I started trading the stock market from my desktop computer in January 2001. And what I first thought would be relatively “easy money”, I soon found out was a long and costly educational process that continues to this day. And in that educational process, one of the first things I learned about was this thing called the “Uptick Rule“. The rule prevented you from short selling a stock unless the price of that stock was moving higher. The rule was put into effect in 1938 after concentrated short selling was deemed to be a contributing factor in the market crash of 1937. The rule has also been credited by many, as being one of the most important technical rules, that helped bring us out of the great depression. I argued in a previous article that the repeal of the Uptick Rule was the cause of the market crash in 2008 – and much of the economic woes that we face today. But how did this rule actually work to protect the integrity of the market? And what are the underlying mechanics at work here?

       The short answere to the first question is “It buys time”. To understand what I mean by that is a little more complicated – so I’ll expand on it. It buys time for the market maker or hedge fund manager who is trying to defend the price of a particular stock, by allowing other market players absorb any aggressive short selling. Remember, when the Uptick Rule was in effect, short sellers could still pin the buyers down by puting their sell orders on the “ask“. But they weren’t allowed to drive a stake through the heart, so to speak. For example, let’s say you have a company with the stock symbol XYZ. And a hedge fund manager is defending the stock by buying any and all of the sellers at $8.50. So that buyer maintains a buy order on the “bid” at $8.50 and is ready to back that up with millions of dollars. Remember, this would be on a “downtick“, so short sellers would not be able to sell it at $8.50 in this situation. The best that they could do here is put their sell orders in at $8.51. So let’s say they do that, and are ready to absord all of the buying at $8.51 with a few million dollars themselves. In this hypothetical scenario, the actual owners of XYZ’s stock would not be panicked into selling their stock – because they’d see that some big market maker was holding the line at $8.50. And unless there was some bad company news or earnings report …, there would be no reason to worry. Not only that, other buyers would start to move in and take out the short sellers at $8.51. So it cost the defending market maker alot less to hold the price of the stock. In today’s market, without the Uptick Rule, the short sellers can use unlimited funds to pound that stock at $8.50 – and break any market maker trying to defend it. It’s important to understand that both the money, and the motivation for selling are separate and different between sellers and short sellers. Think of short sellers as someone making a side bet against the stock you just bought. That, in and of itself, is ok. But it’s another thing altogether, when they’re allowed to use those bets to artificially drive the price of the stock down. And of course, make tons of money in the process.

       I remember hearing Suze Orman say in an interview, that over a trillion dollars “vanished” from peoples mutual funds and 401k’s when the stock market crashed in 2008. But in reality, money can only change hands in the stock market – it doesn’t vanish. If over a trillion dollars was lost from mutual funds and 401k’s when the market crashed, then it was the short sellers that made over a trillion dollars on those tranactions. So it’s easy to see why there’s big money interest out there willing to defend the removal of the Uptick Rule. There’s also traders who like it because of the huge swings that occur regularly, ever since the rule was eliminated. But for the sake of the world economy, it just isn’t worth it. I remember back in the day, when the market would sell off in Japan or overseas somewhere, the U.S. market would act as a stablizing force to those markets in the days that followed. But today, with the slightest blip in the markets overseas – the short sellers are out in force to pound the market down here. Hardly the stablizing force that it used to be.

