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Casual Articles - Do You Know When to Buy and Sell? Use The Sine Wave Model
Infopreneurs fall into 2 categories. One group creates information products and resources continuously - and uses the steady flow of information to generate profits. The other group focuses on creating information once, and then get people to pay for access to it on a regular basis... generating cash flow from the recurring payments.One of the best models to earn passive income from your infopreneur publishing is to run a membership site. And there are 3 key things successful membership sites do to explode their profitability. These are things many beginners ignore or don't know - and which condemn their membership programs to being average performers.Membership Site Tactic #1 - Keep delivering quality and valueThe difference between an ebook and a membership site is the freshness and evolution of content inside it. While an ebook can be edited, realistically this does not happen very frequently. On the other hand, membership sites are updated fairly often, even many times in a day.The high value offered to members from such fresh, relevant, high quality content is what sets apart a successfu
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it a
If anyone thinks that email marketing has gotten easier in the past few years, they couldn’t be more wrong. For starters, the majority of people get a lot of SPAM in their e-mails every day, making them more aggressive with the DELETE button (even with legitimate offers and newsletters that they’ve elected to recieved). And of course CAN-SPAM compliance issues make the entire web-based e-mail marketing process “easier said than done” to say the least. That’s why choosing an e-mail marketing service should be done with a bit research and a lot of care. Here are a few things to look for while you seek out your ideal service.1. Easy Set-up and Management. Your ideal service will be easy to use, maintain and configure, with enough options to give you what you need from the very beginning. Be sure that there’s adequate customer service and support available to you when you need it.2. “Smart” Tracking Features. This is mandatory feature, enabling you to know instantly which autoresponders and messages are pulling in the most, as in direct marketing you really need to be able to track everything you possibly can. Th
What makes the most sense? Is there even a single right answer?
In order to get started thinking logically about this all-important issue, let’s create a simple model of how stock prices change. The model is idealized and represents no real stock, but it is a powerful tool for thinking about the questions of when to buy and when to sell.
Here’s the model:
Picture a simple sine wave, with a horizontal line straight through the center of it. The straight line represents time, while the sine wave represents the changing price of your stock over time. The price starts at the left end of the timeline, or “time = 0,” which could be right now. The sine wave starts at the centerline, rises for a while, levels off at a peak, declines for a while, passes down through the centerline (so that the price goes below where it started), levels off again forming a trough, rises smoothly back up through the centerline, goes on to another peak, and so on. Each full rise, fall, and re-rise to the centerline is a cycle.
Anybody familiar with stock price movements knows that prices are volatile. They go up, they come down. None of them, of course, traces a perfect sine wave shape, but the sine wave picture is a simplifying assumption: It is a smoothed-out version of what stock prices actually do.
For our idealized model, let’s say that each peak in the cycle is 20% above the centerline, and that each trough is 20% below the centerline. So there is a 40% difference between the peak price and the lowest price of each cycle. That happens to be the difference in the real world between many stocks’ high and low prices for a year. So in our model, let’s make each cycle one year long.
Finally, tilt the whole thing upwards slightly, so that the centerline, rather than being horizontal, is pointed upward at 10% per year. This represents the average return of the stock market over the past century or so.
That’s our idealized model. Let’s call the company that it represents Sine, Inc. Sine’s stock has behaved like this since the company went public 100 years ago, and it will behave like this infinitely into the future.
What can we learn from this simple model? Plenty!
