22Dollars

Tax Season Has Come and Gone – Five Tips to Ensure April’s Showers Bring May Dollars

Mon, 21 Apr 2008 00:29:38 -0500

Now that the deadline for filing tax returns has passed, the flurry of tax season is behind us. Whether your tax return turned out just the way you’d hoped (maybe you’re getting a healthy refund) or you ended up with an unpleasant surprise (perhaps finding out that you owe more money than you’d planned), the season is behind us and it’s time to look toward our financial futures.

The end of tax season is also marked by the start of warm weather, getting many people in the mood for spring cleaning. As we’re doing yard work, cleaning out the closets and opening up swimming pools, there’s no time like the present to also do some “spring cleaning” for your finances.

Here are a few tips for how you can plant the seeds now for a fruitful financial future:

Take an inventory of your financial situation and clear away the clutter. It’s easy to accumulate a large collection of credit cards, online accounts and recurring monthly bills, and just as you’ll likely clean your house this spring, it’s important to do the same with these items, keeping only what you need and can truly keep track of.
Remember that one person’s trash is another’s treasure and find ways to make money off the items you clean out of your house. Whether through the many online shopping sites available today or a more traditional garage sale, the money you earn from past splurges can be used for future investments.
Rather than just tossing the things you don’t sell or no longer need, think about where you can donate them. This way you’ll be helping out someone else’s financial situation, and if you keep careful records you’ll be setting yourself up for tax breaks next year.
As we discussed in a recent 22Dollars article, if you were lucky enough to get a refund this tax season find a way to put that money to good use. Rather than going shopping to buy things you’ll end up cleaning out next spring, think about something you can do with that money that will have long-term benefits – like paying off loans, investing it wisely or buying an asset.
Reflect on your experience completing your 2007 tax return, particularly any issues that caused you frustration, and develop a plan to combat those issues this year. For example if you were missing many of the important documents you needed to claim deductions, immediately start a filing system to get yourself organized for 2008 and avoid this headache in the coming year.

Congratulations to everyone on making it through one season and best wishes as we start the next! As always we’d love to hear any other tips or tricks you have that others might find helpful as we all clean out the clutter!

22Dollars - Personal Wealth Management
Stock Quotes and Growing Personal Wealth by Managing Your Own Money! 22dollars is your online source for investment ideas, stocks analysis, business and other worldly issues. Geared towards the young professional, 22Dollars is written by successful young professionals who are ambitious and driven to succeed in life, cause in the end - no body cares more about your money than you.
Article by Katherine Binsack | Subscribe via RSS | Join Club22 Free

Links for 2008-04-07 [Digg]

Tue, 08 Apr 2008 00:00:00 -0500

Greenspan: Credit Crisis Worst in Possibly Over 50 Years
``The current credit crisis is the most wrenching in the last half century and possibly more,'' Greenspan told a conference in Tokyo today via satellite from Washington.

The True Value of Money – Assessing How Much Money Is Really Worth To You

Mon, 07 Apr 2008 13:18:28 -0500

Those of us that invest a great deal of time managing our finances may think we know the answer to the question “how much is money worth?” While it’s a complex topic, we think we have a straightforward, quantitative, clear-cut answer which involves exchange rates and currencies and inflation and the passing of time. We pull out our calculators and let the numbers do the talking.

But there’s another way to look at how much money is worth that doesn’t involve numbers or currency conversions. I’m speaking here about the qualitative side of the coin and where finance fits into your value system and life goals.

Looking back at a recent 22Dollars post which discussed famous finance-related sayings, one that comes to mind with regard to this topic is “Money is the root of all evil.” This sort of points to the fact that many people shy away from thinking about or discussing finance, feeling that it makes them seem shallow, greedy or overly concerned with money.

It’s true that people can easily become consumed by greed, or the desire to make or horde large sums of money. We see examples of this everyday in the news as scandals ranging from the small and local level up to the national and corporate level indicate the lengths people will sometimes go to just for some extra cash.

But maybe there’s another way to view the topic. Sayings like the one mentioned above have the connotation that placing a personal value on finance is a bad thing. Certainly everyone needs to make their own decisions when it comes to values, but perhaps it’s worth arguing that taking a vested interest in managing your finances can be a path to doing great things, not just greed.

Here’s some food for thought. On a personal level, by managing your finances properly you’re setting yourself and your family up for financial security. Should a friend or family member face an emergency (such as unexpected unemployment or the need for expensive medical treatment), you may also be able to help them out – which is a powerful positive impact you can have on a loved one’s life.

Once your own finances are in order, you may even be able to extend your influence and investigate philanthropic initiatives. Whether this means setting up a scholarship fund, lobbying for a particular cause or making a donation, you get to pick a cause that’s important to you and help ensure it’s security for the future.

As a result, while it’s only money and it’s not something most of us want to become consumed by, it’s worth considering the true worth of a dollar and where it fits in with the things we really value.

