problems with pest birds is bird droppings. Aside from being unsightly and unhealthy, droppings can stop up gutters and down pipes. They can also "freeze up" ceiling windows and vents, as well as rooftop turbine ventilators and siding windows. Bird droppings can eat into corrugated metal surfaces, cover light sensors and security cameras, even block out those new solar panels you just installed to save energy. In fact, the acid in bird droppings can eat into electrical equipment to create a fire hazard. If you manage a warehouse, bird droppings can spoil finished products in loading bays and storage areas. They can damage goods, and ruin the appearance of expensive finished goods. And something few facilities managers think about are slip-and-fall hazards created by bird droppings--this can become a costly legal liability should a worker or visitor become injured.
All the more reason you need an effective bird deterrent like bird netting. The good thing about today's bird netting is that it's virtually invisible and blends in with the visual aesthetic of a structure's architecture.
Bird Netting For Growers
If you're a grower or farmer, you've seen the damage pest birds can cause to cornfields, fruit orchards, and vineyards. How quickly they can attack blueberries and blackberries, and how they can invade barns, stockyards and chicken coops. And because you deal in food, you know that bird droppings, bird nests and the mites that infest them can present a health hazard, carrying and transmitting any of 60 known diseases. Sparrows and Feral Pigeons, for example, can carry bacteria causing Salmonellosis. Feral Pigeons carry Ornithosis, which resembles viral pneumonia. You may have heard about bird netting, but you'd like to know more. If so, read on.
Bird Netting...Types and Sizes
So what kind of bird netting should you get? The good news is, there's a bird net for virtually every bird type and size. For large birds like pigeons and seagulls, you should go with a 1-1/8" to 2" mesh size. For smaller birds like sparrows and starlings, a smaller size in the area of 3/4" mesh would be best. Opt for ISO 1806 protocol mesh test netting for lasting strength. Some manufacturers will even custom cut the netting you need. Quality bird netting is U.V. stabilized, flame resistant and rot and waterproof. Not a bad idea if you install netting outdoors and leave it exposed to severe weather changes. It will also stand up to temperature extremes-these nets will have a flame resistant 250 degree F melting point and will also tolerate "sub-zero" temperatures. Bird netting is also non-conductive for areas where electrical conductivity or radio frequency interference presents a problem.
For aircraft hangars, garages, factories, warehouses, and large canopies, you should go with heavy-duty bird netting constructed of high strength polyethylene. If you're concerned about the appearance of netting and whether it will detract from your facility's architecture, not to worry. Today's bird netting comes in several colors, including white, stone and black. One note: Black bird netting won't discolor when it gets dirty or dusty. Installed properly, most bird netting is almost invisible. Resilient knotted polyethylene bird netting is available in U.V. treated twine for extended life. The burst strength on these nets can be as high as 40 pounds. Some manufacturers offer quality constructed bird netting that comes with a long guarantee--up to 10-years.
For growers, bird netting can keep pest birds from wreaking havoc in the field. For best results, drape the net directly over the crop (or over the trees). You'll want to affix the net to a structure overhead, which will allow you to completely enclose your orchard or vineyard. One bit of advice here: Make sure you drape your nets high enough to prevent birds from sticking their beaks through to eat your crop.
One last thing to remember about bird netting. If you need to cover an airplane hangar, warehouse or any large area, you'll need thousands of square feet of netting and special lifts and power gear. This kind of job calls for a professional bird control installer. If you don't install the bird netting properly, the net will sag and droop, leaving gaps for pest birds to sneak in.
Advice to beginners on trading shares
Stocks and Shares for Beginners If you try to find information on the Internet about Stocks and Shares for Beginners it can be a tedious chore. Often you end up clicking on a link that looks promising only to find when you get there that it is a total waste of your time. This article however provide the basic information on what you need to bear in mind when trading stocks and shares if you are a beginner.
First of all, you will need a broker. To be more precise you need a discount broker - they are cheap but won't give you any advice, they take your money and do what you ask them to do, usually online but sometimes over the phone. For a list of cheap discount brokers take a look at this article - online brokers - which describes some of the discount brokers around.