Question: What would be the ideal times to buy and sell Sine? There are at least four good answers:
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it a
Networking does not just mean attending business breakfast meetings and handing out business cards, although those meetings are effective too.Networking is a powerful way of marketing your business because it's based on building relationships with people. When people know, like and trust you, they'll be more likely to use your products and services. Plus they'll happily refer their friends and relatives to you (of course it helps if you offer high quality service).This word of mouth aspect of networking makes it very cost-effective as a marketing strategy.So how can you become a natural networker? Here are a few suggestions.a)Attend as many social events as you can. They don't have to be strictly business events either. Even your child's Parent Teachers Association meeting is an event that you can use to your advantage (be creative but not obnoxious).b)Have a definite aim for attending each one. Your aim could be to meet 3 new people and exchange details, or it could just be to make some new friends. Either way, don't just go there aimlessly. Go with a purpose, and spe
Here’s the model:
Picture a simple sine wave, with a horizontal line straight through the center of it. The straight line represents time, while the sine wave represents the changing price of your stock over time. The price starts at the left end of the timeline, or “time = 0,” which could be right now. The sine wave starts at the centerline, rises for a while, levels off at a peak, declines for a while, passes down through the centerline (so that the price goes below where it started), levels off again forming a trough, rises smoothly back up through the centerline, goes on to another peak, and so on. Each full rise, fall, and re-rise to the centerline is a cycle.
Anybody familiar with stock price movements knows that prices are volatile. They go up, they come down. None of them, of course, traces a perfect sine wave shape, but the sine wave picture is a simplifying assumption: It is a smoothed-out version of what stock prices actually do.
For our idealized model, let’s say that each peak in the cycle is 20% above the centerline, and that each trough is 20% below the centerline. So there is a 40% difference between the peak price and the lowest price of each cycle. That happens to be the difference in the real world between many stocks’ high and low prices for a year. So in our model, let’s make each cycle one year long.
Finally, tilt the whole thing upwards slightly, so that the centerline, rather than being horizontal, is pointed upward at 10% per year. This represents the average return of the stock market over the past century or so.
That’s our idealized model. Let’s call the company that it represents Sine, Inc. Sine’s stock has behaved like this since the company went public 100 years ago, and it will behave like this infinitely into the future.
What can we learn from this simple model? Plenty!
Question: What would be the ideal times to buy and sell Sine? There are at least four good answers:
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it a
With the Internet being such an enormous giant in the world of shopping, the ability to accept an online credit card payment is pertinent to your business. After all, if you have a website, you certainly want people to be able to pay while they are there rather than expecting them to call over the telephone, mail a check, or use a PayPal account. There is certainly nothing wrong with any of those methods, except that each one requires a separate step in the order processing chain of events, whereas the ability to accept an online credit card payment can be completed in one final step at the completion of your order.The purpose of having an e-Commerce site is to generate sales for your company, and the more convenient you make it for your customers, the higher your sales volume will be. Isn't that, after all, the purpose of having a website? Even if you have a physical building, your web presence will generate a great deal more volume for your business because of the large number of potential customers on the Internet. Of course, in order to do that, you have to be able to accept online credit card payments from those v
Anybody familiar with stock price movements knows that prices are volatile. They go up, they come down. None of them, of course, traces a perfect sine wave shape, but the sine wave picture is a simplifying assumption: It is a smoothed-out version of what stock prices actually do.
For our idealized model, let’s say that each peak in the cycle is 20% above the centerline, and that each trough is 20% below the centerline. So there is a 40% difference between the peak price and the lowest price of each cycle. That happens to be the difference in the real world between many stocks’ high and low prices for a year. So in our model, let’s make each cycle one year long.
Finally, tilt the whole thing upwards slightly, so that the centerline, rather than being horizontal, is pointed upward at 10% per year. This represents the average return of the stock market over the past century or so.
That’s our idealized model. Let’s call the company that it represents Sine, Inc. Sine’s stock has behaved like this since the company went public 100 years ago, and it will behave like this infinitely into the future.
What can we learn from this simple model? Plenty!
Question: What would be the ideal times to buy and sell Sine? There are at least four good answers:
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it a
In the List Building niche, there are a variety of strategies and specialized knowledge tips and techniques of the trade.This article will discuss some of those little known facts within the list building niche and disperse them as valuable gems of list building knowledge. So get your thinking cap on "absorb mode" and prepared to be dazzled with some good information. After all, the information age rewards those who have specialized knowledge in whatever niche you are in. Also you can and need to build your list of prospective customers in every industry. Here they come. Internet Marketing professionals and expert studies have revealed that for every opt in name and email address on your list, you can expect to receive $1 in sales generated from that list per month. That's an interesting fact isn't it. Kind of puts the motivation to learn as much about list building as you can to the top of the priority list. That means that if you obtain 100 new subscribers to your opt-in email list every month, that you will make $100 from that list that month.However, it gets better. After your first month, your list has
Finally, tilt the whole thing upwards slightly, so that the centerline, rather than being horizontal, is pointed upward at 10% per year. This represents the average return of the stock market over the past century or so.