To Owe or Not to Owe? Tax is the Question…

Wed, 26 Mar 2008 21:43:18 -0500

As tax season continues, and the deadline for filing taxes approaches, many people are finding out where their finances for last year netted out. While some people are getting the pleasant news that they’re getting a refund back and can plan accordingly, others are coming to the realization that they may owe a (potentially large) sum of money.

If the results revealed by your tax return come as a surprise to you it may put you in an uncomfortable financial situation, particularly if you owe money. We’ve often said on 22Dollars.com that no plan is a plan to fail, and it seems that this saying holds true in this case as well. Rather than scrambling to find a fast financial fix, it’s certainly going to be better for you both in the long and short run to do whatever you can to plan ahead for this type of expense.

One possible way to do this, is by having extra taxes taken out of your earnings throughout the year. In this way, you’re planning a sort of “forced savings” for yourself so that you don’t come up short at the end of the year and might even get a refund. In some cases, you are even legally required to do so (i.e., business owners).

Some people may not want to go this route, however, preferring to have their earnings up front to do with as they please. For various reasons, they might feel that they can earn more by saving/investing this extra money on their own, or need the extra income for expenses earlier in the year, and choose not to have it taken out of their paycheck in advance. Choosing this method, though, means that they must be disciplined and think ahead to tax time so that they have the right amount of money in their savings to make up for anything they may owe at the end of the year.

Certainly, as with most finance-related questions, there is no “one size fits all solution. But what pros or cons do you see with each of these options? Do you prefer to have extra money taken out for taxes so you get a larger refund at the end of the year? Or, do you have the minimum amount taken out so you can invest/spend it on your own and then potentially owe money at the end of the year?

Sayings Worth Saving - Our Favorite Finance Quotes and Words of Wisdom

Mon, 17 Mar 2008 10:21:38 -0500

When it comes to money, everyone has something to say. Each person has an opinion, and these individual opinions can vary widely. From those that believe in high stakes investing to those that do not believe in investing at all, the things people say about finance can be quite different. But the bottom line is that everyone has something to say.

At the same time, finance can be one of the most difficult things to discuss, because it’s a very personal topic that links many of the things that make us who we are: our values, our emotions, our pride, our status, and how we make our living. However, throughout history many people have found a way to capture their sentiments about finance in ways that can help us all express our varied opinions on money, and have helped us learn a thing or two about this complex topic.

Benjamin Franklin gave us many examples such as, “a penny saved is a penny earned” and “early to bed, early to rise makes a man healthy, wealthy and wise.” Thomas Jefferson would tell us, “never spend your money before you have it,” and Miguel de Cervantes would warn that, “all is not gold that glitters.” Those of you that read 22Dollars.com on a regular basis know that one of our favorite sayings are “no one care more about your money than you.” Each of these quotes provides a different way of looking at how we manage our money and provides some wisdom for us to live by.

So what quotes guide your financial decisions? What figures, whether from the past or present, have shed the most light on this potentially confusing topic for you? And what did they say? We at 22Dollars.com would love to hear your thoughts!

The Bright Side of Tax Season – Seven Ideas For What to Do With Your 2007 Tax Refund

Mon, 10 Mar 2008 21:36:41 -0500

As the deadline for completing 2007 tax returns approaches, more and more people are filing returns each and every day. Once the headaches of making sure all your information is accurate and all your paperwork has been submitted, you should know in advance if you can expect a tax refund this year.

As with any income, it’s a good idea to think about what you’re going to do in advance and make a plan for how you will use it. We always quote the saying that “no plan is a plan to fail,” and it seems true that many of the worst financial decisions are those made compulsively. Since tax refunds are getting turned around more quickly than ever these days, take the time in between when you file and when you receive your refund to really think about what you’ll do with the money you get back.

Here are seven ideas we at 22Dollars brainstormed to help get the wheels turning when it comes to your 2007 tax refund:

* Deposit it in your savings account to help you meet your savings goals
* Spend it on something you’ve needed to buy for a while and that will help save you money in the long run – like a fuel efficient car for example
* Invest it in your retirement fund or in stocks you’ve researched
* Pay it toward debts you have such as school loans or credit card debt to help yourself avoid spending additional money on interest payments
* Donate it to a cause that’s important to you
* Budget it for expenses you know you’ll have throughout the year
* Use it to buy assets that will grow and make you money in the future

Remember that your tax refund is just that – a refund. It’s not free money, but in simple terms it’s getting back the extra money you already paid into the system. As a result you should think carefully about what you do with it. All of these options are not a good fit for everyone, but if you plan wisely you may be able to put your refund toward something that will give you a jumpstart in 2008.

