UNDERSTANDING STOCK PATTERNS

Understanding and using chart patterns for technical analysis can hugely increase your probability of entering and exiting at the right time. The examples below show some of the most common types of patterns and where your entry and exit points should likely be. Patterns can be used to analyze everything from intraday to long term charts.

Reversal stock patterns

These patterns generally represent a failed move higher or lower before a reversal in direction.

Continuation stock patterns

These patterns generally represent a period of consolidation before a continued move higher or lower.

Bilateral stock patterns

These patterns generally represent a period of consolidation before a move in either direction. You may not have a clear idea of where the stock is headed until you see which side of the pattern it breaks from. Notice the entry points are just above and just below the pattern guidelines.  

these charts are courtesy of babypips.com

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OUR MONETARY SYSTEM EXPLAINED

Mike Maloney explains how our monetary system works, how the currency supply is created and expanded, and how the entire process is a giant ponzi scheme designed to syphon wealth away from the citizens.

He does an excellent job explaining the ridiculous process and highlighting the evil intentions behind it. Our founding fathers knew about the dangers of central banking and fiat currency and made sure, in the Constitution, to mention that only gold and silver were to be used as money. 

Thomas Jefferson said 

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies...."

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TWO ROADS DIVERGED....

What is the real benefit of financial freedom?

That's an enormous question, and I bet there are a few things that jump right into the forefront of your mind. More money, less stress, travel, giving your children more opportunity, being able to fulfill your wants and desires. Those are all great examples of the things financial freedom can bring you, but....

Driving a nice car will never satisfy the soul. We've all heard the saying "money can't buy you happiness." It's true, in fact it can lead to misery if there's no substantial purpose behind it.

The road to financial freedom is not just about gaining nice things. It's about redefining yourself and changing your perceptions of the world; creating a larger sense of purpose. Changing your daily habits from negative to positive so that each day you're better off than you were the day before.

Eventually you'll reach a point where your life will no longer be what it once was. The tiny changes and disciplines you've implemented along the way will have directed you into a position of being able to spend your time doing things that are more meaningful to you. Your perceptions and financial situation will have changed entirely.

Being free to use your time as you see fit will open up a world of opportunity for you. A world where you're not worried about where the next dollar is coming from Where you're free from that stress of the daily grind and the depression that accompanies racing off to a job that you need, not that you love. That freedom will allow you to contribute to the world around you in a more meaningful way and give you a stronger sense of purpose.

We all have our 80 to 100 years if we're lucky, but your perception and the daily habits you develop will lead you down one road or another. At the end of the first road you could look back and say...

"I worked hard and I was always on time for work, I raised my kids well, I was a good father, mother, sibling, I saved my money and did the right thing".

Or you can travel the second road and at the end look back, still being that hard working parent, and say...

"Because I was able to change my perceptions and my habits, I was able to focus my efforts on self improvement. I was able to achieve a level of personal success that allowed me to use my time and energy in a more positive way; Not only to enrich the lives of my family members, but to contribute to the world around me in ways I'd never have thought possible."

Either way the years are going by, you're going to work hard and you're going to raise your children. But, if you start to change your perspectives, change your habits and take control of your life you can make a much larger impact on the world around you. You can contribute your time and effort in a way that satisfies your soul and feeds your overall purpose. 

This, I would argue, is the real benefit of financial freedom

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THE POWER OF COMPOUNDING

Here's a simple scenario that I love to use whenever I'm asked to explain how compounding works...

Would you rather be gifted $1 Million today, or one penny doubled every day for 30 days?

Most logical people can detect that it's a trick question, but blindly assuming that the penny doubled amounts to more than $1 Million after 30 days hardly illustrates the power behind the scenario.
To see the process written out will help you actually wrap your head around it.

 1 - $0.01
 2 - $0.02
 3 - $0.04
 4 - $0.08
 5 - $0.16
 6 - $0.32
 7 - $0.64
 8 - $1.28
 9 - $2.56
10- $5.12
11- $10.24
12- $20.48
13- $40.96
14- $81.92
15- $163.84
16- $327.68
17- $655.36
18- $1,310.72
19- $2,621.44
20- $5,242.88
21- $10,485.76
22- $20,972.52
23- $41,943.04
24- $83,886.08
25- $167,772.16
26- $335,544.32
27- $671,088.64
28- $1,342,177.28
29- $2,684,354.56
30- $5,368,709.12

There are a couple of really important observations to make about the process above. The first is this...

It doesn't matter how little you start with.

Whatever you have is enough to get started, stop waiting for the large nest egg to arrive before you invest. The second observation is this...

The length of time invested is the most important part of the whole process.