       So who’s really to blame for the mess that were in? I lay that blame squarely on the SEC members that removed the rule on July 6, 2007. I remember hearing in the years leading up to that, the SEC was being lobbied heavily by some hedge fund managers to eliminate the rule. I blame those folks, too. If there was ever a conspiracy to be found, it might be here. Wouldn’t you be curious to know whether those same hedge fund managers that lobbied the SEC, made fortunes by heavily shorting the market before the collapse? Or even worse, used that short selling to help cause the market collapse in the first place. But I also blame the SEC today. The SEC could reinstate the Uptick Rule tomorrow, but for some unknown reason refuses to do so. These SEC members who refuse to reinstate the Uptick Rule, for whatever reason, should be fired for incompetence. Because they don’t understand basic market physics, and despite overwhelming technical evidence that shows the negative effect to the market since the rule was eliminated – they refuse to see the obvious. Does anybody really think the elimination of the Uptick Rule would serve to benifit anybody other than short sellers? Obviously, it made short selling easier – and that makes defending a stock’s price much harder. It’s rediculas when you think about it. I’ve heard so many phony-baloney reasons why the Uptick Rule was no longer necessary. I’ve heard people claim that high frequency and algorithmic trading makes the Uptick Rule obsolete or useless. Or another one I’ve heard is “because there’s so many people trading on home computers, it was no longer necessary”. In reality, the opposite is true. High frequency and algorithmic trading makes the Uptick Rule even more necessary. Without the Uptick Rule, dangerous algorithms that could crash the market could easily be devised – if they haven’t been already.

       But how does all this relate to things like the high unemployment rate, or the floundering housing market? Believe it or not, it actually does. It’s easy to see how events in the world or in the economy can affect the stock market, but a volatile market also reflects back – and causes uncertainty that affects the economy. Unemployment is not going to improve very much until stability is brought back into the stock market. It’s also important to note that the Dow Jones was trading between 13,500 – 14,000 before the market crash in 2008. So all of those business, that hire so many people – were worth more money, and able to hire more people. And of course the housing market is also directly affected by the unemployment rate. Bring stability back into the stock market, and you’ll bring stability back to the whole economy.

       On a final note, I’ve heard a lot of talk about “some new version” of the Uptick Rule. These are the same folks pushing this, that were behind its removal in the first place. And the reason for this is to render it useless. One version that’s actually being concidered only kicks in after the stock has dropped 10% on the day. That’s kinda like going to the store to buy some concrete to fix a crack in a dam, after the dam broke and all of the water’s already drained out! Absolutely useless. It’s important that any “modified” Uptick Rule does not have “triggers”. Stability will only come when the “buyers” are allowed to defend their ground, without being assulted by short sellers – at any time. Not after they’ve already lost a big chunk of their money.

- DCTrader –              © 2011 R.E.S. Enterprises

Post your comments on the Forum.

Technorati tags: stock market reform, economic news, short selling, uptick rule, stock market crash 2008, economic recession.

Welcome to the 7th edition of the Carnival of Traders and Investors.

Economic News

Ryan @ CML presents Consumer Price Index vs. Core Inflation posted at Cash Money Life, saying, “Core inflation is rising at a faster rate than the Consumer Price Index, which ends up hurting the average consumer. Find out what you can do to mitigate the risk of inflation.”

LaTisha D Styles presents How to Use Economic Calendars to Trade posted at Financial Success for Young Adults, saying, “How to use economic calendars to your advantage when trading.”

Financial Planning

Pinyo presents How Much Money Do I Need to Retire? posted at Moolanomy, saying, “This article takes you through three easy steps to help you calculate how much you need to save for retirement.”

Bankman presents Risks Associated with Annuity Products posted at High Yield Savings Accounts, saying, “Annuities are a god way to prepare for your financial future, but they aren’t without risks.”

Mike Piper presents Taking Social Security Early and Investing the Money posted at The Oblivious Investor, saying, “Is it a good idea to delay taking Social Security? Or should you claim benefits as early as possible and invest the money?”

Outlaw presents The Pitfalls of Excess Contributions to Your Retirement Accounts posted at Outlaw Finance, saying, “What happens when you over-contribute to your retirement accounts.”

Mike Ross presents The Lottery: An “Investment” for Fools (with Bonus Lottery Simulator!) posted at Get Rich Slowly, saying, “Playing the lottery as a strategy to gain money is a fool’s game.”

ComplexSearch presents What Is A Good Credit Score To Buy A House posted at Deals & Tips, saying, “Due to the near-collapse of the housing market just a short time ago, most lenders are looking not only for an excellent credit score, but they are also requiring a commitment of larger down payments. Learn about the closely related credit scores and mortgage interest rates.”