8 Reasons You Can’t Get Out of Debt. Learn To Avoid These Common Financial Pitfalls

Fri, 07 Mar 2008 18:35:56 -0500

If you find that you are steadily sinking into the dark abyss of endless debt, there is probably a reason. No one swipes your credit card, signs your name at the bottom of loan applications or borrows money without your consent, so it’s time to look inward for the reasons you can’t get out of debt.

According to Wendy Nesbit, who counsels consumers on debt management skills on a regular basis, there are eight basic reasons for the continuation of the debt cycle.

1. Failing to align income with expenses.

No one likes to see a reduction in income, but it does happen. Maybe your spouse has left his or her job to take care of your kids, so your family is now living off one income, or maybe pay cuts have become a constant with your employer. Whatever the case, you have to adjust your expenses to align with your income if you want to stay out of debt.

Canceling premium cable channels, purchasing off-brand products at the grocery store, trading in for a less expensive vehicle and moving into a less expensive house can all reduce your monthly expenses. “You can’t live outside your means and expect to stay debt-free,” says Nesbit. “But that’s what lots of people seem to think.”

2. Getting a divorce.

If you want to see how quickly you can fall into the depths of debt, get divorced. Between the division of assets, the payment of court fees and the purchase of your attorney’s time, you might not have two nickels to rub together. Divorce is one of the leading causes of debt, and it can take years to recover.

Of course, this is one of the reasons you can’t get out of debt that can’t be avoided if you and your spouse just don’t want to be together anymore. However, you can mitigate the damage by working things out amongst yourselves rather than hiring high-priced lawyers to fight for your right to the antique coffee mugs.

3. Failing to maintain a budget.

If you don’t know where your money is going, you won’t be able to get out of debt. Guaranteed. The purchase of a budget is to decide how much you should spend on certain items, then to compare those projections against what you actually do spend. After a month or two of budgeting, you should be able to accurately predict your expenses—unless you don’t consider your budget at all.

Americans are natural spenders, but we can quench that urge by thinking of our budget at all times. Do you really need a new stereo system for your car? Is there money in the budget to eat out again? This doesn’t mean that you should feel guilty about every little indulgence, but you have to have self control if you want to get out of debt.

4. Thinking you’ll have money tomorrow.

Some of us live under the perpetual delusion that a better job offer is just around the corner or we’ll pick the winning numbers next week. If you spend according to what you might have in the bank next week or next month, you’re going to stay in debt. Instead, live within your means as they exist right now, and experience delayed gratification if your predictions happen to come true.

5. You can’t stop gambling.

Whether you plan a trip to Atlantic City twice a month or can’t resist the scratch-off cards in line at the supermarket, gambling can be a formidable Achilles’ Heel. Gambling is highly addictive, and if you’re like most gamblers, the house usually wins. So save your gambling trips for a once-a-year excursion or a special treat when you have a surplus of cash.

Furthermore, if you think you can’t get out of debt because you’re addicted to gambling, seek help immediately. There are Anonymous programs for gamblers as well as individual counseling that can help you overcome the urge to gamble your cares away.

6. Using credit cards for medical expenses.

If you’ve gotten into the habit of swiping plastic at the doctor’s office, you might be having trouble with debt. This is especially true if you lack medical insurance or if you have lapses in your coverage. You want to pay your bills on time, but you wind up paying several hundred dollars more in interest.

In some cases (though not all), it can actually be cheaper to purchase private medical insurance coverage than to try to cover your doctors visits with plastic. Check out some of the private insurance policies available on the Internet or talk to your doctor about options.

7. Failing to open a savings account.

When you have a savings account in addition to checking accounts, credit cards and other types of banking services, you’ll be more likely to actually save money. Opening that account usually only takes about $50—less with some banks—and you’ll be glad you did. If you have at least four or five months of living expenses saved, you won’t have to rely on credit to make ends meet.

8. Failing to communicate.

One of the most common reasons you can’t get out of debt is due to lack of communication within your family. If you and your spouse (and kids, if applicable) don’t talk about what you buy and how you spend money, you’re likely to fall more quickly into debt. Make sure you talk to one another about your spending practices so that no surprises come on your monthly bills.

6 Essential Tips for Tax Season – Advice For The Best Ways To Get Through Tax Season Safely

Tue, 26 Feb 2008 13:21:31 -0500

As I’m sure the readers of 22Dollars are aware, tax season is in full swing. By now, we all should have received the necessary paperwork from our employers, banks and other investment institutions and can get to work on our tax returns if we haven’t already.

It seems like each year there are more and more options for individuals looking to prepare their tax returns, and it can be difficult to know who to trust. Lately the news has been filled with stories about tax-related scams to watch out for and everywhere you look there are advertisements offering “worry free” solutions.