Secondly, which stocks are you going to buy ? Well, you need to decide if you are long-term investor or a short/medium-term trader. If you are long-term investor then check out Warren Buffett's stocks and learn how he became a billionaire by buying stocks at good prices and holding them for a very long time. But be prepared to wait a few years - as Warren Buffett says "the stock market is a means for transferring money from the impatient to the patient".
If you are going to be a short or medium-term trader (a few days to a few months) then you really need to learn about stock charts and technical analysis. You can't just stick a pin in the Internet and hope to get lucky. Stock charts and technical analysis of charts are important for beginners starting to trade in stocks and shares as they can be used to show when is the right time to buy and when is the right time to sell. You don't need to know anything about the company whose shares you are trading all you need to know is how to read stock charts and understand what the various indicators are telling you.
As a beginner it is important to learn about charts because the professional traders use them and you need to be flowing with the professional traders not fighting against them.
Here are some absolute basics about stock market charts.
Don't buy a stock whose price is below its 200-day moving average. It is generally a bad sign when a stock falls below its 200-day moving average and sign that it is likely to fall even further, wait for it to get back above the 20-day moving average. If you don't know what a 200-day moving average is then take a look at the charts available on places like Yahoo and click on 'indicators' or 'moving averages' then type in 200. You should then see a stock chart or an index chart with the 200-day moving average plotted. One stock you can look at is MSFT - each stock has its own code.
Moving average are just one of the techniques that analysts use (5-day, 10-day, 20-day, 30-day, 50-day, 100-day) are the most popular periods of time.
You also need to understand about support and resistance. If a stock price is falling, at some point it will meet with support and stabilize, by looking at the charts you can see when this support will be found and you can then start buying. Similarly when a stock price is rising, at some point it will meet with resistance and stop rising. This is the time to sell if you are a trader.
Short-term traders or swing traders are generally hoping to get a 10% profit from a trade so once they have made their 10% profit (or thereabouts) they close the trade and look for something else.
Stop losses. Stop losses are designed to prevent you losing vast quantities of money in one go. Basically, if you buy a stock and instead of going up it starts going down then at some point you are going to have to sell at a loss. An automatic stop loss, which you should select at the time you buy the stock, will automatically close the trade once the stock reaches a pre-determined price. Usually after losing around 4- 5% you should close the trade and take it on the chin. It is far better to lose 5% than to hang on in the hope of getting your money back and end up losing 50%.
Stock trading online is all about balancing risks and rewards. You cannot win every time, but you can try and make sure that your winners make you more money than your losers lose. This is why swing traders are looking for a 10% profit and are only willing to bear a 5% loss.
There are other rules that swing traders often follow, such as not buying when the 5-day moving average is pointing down. (check the charts and see where the 5-day moving average is and which way it is pointing).
This introduction to stocks and shares for beginners was designed to give a very basic idea of some of the concepts that are used by stock traders. Professional traders do use charts and because they use them they often turn out to be self-fulfilling prophecies so it is important to understand what they mean, even if afterwards you choose to ignore them.
The subject of technical analysis is vast. One of the most widely used methods is that of Japanese candlesticks on which volumes have been written. There also things like MACD, RSI (relative strength index) and many more so you really should get a basic knowledge of what they mean before risking your money.
But the absolute most simple basic idea is that of support and resistance and some people say they use nothing else. They find a stock that is following a trend and then buy it when it falls back to its support level and sell it when it reaches its resistance level. Then wait for it to fall back and do it all over again !
So there you have it, the basics you need to know to trade stocks online. Get a discount broker. Learn how to understand charts. In particular learn to recognize support and resistance levels. Watch out for the 200 day moving average. THere are other things of course but they come into the category of not quite so basic. Trade well and prosper !
First of all, you will need a broker. To be more precise you need a discount broker - they are cheap but won't give you any advice, they take your money and do what you ask them to do, usually online but sometimes over the phone. For a list of cheap discount brokers take a look at this article - online brokers - which describes some of the discount brokers around.
