Thursday, April 19, 2012

Economic Implosion? And What If?

How to Handle an Economic Implosion

April 18, 2012

By Elliott Wave International

I came across some research on the subject of worry. Here's how it was presented:
Things People Worry About:
  • things that never happen - 40%
  • things which did happen that worrying can't undo - 30%
  • needless health worries - 12%
  • petty, miscellaneous worries - 10%
  • real, legitimate worries - 8%
Of the legitimate worries, half are problems beyond our personal ability to solve. That leaves 4% in the realm of worries peoplecan do something about.
I thought about our gigantic national debt and weak economy. These seem to fit into both subcategories of "real" worries. Youcan't do much as an individual to solve the nation's debt and economic problems, yet you can prepare for a worsening economic downtrend.
Do we see evidence for an economic turn for the worse?
Well, consider that the evidence is so overwhelming that it took 456 pages of the second edition of Robert Prechter's book,Conquer the Crash, to cover it. And since that book published, Prechter has consistently devoted his monthly Elliott Wave Theorist to the facts and evidence behind his forecast.
Here's a chart from the book that was updated by Elliott Wave International in March 2012:

The downturn from 2008 is critically important, as it shows that after an almost unbroken 60-year climb, the contraction is underway. It surely has much further to go, because it is still a third higher than it was at the outset of the last debt deflation in 1929.
-- The Elliott Wave Financial Forecast, March 2012
The rating agencies are well aware of what the above chart means. You probably know that Standard & Poor's downgraded U.S. debt from the nation's long-standing triple-A to AA+. Now, another rating agency has taken their rating even lower:
Rating firm Egan-Jones cuts its credit rating on the U.S. government to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt.
--, April 5
Robert Prechter's bestseller, Conquer the Crash, provides practical information about what you can do to protect your finances in the coming economic implosion. And right now, Elliott Wave International is offering 8 lessons from Conquer the Crash in a free 42-page report that covers:
  • What to do with your pension plan
  • How to identify a safe haven
  • What you should do if you run a business
  • A Short List of Imperative "Dos" and Don'ts"
  • And more
In every disaster, only a very few people prepare themselves beforehand. Discover the ways you can be financially prepared and safe.
This article was syndicated by Elliott Wave International and was originally published under the headline How to Handle an Economic Implosion. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Wednesday, April 18, 2012

Trading In Digital Options

Digital Options Trading Introduction

digital options trading platform from traderush review
Digital options, frequently referred to as "binary options" or "fixed return options" are similar to traditional options in many ways but also differ in some very significant ways. Digital options are quite simple trading instruments requiring no exceptional knowledge of or experience with trading or financial markets. Of course, superior knowledge of markets and trading does often lead to superior results but it is certainly not a prerequisite to being a profitable digital options trader. In this short article we will examine digital options, explain what they are, and explore how they are traded.

Digital Options Trading Highlights

  • Digital Options Are Market Neutral Instruments
  • Quick And Easy To Trade
  • Strictly Limited Risk
  • Small Initial Investment Required
  • Digital Options Have No Commissions, Fees, Or Other Hidden Costs
  • High, Fixed Potential Returns Known Beforehand
  • Requires Only A Small Move In The Underlying
  • Digital Options Can Be Traded At Any Time Of Day Or Night
  • Trade On Stocks, Indices, Currencies, Commodities And More

Some Digital Options Trading Disadvantages

  • Potential Returns On Winning Trades Will Always Be Less Then Potential Losses On Losing Trades (You'll need roughly a 55% win rate for profitability)
  • Many Digital Options Brokers Offer Trades Which Amount To Little More Than A Roulette Spin - 60 Second Options To Name One. (We're fans of digital options here but we recommend our readers stay clear of these types of trades.)
  • No Claim To An Underlying Asset (a possible disadvantage for some but for the majority not even an issue.)
  • Some Regulatory Conflicts For US Based Traders (Our Uncle Sam can certainly be a nosy, interfering chap sometimes...)
Digital options trading can be a great choice for some investors or speculators but as with anything in life it too has both its drawbacks and strengths and isn't right for everyone. I currently trade digital options with traderush and so far I have no complaints and I really like their platform. My first withdrawal was just a tad slow but my withdrawals since that first one have all been prompt. My account manager is great as well and is always helpful.