Kyle Berks presents Qualifying for Personal Loans after Bankruptcy Discharge posted at Integrated Loans, saying, “It is not easy to pick up all the pieces after a bankruptcy as well as qualifying for a personal loan, but despite the fact that it may not be easy, it is definitely not out of the question.”

Wez Brown presents How Your Tax Code Deals With Other Income posted at Tax Codes, saying, “This article explains how your tax code will be adjusted based on any other income you may earn.”

Long Term Investing

Al Peters presents Setting Up A Limited Company posted at Setting Up, saying, “This post explains how to setup and register a Limited Company”

The Military Wallet presents What Happens If You Contribute Too Much to an IRA? posted at The Military Wallet, saying, “Don’t panic if you contribute too much to an IRA – you may still have time to correct it without having to pay penalties or fees. But if you let it go too long, you may be in for a surprise!”

Alexander presents What Are Dividend Aristocrats? posted at Dividend Stocks, saying, “If you look over the dividend aristocrats list, you might discover that it’s kind of a boring list. However, you will also notice that some of these companies have been paying out dividends for decades.”

Hussein Sumar presents S&P 500 Dividend Aristocrats of 2011 posted at Best Dividend Stocks, saying, “The S&P 500 Dividend Aristocrats Index is the most honorable list of dividend paying stocks as measured by the S&P 500 Index that have consistently increased their dividends for the past 25 years, without missing a single dividend payment.”

Billy Hart presents Investing Basics – What Are Stocks posted at inMessment.com, saying, “This post gives a high-level view of what Stock are. Understanding the different ways to invest goes a long way to build your confidence when investing in the stock market. There are nearly as many different options as there are people ready to give their opinion of which one is best.”

Money Management

Pinyo presents What Happens If You Contribute Too Much To IRA Or 401k? posted at Moolanomy, saying, “Do you know what to do if you contributed to much to your IRA, Roth IRA, or 401k? If not, you have to read this and find out.”

Stock Market

Pinyo presents What Happens If Your Broker Goes Out of Business? posted at Moolanomy, saying, “Ever wonder what happens if your stock broker fails? Well, here’s the answer.”

Dividend Growth Investor presents Philip Morris International (PM) Dividend Stock Analysis posted at Dividend Growth Investor, saying, “Philip Morris International Inc. (PM), through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. The company was spun off from Altria Group (MO) in 2008, in an effort to separate the international operations of the tobacco conglomerate from potential harmful litigation in the US.”

Stock Trading

Sun presents Invest in Food ETFs as Food Prices Reach Record High posted at The Sun’s Financial Diary.

david conrad presents Secret Trading Method: Can It Provide The Keys To The Kingdom? posted at Trading Systems and Methods.

david conrad presents Common Stock Market Mistakes posted at Trading Systems and Methods.

david conrad presents Buying Stocks On Margin: What Is It All About? posted at Trading Systems and Methods.

Freddy presents Today’s Hot Stock: Dover Corp (DOV) 19-Apr-2011 posted at Protege Analytics, saying, “Hello trader here is our hot stock for today.”

Swing Trading

MM presents black swans & white crows: Swing Trading and Short-Term Trading posted at black swans & white crows.

Trading Forex

Kenneth Sutherland presents How to Make Tons of Money with Fx Trade Software posted at Robots For Forex, saying, “For more great info like this, be sure to head over to http://www.robotsforforex.org.
Kenneth”

Andrei Moraru presents Different Stop-Loss Orders posted at Forex Blog, saying, “The article explains the different methods of placing a stop-loss order in Forex trading and also offers a poll to participate and decide which method is the most popular one among the Forex traders.”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the 6th edition of the Carnival of Traders and Investors.

Financial Planning

Dividend Growth Investor presents Dividend Growth Investing Gets No Respect posted at Dividend Growth Investor, saying, “Dividend Growth investing is one of the most misunderstood investment strategies out there. Yet various studies have proven that quality dividend growth stocks tend to outperform the broad market indices over time.”

Glen Craig presents What is Income Investing? posted at Free From Broke, saying, “Have you ever wondered what is meant by “income investing?” Find out what it is and how it can work for you.”

