About Edward

Edward has been a member since July 16th 2010, and has created 1134 posts from scratch.

Edward's Bio

Hi, My name is Edward Forsythe, I have a passion for helping people achieve enough passive income through investing in the right vehicles to secure their financial future. I will be sharing with you several financial facts to help you make better decisions investment.

Edward's Websites

This Author's Website is http://prophetmaxprofits.com

Edward's Recent Articles

Your Questions About Day Trading Strategies

Maria asks…

What are the downsides or pitfalls of trading currencies?

If economic stats and indicators of many countries are available to anyone (or are they?), why isn’t it commonplace for people to be trading up on different currencies and getting rich? Is it transaction costs alone? What are some other factors that make it risky?

Edward answers:

I play around with it (paper trading) and discovered it can go against you very quickly but if you are stringent and wise when setting your stop losses, you can avoid big losses. I myself find it is best to play it safe by trading mini-lots and trading one currency pair at a time. The problem with stop-losses is if you set them to close (say 30 – 40 pips) you will hit them too often and will have a hard time making up the losses. I found the strategy that works best for me is setting very small limits (10 – 15 pips), setting no stop-losses and just waiting it out (it could take a few minutes to reach your goal or a few days). The drawbacks to that strategy is if the trade continues for several days, you’ll have to pay rollover fees, which takes away from your original potential profit and if it goes high against you, you will need a lot of margin to stay in the trade otherwise you will have to take a big loss.

Mandy asks…

Can someone recommend a good momentum trading course i can go on?

Looking to learn momentum trading.
Any help would be most appreciated.

Edward answers:

It’s no secret that in the stock market you can watch certain stocks rise more than 100% within a few minutes to days, regardless of market conditions.

The financial media constantly reports about momentum stocks that are achieving tremendous gains in matter of hours. And even when you can see online traders making $2000 on a single day, it is also not unusual to watch beginner stock investors lose a great deal of cash because of a series of unwise decisions.

The problem is that if you don’t know how to choose among stocks & how to manage the trade, you could end up wasting dollars instead of making your profits grow.

Bogus stock trading software programs and complicated day trading systems that rely on a “boat load” of technical analysis indicators can confuse you and make you slow, and being slow when trading stocks can be as dangerous as not knowing what to do in the first place.

The worst thing that can happen to a beginner stock market trader is to get information overload. It’s better to go step by step, and test a practical trading strategy that can help you focus on simple ways to make money while picking SOLID stock trading opportunities once at a time.

Learn to choose among the hottest stocks and dramatically improve your trading results today at http://www.MomentumStockTrading.com

Helen asks…

stock trading strategies?

Edward answers:

1. Stock market day trading strategies begin with a plan and the discipline of the trader to follow a plan.

2. Day traders must have a strategy for risk, for money management, and for buying and selling stocks. Success is a result of applying all these rules, not just some.

3. Stock Market Day Trading: Risk Management

Risk management goes hand in hand with money management. Both try to limit the risk among several stocks as a diversification method and try to optimize the return per trade with an optimal bet. Day traders necessarily trade only a few stocks intensively because by the end of the day they must have sold their positions.

3. For details, please read at:

http://www.ehow.co.uk/list_6705030_end-day-trading-strategies.html

.
.

Ken asks…

how long can a profitable day trading strategy last?

How often do you have to change your strategy if you want to last more than two decades trading for living if you find profitable one to start with?

Edward answers:

I’ve been in the business for over 40 years, I know many floor and in house traders who have been very successfull years after years.

Trading is not always about making money, it also requires to protect the assets they have. Traders do not need to make money on every trade, but most traders have a strong money management plan in place which permits them to be profitable years and years.

All professional and successful traders have four major policies that they follow

1 – A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 – A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away – don’t loose more than you need to and don’t be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 – Traders must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
(this does not apply to floor traders)
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

Charles asks…

Can you day trade on fundamentals rather then technicals?

I know day traders using technical analysis, but I find that I can do just as well by relying on fundamentals and keeping up with the latest news, I also look at moving averages.

Edward answers:

Day trading based on news fall in different category and doesen’t belong to either fundamental or technical style of investing. News based trading is good and there are people who make money by following this strategy.

Trading on stocks which are fundamentally sound is a technique that all smart traders apply. At least here they doesn’t fall victim to sudden crash in prices.

Theoretically one should not practice day trade, but my personal experience suggest that there is nothing like right or wrong in stock markets at least.