So with the April 15 deadline looming, here are a few simple tips to keep in mind as you’re preparing your taxes:

Choose what’s best for you – Filing your taxes is a very personal matter, and there is no “one size fits all” solution that works for everyone. When deciding the best way to complete your tax return (whether that means working with an accountant, using an online tool or preparing them yourself) make sure to weigh all your options and choose the one that you feel most confident about and makes the most sense for your situation.
Stay organized – If you proactively keep all your important documents and receipts organized in one place, you’ll save yourself a great deal of time, frustration and money (as some institutions may charge you for reprinted documents) trying to track down the things you need to file your tax return.
Plan ahead – The longer you wait to file your taxes, the more hectic every accountant’s schedule will be, the more difficulty you’ll have getting your questions answered and the more likely you are to make mistakes. If you start preparing your tax return early, you’ll give yourself plenty of time to ensure accuracy, be able to address any issues that may arise and get your refund sooner.
Double check everything – Whether you’re preparing your own tax return or working with an accountant, filing your taxes is a very detail-oriented task and it can be difficult to correct mistakes once your return has been filed. To avoid headaches and delays in receiving your refund, double check that all the data you’ve entered is accurate.
If you don’t know, ask – If you’re not sure about how to complete a portion of your tax return – don’t guess! Remember that if you guess incorrectly and end up making a mistake, the IRS will not consider ignorance to be innocence.
Be honest – The old phrase “honesty is the best policy” goes without saying when it comes to your taxes. The amount of money you might think you’re saving yourself if you “fudge” your taxes a little, is definitely not worth the heightened fines you may end up paying, potential jail time and damage to your reputation should the IRS come knocking.

Despite its challenges, tax season provides a great opportunity to reflect on your financial situation from the past year and focus on how you want to manage your money moving forward. We at 22Dollars.com wish everyone the best during this time of year and would love to hear any other tips you wouldn’t mind sharing for preparing your tax returns!

Time vs. Money: Which is More Valued by Society? Which is More Valuable to You?

Wed, 13 Feb 2008 09:05:50 -0500

A wise person once said that time is money. In many ways that’s still true today. People are paid on an hourly basis and most companies rate their employees as part-time or full-time, based on the number of hours they work each week. We pay rush charges for packages that are delivered quickly and fees for movies we return late. But when looking at time and money - is one more important than the other?

Retailers often charge extra for goods or services that are intended to make our lives easier – like dry cleaning delivered to our houses, bottled water or pre-chopped, pre-cleaned lettuce for our salads. In this hectic day and age, many people are willing to pay for these conveniences. For some, anything that saves time or puts a few minutes back into their day is worth the additional costs associated.

On the other hand, those willing to spend a little extra time can often save or earn a great deal of money. When shopping, those that take the time to compare prices among stores or clip coupons can save significant sums. Those that work overtime or devote time to researching sound financial investments can also turn their time into additional money. For these folks, the extra hours they spend working or thinking carefully about purchases and investments can result in money earned or saved.

Despite the two sides to this coin, there are many similarities between time and money. Both are saved. Both are spent. Both are in demand. And it seems that both are always in short supply. But which is more valued?

On a personal level, with the constant struggle to balance both our checkbooks and our date books, it comes down to our values. Are we willing to sacrifice our valuable time (time we could spend with family, relaxing or pursuing hobbies) to earn or save more money? Or are we willing to spend the valuable money we work so hard to earn (and certainly don’t want to waste thoughtlessly), to buy additional time?

On a societal level, it comes down to the same two questions but in this case the answers are based on the collective values of our population, as well as the demands we’re facing as a group. Interestingly, it often seems that despite the fact that society represents a collection of people, its values are not inline with, and perhaps even a direct contradiction to, those of the individual.

For most of us it’s not one or the other, but a constant struggle to find the balance between our time and our money. But where does your balance lie? Would you really say it’s 50/50? Where do you think society’s balance lies?

Links for 2008-01-25 [Digg]

Sat, 26 Jan 2008 00:00:00 -0600

America's 25 Fastest-Growing Tech Companies
It has been a rough 12 months for the stock market, including technology stocks. The S&P 500 is off 2.1% over the past 12 months (dividends excluded) and the Nasdaq 100 Tech Index is off 8.7%. But you could have done well owning these really hot technology companies.

Chart Pattern Recognition Series - Double Bottom Reversal Pattern

Tue, 22 Jan 2008 10:08:40 -0500

The double bottom is probably the most popular technical pattern of all time and thus worthy of your attention to help better understand its opportunities and correctly judge buying points. One of the most attractive attributes of the double bottom patter is its 35% average rise after confirmation. So lets start with the identification guidelines of the pattern.

A downward stock motion leading into the pattern
Two distinct V-shaped (or price spikes) bottoms
At least 10% rise BETWEEN bottoms
Bottom prices that do not vary more than 3% apart
Valley should be approximately 5-weeks apart (for best performance)
Volume usually higher on the left valley formation

Confirmation of the double bottom is confirmed once the price closes above the peak between the two valleys. This means there are TWO good buying opportunities here. My favorite is that of the second valley bottom with a tight stop just below that the low of the first valley. This maximizes opportunity and limits your downside risk. A seemingly simple objective for any trade but one that too many traders fail to do on a regular basis. The other opportunity is a upon the confirmation of the close above the peak between the two valleys. However, with a 65% pattern throwback rate, taking a position at this point in time serves both opportunity and risk to the investor.

