On the surface, in many instances, payday loans truly can seem like a godsend. However, if you scratch even a little bit under the surface, you will find that there can be problems with payday loans in some instances and for some people. Through this brief article, you are provided with a more generalized overview of how and when payday loans can become problematic for some people some of the time.
By making yourself aware of some of the problems that face people looking for payday loans, you will be in a far better position to properly use payday loans and to avoid problematic situations in relation to payday loans. You will be able to use payday loans as a helpful tool to aid and assist you in an emergency situation.
Overuse of Payday Loans
You need to keep in mind that payday loans absolutely are wonderful solutions if a person is having an emergency financial situation. There is a great deal of truth in the old saying that into everyone’s life some rain must fall. Emergency financial problems can be faced by even the most fiscally responsible of people.
The problem is that some people use payday loans even when they really are not facing a true emergency situation. These are people who fail to budget and fail to manage their money and end up heading off to obtain payday loans all of the time. They use payday loans in some instances on a weekly basis. They use payday loans before each and every payday and never get themselves financially in a sound position. When we consider the cost of payday loans range from $10-$30 per one hundred dollars borrowed, the effective annual percent interest rate can quickly add up to hundreds of percent when annualized. On the other hand, avoiding the cost and the credit damage even a single NSF check can cause, payday loan cash advance might be a better alternative.
As has been mentioned, payday loans are wonderful tools when it comes to emergency situations. However, payday loans should not become a staple in a person’s life.
Falling Into a Trap Set By a Disreputable Provider of Payday Loans
As with many other financial areas today, there unfortunately are disreputable operators that have become involved in the payday loans business. There are times in which a person can inadvertently become wrapped up with one of these bad apples when they are in need of payday loans. Indeed, this is one of the more significant problems associated with payday loans in this day and age.
You need to understand the importance of making sure that you do your homework before engaging the services of any provider of payday loans. By doing your homework, by taking the time to shop around, you will lessen the chances that you will be trapped by a less that reputable provider of payday loans and related services.
Failure to Utilize Reliable Government Resources
Many people fail to take advantage of the informational services that are offered by the government when it comes to payday loans and related services. In point of fact, the U.S. government has been surprisingly proactive when it comes to oversight of payday loans and related services. You can easily find more information about payday loans and rules and regulations regarding payday loans at these helpful website locations:
Thursday, December 31, 2009
Private Money Investing-How To Get The Best Use Out Of This Form Of Investing
Private money investing involves dealing with real estate companies, entertainment, retail and several other businesses. It basically involves two parties: the borrower and the lender. The lender becomes the investor.
The borrower receives money based on the value of real estate owned by him. Private individuals, trusts and pension funds can try their luck on private money investing. Substantial knowledge and experience of trust deed investing is required and mostly individual investors are good at it.
Everyone wants their money to grow and this is why this form of investing is such a desirable form of investing now. First, their investment in real estate will always pay off. Secondly, it will give regular income derived from the monthly dividend distribution scheme and thirdly, higher results than those available from investing in stocks and bonds. There is something called investor eligibility that you need to meet for this form of investing, and that is determined once you meet the minimum net worth requirements.
Private money investing involves many technicalities i.e. the lending process, funding and underwriting that one must be aware of. Methods of investments: Fractional method, Mortgage fund investment, Equity ownership etc.
Things to consider before venturing out into private money investing:
The amount of investment that is being asked, the value of the property that is pledged, description of the property, negotiation of suitable terms from either party and the use of funds whether to construct the property or to renovate. This eventually is a risky business so it is important to associate your investment with known construction brands.
Before lending money, several things are taken into account and one of it is to calculate the worth of the real estate piece. The liquid value of the collateral minus debt and liabilities is what investors look at while using private money investing.
Again, it cannot be emphasized enough: focus on one area of investing, and stick with that. For instance, either focus your efforts on real estate, the stock market, mutual funds, etc. don’t try to learn everything about all of them. Follow these important tips, and if you have decided to use private money investing, you will make a fortune with your investing efforts.