Things which work is right. One just has to understand what he is comfortable at. For instance Warren buffett and Peter Lynch both were highly successful but both followed different approaches. Buffett is of the philosophy that one should not hold more than 10-20 stocks in ones portfolio while on the other hand Peter Lynch held more than 1400 stocks at one point of time while he was manger at Fidelity Magellan Fund.

Being 8 years in investing now, I would suggest one should listen to his heart and do what he believes in.

Best of Luck!

Amit Agarwal
Author: http://www.investorzclub.com

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Your Questions About Best Investments

Sandy asks…

Are these commercials for gold investments a scam?

Lately there have been a lot of commercials, mostly on the cable news networks and talk radio, soliciting gold investments. Are these scams? Is there a better way to buy gold? As the value of gold has peaked, is it still a good investment?

Edward answers:

Some o the commercials are scams yes. In fact many that I have seen are like cash for gold and buy this coin for this price or that price. The only commercial Ive seen that is not a scam are the Monex commercials. Any commercial that is trying to sell you a product and they give you a price for that product, it is a scam.

I am a gold and silver buyer. And I can tell you that 100% of all TV advertised coins are a scam. Commercials that push knowledge of information such as the Monex commericals those are not scams.

Gold is not an investment. Making money on gold is NO reason to buy it. As to why you want to hold physical gold for long term the reason is simple. There is no counter party risk. Nobody will owe you anything. Gold in physical form is final payment and cant be debased. It is the “Currency of last resort” as Greenspan has stated many times through the years. Gold doesnt pay interest, dividends, doesnt restate earnings, has no lawyers, accountants, CEOs or CFOs lying to you on television. Gold doesnt ask for bailouts, doesnt go BK and cannot cook its books. Gold cant be debased or printed at the will of a company or governmetnt and holds its purchasing power.

Gold sits there as a store of value, is labor intensive, and a one ounce coin will not split into a bunch of half ounce coins at the direction of the pin stripped bandits on Wall Street. Also Gold is the ONLY asset class in the last ten years to increase in value and retain every dollar of its purchasing power.

Donna asks…

Why would it be better to invest $25,000 in multiple types of investments instead of just one?

There is conservative, moderate, and agressive investing.
Why is it better to make investments in multiple types of investments? I need good and specific detail.

Edward answers:

It simply reduces your risk. Market forces are always changing. One year might favor technology funds and one year might favor foreign investments. By spreading out your investments you become diversified and you gain the advantages of the shifting market forces. One disadvantage of this technique is that while lowering your risk you are also limiting your upside potential.

Nancy asks…

Has anyone invested in gold or Kruger rands and know anything about this investment?

I have some spare cash from an inheritance and was wondering if I should invest in property or maybe put this money into gold. Wondered if anyone had made investments in gold or knew anything about this investment?

Edward answers:

Buy Krugerrands for a low frills cost-efficient gold investment. [do you see the future of gold prices escalating drastically, or falling drastically?]

Gold is at around $700 per ounce currently… Will market forces dictate gold in five years to be closer to $5,000 per ounce or $50 per ounce?

[You be the judge]

Gold prices thrive during economic uncertainty…

Anyway expect to pay premium prices for any gold considered collectible pieces.

Does this help any?

Helen asks…

How much does terrorism affect my investments?

I know its somthing that we dont want to happen but it does and will. How will my investments be if somthing happens. I am unaware how 9/11 affected it. Or worse somthing horrible happens and wallstreet is attacked. I know there will be more problems then just my money but what if? For now i have full faith in our govt. but alot can change in 20 30 years. hopefully for the good.
part 2
How does the current war affect investments?
If 2008 brings a new approch and pulls out of iraq. how would that affect investments?

Thanks everyone

Edward answers:

How much does terrorism affect investments?

It does affect investments in a major way.

The war on terror started after 9/11 when terrorists destroyed the WTC towers in NYC. What impact did this have on America’s economy? Well, first of all, the US dollar began a steady decline after the terrorist attacks. The attacks have sparked inflation.

After September 11, America should have reacted sooner, I think. There should have been some sort of firm retaliation right after 9/11 in order to fuel faith in investors and save the economy from the crash of 2002. Unfortunately, the stock market did crash in late 2002. From a technical view point, this created a lot of damage: The New York Average broke an important trendline. See the chart:

http://aycu33.webshots.com/image/14832/2002850394151607664_rs.jpg

Terrorists blowing up buses here and there and killing innocent people and destroying buildings throughout the world does not affect the economy as much as losing the war on terror would affect the economy. Losing the war on terror means investors would lose confidence in America’s strength and ability to defend herself.