My favorite double bottom opportunities come from stocks that show a strong incline to the left side of the pattern. One that has few or no price consolidations along the way and quickly fall from their highs in a rapid and aggressive fashion. Remember that a small decline from the left side peak means a small opportunity for profit judging by the pattern measuring rule:

Bull Market Target Price:
(highest peak price minus lowest valley price) x 66%

Bear Market Target Price:
(highest peak price minus lowest valley price) x 40%

Of course we are in a bear market right now and will probably be in one through much of 2008 and into early 2009. So how about a real time example of this pattern in action you ask? Sure, but remember that almost all chart patterns perform better when applied to stocks that are industry leaders. With that being said, here is one of my favorites for the 2008 calendar year. VMWare Inc. (VMW:NYSE) - Sector: Technology, Industry: Software & Programming. Due to the nature of this post (chart pattern series), I won't get into the reasoning behind why VMW is an industry leader but rather focus our attention on the pattern itself and allow you to watch its progress in real time rather than giving you a past example.

Notice the very steep and aggressive run the stock made upon its IPO offering and the equally as aggressive sell off to form a nice top left peak. The stock continues to decline to a low around $71/share before bouncing hard. This bounce creates our first valley and what is to be the peak between the valleys. The share prices again fall to the around $71 and a sizable position is taken by me at $72 (with a close stop set just below). Now even in the face of all the market turmoil and volatility, VMW pushes higher and closer to its double bottom breakout confirmation. Of course that confirmation will have to wait until the market stabilizes a bit. Fed cuts rates by 75 basis points this morning helping to ease what would have been a 600 point drop at the open. Again giving investors an opportunity to get into VMW fairly cheap.

VMW proves itself to be an amazing opportunity both technically and fundamentally and I would expect a strong performance from this stock even in the struggling US economy that is 2008.

Full Discloser: Long the shares of VMWare (VMW) and happily long many more double bottom chart patterns.

Links for 2008-01-15 [Digg]

Wed, 16 Jan 2008 00:00:00 -0600

Inflation Up 6.3% In 2007, The Highest Rate In 26 Years
The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.

Gold Prices Levitate to New Highs: Reasons and Implications

Wed, 09 Jan 2008 11:00:28 -0500

2007 has probably been one of the greatest years for the commodity market where there has been exuberance across the globe. Gold has been one of the beneficiaries that has witnessed one of the most phenomenal and unprecedented increase in prices. Prices have been up by almost 80% in the last 2 years and approximately 35% during the year 2007.

Gold has generally been a counter-cyclical commodity. This is the reason why a general downturn in the economy is always accompanied by a rise in Gold prices. This time around, the increase was perpetrated by a rise in oil prices, and the weakening dollar. Liquidity also declined later in the year, decreasing investment demand and thereby pushing up prices further. Declining tensions amidst Iran and Syria also fueled the rally.

Other than serving as a perfect hedge against inflation, Gold has been a relatively risk free asset ensuring stable and consistent returns for its investors. Thus, in the wake of instable markets as well, the rise in demand for Gold as an investment tool has been on the rise.

Conjointly, there has been an upsurge of Jewelery demand from the markets of India, China and the Middle East. At the same time, an exodus of Exchange traded Funds have facilitated access to investment in Gold. These are primarily the demand side factors producing a pull effect on prices.

On the supply side, the push factor has been the unavailability of Gold to match the rise in Demand. The steadfast uptrend in the cost of gold mining and extraction, coupled with a shrinking global output of Gold mines, has exerted an upward pressure in the prices of Gold.

The previous high in Gold prices was achieved way back in 1980 when the Soviet Union invaded Afghanistan and the Iranian Revolution took place.

The price reached a high of 891.70 as reported by Bloomberg today. According to analyst's gold is expected to even trade higher with some predicting levels of 1000 for 2008. The short-medium term bet is that it will trade a lot higher and could be 900 by mid year and 1000 by end of the year!

Whatever be the year end figure, the resonating view is primarily the same. With the current economic and political state of affairs, this unprecedented Bull Run in the evergreen precious metal is unlikely to let up.

