Saturday, May 06, 2006

Make Money from Crude Oil

By now everyone is aware of the increase in the price of fuel. The price we pay at the gas pump seems to get more and more press coverage. That is because this is considered an extreme situation. Successful traders look for extreme situations. It’s a setup for a very profitable situation.


There are a number of ways to take advantage of this opportunity. The way I suggest is to look at crude oil. Fuel is made from crude oil. On the commodity exchange (a place where commodities are bought and sold) every ten cents (dime) in the price change of crude oil equals $100. Why every 10 cent move in the price of crude oil equates to $100 deserves more of an explanation than I have room in this article.


Recently the price of crude oil changed $1.14 in one day. What that means is if the price changed $1.14 that equated to a profit potential of $1,140 in one day. You could have made that amount of money while you continued to go about your daily life. How would making $1000 a day change your life?


Now let’s talk about timing and why I love weather forecasts. Natural disasters happen. I don’t want them to happen but they happen. So you may as well turn lemons into lemonade. Here’s what I mean, if a hurricane is headed for the Gulf Coast that means that crude oil will probably rise in price. Smart traders know this and they position themselves to profit from the rising price of crude oil.

Making a Fortune in Investments

How can you make a fortune out of your money?

With a New Business Idea
The most promising way is to develop a new business idea. Young scientists or professionals detect a problem. They do a lot of research in order to find a solution. They develop a new product or service. If they are lucky, they meet a demand on the market. They bring their innovation to the market.

By Funding of a New Business Idea
Not everyone is able to develop something new that is promising for making a fortune. They can finance others, if they feel confident in their marketing strategy and their dedication to work. Some of this people are acquinted with pioneering entrepreneurs. They act as so called “family, friends, fools” network. They invest in the hope to get their money back. They can benefit great, if they are lucky.

As Professional Venture Capitalists
Some people can use their assets in order to work as professional venture capitalists. Some of them have experience in building up of a new business. They act as business angels and provide young entrepreneurs with both: investment capital as well as advice. They usually maintain a good network to universities, research centres and startup contact centres. They try to choose among the best ventures. A lot of skills and the ability to risk own funds are needed to do this job.

By Trading from Home
People with experience in the financial markets can trade on the stock and options markets from home. There are a lot of opportunities and software programs for day trading on stock markets and for investments in futures and options. This is a highly risky business.


Let me start by giving you some background information. First of all, most custodians, even true self directed custodians, require massive amounts of paperwork and numerous hoops to jump through in order for you to invest your IRA money in an "alternative" investment. This costs you time and money (custodian fees). To more effectively use your IRA, your IRA will instead place all of its assets into a limited liability company (LLC). Therefore, there is only one asset to be declared by the custodian to the IRS and this translates to fewer fees to you. Notice I did not say that your custodian manages your IRA. Then who manages the IRA? well, you of course.

Why an LLC? The LLC gives great asset protection and tremendous tax advantages. The LLC enjoys the asset protection of a corporation while it can be taxed as a partnership. Partnership taxation is great because the LLC itself will not pay taxes. Instead, the owner of the LLC pays taxes as if they earned the income. Who is the owner of the LLC? Your IRA is the owner of the LLC(a tax- exempt entity). Therefore, you can maximized your investment and pay no taxes, what a deal.

What are the "alternative investments" mentioned above? They are too multiple to mention here but I will try:

real estate, other LLC's, franchises, unsecured loans, corporations, mortgage notes, commodities and futures, joint ventures, tax liens and tax deeds, currency exchange, times shares, limited partnerships, timberland investment, real estatle options, commercial paper, hunt lease investments, stocks, bonds, mutual funds, annuities, ect.

Making Money From A Rising Gold Price

Gold is a physical asset that is a store of value which cannot be eroded in the same way currencies can, such as printing of paper currency. As such, gold is a hedge against inflation. The spot price is ultimately driven by supply and demand, including hoarding and dis-hoarding. Of late, gold has been enjoying a 'bull run' and as such, traders are more actively looking to leverage or 'gear' their positions by buying gold equities and trading with other financial instruments.

Here are 5 top tips to make money out of the gold price as it rises over time: -

1) Covered Warrants - Short term you can leverage the profit you can make as the gold price rises by buying covered warrants. This is a risky strategy but you can only lose your initial stake. Remember, the price can also go down ( incidentally you can also buy PUTS which banks on the price going down ). You can also buy 'long dated' covered warrants which gives you until the end of the year to profit from your position.