Susan Howe presents Why won’t Californians buy earthquake insurance? posted at Insure, saying, “If you think Californians’ reluctance to buy earthquake insurance is just about high deductibles and premiums, think again.”

Michael Pruser presents Everything You Want To Know About Annuities posted at The Dough Roller, saying, “An annuity comes in various forms, all designed to help you save for retirement.”

Michael presents How Much Money Do You Need to Feel Wealthy? posted at Consumerism Commentary, saying, “How wealthy do you need to be in order to be, well, wealthy? It’s more than $5 million apparently!”

Pinyo presents Automating Your Way To Wealth posted at Moolanomy, saying, “To build wealth you need not start out with a ton of money; however, you do need to start somewhere. Here’s how you can do it automatically.”

Long Term Investing

Writers Coin presents Why Management Matters (and Warren Buffett is so Awesome) posted at The Writer’s Coin, saying, “Finding a new stock to invest in isn’t always easy. If all CEOs had to write their own letter to shareholders (like Warren Buffett does), it sure would make things easier for us.”

Mike Piper presents Picking Mutual Funds: Don’t Just Look at the Winners posted at The Oblivious Investor, saying, “When researching mutual funds, many investors only look for characteristics common among winning funds. But that’s only half the picture.”

BST presents 7 Investments That Pay You Each Month posted at Best Stocks, saying, “Monthly dividend-paying stocks are different than quarterly-paying stocks in that they pay out dividends every month instead of every quarter.”

Money Management

Pinyo presents Is Using a Debt Snowball a Good Idea? posted at Moolanomy, saying, “Which is the right strategy for you — paying off highest interest debt first vs. lowest balance debt first?”

Warren Stephen presents Money – How to Manage Your Finances posted at FastPaydayCashAdvanceLoans.com, saying, “Learn about 401K plans and cash advance loans.”

Glen Craig presents Betterment.com: Investing in Stocks and Bonds Made Easy – Review posted at Free From Broke, saying, “For those who don’t start investing because the many options are too confusing, you may have hope – Betterment.”

Stock Market

Mark presents Why U.S. Stocks Will Rise in 2011 posted at Stock Pursuit, saying, “The real dynamics behind the recent rise in asset prices and the stock market.”

The Investor presents How subscription shares multiply your gains posted at Monevator.com, saying, “Subscription shares enable you to gear up and multiply your gains without taking on debt. The big risk is that instead of multiplying your gains, you multiply your losses.”

Darwin presents Price to Earnings Ratios Show US Headed Off a Cliff: MBA Monday posted at Darwin’s Money, saying, “See how Price to Earnings Ratios (P/E) have predicted multi-year market movements for over a century and why we’re headed for negative equities returns for over a decade if history repeats itself. No, this time isn’t different.”

Stock Trading

Sun presents Invest in Food ETFs as Food Prices Reach Record High posted at The Sun’s Financial Diary, saying, “I mentioned that as food and oil prices keep going up, such products as the Commodities CD may be a way to invest commodities. Even though oil price has eased a little bit after breaking the $100/barrel level the first time since 2008, food prices remain at record high.”

FMF presents The “Experts” Fallacy posted at Free Money Finance, saying, “Beware of listening to “experts” when determining your investment strategy and plans.”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the 5th edition of the Carnival of Traders and Investors.

Financial Planning

Craig presents What Are Dividends? posted at Free From Broke, saying, “See why companies issue dividends and why you should care.”

Hemant Beniwal presents Financial Planning Process posted at financialplanninglab.com, saying, “Make sure your financial planner follows this 6 step financial planning process.”

Craig presents Best Retirement Plans For The Self Employed or Small Business Owner posted at Free From Broke, saying, “The small business owner has a number of options for their retirement. See a rundown of each of them along with their benefits.”

Long Term Investing

Steve presents Four Top ETF Funds for the past 30 Days posted at FastSwings.com, saying, “ETFs that have done well over the past 30 days include ERX and DIG.”