Secondly, which stocks are you going to buy ? Well, you need to decide if you are long-term investor or a short/medium-term trader. If you are long-term investor then check out Warren Buffett's stocks and learn how he became a billionaire by buying stocks at good prices and holding them for a very long time. But be prepared to wait a few years - as Warren Buffett says "the stock market is a means for transferring money from the impatient to the patient".
If you are going to be a short or medium-term trader (a few days to a few months) then you really need to learn about stock charts and technical analysis. You can't just stick a pin in the Internet and hope to get lucky. Stock charts and technical analysis of charts are important for beginners starting to trade in stocks and shares as they can be used to show when is the right time to buy and when is the right time to sell. You don't need to know anything about the company whose shares you are trading all you need to know is how to read stock charts and understand what the various indicators are telling you.
As a beginner it is important to learn about charts because the professional traders use them and you need to be flowing with the professional traders not fighting against them.
Here are some absolute basics about stock market charts.
Don't buy a stock whose price is below its 200-day moving average. It is generally a bad sign when a stock falls below its 200-day moving average and sign that it is likely to fall even further, wait for it to get back above the 20-day moving average. If you don't know what a 200-day moving average is then take a look at the charts available on places like Yahoo and click on 'indicators' or 'moving averages' then type in 200. You should then see a stock chart or an index chart with the 200-day moving average plotted. One stock you can look at is MSFT - each stock has its own code.
Moving average are just one of the techniques that analysts use (5-day, 10-day, 20-day, 30-day, 50-day, 100-day) are the most popular periods of time.
You also need to understand about support and resistance. If a stock price is falling, at some point it will meet with support and stabilize, by looking at the charts you can see when this support will be found and you can then start buying. Similarly when a stock price is rising, at some point it will meet with resistance and stop rising. This is the time to sell if you are a trader.
Short-term traders or swing traders are generally hoping to get a 10% profit from a trade so once they have made their 10% profit (or thereabouts) they close the trade and look for something else.
Stop losses. Stop losses are designed to prevent you losing vast quantities of money in one go. Basically, if you buy a stock and instead of going up it starts going down then at some point you are going to have to sell at a loss. An automatic stop loss, which you should select at the time you buy the stock, will automatically close the trade once the stock reaches a pre-determined price. Usually after losing around 4- 5% you should close the trade and take it on the chin. It is far better to lose 5% than to hang on in the hope of getting your money back and end up losing 50%.
Stock trading online is all about balancing risks and rewards. You cannot win every time, but you can try and make sure that your winners make you more money than your losers lose. This is why swing traders are looking for a 10% profit and are only willing to bear a 5% loss.
There are other rules that swing traders often follow, such as not buying when the 5-day moving average is pointing down. (check the charts and see where the 5-day moving average is and which way it is pointing).
This introduction to stocks and shares for beginners was designed to give a very basic idea of some of the concepts that are used by stock traders. Professional traders do use charts and because they use them they often turn out to be self-fulfilling prophecies so it is important to understand what they mean, even if afterwards you choose to ignore them.
The subject of technical analysis is vast. One of the most widely used methods is that of Japanese candlesticks on which volumes have been written. There also things like MACD, RSI (relative strength index) and many more so you really should get a basic knowledge of what they mean before risking your money.
But the absolute most simple basic idea is that of support and resistance and some people say they use nothing else. They find a stock that is following a trend and then buy it when it falls back to its support level and sell it when it reaches its resistance level. Then wait for it to fall back and do it all over again !
So there you have it, the basics you need to know to trade stocks online. Get a discount broker. Learn how to understand charts. In particular learn to recognize support and resistance levels. Watch out for the 200 day moving average. THere are other things of course but they come into the category of not quite so basic. Trade well and prosper !
How not to lose money on trading
You must have heard horror stories surrounding options trading before. Stories such as how some people lose their whole account within a few days and even stories of options traders going bankrupt in express time.
These stories have no doubt cast a shadow over options trading and there are even people who now tout that options trading is as risky as futures trading.
Well, strange thing is, after more than 15 years of trading options, I have never experienced losing all my money within a few days nor going bankrupt. This led me to wonder why these things happen to some options traders. After some investigation, I conclude that it is not options trading that breaks accounts but specific things some options traders tend to do, especially beginners, that opens the door to such financial disasters. I narrowed these reasons down to two main ones.