2) Paper Assets (Producers): Rather than buy physical gold, buy gold stocks already producing ( paper assets ). This will give you leverage as the companies employ gearing. The more gold goes up, the more they make bottom line ( and as such the share price rises too ).

3) Physical Gold: Purists may wish to purchase gold coins such as Kruggerands. There is a large selection available. The first decision is often whether to buy older coins or new bullion coins.

4) Paper Assets (Non-Producers): Some gold companies may not yet be producing but are sitting on potential world class gold resources with a certain amount of proven resource already. One example of this is Centamin Egypt ( CEY ).

5) Gold Futures: This is a professional market, more for a speculator than an investor. If you wish to play this market in gold, you will need to use a commodity broker.

Invest In Energy Markets and Make Huge Profits

The recent move in crude oil to all new time highs has shown the potential to be made trading energy markets and many savvy traders make triple digit gains or more!

If you want to get involved in energy markets and get a share of this profit potential then this report is for you, even if you have never traded energies before.

Let’s look at these exciting markets and one move that could yield even bigger profits than crude oil!

Why trade energies?

Quite simply, they offer a speculators dream that includes the following advantages

1. Trending nature

Energy markets trend longer term and traders can lock into these trends for huge profits.

2. Profits in bull and bear markets

Traders can buy or sell energy contracts depending on their view and this gives constant opportunities for profit.

3. Volatility & liquidity

Energy drives the world economy and by its very nature is volatile and price swings are always present.

Liquidity is high (crude for example is the biggest commodity market in the world) this means that positions can be opened and closed quickly to lock in profits and limit losses

4. Seasonal trends

Many energy markets exhibit highly reliable seasonal trends due to consumption patterns. For example, unleaded gasoline demand is highest in the summer holiday driving months and heating oil demand is strongest in the winter months

What vehicle should I use to trade energy markets?

With energies there is the possibility to make large rewards however with reward goes risk.

Risk management is critical to long term success in trading any volatile market. The “safest” method to trade these markets is by options, which offer unlimited profit potential and limited risk.

How should I trade?

Energy markets to exhibit reliable trends and the best way is to use a technical trading system that simply follows the trend. There are many good simple systems that can be used.

I Missed the recent bull move up in crude oil have I missed the boat?

There are always trends to take advantage of, so the fact you have missed one does not mean others will not come around.

Here is a quick outlook for energies, that includes a market that could take off shortly and give far bigger profits than crude oil!

Crude oil

Prices should remain firm as demand exceeds supply, add in geo political concerns in major oil producing areas such as the Middle East and prices can go higher.

Pullbacks therefore represent buying opportunities.

The same applies to heating oil and unleaded gasoline that are ideal markets to trade from a seasonal point of view.

Natural Gas

Natural gas could take soar in value simply because crude and its products have increased so much in price. Natural gas has the following advantages:

1.It is a clean fuel and environmentally friendly
2.It is produced in the US ( and is not imported ) and is therefore free of geo political concerns that surround oil
3.It is relatively cheap in price

With the US looking for alternative energy sources, a buy and hold strategy in natural gas could yield huge long term gains.

While natural gas is plentiful in the long term in the short term demand is exceeding supply and this scenario looks to be in place for the next few years.

With a rising demand and supply already short we have the perfect scenario for higher prices.

Energies the perfect markets to seek huge gains

Energy markets offer great potential for profit for traders with risk capital and represent an ideal diversification away from traditional investments such as stocks and bonds.

Turnkey Home Based Business Opportunity

Are you looking for a way to make some extra income? Since the dawn of the Internet, entrepreneurs have found ways to use the World Wide Web to generate income from home. The Internet is a natural as a home base business. All you need to get up and running is a connection to the web. There are literally hundreds of opportunities to start your own work from home business, all requiring different degrees of commitment from you. How do you choose the home based business opportunity that's the best home base business for you when there's so much to choose from?

The answer is far simpler than you'd think. The key to a successful Internet home business is to decide what you do well, and choose a home based business opportunity that makes the most of your strengths and preferences. For many people, that opportunity is a turnkey business.

A turnkey business is just what it sounds like. A turnkey business is one that's all set up and ready to go. All you need is the 'keys' to the door to make it yours. Your commitment to a turnkey business can be as little as making a monthly payment to keep the store online, or as involved as deciding every little thing from the background color of your website pages to the products featured in your storefront. There is no other type of business opportunity that can offer you so many benefits for so little investment. With a turnkey Internet based home business you can:

* Have a genuine business up and running within hours
* Make money on the Internet in the shortest possible time
* Have a business web site without learning a single HTML tag
* Set your own hours and work when you want
* Sell almost anything you can imagine