America is a very wealthy nation, so it has a lot to lose. Countries like N Korea have almost nothing to lose. So America is more vulnerable in some sense.

If America pulls out of Iraq without invading another muslim country, then the muslims will say, “The Americans gave up. See? We won! It’s true! We’re gonna take over the world!” The question is how investors will view this event. Are they going to dump the dollar and lose confidence, or are these events already factored into today’s prices? I don’t know.

Government spending usually helps the stock market. When the country is fighting a war, the government spends a lot more. This extra spending translates to higher earnings, and the good numbers eventually show up on the charts. Nowadays government spending propels the stock market more than anything else. So, I think the stock market is likely to go down when the war stops and all the troops come back from Iraq.

This is a 100-year historical chart of the American stock market index (Dow):

http://www.crossingwallstreet.com/archives/Rydex.gif

If you look at this chart, you’ll see that each long bull market period was followed by times of “rest” when the stock market was flat. It seems to me that we are now at the beginning of one of these long rest areas.

Robert asks…

how can i monitor my investment on the nigeria stock exchange?

vital ways of monitoring my investment apart from the newspaper.what are the types of investments we have on the nigeria stock exchange.

Edward answers:

How I can monitor my Investments on the Nigerian Stock Exchange

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Your Questions About Retirement Income Planning

Mandy asks…

401k retirement plan?

Currently work at Autozone for sometime plan on staying there. 401k offered to me. Plan says for everyone 100% they match 3% then for next 50% they match 2%. I don’t understand this can someone please explain. What would be a good monthly amount to put towards this and is it even worth it?

Edward answers:

The way 401Ks work is like this: you have a percentage of your paycheck deposited to the 401K account, into whatever funds you decide on–if they give you a choice of funds. You can choose safe investment funds, such as Government securities, or less-safe funds such as stocks or mutual funds. Then your employer matches your contribution. What your employer means is that they will match 100% of your contribution UP TO 3% of your gross pay, and they will match HALF of any contribution over that, (up to a total of 5% of your gross pay.) So you can contribute up to 5% of your gross, and they will put in 100% of that amount for the first 3% of what you contribute and half of the rest–whether you contribute 4 or 5% total.

Here’s what I mean: If you made $100 a week, you can contribute a total of $5 (that’s 5% of 100). You put in five dollars, your employer puts in $3 (3%) and then they put in HALF of what’s left (which is two dollars out of your five) which is $1. So you contribute $5 each week, and your employer gives you $4 more. That’s a total of $9 into the 401K. And you’ve only spent $5.

So YES—by all means it’s worth it. Your contributions to a 401K are tax deferred–meaning they come out of your pay BEFORE they figure your federal taxes. And you don’t pay any income tax on them while they are on deposit–in fact, you won’t pay any taxes until you withdraw the funds later. By that time your tax bracket is usually lower than it is now. Your tax bracket is much lower when you withdraw at retirement–usually either 62 or 66. And if you’re young–in your 20′s or 30′s, you could conceivably have hundreds of thousands of dollars in that account when you DO retire. You are eligible to withdraw funds–even if you’re still working–at age 59-1/2–a couple years before Social Security kicks in. And yes, you can withdraw from the 401K AND get Social Security as well at the same time.

In most 401K’s you can also borrow your funds–if you absolutely need to. You can only borrow the part YOU put in, not what the employer puts in. When you do, it’s usually paid back by payroll withdrawal–so you never have to worry about making payments on it; the interest rates are usually very low, too. So in, say, ten years, if you wanted to buy a house or pay off some high medical bills or somehting, you could borrow $6000 or $10000, and it would be paid back to the 401K every payday right out of your gross pay. When you do borrow, it is taxed as income right away.

If you quit this job before you retire or before you’re 59-1/2 years old, and take the money out, you will get YOUR contributions (only) and you will pay taxes then.

But if you stay with this company for at least 10 years, and you contribute 5% of your gross pay to it, and your employer puts in an additional amount equal to that contribution, you could have a lot of money in that account.