Hussein Sumar presents How to Analyze Mutual Fund Investment Risks posted at Best Mutual Funds, saying, “Before you head out to purchase mutual funds for your investment portfolio, you must analyze what your investment objectives are, the levels of risk you can take, your age, the # of years to your retirement, etc. Apart from these factors, you must also research the risks that an individual mutual fund contains if you put your money in to it.”

Mike Piper presents Investing Life Insurance Proceeds posted at The Oblivious Investor, saying, “How would you invest a portfolio if you were expecting to need to withdraw from it for potentially 50 years or more?”

Hussein Sumar presents How to Examine a Mutual Fund’s Portfolio Turnover posted at Best Mutual Funds, saying, “Portfolio turnover is a great way to measure the investment quality of a mutual fund because a higher turnover means increased costs of trading, which is paid for by investors’ money and not the fund manager’s salary.”

Alexander presents Do You Know Your Return on Investment? posted at Dividend Stocks, saying, “Any time you invest in something, you should figure our your return on investment (ROI).”

FIRE Getters presents How to Turn $5000 into $22 million? Lessons From One Successful Individual Investor posted at FIRE Finance, saying, “We can learn some basic tenets of investing from Anne Scheiber, who was an auditor at IRS and went on to become a multi-millionaire. Scheiber had a law degree, but because she was a woman, she believed that she had been thwarted in her desire to move up to a better job position at the IRS. She decided to get back by saving until she had a fortune and never give a penny of her profits to the IRS …”

Mitch Archuleta presents A Roth IRA Isn’t a One Year Commitment posted at RothIRA.com’s Retirement Planning Blog, saying, “I have good news and bad news. Retiring is not an instantaneous event that happens when you snap your fingers together or decide to get serious about it. Saving and preparing your finances for retirement should be a long, sometimes arduous, process…”

FMF presents Not All Index Funds Are the Same posted at Free Money Finance, saying, “When investing in stock index funds, it’s vital to remember that all funds, and their associated expenses, are not the same.”

Stock Market

Patty Pedersen presents Best Oil ETFs: Looking Beyond Energy Select SPDR XLE posted at AlphaProfit MoneyMatters – Investing Blog, saying, “Energy Select Sector SPDR ETF wins the contest among oil ETFs when it comes to popularity. This ETF however wasn’t the best performing ETF in this category in 2010. This article analyzes different energy ETFs and explains why energy service and natural gas ETFs have the potential to be top performers in 2011.”

One Family presents Qiagen NV (QGEN) – Stock Review posted at One Family’s Blog, saying, “An analysis of Qiagen NV (QGEN) Stock.” (Editors note: If there’s a problem loading this page in Internet Explorer, you must delete your “Temporary Internet files”. Go to “Tools” –> “Internet Options” –> under “Browsing history” click Delete –> In the “Delete Browsing History” page that comes up, only the “Temporary Internet files” box should be checked. –> Press Delete again.)

Money Management

Hussein Sumar presents Risk Adjusted Return & its Applicability to Mutual Funds Investing posted at Best Mutual Funds, saying, “Risk Adjusted Return aims to measure the return on investment (ROI) of a particular asset compared to its peer assets with similar risk profiles. Risk adjusted return helps to analyze whether an investor is getting the highest possible return for the least possible risk on a particular investment.”

Economic News

Ella Moss presents From Middle East To Middle Of America posted at Zodiac Times, saying, “Wisconsin governor, by taking away the power of unions to bargain collectively, has put that state on Tunisia path.”

Traders Stories

Carlos Sera presents A Tale of Might posted at Financial Tales, saying, “Today’s release is called A Tale of Might. It is part of a duet that should be read along with A Sweet Tale. I hope you enjoy it and if you have similar stories to these, please send them on to me so that I can pass them on at a later date.”

That concludes this edition. Submit your blog article to the next edition of the Carnival of Traders and Investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the 4th edition of the Carnival of Traders and Investors.

Stock Trading

Arjun Rudra presents On A Quest To Turn $3000 Into $100000 With Trader Mark Li, DMS posted at Investing Thesis, saying, “An interview with equity and currency trader Mark Li who is attempting to turn Turn $3000 Into $100000.”