The first of these is that some options traders trade options just like they trade stocks; buying call options with their whole account on that one "hot stock".
Yes, this is the number reason why most options beginners lose their shirt. Most beginners to options trading do with call options exactly what they do with stocks when they have a "hot tip"; throwing their whole account into that single "hot" trade. Now, this isn't that big a problem in stock trading because if the stock didn't move as expected, the trader could simply continue to hold the position until it does, sometimes for years. However, when you buy call options on stocks that didn't eventually move up as expected, the call options can expire worthless by expiration, taking your WHOLE account with it if you bought those call options with all the money you had! This problem is made even more pronounced by the fact that options have a definite expiration date that goes from a few months to a year for some stocks but never forever. This means that you do not have the luxury of holding on to bad trades forever, hoping they will come back in a few years time.
Professional options traders like me only enter a single position with money we can afford to lose. If I intend to lose no more than 10% of my account on any one trade, I do not use more than 10% of my account in a single trade. That's right, you NEVER buy a single options position or options contract with all the money you have! Although that would have made sense in stock trading, it is pure suicide and gamble in options trading.
The other reason is trading credit spreads or naked option writing without using stop loss.
Many options beginners were taken in by the apparent "free money" phenomena of writing naked options positions unaware that most of these credit strategies have unlimited loss potential.
For instance, if you wrote call options (shorting call options), you would make a fixed premium in profit if the stock went downwards or sideways. Some "gurus" call this "playing bookmaker". Well, they are right that you are playing bookmaker to gamblers by selling options to them but they forgot to mention the fact that sometimes, gamblers win big too. When you write call options, your position will make an incrementally bigger loss as the stock price rises! It will continue to make bigger and bigger loss as long as the stock continues to rise. This is what is known as an unlimited loss position. This loss is often, or always, much bigger than the premium you received from selling the options. Before you know it, your entire account is wiped out on this one trade because the stock refused to go down as you expected it to.
Does that mean we should not trade credit spreads or naked writes ever again? Not really. These are excellent options strategies but only if you trade them using a specific and definite stop loss point.
Yes, most options trading beginners trade such unlimited loss potential credit spreads with stop loss points but most of them give in to emotion when it's time to stop loss and hold their positions beyond their stop loss points in hope that things will turn around, which most often, they never do.
Professional options traders always trade unlimited loss potential positions with an AUTOMATED stop loss point. That's right, automated stop loss that works without human involvement. This can be in the form of a stop limit, contingent order or trailing stop loss order. As long as you do not have to physically execute the stop loss. Physically executed stop losses are stop losses that rarely gets executed. Remember that.
Buying options with your whole account and trading unlimited loss potential options positions without stop loss points are the two main reasons most options beginners lose their shirt. Take heed of my advice here and you would go through your initial options trading years in much more safety.
These stories have no doubt cast a shadow over options trading and there are even people who now tout that options trading is as risky as futures trading.
Well, strange thing is, after more than 15 years of trading options, I have never experienced losing all my money within a few days nor going bankrupt. This led me to wonder why these things happen to some options traders. After some investigation, I conclude that it is not options trading that breaks accounts but specific things some options traders tend to do, especially beginners, that opens the door to such financial disasters. I narrowed these reasons down to two main ones.
The first of these is that some options traders trade options just like they trade stocks; buying call options with their whole account on that one "hot stock".
Yes, this is the number reason why most options beginners lose their shirt. Most beginners to options trading do with call options exactly what they do with stocks when they have a "hot tip"; throwing their whole account into that single "hot" trade. Now, this isn't that big a problem in stock trading because if the stock didn't move as expected, the trader could simply continue to hold the position until it does, sometimes for years. However, when you buy call options on stocks that didn't eventually move up as expected, the call options can expire worthless by expiration, taking your WHOLE account with it if you bought those call options with all the money you had! This problem is made even more pronounced by the fact that options have a definite expiration date that goes from a few months to a year for some stocks but never forever. This means that you do not have the luxury of holding on to bad trades forever, hoping they will come back in a few years time.