Now, 401k funds are dependent on HOW the money is invested. If you are young, it’s a good idea to go for a long-term investment strategy which will give you a higher return and can be a little riskier than if you aren’t young–and have, for instance, only 10 or 15 years to work or less. If you are in your 50′s, you wouldn’t want a risky investment–no stocks–just mutual funds and government securities. So what you invest in depends on your age more than anything else. But that assumes you have a choice of funds to invest in with your contributions. I work for the federal government and we have a total of 6 different funds we can choose from in our 401K. The least risky is the G fund–the government securities. It’s a lower return, but it’s safer. The most risky are the I and S funds, which are international securities, foreign stocks and things like that–very high rate of return, but high risk as well. When you deposit your money, it is invested–that means it EARNS MORE MONEY. It can also lose money–if your choice of funds is too risky–but over time, even moderately risky funds like stocks and mutual funds will end up making you MORE money. You have to ride out the ups and downs, but usually they end up making you more. So all THAT money is also added to your 401K.

It is a very good way to save for retirement. If you want to later, you can explore things like rolling over your contributions into a Roth or regular IRA account–or even taking some out to invest in other ways. Every time you do, you pay the income tax you owe on that withdrawal, unless you are age 59-1/2 or older.

I hope that clears it up.

Lisa asks…

can you withdrawl from 457k retirement plan?

Edward answers:

Many retirement plans have withdraw provisions.

If you are under legal retirement age, and withdraw money that is not exempt from early withdraw penalties (such as qualified high education expenses, qualified medical expenses, qualifies 1st time home purchase), then you would be subject to nasty penalties for the withdraw.

10% of the gross would be subject to IRS penalty.

The entire amount would also be subject to ordinary income tax.

Let’s say you make $30k a year and then you take out $10,000 from the retirement plan.

1. $1000 would be an amount you would have to pay the IRS as a penalty if not exempt above plus the following:

2. Your gross income tax for that year would be as if you made $40,000 (30k salary plus $10k retirement withdraw)

Depending on your marital and filing status:

Single: income between $32,550 and $78,850;
You would pay 25% of the adjusted gross income plus $4,481.25

Married, filing jointly with TOTAL COMBINED income $16,050 and $65,100;
Your would pay 15% of the adjusted gross income plus $1,605.00;

Married, filing jointly with TOTAL COMBINED income
$65,100 and $131,450;
Your would pay 25% of the adjusted gross income plus $8,962.50.

If you pay state income taxes add that cost too.

You have some standard deductions to low these 15% or 25% amounts a little, but you can see that if you take money out of a retirement plan, expect that no less than 50-75% of it will be eaten up by taxes and penalties.

Bottom line:
never take money out of a retirement plan until retired, or perhaps to buy a 1st home.

2008 Tax Tables

http://taxes.about.com/od/2008taxes/qt/2008_tax_rates.htm

Disclaimer: Always consult with a professional tax advisor (CPA) before taking money out of a qualified retirement plan.

Nancy asks…

401k? 401b? retirement plan?

I am 35 years old. I have no money saved for retirement. I work for a hospital and they do not match with their retirement plan. What do I need to do in order to prepare myself for retirement? I have no clue on what I should do with my money and where I should do it at. How can I guarantee that I can be financially comfortable when I retire? Any info would help because I am totally clueless with this subject and I feel like I would be stupid to ask somebody. I don’t even know the difference between a 401k, IRA, etc. Would a financial planner be worth it? Where would I find one? I live in a large city.

Edward answers:

Well, you already are ahead of a lot of people. You realize you need to save for retirement. Depending what your income situation is the best route is either Roth 401k, 401k, or Roth IRA. The main difference between them is with the 401k you may put in up to $15k per year pre-tax or a Roth you can put in up to $4k after tax. These limits go up over time. Essentially what you need to figure out, is can you afford saving money after tax, if not then go with the pre-tax route. If you can and you don’t get a match on your 401k then probably go with an IRA. Most financial institutions have Roth IRA’s available. I would meet with some people inside of the Bank you deal with to learn more. I myself am 27 yrs old, I have been putting money into my 401k since i was 21, I currently have $100k, so believed me i know what i’m talking about. The most important thing in saving for retirement is time. Which at 35 your still o.k. But you need to start saving now. FYI, I save in a 401k because my company matches 25% up to 6% contribution. Also i need a tax deduction, plus i personally would rather have untaxed money grow and work for me instead of giving it to the government. Now lots of people say Roth IRA is the best route, keep in mind you can only put $4k a year in, upside is you do have access to the money you contribute in a Roth IRA which is nice cause it can double as an emergency fund. However, I would suggest this. Max out a Roth IRA and contribute as much as you fiscally can to your 401k. That way you get the best of both worlds. At 35 you are already behind the curve, so you need to catch up as soon as you can. You only have 25 – 30 years to retirement. Check out some financial institutions, see what they have to say. And go from there. Just get started ASAP.
One other note, you may want to search for a retirement calculator and see just how much you have to save per year in order to reach your goal. Any good financial planner will go over that. You’ll be suprised how fast the number goes up the longer you wait and closer you get to retirement.