Notice how it seemed like nothing was happening for the first few days? It took all of seven days to even break the dollar mark, but then the power began to grow more and more rapidly.
Put the process to work in your imagination. Would you rather begin on the road to wealth at 20 years old or wait until your 45? What would that 25 years mean for your nest egg? It doesn't matter if you start with a couple hundred dollars, even less; Just get started!

Visit our website for free educational media and tools you need to get on the road to financial freedom.... www.greenlightllc.org

THE DIFFERENCE BETWEEN CURRENCY AND MONEY

For those of us on the journey to building our personal wealth there are many fundamental lessons that are extremely important to learn early on so that you can avoid pitfalls and scams along the way.
One of those lessons we're going to discuss here today is the difference between currency and money.

Throughout your life thus far you've no doubt heard people interchange those terms without hesitation, but they are two very different things in the world of the financially educated.
You see, currency is something that mankind has been using for over two thousand years to exchange goods and services. It's created by a central government or reserve bank and distributed through the different branches of government and to the banks and people. That currency whether it's in paper, coin or digital form has six certain traits that characterize it as currency. It must be....

- A medium of exchange
- A unit of account
- portable
- durable
- divisible
- fungible (each piece is the same as the next; interchangeable)

Money, however, is characterized by all six of those traits plus one additional; the most important trait of all. Money must be....

- A medium of exchange
- A unit of account
- portable
- durable
- divisible
- fungible
- a store of value

You see the thing that makes money a store of value is that it cannot be minted, printed, or pulled from thin air by a government or bank at whim. There is a finite amount so it's value is secure.

Every major civilization since the ancient Greeks and Romans that has implemented a currency has seen that currency over time devalued to such an extent that it either became worthless or needed to be replaced in a frenzy. Not just currencies, but entire empires, have fallen consistently, in metered spans of time, and in similar fashions due to government overspending, over extending, and over indulging. It plays out the same each time. The birth of a currency gives rise to an empire, the costs of the empire become too burdensome upon itself and ultimately the empire is forced to create more currency in an attempt to cover their debts. But as you know the more of something you create the less value each piece holds. So, inevitably the currency becomes less and less valuable over time until it's totally worthless. The currency devaluation tends to begin slowly and increase without causing more than the casual complaints among the citizens of the nation. Then it hits a point of no return where it turns parabolic in nature and, by that time, those left holding their savings in the form of that currency watch as it dwindles away. During that same period of panic the stampede toward things of real value like commodities, namely gold and silver, tend to drive the prices of those assets up exponentially. Those people who position themselves early on will watch as the wealth of the nation is transferred away from those holding the currency and toward those holding real money and other commodities.
Note, that by that time the wealthy have normally positioned themselves to benefit from the calamity they themselves had created.  

Here's an example.....

In the Weimar Republic hyperinflation in Germany in the 1920's you can see the rate of devaluation of the currency on the chart below. It took only five years to drop 1 trillion times in value.

Here you can see that the currency had become so worthless people were burning it to keep warm in their homes.

Understanding the difference between currency and money is arguably the most important lesson on the road to personal wealth. It will, at some point, mean the different between profiting greatly and losing everything.

A one ounce piece of gold in 1920 was worth about $238 and bought a man a nice tailored suit.

Today, that same one ounce piece of gold can still buy you a nice tailored suit, but not for $238. It would cost more like $1000-$1500. So you can see that the price of the suit did not actually increase, the value of the dollar bills decreased dramatically. That illustrates the difference between the money (gold & silver) and the currency ($).

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ARKAD'S 7 CURES FOR A LEAN PURSE

A little history....
Author George S. Clason, born in 1874, was a successful business man. He founded the Clason Map Company out of Denver, Colorado which published the first road atlas of the United States and Canada. In 1926 he issued the first of many pamphlets on thrift and financial success, using parables based in ancient Babylon to make his points. Distributed by banks and insurance companies in large quantities they became familiar to millions of Americans, the most famous titled "The Richest Man In Babylon". He later published a book with the same name compiling the parables into a single source and creating a modern inspirational classic.


CURE #1: START THY PURSE TO FATTENING

On the road to accumulating wealth the first rule is this; "A part of all you earn is yours to keep".
You must learn to pay yourself first, for your hard work, by setting aside a portion of everything you earn in savings. This does not mean savings for the weekend or vacation, it means savings that will become your lifeblood for financial success and your inspiration to continue its growth. Once you start your purse to fattening it will fuel your desire to protect it and help it to grow. In the book, Arkad, the richest man in all of Babylon explains that this amount should be not less than 10% of what you earn. Deduct your pay immediately from your earnings and you'll find that you will learn to live on the other 90%. Adjust your lifestyle and make some sacrifices to live within your means. If you have outstanding debts include a portion of your remaining income to help pay them down. Approach the lenders rather than flee the debt, and explain to them your plan for repayment. Arkad also explains in the book the importance of following through and remaining steadfast in your decisions. He mentions that if he decides to throw a stone each day into the river as he passes, then he makes sure to follow through consistently. He does not skip a day and throw two the next, he makes a point of self discipline. By remaining consistent in your actions and following your plan you will gain self respect and the respect of others.