Patty Pedersen presents Best Oil ETFs: Looking Beyond Energy Select SPDR XLE posted at AlphaProfit MoneyMatters – Investing Blog, saying, “Energy Select Sector SPDR ETF wins the contest among oil ETFs when it comes to popularity. This ETF however wasn’t the best performing ETF in this category in 2010. This article analyzes different energy ETFs and explains why energy service and natural gas ETFs have the potential to be top performers in 2011.”

stocknucleus presents Stock Nucleus: Neoprobe’s Bright Future posted at Stock Nucleus, saying, “Many near term catalysts to drive up the stock price. Lymphoseek is 30x’s more effective and eliminates the safety hazards and pain. Submitting NDA by April, waiting on listing announcement.”

Robert presents Do Not Buy Gold! posted at The College Investor, saying, “A few thoughts on why to stay away from this metal!”

Long Term Investing

MoneyNing presents What Would You Do with a Million Dollars? posted at Money Ning, saying, “I know what I would do with a million dollars. How about you?”

Hemant Beniwal presents Bond Fund – Complete Guide posted at mutualfundlab.com, saying, “Our First Article on this blog.”

Trading Education

Nesher presents Platinum Trading Basics posted at Internet Stock Trading for Beginners, saying, “Platinum traders may not have the organizations or associations on which they can rely for information, but exchanges and brokerage firms have resource materials on platinum and palladium.”

Economic News

debt kid presents Lenders Write Off Less Credit Card Debt Again in December posted at DebtKid, saying, “Charge offs – credit card debt so behind in payments that lenders deem it uncollectable – declined once again in December, to 8.03 percent, according to the latest monthly statistics from Moody’s Investors Service. ”

Zarathustra W. presents The World in 2030: Super-cycle or Grey Age? posted at Also sprach Analyst, saying, “The prospect of a grey age seems more likely than a super-cycle. As such, brace for a period of sub-average return”

Money Management

Michael presents Opening an Individual 401(k) at Vanguard posted at Consumerism Commentary, saying, “Vanguard has excellent investing options for all types of investors, one of which is their individual 401k.”

David de Souza presents Record numbers of people submit tax return online posted at Tax Return Blog, saying, “Guide to submitting a tax return online and avoiding the penalty for filing your tax return late”

Stock Market

VolumeWatcher presents Quick Press – 01/21/2011 – Sucker rebound fades as NasDaq takes another round of beating..!- From the Market Desk. posted at VolumeWatchers.com, saying, “Stock Market Analysis, Growth Stocks, CAN SLIM”

Aussie Investor presents 2011 Share Floats – What Will 2011 Hold For Investors In IPOs? posted at Australian Investing, saying, “With the year now well underway, it’s time to turn our attention to what the IPO market might throw our way in 2011. In terms of the number of new issues, last year was an improvement on 2009. Will 2011 be a better year again for investors in Australian share floats?”

Financial Planning

Pinyo presents 2010 Tax Tables: IRS Federal Income Tax Rates and Tax Brackets posted at Moolanomy, saying, “The tax season is upon us. To help you better understand how federal tax works, this article provides information about tax rates and brackets, as well as shows you how to calculate your tax liability.”

MoneyThinking presents Making Investment Goals posted at Money Thinking, saying, “Whether it’s the fact that you want to get a list of things done by the end of the day or that you want to have a certain amount of money saved by the time you retire, it’s good to know what you want. It’s the same for investing…”

Mike Piper presents Your Personal Rate of Inflation posted at The Oblivious Investor, saying, “The Consumer Price Index may not do a very good job of tracking the rate at which *your* spending will change throughout retirement.”

Warren Stephen presents Does a 401K Distribution Count as Income for a Payday Loan? posted at FastPaydayCashAdvanceLoans.com – Payday Cash Advance Resources, saying, “The main thing that payday loan lenders care about is your ability to repay the money they loan to you. You can borrow as much as $1500 from a lender but they will not give you a dime if they do not think you will be able to pay it back.”