Professional options traders like me only enter a single position with money we can afford to lose. If I intend to lose no more than 10% of my account on any one trade, I do not use more than 10% of my account in a single trade. That's right, you NEVER buy a single options position or options contract with all the money you have! Although that would have made sense in stock trading, it is pure suicide and gamble in options trading.
The other reason is trading credit spreads or naked option writing without using stop loss.
Many options beginners were taken in by the apparent "free money" phenomena of writing naked options positions unaware that most of these credit strategies have unlimited loss potential.
For instance, if you wrote call options (shorting call options), you would make a fixed premium in profit if the stock went downwards or sideways. Some "gurus" call this "playing bookmaker". Well, they are right that you are playing bookmaker to gamblers by selling options to them but they forgot to mention the fact that sometimes, gamblers win big too. When you write call options, your position will make an incrementally bigger loss as the stock price rises! It will continue to make bigger and bigger loss as long as the stock continues to rise. This is what is known as an unlimited loss position. This loss is often, or always, much bigger than the premium you received from selling the options. Before you know it, your entire account is wiped out on this one trade because the stock refused to go down as you expected it to.
Does that mean we should not trade credit spreads or naked writes ever again? Not really. These are excellent options strategies but only if you trade them using a specific and definite stop loss point.
Yes, most options trading beginners trade such unlimited loss potential credit spreads with stop loss points but most of them give in to emotion when it's time to stop loss and hold their positions beyond their stop loss points in hope that things will turn around, which most often, they never do.
Professional options traders always trade unlimited loss potential positions with an AUTOMATED stop loss point. That's right, automated stop loss that works without human involvement. This can be in the form of a stop limit, contingent order or trailing stop loss order. As long as you do not have to physically execute the stop loss. Physically executed stop losses are stop losses that rarely gets executed. Remember that.
Buying options with your whole account and trading unlimited loss potential options positions without stop loss points are the two main reasons most options beginners lose their shirt. Take heed of my advice here and you would go through your initial options trading years in much more safety.
Option trading can you really do it or is it best left alone
If Shakespeare traded options, I'm sure he would ponder: "More time or less, that is the question."
And rightly so.
Because aside from determining whether you're going to buy a call or buy a put, deciding how much time to get on your option is probably one of the most grave elements in options trading.
Today we're going to answer this age-old question.
Let's start by taking a look at some examples.
Buying Calls and Puts
Buying calls and buying puts is one of the most common ways investors trade options.
* If you have faith in the price of a stock will go up, you can buy a call option on it and make money as it goes higher
* If you think the price of a stock will go down, you can buy a put option on it and make money as the price goes lower.
The option buyer also gets a guaranteed limited risk, which is limited to the purchase price (or premium) plus any applicable commissions and fees.
Basically, at expiration, your profit is dependant on the difference between where the stock price is and your option's strike price.
What's Your Time Worth?
As a rule of thumb, if you're buying an option, buy more time than less.
The more time you have, the more time value there is.
Many investors will skimp on time in hopes of saving a couple hundred dollars on their purchase price.
It's a simple mistake, but it can be costly.
Example:
Let's look at three hypothetical options; all at the same strike price:
* there's a 2 month option going for $5.00 (or $500)
* a 4 month option going for $7.20 (or $720)
* and a 6 month option going for $9.30 (or $930) Some simple math will quickly show you which options are the better bargain.
For the 2 month option, divide the premium ($500) by the amount of time remaining (2 months). That means each month of time costs the investor $250.
Now take the 4 month option, divide that premium ($720) by the amount of time remaining (4 months) and you'll see that the investor would only be paying $180 for each month of time he/she gets to hold onto that option.
The 6 month option is even better ($930 divided by 6 months) as you're only paying $155 per month of time in this case.
Using the examples above, the 6 month option is the better bargain in that you're paying less for each unit of time than the others.
Of course, if you really don't feel you want (or need) that much time, the 4 month option would still be the better bargain than the 2 month option.
I know that when someone pulls the trigger on a trade, they're likely expecting it to move right away. And it very well might.
But what if it doesn't?
You might have to wait around longer that you thought to see the stock do what you expected it to do.