That’s our idealized model. Let’s call the company that it represents Sine, Inc. Sine’s stock has behaved like this since the company went public 100 years ago, and it will behave like this infinitely into the future.
What can we learn from this simple model? Plenty!
Question: What would be the ideal times to buy and sell Sine? There are at least four good answers:
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it a
Are you ready to hear something unbelievable? It's not that hard to get website traffic from search engines. All you need to do is follow a certain guidelines from major search engines like Google and follow some of my tips here.Here are some of my search engine optimization tips for you:1) Don't pay a company to submit your website to search engines using an automated procedure because this technique often fails; search engines often ignore these submissions. In fact: Website Submission does not work anymore. You should submit your site to these search engines and directories yourself, or pay someone to manually submit your site. You can also look into search engine advertising (using advertising programs like Google AdWord). Yes it costs money but it ensures placement of your business name and website link in a visible position on the search engine page.2) To optimize your search engine ranking (you want to be in the top 10 and preferably the top five), you must understand how your customers think and want. What does he/she know about your product or service? What keywords will he/she be most likely to
(1) Since we know that the model is tilted upwards at 10% per year, just buy the stock at time = 0 (when the sine wave is at the center line) and hold it as long as possible. Or if you are buying Sine in chunks over an extended period as money becomes available, you can make your purchases at any time. You don’t care where Sine is in its cycle, because you know that, over time, you’ll make 10% per year on your average chunk. You know that because the centerline is tilted upwards at a 10% grade. There’s a name for this approach: Dollar cost averaging. You buy, say, $100 of Sine every month, so you’re buying it at every point along its cycle, sometimes getting a good price, sometimes not. Your blended return from all those purchases, however, will match the 10% upward tilt of the chart itself. This is a widely recommended approach.
(2) But you can do better. Wait a few months and purchase the stock at the exact bottom of its price cycle. There’s a name for this approach too: Buy on the dip. That will increase your returns by a surprising amount, because you will get more shares for your money. For example, if Sine’s price is $100 at time = 0, and you wait nine months until the cycle hits its low point at $80, then $1000 will get you 12? shares instead of 10. That’s 25% more shares for the same amount of money. You’ll benefit from those extra shares forever. By the way, this is exactly what value investors aim to do. This is also a widely recommended approach, although in the real world it is impossible to know exactly when the exact bottom of the cycle has been hit.
(3) Next, let’s surmise that you have perfect knowledge about Sine’s price behavior and know that it is going to keep repeating its steady performance year after year, cycle after cycle. Then you can improve on #2 above. Buy at the bottom of a cycle, hold until the top of the cycle, sell right there, bide your time for six months until the next bottom, re-buy, sell at the next top, and so on. Your returns would be astronomical. Let’s just follow this through two years of the cycle (and make it simple by ignoring the tilt). Your first purchase would get you 12.5 shares at $80 each, same as in #2 above. At the top of the cycle (six months later), you would sell those shares for $112 each (40% more than you paid), or $1400 total. Wait six months for the next trough, and that money will buy you 17.5 shares at the bottom of the cycle. Wait six more months, and the sale of the 17.5 will bring in $1960 at the top. Wait six more months and the $1960 will buy you 24.5 shares. After 6 more months, the cycle will reach another peak, and your shares will have gone up 40% again to $2744. And so on. In the first 18 months from time = 0, you make 174% ($2744 divided by your original $1000), and every year after that it gets better and better as everything compounds. And that’s ignoring the 10% upward tilt, which brings in even more money. Your $1000 will turn into $1,000,000 in just a few years, even though on average the stock’s price is rising just 10% per year. The name for this is timing or trend following.
(4) Actually, trend following has an additional component that increases returns even more. Rather than biding your time during the downward portion of the cycle, many tre
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