CreditCardGuru presents Can You Pay Taxes With Credit Card? posted at credit card forum [the blog], saying, “Have estimated taxes you need to pay for your stock sales? If so, here’s why you should think twice before you use a credit card to pay them!”

Ann Douglas presents An Explanation of Closing Costs Associated with Buying a Home posted at DoorFly.com, saying, “From year to year the paperwork at a house closing changes. First, I did not know I had a choice in what Title Company would do the closing. However I am wiser now…”

CreditShout Kevin presents Develop a Debt Payoff Plan With Discover’s Paydown Planner posted at CreditShout, saying, “We all know it’s a bad financial move to carry credit-card debt from one month to the next. But we also know that paying down that debt can be a struggle… The key, though, is to commit to chipping away at that debt however you can.”

Trading Forex

DENIS presents TREND STRATEGY posted at The Foreign Exchange, saying, “I have described ABC TREND TRADING STRATEGY with details. This trading strategy shows how to find MOF spot.
MOF spot is money on the floor. This is spot of minimal risk and great reword.”

FMF presents Free Money Finance: Top 10 Mistakes of Forex Traders posted at Free Money Finance, saying, “Mistakes to avoid if you want to be a successful Forex trader.”

DENIS presents EXPONENTIAL MOVING AVERAGE posted at The Foreign Exchange, saying, “I have described how to use exponential moving averages to determine overbought and oversold areas. Beside that I have demonstrated many more technical analysis like: ABC trend, Thomas Demark, Support & Resistance lines, MA as support, etc”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the 3rd edition of the Carnival of Traders and Investors.

Stock Market

Lee presents Oil Stocks Exposed to Kurdistan posted at Earnings View, saying, “I thought it would be useful to look at some of the Western oil companies that are focused on Kurdistan.”

MikeAhi presents Cramer’s 10 Best Dow Stocks for 2011. posted at After Hours Investing, saying, “Jim Cramer’s picks for the 10 best stocks of 2011, and my take on his picks.”

Mr. Cents presents Investing in Stocks During an Economic Crisis posted at Personal Cents, saying, “When times are tough, the tough…buy stocks? Yes! In this down-turned economy, it’s a great idea to make a few wise investments.”

Patty Pedersen presents Fidelity Mutual Funds: Best, Worst, and 2011 Forecast posted at AlphaProfit MoneyMatters – Investing Blog, saying, “Fidelity Select Automotive (FSAVX) appears set to take honors for being the top performing Fidelity fund in 2010. This article provides insights on Fidelity funds that are likely to do well in 2011.”

Mr. Cents presents Consumer Confidence – What Gives? posted at Personal Cents, saying, “The September consumer confidence reports state that confidence is down and consumers aren’t too keen on the market. However, major retailer stocks tell a different story – CarMax and Office Depot lead the way with increases in stock value of over 30% each, and JCPenny, Nordstrom’s, and Best Buy have all seen increases of over 25%. So consumers say they feel one way but are acting another way. What does this mean?”

Sun presents 2010 Chinese IPO Stock Performance posted at The Sun’s Financial Diary, saying, “As the economy started to improve in 2010, though very slowly, the IPO market also rebounded nicely. Actually, 2010 turned out to be a pretty good year for US IPOs…”

Sean Hazlett presents Think You Can Make Money Investing When Your Party is in Power? Guess Again posted at Reflections of a Rational Republican, saying, “Analysis of market performance under different political administrations and control of Congress.”

Long Term Investing

Darwin presents Finally, The Facebook and Twitter Fund is Here – Secondary Market CEF posted at ETF Base, saying, “Finally, regular retail investors can invest in Facebook, Twitter and other private tech companies that have historically only been open to “accredited investors” (meaning millionaires). It’s all possible due to this new closed end fund (CEF).”

Silicon Valley Blogger presents ETF Investing: Why Exchange Traded Funds Are Part of My Portfolio posted at The Digerati Life, saying, “A closer look at investing with ETFs.”