So while you don't need to buy excessive time, as a general rule, it's usually a good idea to get a little extra time. This is true for two major reasons:
1.If you run out of time, it's game over on that option. And sometimes the variation between making money and losing money in options comes down to just a little extra time.
2.Time value shrinks (time decay) at its most rapid pace within the last 30 days or so prior to expiration. The simple act of getting a little extra time can keep you out of that 'time-value-crunch' red zone.
So when deciding which option to buy, consider getting a little more time than you think you'll need. That'll increase your chances of success by giving you more time for the trade to work out, and as the above illustration shows, it's often times the better value.
Except for the times when it's not. (See below.)
Straddles and Strangles
A Straddle or a Strangle involves buying both a call and a put at the same time.
As discussed earlier, you buy a call if you expect the market to go up.
And you buy a put if you expect the market to go down.
A Straddle or a Strangle is a strategy to use when you're not sure which way the market will go, but you believe something big will happen in either direction.
For example, let's say it's earnings season and you expect a big move to occur, either up or down, based on whether the company reports a positive surprise or a negative surprise.
With these strategies you can make money in either direction without having to be bothered about whether you guessed correctly or not.
(I'll get to the 'how much time to get' in just a moment.)
First, a Few Definitions
* A Straddle is when you have both a call and a put, with the SAME strike price (both at-the-money usually) and with the same expiration dates.
* A Strangle is when have you have both a call and a put option, with DIFFERENT strike prices (both out-of-the-money) and with the same expiration dates.
Both strategies are used to position oneself on either side of the market in an effort to take advantage of a potentially big move in either direction.
Once again, this could be before an earnings release, or a key announcement, or a big report, or maybe the charts are suggesting a big breakout could be getting ready to take place in one direction or another.
Whatever the reason, this is generally when someone would apply this type of strategy.
Example:
Let's say a stock was trading at $100 a few days before their earnings announcement. So you decide to put on a Straddle by buying:
* the $100 strike call
* and the $100 strike put Since you only plan on being in the trade for a few days (to maybe a few weeks), you decide to get into the soon-to-expire options.
But isn't getting more time usually better?
Yes, when buying a call OR a put.
But when playing both sides of the market simultaneously for an event you expect to take place in the near immediacy, the opposite is true.
Why? Because at expiration, your profit is the difference between how much your options are in-the-money minus what you paid for them. So if you don't need a lot of time, this keeps the cost down and your profit potential up.
Continuing with the example above...
If you paid $150 for an at-the-money call option that will expire before long and another $150 for an at-the-money put option that will expire shortly, your cost to put on the trade was $300 (not including transactions costs).
If that stock shot up $10 as a result of a positive earnings surprise, the call option that you paid $150 for would now be worth $1,000.
And that put option would be worth zero ($0).
So let's do the math:
If the call, which is now $10 in-the-money, is worth $1,000; subtract the $150 you paid, which gives you an $850 profit on the call.
The put, on the other hand, is out-of-the-money, and is worth nothing, which means you lost $150 on the put.
Add it all together, and on a $300 investment, you just made a profit of $700.
Pretty excellent - especially for not even knowing which way the stock would go.
If however, you paid more for each side of the trade, those would be extra costs to overcome. But by keeping each side's cost as small as reasonably possible, that leaves more profit potential on the winning side and a smaller loss on the losing side.
Moreover, if the stock stays flat (in other words, the big move you expected doesn't materialize, thus resulting in both sides of the trade expiring worthless), your cost of the trade was kept to a minimum.
So buying a Straddle or a Strangle, by its very nature, should be looked at as a short-term trade.
And if the event that initially got you into the Straddle or Strangle now has you strongly believing that a continuation of the up-move or down-move is in order, you could then exit the Straddle or Strangle and move into the one-sided call or put and apply the 'more time' rule as discussed earlier.
Record Setting
In spite of all the turmoil in the financial markets of late (or maybe, in part, because of it), the growth in options trading has continued to rise.
In fact, for the last seven years in a row, the volume of options contracts traded has steadily increased with 2009 setting an all-time high of 3.59 billion contracts.
More and more people are now including options in their investments as a smart way to get ahead of the market.