22Dollars - Personal Wealth Management
Stock Quotes and Growing Personal Wealth by Managing Your Own Money! 22dollars is your online source for investment ideas, stocks analysis, business and other worldly issues. Geared towards the young professional, 22Dollars is written by successful young professionals who are ambitious and driven to succeed in life, cause in the end - no body cares more about your money than you.
Article by Chandni Kripalani | Subscribe via RSS | Join Club22 Free

Chart Pattern Recognition Series - Ascending Triangles

Mon, 07 Jan 2008 12:48:50 -0500

Chart pattern trading is something that takes a lot of discipline. By this I mean stock charts cannot look "kinda" like a pattern or have certain elements of a pattern. They need to match the pattern's characteristics by 100% or they will not work. Think of it like you are taking a test and the only way to pass is to get exactly a 100%. Anything less and you could be setting yourself up for danger.

The Ascending Triangle chart pattern is one of the most easily identifiable patterns and also one of my favorites to trade upon a confirmed breakout. Correctly identifying this pattern has made me a lot of money in the past and continues to prove itself as one of most profitable trades. The pattern is a bullish pattern sporting a triangle shape with a horizontal top and upward sloping bottom.

The above is an example of what a real ascending triangle pattern looks like. What you should note is the following key characteristics:

1.) A horizontal trend line drawn across the minor highs.
2.) A upward sloping trend line connecting the minor lows.
3.) Volume diminishes the further along we get in the triangle. Heavy at the beginning of the triangle, lighter at the end.
4.) Price should cross the chart pattern (the triangle) several times. I usually like to see at a minimum two minor highs and two minor lows touched.
5.) Heavy volume on breakout - the day the price pierces the horizontal resistance line.
6.) Throwbacks are common after breakout. Look for the horizontal resistance line to become new support level before stock goes higher.
7.) Any breach of the upward slopping minor lows line could indicate a pullback and indicate the pattern has failed and to sell in order to limit your loses.
8.) Other indications of a busted pattern would be a less than 5% move after breakout before returning to the triangle top and shooting out the other side.

The pattern is has an average rise of about 35% in a bull market and 30% in a bear market. The average triangle length is about 2 months long although this is not an essential trait. The shape of the triangle itself will give you a clue as to how far the stock price will rise and what your target price should be. To calculate this price, simply compute the height of the triangle and add that to the horizontal minor tops line. This will give you the minimum predicted price.

Ok great! Now that we all have a basic idea of what the pattern looks like, can you give me an example of one that you found on your own? The one that I am watching right now is Mexico's iShares (EWW). Take a look at the chart pattern. It should look familiar to everyone now :-)

Gifts that Keep On Giving: Holiday Presents that Improve the Recipient's Financial Situation

Wed, 19 Dec 2007 09:04:10 -0500

For those of you that are financially conscious, or just like to get a good bargain, you’ve probably been carefully planning your holiday spending for a few weeks now. Scanning the weekend papers for good coupons, keeping an eye out for holiday-related sales and carefully budgeting how much you can spend on each gift to make sure you make the most of your money and avoid getting yourself into debt. I know some things that have worked well for me in the past include deciding what I want to get each person on my list before heading to the store (so I don’t make impulsive decisions while at the crowded malls) and start my shopping early (so I don’t feel rushed on Dec. 24 and end up spending more than I had planned).

But what about the flip side? Most of us have probably thought at length about how the holiday gifts we give impact our own finances (whether it’s in the budgeting stage, or after the fact when we get our credit card bill). However a recent article on Yahoo Finance made me stop to think about how the gifts I give this season may impact the recipients’ finances.

If you consider your finances to be in fairly (or really) good shape, it can be difficult to watch friends or family members make unadvisable decisions and dig deeper holes for themselves. However, it can be even more difficult to offer these close contacts advice without seeming intrusive or condescending. Perhaps the holidays provide the perfect opportunity to help out on this front, without hurting anyone’s pride.

The ideas given in Jeffrey Strain’s article referenced above range from $8 to $600 plus and run the gamut of the responsible (such as rechargeable batteries that save the recipient from constantly having to buy new ones) to the entertaining (such as the Nintendo Wii which can provide the recipient with home-based entertainment that is cheaper than going to an arcade and can even save them from having to join a gym). So while savings bonds and shares of stock might have been the first financially conscious gifts that came to mind, now-a-days you can be fiscally responsible and still get something the recipient will really like.

Maybe this also means we need to expand our view of what makes a good gift. Advertisements will lead you to believe the hottest new electronics or hippest clothes are what will make your friends and family most happy this holiday season. But I know I always welcome gifts that will make my life easier and leave me in a better position than I was before the holidays.

My WORST Financial Mistake of the 2007 Calendar Year Was...

Wed, 12 Dec 2007 11:01:23 -0500

As 2007 draws to a close, lets take a moment to reflect on what we have learned by highlighting our mistakes. We all make them, there are no exceptions to that rule. The only variable here is how big of a mistake was it.

I'll start. My biggest financial mistake of 2007 was going against my good friend David Gordon's advice and jumping into the options market without adequate knowledge or experience. Instead of sticking with my bread and butter of stock trading (short and long term), I wanted to test my luck in the options market. To my shock, I have never seen so much money lost so quickly from my portfolio. While I did have a couple triple digit percentage winners, I also had a couple options expire to the worthless state.

