Many people have been paying attention to the way that the recent economic crisis has affected the housing and credit markets, as well as the stock market itself. There were scores of people who thought they had charted a path for long term wealth by investing their money in certain companies that were said to be too big to fail. However, when things began to get tough, and people began to get stingy with their stock market purchases, it became obvious that there is always risk involved when you buy into a public company. If you’re interested in getting a fresh start in the market, and only bothering with stocks that have the potential for long term success, you’ve got to get a firm grasp of technical analysis stock.

The first thing that you must understand is that there are two main methods for evaluating the stock market, and determining whether buying or selling is the right choice at any particular point in time: fundamental analysis and technical analysis stock. Investors should be aware of the different characteristics of both strategies, and plan on implementing some elements of both into what will become their own personal style of investing. Most professional analysts will tell you that these two approaches are each other’s polar opposites, because they are based on very different assumptions about what drives the daily market fluctuations.

If you’re interested in technical analysis stock, you’ll need to be committed to constant tracking and monitoring of stock charts using specialized software programs and online tools. These tools will be connected electronically to the stock index of your choice, and will register trade prices as well as opening and closing prices for the day. Technical analysts look at these charts over time and inspect them for trends and patterns that can provide clues about whether a stock is likely to increase or decrease in price.

The basic assumptions of technical analysis stock are simple: First, market prices have been discounted to reflect, relevant information like natural disasters, political pressure, or public psychology about a company, so extra research isn’t needed to account for them. Second, prices like to move in trends, which will continue a change in the market interrupts them. Third, technical analysts firmly believe that history repeats itself, meaning that past occurrences can be used to predict market action in the future. Although nothing can allow you to predict the future absolutely, technical analysis will allow you to make educated guesses.

There is a tremendous daily market of discounted bank instruments like SBLC, Bonds, MTN, BG, etc. involving issuing banks and long chains of what are called “exit-buyers”, which include huge financial institutions, Pension Funds, etc. in an exclusive Private Placement Program arena.

These activities on the bank side are done as “Off-Balance Sheet Activities”, which allow the banks to benefit in many ways. So, what are “Off-Balance Sheet Activities”? Basically, they are contingent liabilities and assets, where the value depends upon the outcome upon which the claim is based, similar to that of an option. These “Off-Balance Sheet Activities” show up on the balance sheet merely as memoranda items. When they cause a cash flow, they will show up as a debit or credit on the balance sheet. Since there is no deposit liability, the bank does not have to consider binding capital constraints.

So, what is the difference between private placement programs and normal trading?

Since all Private Placement Programs involve trading with discounted debt instruments (notes) and can only be done on a private level in order to bypass legal restrictions, these types of trades are different from the highly regulated “normal” trading. Said another way, these Private Placement Programs are done and restricted on a private level only without all of the restrictions that are present in the securities market.

What is “normal trading”? It is what the majority of the public is aware of and is known as the open market (or spot market) under which bids and offers are used to buy and sell discounted instruments. Kind of like an auction.

To play here the traders must have full control of the funds, if they don’t, they cannot buy the instruments and sell them to others. Also, there are no arbitrage buy-sell transactions in this market because all players have a clear view of the instrument and its price.

There is also something called a “closed, private market” where an inner circle exists and is made up of a restricted number of “master commitment holders”. These are basically trusts with large amounts of money that agree (through contracts) to purchase a specified number of fresh-cut instruments at a set price during a set period of time. Their purpose is to sell these fresh-cut instruments on, so they contract sub-commitment holders, who contract with exit-buyers they find.

Because all of these programs all based on arbitrage buy-sell transactions with preset prices, the traders do not have to be in control of the investor’s funds. But in order for a program to start, there has to be enough money behind each buy-sell transaction. That’s why the investors are needed. The involved banks and commitment holders are not permitted to trade with their own money unless they have reserved enough funds on the market, and that money belongs to the investors which is never used, and never put at risk.

These Trading Banks can lend out money to the “traders” usually at 1: 1 0 ratio, but under certain conditions, they go as high as 20: 1. That means that if a trader can “reserve” $100M, then the bank can lend out $1 Billion. This is accomplished through a line of credit based on how much money the trader (the commitment holder) has, since the banks don’t lend out that much money without collateral.

Any trader that requires he be in control of the investor’s fund, is not one of the major players, but rather plays in the open spot market where lots of different instruments are traded.

Now if the trader only has to reserve the client’s funds without being in control of those funds, he is participating in this private market of private placement programs.

Since many bankers and others in the financial arena are exposed to the open market but are not allowed into the private market, they find it difficult to believe that a private market exists and that is often the reason they think private placement programs are scams.

As my grand pappy used to say, “Ignorance is a voluntary misfortune”!!!

To get started with a Private Placement Program requires at least 1M USD and the client must submit a Proof of Funds, CIS (client information sheet) and a copy of a passport

I have always invested time reading. A man I met many years ago told me I wasn’t reading enough about business and network marketing. He would not listen to me saying I didn’t have time or the books weren’t interesting.

Instead he suggested I leave to pick my daughter up from school ten minutes early each day and I invest those ten minutes reading. He gave me a huge list of his favorite books and said it really didn’t matter if I read cover to cover or skipped around. He felt the important step was developing the habit of reading every single day.

I have also always invested time planning out my marketing strategies. This habit came from a woman I was friends with many years ago when my daughter was in kindergarten. This woman had a husband in business and knew the importance of daily marketing. We became great friends and she asked me weekly how my marketing was doing and what I had accomplished that week. I actually still have a birthday gift her daughter gave me. It’s a home-made notebook with ten ways to advertise my business. This ten year old girl knew from her dad the importance of marketing and advertising.

These are the types of friends that you want when you run a network marketing business. These are people that are supportive and are wonderful to spend time with.

Over the years I’ve received many emails from people saying things like “my friends all tease me about my network marketing business” or “my friends make fun of me because they think I’ve joined a pyramid.”

I have another friend who is very involved in the non-profit sector here in town. When she is needing funds for one of the organizations she is a part of, she calls me. She knows I’ll do everything I can to help the group earn as much as possible from the fundraiser. Throughout the year I’ll also provide her with small door prizes and incentive gifts for her other fundraisers.

Take a look at the people you call “friends.” Are they people who support you and your business? Are they people who will talk shop with you from time to time and strategize with you? Are they people who run businesses themselves and can share ideas and tips with you? Or are they people who want to tease you and make fun of you?

Who you spend your time with can really make a difference in the growth of your business.