And it's easy to see why.
Advantages
Options afford the investor many advantages, not the least of which is a guaranteed limited risk when buying calls and puts.
And you can also get a great deal of leverage while using only a fraction of the money you would normally put up to get into the actual stocks themselves.
But the real advantage with options is the opportunity to make money if a stock goes up, down or (depending on your strategy) even sideways.
In fact, with some strategies you can even be wrong on the underlying stock's direction and still profit.
All you need to do to increase your odds of success is to avoid some very common (but costly) mistakes, and you can start enjoying all of the benefits that options were designed to give you.
New Service
We've created a special service to help you do just that. It takes all of the guesswork out of options trading by doing all the research for you and presenting it in plain language with easy-to-understand signals.
Whether you're new to options trading or a seasoned pro -- we'll be walking you thru each trade step by step as we present our unique perspective on some of the most well-liked options strategies, as well as others that some people may never have even heard about.
If you're interested, be sure to check out our new Zacks Options Trader now. This is a restricted service and must close when the spots are filled. But we're getting ready to add our first trades, and you're invited to be among the first to take advantage of them.
And rightly so.
Because aside from determining whether you're going to buy a call or buy a put, deciding how much time to get on your option is probably one of the most grave elements in options trading.
Today we're going to answer this age-old question.
Let's start by taking a look at some examples.
Buying Calls and Puts
Buying calls and buying puts is one of the most common ways investors trade options.
* If you have faith in the price of a stock will go up, you can buy a call option on it and make money as it goes higher
* If you think the price of a stock will go down, you can buy a put option on it and make money as the price goes lower.
The option buyer also gets a guaranteed limited risk, which is limited to the purchase price (or premium) plus any applicable commissions and fees.
Basically, at expiration, your profit is dependant on the difference between where the stock price is and your option's strike price.
What's Your Time Worth?
As a rule of thumb, if you're buying an option, buy more time than less.
The more time you have, the more time value there is.
Many investors will skimp on time in hopes of saving a couple hundred dollars on their purchase price.
It's a simple mistake, but it can be costly.
Example:
Let's look at three hypothetical options; all at the same strike price:
* there's a 2 month option going for $5.00 (or $500)
* a 4 month option going for $7.20 (or $720)
* and a 6 month option going for $9.30 (or $930) Some simple math will quickly show you which options are the better bargain.
For the 2 month option, divide the premium ($500) by the amount of time remaining (2 months). That means each month of time costs the investor $250.
Now take the 4 month option, divide that premium ($720) by the amount of time remaining (4 months) and you'll see that the investor would only be paying $180 for each month of time he/she gets to hold onto that option.
The 6 month option is even better ($930 divided by 6 months) as you're only paying $155 per month of time in this case.
Using the examples above, the 6 month option is the better bargain in that you're paying less for each unit of time than the others.
Of course, if you really don't feel you want (or need) that much time, the 4 month option would still be the better bargain than the 2 month option.
I know that when someone pulls the trigger on a trade, they're likely expecting it to move right away. And it very well might.
But what if it doesn't?
You might have to wait around longer that you thought to see the stock do what you expected it to do.
So while you don't need to buy excessive time, as a general rule, it's usually a good idea to get a little extra time. This is true for two major reasons:
1.If you run out of time, it's game over on that option. And sometimes the variation between making money and losing money in options comes down to just a little extra time.
2.Time value shrinks (time decay) at its most rapid pace within the last 30 days or so prior to expiration. The simple act of getting a little extra time can keep you out of that 'time-value-crunch' red zone.
So when deciding which option to buy, consider getting a little more time than you think you'll need. That'll increase your chances of success by giving you more time for the trade to work out, and as the above illustration shows, it's often times the better value.
Except for the times when it's not. (See below.)
Straddles and Strangles
A Straddle or a Strangle involves buying both a call and a put at the same time.
As discussed earlier, you buy a call if you expect the market to go up.
And you buy a put if you expect the market to go down.
A Straddle or a Strangle is a strategy to use when you're not sure which way the market will go, but you believe something big will happen in either direction.