The borrower receives money based on the value of real estate owned by him. Private individuals, trusts and pension funds can try their luck on private money investing. Substantial knowledge and experience of trust deed investing is required and mostly individual investors are good at it.
Everyone wants their money to grow and this is why this form of investing is such a desirable form of investing now. First, their investment in real estate will always pay off. Secondly, it will give regular income derived from the monthly dividend distribution scheme and thirdly, higher results than those available from investing in stocks and bonds. There is something called investor eligibility that you need to meet for this form of investing, and that is determined once you meet the minimum net worth requirements.
Private money investing involves many technicalities i.e. the lending process, funding and underwriting that one must be aware of. Methods of investments: Fractional method, Mortgage fund investment, Equity ownership etc.
Things to consider before venturing out into private money investing:
The amount of investment that is being asked, the value of the property that is pledged, description of the property, negotiation of suitable terms from either party and the use of funds whether to construct the property or to renovate. This eventually is a risky business so it is important to associate your investment with known construction brands.
Before lending money, several things are taken into account and one of it is to calculate the worth of the real estate piece. The liquid value of the collateral minus debt and liabilities is what investors look at while using private money investing.
Again, it cannot be emphasized enough: focus on one area of investing, and stick with that. For instance, either focus your efforts on real estate, the stock market, mutual funds, etc. don’t try to learn everything about all of them. Follow these important tips, and if you have decided to use private money investing, you will make a fortune with your investing efforts.
Private Long Term Disability Insurance
Long term disability insurance can be vitally important to those people who want to protect themselves against the loss of future earnings. Disability insurance, in general, is used when a person is no longer able to work and to earn a living. The benefits received from disability insurance can help pay mortgage bills, living expenses, medical expenses, etc. In many ways, it can be the difference between maintaining a lifestyle and facing a lifetime of uncertainty.
There are two types of long term disability insurance. There are those policies that are considered "group" policies. These are usually bought through the workplace or through participation in certain organizations. The other type is "private". Private long term disability insurance is purchased by the individual and is usually more expensive than policies purchased through group policies.
There are also those group policies that allow participants to add more coverage to an individual policy as long as the person is willing to make the added payment himself. For those who have group coverage this can be a good way to get added protection at discounted prices.
In the area of private long term disability insurance the first thing to understand is that this type of insurance can be expensive. It is almost certainly going to be more expensive than life insurance. However, this type of protection is actually more valuable than life insurance in many ways. Its main value is that it allows you to maintain a close semblance of your lifestyle should you be forced out of work due to illness or injury.
There are some advantages to having private long term disability insurance as well.
The benefits that you receive if you become disabled will be tax-free, as long as you paid the insurance premiums with after-tax money. Another benefit to having private coverage is that the coverage is not bound to your job. In other words, if you change jobs your coverage does not end as would be the case with most group coverage policies.
If your occupation allows for exceptionally high earnings you may need to purchase a special type of private long term disability insurance that will lock in that level of earning should you become disabled. Most group policies use what is known as the "any-occupation" scheme which allows for the less expensive premiums, but also provides a lower amount of benefits. High earners need to take this into consideration when thinking of long term disability insurance.
There are some important things to look for in private disability insurance: You want a policy that is "non-cancellable". This guarantees that premiums will not be changed as long as you pay them on time and in full. You also want to look for a policy that is to age 65.
You want to avoid policies that are termed as "accident only". These polices will not pay if you become disabled through illness rather than injury, and some of the accident conditions can be hard to meet.
There are a number of riders that can be bought with most private long term disability insurance and you should go through those carefully as some of them can be very important. Most riders will cost a bit more to implement into the policy but they can be worthwhile should you ever need to use them.
There are two types of long term disability insurance. There are those policies that are considered "group" policies. These are usually bought through the workplace or through participation in certain organizations. The other type is "private". Private long term disability insurance is purchased by the individual and is usually more expensive than policies purchased through group policies.