The real shocking thing was that I had picked winning stocks, but in the game of options, you need not only winning stocks but also winning time frames. This is where I fell short and the lesson was learned. You see with options, you need not only to pick the correct price, but also the correct time frame. My investment strategy doesn't look at time frames but rather stock behavior to determine my buy/sell points. While time is also an important factor when I trade, to limit my forward looking time frame was something I wasn't comfortable with from the beginning. None the less, I jumped into the options market against my better judgment.

My lesson was learned the hard way as the option market, while good for some, is not for me. So now I ask what is your biggest financial mistake of the year? Was it a bad investment, poor purchase, not recognizing a financial scam, not saving enough or all the above? I will be very interested to hear what the readers of 22 have to say. Too much these days I read on other financial websites/blogs how fabulous they are (over emphasizing the good) and how they never made a mistake (down playing or never mentioning at all the bad). While this kind of behavior can be expected on the web, it gets old after a while, so lets hear the flip side so we can learn from each other's experiences.

What was your biggest financial blunder this year?

22Dollars - Personal Wealth Management
Stock Quotes and Growing Personal Wealth by Managing Your Own Money! 22dollars is your online source for investment ideas, stocks analysis, business and other worldly issues. Geared towards the young professional, 22Dollars is written by successful young professionals who are ambitious and driven to succeed in life, cause in the end - no body cares more about your money than you.
Article by Chandni Kripalani | Subscribe via RSS | Join Club22 Free

Want to Know How to Turn $12,000 into $2 Million? Timothy Sykes Demonstrates

Mon, 03 Dec 2007 13:20:35 -0500

If youâ€™re a fan of Wall Street Warriors or stay on top of the financial publishing scene, youâ€™ve probably seen and heard Timothy Sykesâ€™ name pretty frequently these days. Timothyâ€™s recently released book, An American Hedge Fund: How I Made $2 Million as a Stock Operator and Created a Hedge Fund, details the true story of how he turned the $12,415 he received for his Bar Mitzvah into $1.65 million in just three years and all before he turned 26. Timothy sent 22Dollars.com a copy of his book (check out the fourth page to see our review!) and recently provided us with a behind-the-scenes look at the man, the myth and the market. Make sure to check out Timothyâ€™s responses below and grab a copy of his book if you havenâ€™t already!

22Dollars.com: If you had to sum up your book in one sentence, what would you say?

Timothy Sykes: This is a story for anyone who has ever loved the stock market—all the risks, rewards, joys, frustrations and exhilarations.

22: What is your favorite passage from the book?

TS: “…the incredible lack of freely available information regarding financial speculation and hedge funds hurts society as a whole. Industry regulations have created an environment that is ripe for fraud and manipulation, which leads to unnecessary losses, not to mention it hinders peopleâ€™s abilities to learn from past successes and failures. These are the dark ages for hedge funds. No longer will I play by these misguided rules. I should be free to discuss my business, for I am an American entrepreneur. I call this freedom of finance. Freedom of finance is the concept of a hedge fund managerâ€™s right to discuss business freely without fear of penalty or censorship. I practice what I preach; this is my story.”

22: Are there any parts of your story that you were unable to include in the book, but would be of interest to the readers of 22Dollars.com?

TS: Yes, the book is not very technical because I wanted it to appeal to as broad an audience as possible. For those who understand trading, I’ve posted the charts of the trades mentioned in the book on my website, http://www.timothysykes.com. The readers of 22Dollars.com should definitely check them out because these charts are unique to smallcaps and they are responsible for ALL my earnings, both from the long or short side.

22: Weâ€™ve heard that you are going to try to repeat your early success, by turning $12,000 into a fortune again. Is there anything youâ€™ll do differently this time around?

TS: Yes, one month into this challenge, I’m up to $14,000 and change! This time around, I’ll be much more conservative because I want to promote responsible financial speculation (yes, there is such a thing). Also, I’ll be detailing every trade, idea and basically everything I do in pursuit of this goal on my website and I’m encouraging everybody to ask questions in the forum on my website because I believe in full transparency. It’s sad that honesty is a revolutionary business model in the finance world, but I truly believe we must detail our failures in addition to our successes because it’s only through our understanding of the past that we are better prepared to take advantage of the future.

22: What does the future hold for you? Where do you hope to be in five years?

TS: I have no idea—nobody in finance has ever tried anything like this, so it’ll be interesting to see how it all turns out. Whatever happens, I’m loving every second of it because now that I’ve closed my hedge fund, I’m free to discuss everything openly. In five years, I’ll probably be about 1/3 of the way to my $1.65 million goal, but the real achievement will be determined by how many people will see the kind of hard work, dedication and discipline required to be a successful trader. And, I’m not sure if I’ll have accomplished this by then, but I hope to show everyone how fun finance can be, how amazing smallcaps and penny stocks are (if you understand what to look out for) and how a life devoted to learning, working and teaching is more fulfilling than a life devoted solely to making money.