For example, let's say it's earnings season and you expect a big move to occur, either up or down, based on whether the company reports a positive surprise or a negative surprise.
With these strategies you can make money in either direction without having to be bothered about whether you guessed correctly or not.
(I'll get to the 'how much time to get' in just a moment.)
First, a Few Definitions
* A Straddle is when you have both a call and a put, with the SAME strike price (both at-the-money usually) and with the same expiration dates.
* A Strangle is when have you have both a call and a put option, with DIFFERENT strike prices (both out-of-the-money) and with the same expiration dates.
Both strategies are used to position oneself on either side of the market in an effort to take advantage of a potentially big move in either direction.
Once again, this could be before an earnings release, or a key announcement, or a big report, or maybe the charts are suggesting a big breakout could be getting ready to take place in one direction or another.
Whatever the reason, this is generally when someone would apply this type of strategy.
Example:
Let's say a stock was trading at $100 a few days before their earnings announcement. So you decide to put on a Straddle by buying:
* the $100 strike call
* and the $100 strike put Since you only plan on being in the trade for a few days (to maybe a few weeks), you decide to get into the soon-to-expire options.
But isn't getting more time usually better?
Yes, when buying a call OR a put.
But when playing both sides of the market simultaneously for an event you expect to take place in the near immediacy, the opposite is true.
Why? Because at expiration, your profit is the difference between how much your options are in-the-money minus what you paid for them. So if you don't need a lot of time, this keeps the cost down and your profit potential up.
Continuing with the example above...
If you paid $150 for an at-the-money call option that will expire before long and another $150 for an at-the-money put option that will expire shortly, your cost to put on the trade was $300 (not including transactions costs).
If that stock shot up $10 as a result of a positive earnings surprise, the call option that you paid $150 for would now be worth $1,000.
And that put option would be worth zero ($0).
So let's do the math:
If the call, which is now $10 in-the-money, is worth $1,000; subtract the $150 you paid, which gives you an $850 profit on the call.
The put, on the other hand, is out-of-the-money, and is worth nothing, which means you lost $150 on the put.
Add it all together, and on a $300 investment, you just made a profit of $700.
Pretty excellent - especially for not even knowing which way the stock would go.
If however, you paid more for each side of the trade, those would be extra costs to overcome. But by keeping each side's cost as small as reasonably possible, that leaves more profit potential on the winning side and a smaller loss on the losing side.
Moreover, if the stock stays flat (in other words, the big move you expected doesn't materialize, thus resulting in both sides of the trade expiring worthless), your cost of the trade was kept to a minimum.
So buying a Straddle or a Strangle, by its very nature, should be looked at as a short-term trade.
And if the event that initially got you into the Straddle or Strangle now has you strongly believing that a continuation of the up-move or down-move is in order, you could then exit the Straddle or Strangle and move into the one-sided call or put and apply the 'more time' rule as discussed earlier.
Record Setting
In spite of all the turmoil in the financial markets of late (or maybe, in part, because of it), the growth in options trading has continued to rise.
In fact, for the last seven years in a row, the volume of options contracts traded has steadily increased with 2009 setting an all-time high of 3.59 billion contracts.
More and more people are now including options in their investments as a smart way to get ahead of the market.
And it's easy to see why.
Advantages
Options afford the investor many advantages, not the least of which is a guaranteed limited risk when buying calls and puts.
And you can also get a great deal of leverage while using only a fraction of the money you would normally put up to get into the actual stocks themselves.
But the real advantage with options is the opportunity to make money if a stock goes up, down or (depending on your strategy) even sideways.
In fact, with some strategies you can even be wrong on the underlying stock's direction and still profit.
All you need to do to increase your odds of success is to avoid some very common (but costly) mistakes, and you can start enjoying all of the benefits that options were designed to give you.
New Service
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Whether you're new to options trading or a seasoned pro -- we'll be walking you thru each trade step by step as we present our unique perspective on some of the most well-liked options strategies, as well as others that some people may never have even heard about.
If you're interested, be sure to check out our new Zacks Options Trader now. This is a restricted service and must close when the spots are filled. But we're getting ready to add our first trades, and you're invited to be among the first to take advantage of them.
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