There are also those group policies that allow participants to add more coverage to an individual policy as long as the person is willing to make the added payment himself. For those who have group coverage this can be a good way to get added protection at discounted prices.
In the area of private long term disability insurance the first thing to understand is that this type of insurance can be expensive. It is almost certainly going to be more expensive than life insurance. However, this type of protection is actually more valuable than life insurance in many ways. Its main value is that it allows you to maintain a close semblance of your lifestyle should you be forced out of work due to illness or injury.
There are some advantages to having private long term disability insurance as well.
The benefits that you receive if you become disabled will be tax-free, as long as you paid the insurance premiums with after-tax money. Another benefit to having private coverage is that the coverage is not bound to your job. In other words, if you change jobs your coverage does not end as would be the case with most group coverage policies.
If your occupation allows for exceptionally high earnings you may need to purchase a special type of private long term disability insurance that will lock in that level of earning should you become disabled. Most group policies use what is known as the "any-occupation" scheme which allows for the less expensive premiums, but also provides a lower amount of benefits. High earners need to take this into consideration when thinking of long term disability insurance.
There are some important things to look for in private disability insurance: You want a policy that is "non-cancellable". This guarantees that premiums will not be changed as long as you pay them on time and in full. You also want to look for a policy that is to age 65.
You want to avoid policies that are termed as "accident only". These polices will not pay if you become disabled through illness rather than injury, and some of the accident conditions can be hard to meet.
There are a number of riders that can be bought with most private long term disability insurance and you should go through those carefully as some of them can be very important. Most riders will cost a bit more to implement into the policy but they can be worthwhile should you ever need to use them.
Private Investor Funding-Get The Money You Need To Invest Now
To support new business especially in real estate, construction, entertainment you need a back up of private investor funding. You also need to have fair to excellent credit score to obtain private investor funding. There are many known names in this business.
An individual who has done well financially and is ready to provide capital for a business is known as an Angel investor. Although Angels are thought of as individuals, the actual entity that provides the funding may be a trust, business, investment fund, etc.
Private investor funding basically lends you money against your private trust deeds, excellent business idea, and liquid rate of the land or business. As long as you have a plan and a proven track record, this is the main thing that these funding institutions look for.
This kind of funding comes with a high risk and therefore they demand a high return on investment. Individuals providing private investor funding have an exit strategy planned so that the original investment bring them more than five times the return in 3 to 5 years. The exit strategy could include IPOs or acquisition.
A private investor funding is done by reviewing the business plan. The funding institute or the individual then have an investment proposal that is both sensible and sufficiently attractive to investors. This funding can be raised by a group of investors as well.
Not just in the US but this type of funding can support new businesses in developing countries too. Venture capital and private investor funding work hand in hand for somebody who is setting up a new business. Companies use these funds to increase its R&D, sales and marketing efforts.
Private investors are now seeking to organize themselves, making a bigger entity than just working individually to receive small gains. Once they pool in their investments and form a network of private investors they can get bigger returns and this idea is very alluring.
The bottom line: even if you don’t have the money right now to invest, you can certainly find the money, whether you have to pool your money with others or obtain private investor funding from an institution. Don’t let a lack of funds hold you back; do your research, formulate a plan, and start investing and getting rich from the market.
An individual who has done well financially and is ready to provide capital for a business is known as an Angel investor. Although Angels are thought of as individuals, the actual entity that provides the funding may be a trust, business, investment fund, etc.
Private investor funding basically lends you money against your private trust deeds, excellent business idea, and liquid rate of the land or business. As long as you have a plan and a proven track record, this is the main thing that these funding institutions look for.
This kind of funding comes with a high risk and therefore they demand a high return on investment. Individuals providing private investor funding have an exit strategy planned so that the original investment bring them more than five times the return in 3 to 5 years. The exit strategy could include IPOs or acquisition.
A private investor funding is done by reviewing the business plan. The funding institute or the individual then have an investment proposal that is both sensible and sufficiently attractive to investors. This funding can be raised by a group of investors as well.
