Trader Model

This model, you believe that current rumors or news about the company and/or the sector will power-fully create a rapid increase or decrease in the price and that you can take advantage of this momentum by buying at the rumor stage and selling when the news comes out, or shortly thereafter. Therefore, you are not necessarily buying real value. You are taking quick ride on the tide.

You can develop a systematic approach that allows you to get in early and get out quickly. If you do not believe that you need to get the maximum profit, you will be happy taking you foot-foot Ring Toss/”Quick and Easy” profit.

Through a system of getting in, taking advantage of the accelerated pace of price increases, and quickly selling for a profit.

To be advance in Trade Model, you can use Technical Data Analysia to observe the movement of the stock. There is indication for the time to BUY in and SELL out.

This Model Require

1. Ability to quickly identify market momentum and news-related price increase/decreases;
2. Ability to make quick, powerful, and congruent decisions;
3. Risk taking, it can take months to build something that can be destroyed in minutes.

Strength

1. This model offers immediate return.
2. This model allows you to maximize your profit in the shortest amount of time.
3. This model strengthens your decision-making capabilities.
4. It requires that you think defensively – a good strategy for all business.
5. Use advance investment tools such as Options Trading, Margin, Margin Financing
6. You will need to expose yourself in Technical Data Analysis; to get know on Global Market all the time.
7. Since all your return is in Capital Gain; you does not need to pay Tax - Tax Free

Weakness

1. This model requires more time and focus.
2. This model has increased volatility – even more than stocks. What goes up, can come down even faster.
3. You have the potential for greater loss because you are buying market psychology, not real value.
4. What you are buying may have no long-term value. Since you purchased the stock base on momentum, you may have overpaid.

Ownership Model

This model is buying qualities companies, and holding onto them and EXPECT their value appreciates over the long-term, eventually providing long-term income (from dividen, bonus, etc).

To use this model, you buy stock in a company only if you BELIEVE that you are buying something of value that will be worth much more over the long-term. If you are intelligent, you will develop a systematic approach. Some systems are more precise than others.

The model requires:

1.Intelligent evaluation of a company;
2.Willingness to have patience;
3.A strong stomach. Remember, the average stock price fluctuates 50% over the course of a year; however, the rewards over the long-term are immense, if you’ve done your homework.

Strength
1. This is a proven model that makes you money over the long-term when applied with precision, because profit is a measurable commodity and long-term profitability supersedes any market fluctuations.
2. When applied properly, this model frees you from the emotional roller coaster of worrying about the market or economy. (It offers the potential for peace of mind).
Weakness
1. There is little or no immediate rewards. You must give yourself the pride of ownership. This is the most significant downside and the reason so few people truly apply it.

2. This model is capital investment – in order to produce a sizeable cash flow, you must invest a great amount of capital.

3. This model requires a strong stomach. (Remember, the average stock price fluctuates 50% over the course of a year).

4. This model can cause you to miss the ongoing potential for profit (e.g., Timecom fluctuated from 35 to 45 several times in one year, thus providing many opportunities to profit.)
5. You will need to pay Tax for the dividen / bonus given.