Sandra asks…

planning my retirement..?

I am at the beinging of planning my retirement. I am 38 I make 8 Dollars an hour, I have a IRA that I put 50$ a month into and NO savings or live insurance.

The only thing somewhat for sure right now is I do not want to own a home when I retire. I do not want to be retired and have to do yard work or house hold repairs.

I do not know if I will ever make and/or save enough to buy a condo, but have not ruled that out.

I am not sure what to do.

I have thought about a retirement community with mobile home, but always have the fear of tornado’s.

I also have no idea how to save and what I need to save.

I would like to know who to talk to . I have spoke to a few retirement investors but they sound like they are just trying to sell me there services more then my retirement.

HELP!!
Chris. the 8 an hour is top of the pay where I am living. And it is a very good job, so leaving is not something I am going to do.
I also work a midnight shift for a hotel, so getting a day job or week end job really would be kind of hard.

Edward answers:

First of all, unless the IRA is a Roth IRA, stop funding it! You don’t need a tax benefit now, with your low wages.

Use a Roth IRA, if you think you might want to withdraw during retirement without paying taxes, although you likely will not save enough money for taxes to be an issue anyway. The carrying fees, not to mention withdrawal penalties if needed, on a Roth IRA may surpass any tax savings that you might encounter along the way.

I can understand why no one wants to help you plan. At your age and income, your retirement prospects are quite bleak (Also, a $50/month IRA does not generate much of a commission for an advisor). The fact that you have no savings is not a good thing, because you will likely have to take money from your IRA, and pay the appropriate penalties, if you should have an emergency.

For now, I would recommend that you stop funding the IRA, and start funding a savings account. If you feel the need to get a better return than available from your bank, you can try the Orange Savings Account from ING or check the account offered by e-Trade. Both offer higher-than-average interest rates for savings accounts, and both accounts are liquid. You may open either from the comfort of your computer.

Once you have at least $1,000 in savings, you can start thinking about putting investment money aside. A mutual fund would be a likely vehicle at this point, but then you do increase your risk of loss. Of course, this may be two or more years from now, but you really need to have some kind of ready cash for emergencies. Something always happens!

If you don’t have children, a spouse, or anyone else depending on your income, your need for life insurance is probably minimal. I would recommend a $25,000 term policy that would take care of your final expenses. Be sure to prepare a will that states your wishes, and leave copies where one can be found upon your demise.

I’m not sure how you feel about your job, but you may want to see if you can find an occupation that pays better. I’m sure things are not as comfortable as they could be, and they won’t get better in retirement, considering your late start and minimal resources.

I do commend you on at least starting some kind of plan. I wish you well. Good luck.

William asks…

62years old, family income: $50k/y, and saving: $125k. Buy a family home? How to plan my retirement?

I have been living in the USA for about 9 years in a family of 5. I am 62 years old, but do not have a family home. My family income is $50k/year, but I only have $125k in my saving for all.

Do I have to buy a home for my family?
Do I have to pay my children’s colleges?
Do I have to not spend it?
What should be the best choice?

I need a professional advice. Please help.

Edward answers:

Need more information: “Family income is $50k/yr.”, I’m assuming that there is only one wage earner in the family (you), and that you have been working ever since you have been in the US, 9 years. Under the current Social Security provisions, you would have to work another year (10 years) to earn the required 40 credits (1 per quarter of work; 4/yr) to become eligible for Social Security benefits.

I assume that you are currently renting/leasing a home. I also assume that your family consists of yourself and spouse and 3 children. In that case you would need a 3 bedroom house. Depending on where you live (City), you would spend a good portion of your savings for the down payment. So, in my opinion, buying a house is not realistic.