Not just in the US but this type of funding can support new businesses in developing countries too. Venture capital and private investor funding work hand in hand for somebody who is setting up a new business. Companies use these funds to increase its R&D, sales and marketing efforts.
Private investors are now seeking to organize themselves, making a bigger entity than just working individually to receive small gains. Once they pool in their investments and form a network of private investors they can get bigger returns and this idea is very alluring.
The bottom line: even if you don’t have the money right now to invest, you can certainly find the money, whether you have to pool your money with others or obtain private investor funding from an institution. Don’t let a lack of funds hold you back; do your research, formulate a plan, and start investing and getting rich from the market.
Privacy Protection In Today’s Mortgage Climate
Most savvy consumers these days are taking steps to ensure their privacy and avoid unsolicited calls or a mailbox full of junk. There are laws in place that give us a bit of control when it comes to how our information is being used and by whom. The problem is these laws can only help if we know how to protect ourselves. Most understand that unless they "opt out" after a transaction, many companies will sell their information to other businesses.
Trigger Leads
One of the most alarming of these scenarios is what the three main credit bureaus are doing. When you apply for a home loan with a carefully chosen mortgage company, your credit will need to be checked to determine precisely what interest rate you will qualify for. Once your credit is pulled from one or more of the three credit bureaus; Experian, Equifax and TransUnion, the bureaus know that you are in the market for a mortgage.
Without your permission, these bureaus are using the initial inquiry as a trigger, and are turning around and selling your detailed information to companies who are in direct competition with the mortgage company you chose to work with. These competitors pay for this privileged information and are willing to do whatever it takes to recoup that cost. Too often this includes underhanded and misleading tactics.
It is not uncommon for a consumer to be contacted by a new mortgage company claiming to have been referred to them by the consumer's original broker. They may also employ "bait and switch" tactics to lure a customer in with an enticing offer which they may not really qualify for, and then switch them to another, often more costly product without notification.
The trigger lead trend has lessened somewhat in recent months as the mortgage sector has cooled. But it would be wrong to think that it's no longer a threat to consumer privacy. As loan requirements have become stricter, the call for viable mortgage leads has reached a crescendo. And that means homeowners with good credit scores are very likely to find their information being sold in the form of a trigger lead.
A few states, like Minnesota, have introduced strict legislation prohibiting credit bureaus from selling trigger leads. But most states are acting very slowly on the issue for a variety of reasons, and Federal action seems unlikely. The Federal Trade Commission claimed in March 2007 it lacks the legal authority to tackle unwanted trigger lead solicitations. So it is vital consumers empower themselves to combat this trend.
Protecting Yourself
There are things you can do to prevent yourself becoming just another trigger lead. Under Federal law, the consumer credit reporting industry is required to provide a way for consumers to "opt out" or remove their name from these lists. You can call (888) 567-8688 or go online to www.optoutprescreen.com and opt out for 5-years or for life. If you choose the lifetime option, you will be required to complete and sign a form. They don't make it easy to opt out for life for obvious reasons, but it may be worth it to you.
In addition to protecting yourself from these mortgage shenanigans, opting out with the credit agencies will also protect you from pre-approved credit offers arriving by mail. These direct mail credit offers are a major annoyance for many homeowners and one of the main sources of identity theft in the US today! And don't forget the National Do Not Call List, which can help protect you from unsolicited telephone inquiries.
Shopping Around
Many consumers like the idea of "shopping around" for the best loan. And it's a good idea to make sure you're getting the best deal available. But such a strategy should be done on your own terms, and not at the whim of companies who disclose private information for their own profit.
If you're looking to compare multiple loan options that are tailored to your unique needs and want to be sure you're getting the best rate, companies like America's Lending Partners offer free consultation with in-house mortgage experts who, with your approval, will seek out and negotiate with lenders on your behalf. Unlike checking around with individual lenders who will each check your credit separately, such services can pull your credit report one time, shop around for you, and provide you with the comparisons you want without the need for numerous damaging inquires.