22: Are there any quotes you live by? What are they?

TS: â€œThe four most expensive words in the English language; â€˜this time itâ€™s differentâ€™â€ —Sir John Templeton

22: Do you think financial/investing experts are made or born? Why?

TS: I don’t think there are any financial/investing experts. Everybody spouts out information drawn from their own studies and experiences; some are right more than others, but everybody’s conclusions could be wrong. All we can do is share what we believe and if we do it honestly, we are all experts.

22: Finally, what advice can you give the readers of 22Dollars.com in managing their own finances?

TS: Don’t be afraid to take risks to go after big rewards; but if you are going to take these kinds of risks, make sure you understand what you’re getting yourself into. You have to be thorough and go over every detail—no matter how minute—time and time again, seek out opinions from everyone (especially those with experience), and most importantly, remain open to all prospectives—your research might lead you to the exact opposite of what you initially believed—good—in the name of capitalism, don’t be afraid to adapt in the pursuit of success!

ClickSoftware Technologies (CKSW) - The Technology Gem of Givat Shmuel, Isreal

Wed, 14 Nov 2007 16:23:32 -0500

As investors scramble to make sense of the short term terrors that pester the markets (GMâ€™s $39 billion write off, E-Trades bankruptcy scares, Blackstones quartly loss and two major financial houses giving the boot to their CEOâ€™s all in a weeks span), I was busy looking for opportunities with a touch of international flavor.

ClickSoftware Technologies (CKSW:NASDAQ, SECTOR: Technology, INDUSTRY: Software & Programming), based out of Givat Shmuel, Isreal (founded in 1979), describes themselves as a provider of mobile workforce management and service optimization solutions. The company’s products are used by customers in the telecommunications, utilities, financial services, aerospace, defense, semi-conductor, and home service industries. The Company;s Service Optimization suite includes workforce planning, optimized service scheduling, intelligent problem resolution, mobile workforce management, and business analytics, connecting various organizational levels. The Company’s Service Optimization solutions suite includes ClickSchedule, ClickAnalyze, ClickPlan, ClickForecast, ClickFix, ClickMobile and ClickLocate.

It markets and sells its products through direct sales force located in North America, Europe, and the Asia Pacific region, as well as through reseller agreements with partners. With over 50% of CKSWâ€™s business coming from overseas, this was the international exposure I was looking for. Now for a quick technical and fundamental breakdown of the stock and why it goes higher from here.

While an economic slowdown would affect many businesses the need for more efficient service scheduling is not going to change. Electrical grids continue to expand globally, telecom services continue to expand globally and computer use and networks continue to expand globally. All of these require service fleets. They all require optimized scheduling. And who is providing the best schedule optimization software on the planet?

CKSW also provides a tool that aids in helping reduce greenhouse gas emissions. As Click Software is increasingly recognized as a “Clean Tech” business, it will attract both new customers and new investors.

Fundamentally I like the stocks Relative P/E Ratio, Cash flow, debt/equity ratio, EPS rank, Price rank and Group rank. Technically the stock continues to look impressive on my four key fronts: price, volume, trend and pattern. Above you will see a graph of my technical analysis of the stock including its critical support trend and a Fibonacci retracement confirming the support that sits just under the stock price now. This offers a low-risk entry point to a stock that I believe will have a stellar 2008.

Full Disclosure: Long the shares of ClickSoftware (CKSW).

Links for 2007-11-02 [Digg]

Sat, 03 Nov 2007 00:00:00 -0500

The US dollar is now worth 93 cents Canadian, lowest since the Civil War
The rising level has benefited Canadian consumers booking U.S. vacations to the sunny south and cross-border shoppers flocking to U.S. border cities looking for bargains on everything from auto parts to CDs, shoes and clothe

Links for 2007-10-31 [Digg]

Thu, 01 Nov 2007 00:00:00 -0500

Google Stock Mania Continues - $700/share
Google's stock price broke $700 for the first time today, reaching as high as $704.79 in morning trading. That means it has taken Google under a month to go from $600 per share to a staggering $700 share price.

Links for 2007-09-25 [Digg]

Wed, 26 Sep 2007 00:00:00 -0500

Top 5 Smart Spending Tips for Students - How to Make Ends Meet When You’re
Top 5 Smart Spending Tips for Students - How to Make Ends Meet When You’re in College

Links for 2007-09-18 [Digg]

Wed, 19 Sep 2007 00:00:00 -0500

Fed Cuts Key Rate by .5% Point
The Federal Reserve Tuesday responded aggressively to a housing downturn that threatens to spread to the broader economy, cutting its main benchmark interest rate by a half-percentage point and broadly lowering borrowing costs.