As to the “children’s college”, again I am assuming that they are at, or near, college age, and have average, but not exceptional grades. With that scenario, look at “Junior or Community” colleges where the level of education is relatively equal to the State Colleges, but at a lesser cost. Another advantage is that there is no on-campus housing, so the student can live at home, saving the expenses of room and board. In most States a student earning a certificated from these institutions can transfer into a State institution as a Junior (if all of the credits are accepted) and receive a diploma from that school as well.

Also, the student can explore any educational assistance programs offered by the school, the State, or the Federal Government, (the Pell Grant comes to mind). The student should discuss his/her financial situation with the high school counseller, or the college financial advisor.

Another path to a good careeer/job are technical schools which teach skilled trades, such as Electrical, Drafting Mechanic, Welding, Over the Road driving, etc. These schools are economical and a certificate can be earned in two years or less.

The choice of higher education depends on the person and his/her goals for the future.

So to your decision as to what to do with the money you have saved. Again, I am assuming that Social Security will be your only retirement income. Having said that, I would look to put some money into stocks/ bonds or other financial instruments that are earning more than you are now (assuming you have it in a bank account or bank Certificates of Deposits (CD’s). I would recommend that you talk with representatives of some brokerage firms – Chales Scwab, Merrill Lynch, Dean Witter, and the like – with low/no per transaction fees and expenses, to discuss your future financial needs in relation to your current economic situation.

Overall, I don’t see you retireing ion the near future. Depending on your health and the type of work that you do, I see at least another 5-7 years of employment, with a significant increase in savings and a decrease in spending, where possible.

While you did not mention an employer pension plan, I am assuming, for your sake, that there is a defined benefit plan – so much retirement income per month based on years of service – or a “401(k)” plan to which you contribute some part of your earnings and the Company, may/maynot make a contribution. (If such a plan exists, and the Company matches the employees contribution up to a certain limit, I would recommend that you contribute to the level of the Company’s contribution. (Co=6% up to $750, or Co = $400 flat yearly match; Empl.= .015% of salary, or $750; Empl.= $400 yearly contribution).

Remember, that 401(k) contributions are “tax-free” until distributed, usually at retirement, and will affect Social Security benefits since they are not considered to be “reportable income”.

Only you can make the decision as to the “Best choice”, after reviewing all your options/ needs/ other considerations (health needs, etc.), I have offered a small portion, the rest is up to you. Good luck.

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Your Questions About How To Invest In Oil

Mark asks…

Which oil company has the greatest reserves in the North American region?

I want to invest in an oil company that derives a large part of its income (or at least has substantial reserves) in North America. I guess this is most likely to be a US domestic company. Can anyone suggest which one(s) to look at please?

Edward answers:

Canada is #3 in the world for oil reserves after #1 Venezuela and #2 Saudi Arabia

http://en.wikipedia.org/wiki/Oil_reserves

In Canada the following link shows the production and reserves of the largest of the companies operating in Canada

Most if not all have listings on the USA exchanges as well as on the TSE

Susan asks…

How can I invest in China’s Oil Stocks ?

I am learning about stock and binary stocks since China discovered lots of oil I would like to know how to invest in oil companies their. Thank you for any help.

Edward answers:

Global X China Energy ETF (CHIE): While China has long since ceased being an oil exporter (it became a net importer in 1993), the Global X China Energy ETF is worth a look because it is home to China’s largest oil companies, such as PetroChina (PRT) and CNOOC (CEO).

Market Vectors Russia ETF (RSX): Russia, not Saudi Arabia, is the world’s largest oil producer. And Russia isn’t constrained by OPEC production quotas. China buys plenty of Russian crude and will keep doing so regardless of the price.

Investors interested in gaining access to the nascent shale and oil sands industries may consider the Guggenheim Canadian Energy Income Fund (ENY) , Market Vectors Unconventional Oil & Gas ETF (FRAK) and Sustainable North American Oil Sands ETF (SNDS) . [Oil Sands ETFs: Alternative Energy Investments]

Or, for those looking to track the commodity prices, the United States Oil Fund (USO) follows West Texas Intermediate oil and the United States Natural Gas Fund ETF (UNG) tracks natural gas futures.

Carol asks…

do you think the oil revenue should be share to the arab peoples?

i think the oil revenue should be share to all the arab,not only one family and his entourage to benefice or to live in luxury ,this is why there are terrorist too many young man and woman dint have nothing to do ,no health care no sanitation,university,they dint invest the oil money on the peoples to have a better education,this is why this young dint have nothing to loose ,dint care about life,no arab should be live in poverty their government are making millions a day.