And when you start working with a broker or lender make sure you note down your contact's name and phone number, along with the name of their company. If someone suspicious calls up claiming to work for that company, or to have been referred to you by that company, call your contact back and double check it with them. Also, beware of new mortgage companies contacting you out of the blue and making you offers which seem too good to be true: often they are! As a rule of thumb, only work with the companies you contacted.
Conclusion
Whether you are looking to purchase a new home or refinance your existing home, make sure you protect your privacy. Before you begin the mortgage process, prepare by opting out of unsolicited offers, and arm yourself with the knowledge that you don't have to become another trigger lead. Even in a deflated mortgage market, you have significant control over who you work with to achieve your new mortgage.
Trigger Leads
One of the most alarming of these scenarios is what the three main credit bureaus are doing. When you apply for a home loan with a carefully chosen mortgage company, your credit will need to be checked to determine precisely what interest rate you will qualify for. Once your credit is pulled from one or more of the three credit bureaus; Experian, Equifax and TransUnion, the bureaus know that you are in the market for a mortgage.
Without your permission, these bureaus are using the initial inquiry as a trigger, and are turning around and selling your detailed information to companies who are in direct competition with the mortgage company you chose to work with. These competitors pay for this privileged information and are willing to do whatever it takes to recoup that cost. Too often this includes underhanded and misleading tactics.
It is not uncommon for a consumer to be contacted by a new mortgage company claiming to have been referred to them by the consumer's original broker. They may also employ "bait and switch" tactics to lure a customer in with an enticing offer which they may not really qualify for, and then switch them to another, often more costly product without notification.
The trigger lead trend has lessened somewhat in recent months as the mortgage sector has cooled. But it would be wrong to think that it's no longer a threat to consumer privacy. As loan requirements have become stricter, the call for viable mortgage leads has reached a crescendo. And that means homeowners with good credit scores are very likely to find their information being sold in the form of a trigger lead.
A few states, like Minnesota, have introduced strict legislation prohibiting credit bureaus from selling trigger leads. But most states are acting very slowly on the issue for a variety of reasons, and Federal action seems unlikely. The Federal Trade Commission claimed in March 2007 it lacks the legal authority to tackle unwanted trigger lead solicitations. So it is vital consumers empower themselves to combat this trend.
Protecting Yourself
There are things you can do to prevent yourself becoming just another trigger lead. Under Federal law, the consumer credit reporting industry is required to provide a way for consumers to "opt out" or remove their name from these lists. You can call (888) 567-8688 or go online to www.optoutprescreen.com and opt out for 5-years or for life. If you choose the lifetime option, you will be required to complete and sign a form. They don't make it easy to opt out for life for obvious reasons, but it may be worth it to you.
In addition to protecting yourself from these mortgage shenanigans, opting out with the credit agencies will also protect you from pre-approved credit offers arriving by mail. These direct mail credit offers are a major annoyance for many homeowners and one of the main sources of identity theft in the US today! And don't forget the National Do Not Call List, which can help protect you from unsolicited telephone inquiries.
Shopping Around
Many consumers like the idea of "shopping around" for the best loan. And it's a good idea to make sure you're getting the best deal available. But such a strategy should be done on your own terms, and not at the whim of companies who disclose private information for their own profit.
If you're looking to compare multiple loan options that are tailored to your unique needs and want to be sure you're getting the best rate, companies like America's Lending Partners offer free consultation with in-house mortgage experts who, with your approval, will seek out and negotiate with lenders on your behalf. Unlike checking around with individual lenders who will each check your credit separately, such services can pull your credit report one time, shop around for you, and provide you with the comparisons you want without the need for numerous damaging inquires.
And when you start working with a broker or lender make sure you note down your contact's name and phone number, along with the name of their company. If someone suspicious calls up claiming to work for that company, or to have been referred to you by that company, call your contact back and double check it with them. Also, beware of new mortgage companies contacting you out of the blue and making you offers which seem too good to be true: often they are! As a rule of thumb, only work with the companies you contacted.