CURE #2: CONTROL THY EXPENDITURES

In ancient Babylon, Arkad addresses a question raised by his students. The question is this...

 "How can a man keep one tenth of all he earns in his purse when all the coins he earns are not enough for his necessary expenses?"

Arkad replied by asking his students how many attending had a lean purse? When every one of them raised their hand he asked how that was possible if not all of them earned the same amount? Some earned much more than others, some had larger families to support; the point is that it's the nature of men for their expenditures to rise to meet their level of income unless they make a stand against it.

Learn to budget

Every person that desires financial success must learn to budget their income appropriately.

Arkad's advice is to make a list of your current expenditures, mark the ones that are absolute necessities and realize that the ones remaining are simply desires. You must understand that desires are boundless and no matter the amount of wealth you have, you will never be able to satisfy them all. The purpose of your budget is to aid your "purse in fattening" and provide desires insofar as they're attainable. By embracing your budget it will help you to protect your purse from leaks and "thy most cherished desires from thy casual wishes."

CURE #3: MAKE THY GOLD MULTIPLY

Arkad again speaks to his students, "Behold thy lean purse is fattening...Gold in a purse is gratifying to own and satesfieth a miserly soul but earns nothing... The earnings it will make shall build our fortunes."

Once you've disciplined yourself to save one-tenth of everything you earn and you've instituted a proper budget to protect that new savings from unnecessary expenses you will see your savings begin to grow. That savings, though satisfying to hold and accumulate, won't make you wealthy alone. Only the new streams of income derived from investing that savings wisely will put you on the road to building true wealth. As your capital increases over time, your investments will extend to provide you with many sources of income creating a steady stream of wealth.

CURE #4: GUARD THY TREASURES FROM LOSS

"Misfortune loves a shining mark. Gold in a man's purse must be guarded with firmness, else it be lost. Thus it is wise that we must first secure small amounts and learn to protect them before the Gods entrust us with larger." So spoke Arkad upon the fourth day to his class.

It is important to invest your hard earned money carefully as not to lose it. Don't be lured by your desire to gain riches rapidly. Analyze each investment and make sure that your principle is safe and can be withdraw as needed. Invest in things you understand and with those who are properly educated and have success in the field. Look to the advice of those experienced in the successful handling of money.

CURE #5: MAKE OF THY DWELLING A PROFITABLE INVESTMENT

"If a man setteth aside nine parts of his earnings upon which to live and enjoy life, and if any part of this nine parts he can turn into a profitable investment without detriment to his well-being, then so much faster will his treasures grow."  So spoke Arkad to his class at their fifth lesson.

When you take a loan to purchase a home you can pay the lender with the same regularity that you would otherwise pay your landlord, but you will gain the equity back as you pay down the principle on the loan. For this reason it is a much better use of your income to pay a lender than a landlord. Once the loan on the property is fulfilled you'll also be able to use that income to enjoy more of the things you desire.

Owning your own home is also extremely satisfying to the soul. To sleep every night and wake every morning to your own space will contribute to your eagerness to continue along the road to wealth.

CURE #6: INSURE A FUTURE INCOME

"...it behooves a man to make preparation for a suitable income in the days to come, when he is no longer young, and to make preparations for his family should he be no longer with them to comfort and support them."

It's important to put some of your income into long term investments so that as you grow older you will have consistent income to live on aside from social security as the government in already so overextended they will likely not be able to honor those agreements. Life insurance is an important investment option so that your family will have the means to carry if you should pass away. The lesson here is that you need to provide today for the uncertainties of tomorrow.

CURE #7: INCREASE THY ABILITY TO EARN

"For a man to wish to be rich is of little purpose. For a man to desire five pieces of gold is a tangible desire which he can press to fulfillment. After he has backed his desire for give pieces of gold with strength of purpose to secure it, next he can find similar ways to obtain ten pieces and then twenty pieces and later a thousand pieces and, behold, he has become wealthy." 

One of the most important things to focus your energy on is the improvement of yourself. In doing this you will ultimately increase your abilities to earn. Master your trade by learning from the best. Enrich yourself and your level of confidence will follow.

"...to cultivate thy own powers, to study and become wiser, to become more skillful, to so act as to respect thyself." 

These are Arkad's seven cures for a lean purse. Follow them with diligence and you will become wealthy and will be able to enjoy a life a financial freedom.

- The Richest Man In Babylon

Visit our website for free educational media and tools you need to get on the road to financial freedom.... www.greenlightllc.org