Edward answers:

The so called arab oil exists in Saudi Arabia and gulf countries. These countries do live in a luxury most Americans can’t afford. These countries employ millions of Egyptians, Moroccans, Lebanese, Syrians, Indians etc They even employ Americans and Europeans.

Other Arab countries which doesn’t have oil are for example, Syria, Jordan, Yemen, Lebanon, Egypt, Algeria, Tunisia, Morocco. All these countries population are poor.

You simply assume that all arab countries are a homogeneous nation with no borders, this is not correct. There is no poverty problem or terror problem is countries with oil wealth. Countries with no natural resources suffer from what you mentioned.

It is like assuming that all european countries are the same country, and the wealth of western europe should be distributed on the poor eastern countries.

Or it is like assuming that all Latin countries are a homogeneous nation, and the oil wealth of Mexico should be used to solve poverty in Peru and Nicaragua.

Sharon asks…

Whats the difference between China and a Democrat?

China is willing to invest in oil projects in North America

http://finance.yahoo.com/news/PetroChina-to-take-oil-sands-apf-2273509178.html?x=0

Why do Democrats refuse to increase developing oil fields ?
Is it because of their anti corporate profit beliefs?

Edward answers:

Gee, I thought the answer was going to be that Republicans couldn’t tell them apart.

Chris asks…

What is the best way to invest in oil?

I want to invest in oil and I was wondering what is the best vehicle in which to do this

Edward answers:

You can invest in an Exchange Traded Note stock symbol OIL.

Http://finance.google.com/finance?q=oil

But this ETN like all ETN’s has a counterparty risk which you need to consider before you invest.

Http://seekingalpha.com/article/25162-etns-useful-but-watch-out-for-counter-party-risk

http://seekingalpha.com/article/95900-an-etn-primer-buyer-beware-of-even-good-credit-ratings

You can also buy an ETF stock symbol OIH.

Http://etf.stock-encyclopedia.com/OIH.html

And you can also buy oil companies such as XOM or COP.

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Your Questions About Investment Returns Definition

Lizzie asks…

Can Institutional investors invest in university endowments?

By definition endowments are more or less donations given to the university. Can investors invest in an endowment strategy? In other words, can New York City Firefighters Pension Fund be invested in Yale’s Endowment? How would that work seeing people who give money to endowments aren’t looking for a return as its more of a donation.

Edward answers:

No that’s not possible. Yale would need to have a brokers license to accept money and invest it on behalf of an investor. In an endowment, the money Yale would get belongs to Yale. If that find “invested” with the endowment…they would be giving the money to Yale with the expectation of getting it back plus a return. That’s just not what an endowment is and that’s not what Yale does. Also VERY positive they would lose their tax exempt status by doing this.

An endowment is NOT an investment tool for those who give to the endowment….it IS a donation. The second you write a check to the endowment, you never see that money again and you will never see a dime in the form of a return.

Daniel asks…

The cost of tuition and books (is or is not) a component of the opportunity cost of being a full-time student?

I know that the answer is “is” but i don’t know why. The definition of opportunity cost is “the best alternative that must be given up to get it.” So how is giving up books and tuition component of opportunity cost when you needs those books and tuition to be a full-time student? Thanks!

Edward answers:

Option 1: Going to school – for one year
$25,000 in expenses required for school that would not have been incurred while working instead (actual costs of this option)
Not working while going to school
Unknown factor X – increased income earning rate for future years (opportunity cost of Option 2)

Option 2: Working full-time, not going to school
Income earned from full time work less expenses for full time work (actual income for option 2 – opportunity cost of option 1)
$25,000 + interest for one year, invested at market rates with a fixed return and insured against loss
(actual capital and investment income of option 2, opportunity cost of option 1).

So the books and tuition costs are expenses of picking option 1. The money used to pay those expenses and the loss of interest, and the loss of income (less expenses) is the opportunity cost of picking option 1.

The opportunity cost of picking option 2 is the loss of unknown factor X, which could be huge over one’s remaining working years, or could be nothing – depending on how the student uses school and any degree to increase actual earnings

Helen asks…

What is considered formal wear for a woman in Japan?