Conclusion
Whether you are looking to purchase a new home or refinance your existing home, make sure you protect your privacy. Before you begin the mortgage process, prepare by opting out of unsolicited offers, and arm yourself with the knowledge that you don't have to become another trigger lead. Even in a deflated mortgage market, you have significant control over who you work with to achieve your new mortgage.
Wednesday, December 30, 2009
Principles On How To Find A Good Credit Card
There are different credit cards that will surely put you in deep trouble if you don't know how to properly use them. It should specifically give a thorough financial sense to you. This matter will be easier to conquer if you will learn the important factors helpful when finding the credit card which suits your needs the best.
-Obtain a credit card having the lowest rates on interests as much as possible. Make sure that you have the capability to pay for the credit card expenses at a particular occasion where you are obliged to pay for the charges. Interest rates will not affect you significantly if you are planning to pay all the charges upon acquiring it in that same month. It is true that 0% APR does not exist because credit card companies would not make money out of that. Great deals on the percentage rates of APR could be found through different ways.
-Choose a credit card that allows a balance transfer wherein you are able to transfer the other balances under the initial APR lowest interest rates. Although these offers are only limited, in the end you will find that it will procure a lot of savings.
-Be always prompt as a customer. Pay the bill on the designated time and keep fair low balances so that you could request for a 0% APR even over a limited period of time. Most companies will find it a good deal because they don't want to lose their business and their good clients as well.
-Search for different companies offering 0% APR in the internet. Make comparisons when shopping. Some companies offer a zero percent APR to their clients within a year upon acquiring the credit card.
-Always be aware of the terms and condition regarding 0% APR. Know what periods are exactly covered because it might shock you to find out that you already have overhead charges. Make an assessment regarding the future interest rates after the trial periods. It could be higher than what you expected and soon you will regret that it is much better if you get the credit card having no trial periods or whatever 0% APR offers. Read carefully the fine prints of the agreement.
-Most of the credit cards that are available today are featuring different reward programs. Make enough time for researching so that you will get the best reward program according to how you are going to use it.
It is either in the form of points or cash back. The cash back reward program enables you to get a particular percentage from all the qualified purchase back, which is usually credited to your account.
The point reward program enables you to obtain points with every purchase you make using the credit card. Then a product could be redeemed using those points from a particular store, or sometimes to several designated redemption stores, or others could even have airline tickets. However make sure that the redemption will benefit you according to your needs.
-The credit card should possess a credit limit that is enough to satisfy your needs. The factors that should be considered include financing fees, annual fees, introductory offers, credit requirements, availability of online banking, and others. A lot of websites are great help when doing a research.
You will never go astray if you follow these guiding principles on finding the best credit card. Make a wise decision today.
-Obtain a credit card having the lowest rates on interests as much as possible. Make sure that you have the capability to pay for the credit card expenses at a particular occasion where you are obliged to pay for the charges. Interest rates will not affect you significantly if you are planning to pay all the charges upon acquiring it in that same month. It is true that 0% APR does not exist because credit card companies would not make money out of that. Great deals on the percentage rates of APR could be found through different ways.
-Choose a credit card that allows a balance transfer wherein you are able to transfer the other balances under the initial APR lowest interest rates. Although these offers are only limited, in the end you will find that it will procure a lot of savings.
-Be always prompt as a customer. Pay the bill on the designated time and keep fair low balances so that you could request for a 0% APR even over a limited period of time. Most companies will find it a good deal because they don't want to lose their business and their good clients as well.
-Search for different companies offering 0% APR in the internet. Make comparisons when shopping. Some companies offer a zero percent APR to their clients within a year upon acquiring the credit card.
-Always be aware of the terms and condition regarding 0% APR. Know what periods are exactly covered because it might shock you to find out that you already have overhead charges. Make an assessment regarding the future interest rates after the trial periods. It could be higher than what you expected and soon you will regret that it is much better if you get the credit card having no trial periods or whatever 0% APR offers. Read carefully the fine prints of the agreement.