I am heading to Japan to visit my fiance and his family. My fiance has asked me to bring formal wear to Japan, but will not tell me anything else. He said it is not for New Years and when I mentioned a knee length elegant and sophisticated cocktail dress that I’ve worn before, he just said that I would be cold which is his subtle way of saying that’s not the right outfit. I asked if I should wear a suit, and his response was slightly warmer but still noncommittal. When I pushed him for details he would only tell me it’s not for a New Years Party or anything like that, and that it’s a surprise. Even after checking about the suit option and the cocktail dress option he just kept repeating, “Just bring formal wear”. I know that he would normally tell me so that I could make the appropriate choice, but he really does want to surprise me and so I’m left with that somewhat vague statement. So basically I need someone to tell me what the Japanese definition of formal wear is so that I’m dressed appropriately. Do I need an evening gown or is a suit appropriate? Please Help! Thank you!

Edward answers:

I think you’d better bring several outfits, such as a conservative dressy suit (think “mother of the bride”), a floor-length black skirt, cummerbund, and fancy long-sleeved blouse (think “evening at the opera”), and a very modest evening dress made from high-quality material (think “military ball”). It’ll be an investment, but perhaps you can leave the tags on until your fiancé helps you select which outfit you should wear, and then return the others when you get back home. Plan to bring one pair of shoes you could wear with any of them.

Pearls or gold jewelry would be better than sparkly things.

Japanese women are generally much smaller than American ones, so unless you’re very petite yourself, you would have a hard time finding something in Japan at short notice that would fit you. In any case, a covered-up look, with sleeves, a knee-length or longer skirt, and no low neckline, would be appropriate. The Japanese women would probably wear their good kimonos.

Maybe he’s planning a formal ceremony of betrothal.

I ran your question by my husband, who’s more familiar with Japan than I am. He thought that the “surprise” might even be a wedding all arranged and ready for you to take your vows together so his family can be present. If you even suspect that might happen, bring a long white brocade skirt instead of the black one, with a matching white brocade cummerbund, and white shoes. Red is the other traditional color associated with Japanese weddings.

Get on http://www.google.com/advanced_search and look up information on Japanese wedding customs. There are quite a few good articles.

Ken asks…

Do conservatives realize that politics is all about how 2% persuade the rest to allow them to own most wealth?

And it is contrary to the interests of this elite to do anything to improve things for the rest of us? It is the political agenda of this elite that conservatives are by definition supporting.

Edward answers:

A term you never hear anymore is– Concentration of Wealth. School history textbooks use to warn about bad effects it has on economy. We are going to learn some old lessons again soon. Remember it is not cheap to get your loophole law-makes elected, and they deserve a good return on their investment said as sarcastically as possible.

Betty asks…

Is it fair to say that the American government is based on bribery?

With all of the political action committees, special interest groups, and earmarks, would it be safe to say that our government runs on bribes?
The definition of bribe, “money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust” (http://www.merriam-webster.com/) would lead me to believe that this assessment is true.
If this is not true, why? What would be the difference between a “bribe” and what our Congressmen/women are accepting?

Edward answers:

A corporation or an industry group can spend money on research and development or they can spend money on lobbying. With R&D they might get a big return or they might end up in the hole. With lobbying, they are guaranteed a 1,000% return on investment. They can spend $10 million on lobbying and get tax breaks, incentives, and subsidies worth hundreds of millions or even billions.

Legislators that leave office enter the lobbying industry and make millions for themselves helping business gain access to decision makers. The revolving door between lawmakers and lobbyists swings both ways. All of Bush’s appointed positions are staffed by former lobbyists, not experts or scientists in those fields. All they did was to hand over those departments to industry. The head of the EPA has been told by the Supreme Court that it is unlawful for them to fail to regulate carbon emisions. A year later, they still refuse to enforce the law because they don’t want business to have to pay any money for the pollution they make.

Http://www.corpwatch.org/article.php?id=15004

Reading the above New York Times article, a reasonable person could conclude that business bought the Bush administration by financing elections, and in return they have been given a Get Out Of Jail card for breaking the law.

Ironically, the one candidate that might do anything about it can’t get himself arrested, mush less elected. Ralph Nader has no hope of attracting campaign contributions from corporations, so he doesn’t even get a mention in the national “debate.”

http://www.nader.org/index.php?/archives/1266-Bailout-Bonanza.html

The examples and details of the corporate takeover of our government are limitless. You only need to read the New York Times. However, our voters don’t read at all, let alone the Times. They watch Baywatch and NASCAR and dismiss any reports of corruption as “Liberal Media.” History will show that corporations have stolen our nation, but by the time history is written, the rich bastards will be dead and they won’t care.

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