-Most of the credit cards that are available today are featuring different reward programs. Make enough time for researching so that you will get the best reward program according to how you are going to use it.
It is either in the form of points or cash back. The cash back reward program enables you to get a particular percentage from all the qualified purchase back, which is usually credited to your account.
The point reward program enables you to obtain points with every purchase you make using the credit card. Then a product could be redeemed using those points from a particular store, or sometimes to several designated redemption stores, or others could even have airline tickets. However make sure that the redemption will benefit you according to your needs.
-The credit card should possess a credit limit that is enough to satisfy your needs. The factors that should be considered include financing fees, annual fees, introductory offers, credit requirements, availability of online banking, and others. A lot of websites are great help when doing a research.
You will never go astray if you follow these guiding principles on finding the best credit card. Make a wise decision today.
Price And Time Trading
One way of trading that is often overlooked by many traders, is trading price and time. This method of trading forecasts potential turning points in the markets. Two types of trading methods related to price and time are Fibonacci and the Gann Square of Nine.
Both these methods will allow you to find potential reversal points by both the price of the market and the date.
For Fibonacci, we take the previous high and low that stands out, as well as their respective dates. We then calculate the potential turning points by using Fibonacci ratios like .382, .50 and .618. Let’s suppose we are looking at a market that had a low of 300 and a high of 400. The low was made on January 1st and the high was made on June 30th. We take the difference in the prices and the dates and multiply them by the ratios mentioned.
For the price, we subtract 400 – 300 = 100. We then multiply 100 by the ratios and subtract them from the second number which is 400.
So 100 * .50 = 50. 400 – 50 = 350. The .50 ratio gives us a reversal point of 350. Do the same for the .382 and .618 ratios.
100 * .382 = 38.20. 400 – 38.20 = 361.80.
100 * .618 = 61.80. 400- 61.80 = 338.20.
We now have 3 potential turning points in the market:
Price1: 361.80
Price2: 350.00
Price3: 338.20
For the time, we have applied the same calculations of the difference of the 2 dates and we get 3 dates where we have a potential reversal:
Date1: 9/6/2006
Date2: 9/28/2006
Date3: 10/19/2006
We are watching to see if Price and Time “Meet”. When the potential price hits at one of the potential dates, this means that Price and Time have met.
Gann is not as easy to do by hand. You will need a program or the Gann square of nine in printed format to be able to see what the forecasted price reversals are. Also for Gann , only one price and date are entered. It is based on the squares in the pyramid and their mathematical alignment to each other.
Both these methods will allow you to find potential reversal points by both the price of the market and the date.
For Fibonacci, we take the previous high and low that stands out, as well as their respective dates. We then calculate the potential turning points by using Fibonacci ratios like .382, .50 and .618. Let’s suppose we are looking at a market that had a low of 300 and a high of 400. The low was made on January 1st and the high was made on June 30th. We take the difference in the prices and the dates and multiply them by the ratios mentioned.
For the price, we subtract 400 – 300 = 100. We then multiply 100 by the ratios and subtract them from the second number which is 400.
So 100 * .50 = 50. 400 – 50 = 350. The .50 ratio gives us a reversal point of 350. Do the same for the .382 and .618 ratios.
100 * .382 = 38.20. 400 – 38.20 = 361.80.
100 * .618 = 61.80. 400- 61.80 = 338.20.
We now have 3 potential turning points in the market:
Price1: 361.80
Price2: 350.00
Price3: 338.20
For the time, we have applied the same calculations of the difference of the 2 dates and we get 3 dates where we have a potential reversal:
Date1: 9/6/2006
Date2: 9/28/2006
Date3: 10/19/2006
We are watching to see if Price and Time “Meet”. When the potential price hits at one of the potential dates, this means that Price and Time have met.
Gann is not as easy to do by hand. You will need a program or the Gann square of nine in printed format to be able to see what the forecasted price reversals are. Also for Gann , only one price and date are entered. It is based on the squares in the pyramid and their mathematical alignment to each other.
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