The Amateur Financier presents Book Review: Investing for Dummies posted at The Amateur Financier, saying, “A guide to investing, covering a variety of investments including stocks, real estate and small business. Methods of evaluating these investments are provided throughout the book, giving investors plenty of advice on choosing the right ones.”

Lee presents Generating Alpha by Using Behavioral Finance Approach: Biotech and Oil posted at Markets and Culture, saying, “How to use a behavioral finance approach in order to structure an investment strategy.”

FIRE Getters presents Tax FREE Money Market Mutual Funds! posted at FIRE Finance, saying, “Most astute investors are aware of municipal mutual funds also known as MUNIs. These funds invest in term debts issued by various state and local governments. In general dividends and gains from muni funds are exempt from federal as well as state taxes…”

Mike Piper presents Does This Count as Market Timing? posted at The Oblivious Investor, saying, “People often ask whether a strategy “counts as market timing.” The name doesn’t matter though. All that matters is whether it’s a good idea.”

Aussie Investor presents Highest Dividend Paying Stocks In The ASX100 posted at Australian Investing, saying, “It might surprise you to learn that over the long term dividends make up a large part of a share portfolio’s returns. And for retirees, dividends are the life blood of their investment portfolio. While growth in the value of the portfolio is important in order to keep pace with inflation, it is the steady stream of dividends which pays the bills. So which stocks have the best yield?”

Sun presents Stocks with 5% Dividend Yield posted at The Sun’s Financial Diary, saying, “In such a low rate environment, you probably will need to look outside the traditional savings accounts for a decent yield…”

Aussie Investor presents Australian Stock Market_ Investing Blog – Buying Shares As Long Term Investments posted at Australian Investing, saying, “So you’ve managed to save a little extra money. You know that to make it grow you’ll need to consider some other investment options beyond term deposits and online savings accounts. You’ve heard that buying shares is one of the investment options you should consider – but what’s the next step? This article discusses how to get started if you want to buy shares as an investment.”

Financial Planning

Mike Piper presents 2011 Tax Brackets: What Will Change and How Should We Plan for It? posted at The Oblivious Investor, saying, “After the passing of the new tax act, what is going to change in 2011, and how should we plan for that?”

Ryan @ CML presents How to Interview a Financial Planner posted at Cash Money Life, saying, “Tips on how you can interview, screen, and hire a financial planner to help you manage your money; includes tips on doing a background check to verify credentials.”

Steve Norman presents What Everyone Should Know About Tax Codes posted at Tax Codes, saying, “Our guide explains what a tax code is and what the various letters and numbers on your tax code mean.”

Economic News

Janet presents Fed Debit Proposal Pounds Visa and MasterCard posted at Credit Cards Canada, saying, “The Fed’s proposal, released Thursday, is to cap debit interchange fees at 12 cents, which represents a 70% haircut. The news from the Fed crushed stocks of credit card giants Visa and MasterCard.”

Lee presents The Causes of Economic Bubble and the Role of Behavioural Finance in Predicting Them posted at Markets and Culture, saying, “Blog devoted to keeping investors up tp date with economic and cultural developments.”

Tony Cars presents The Big Three confirm auto industry recovery posted at Auto Monster Cars Blog, saying, “GM, Ford and Chrysler have reported strong sales increases in december, capping the auto industry’s steady recovery during 2010.”

David de Souza presents One million more people to be affected by tax mistakes posted at Tax Return Blog, saying, “Tax Mistakes – We look at the tax blunders affecting millions of UK taxpayers.”

Money Management

Jane Sanders presents Debt Elimination Mind Map posted at Debt Management, saying, “One of the most common questions we get here is, ‘I’m up to my eye balls in debt. What should I do?’. Unfortunately, this isn’t the type of question the lends itself to a yes or no response.”

David de Souza presents 3 New Year’s Tax Resolutions You Should Make posted at UK Tax Blog, saying, “Guide to three easy New Year’s Resolutions you can make in 2011 in order to pay less tax.”

Stock Trading

Demitrios Kalos presents Netflix CEO goes long posted at Sigma Swan, saying, “Netflix (NASDAQ:NFLX) CEO Reed Hastings has gone on the record to say you shouldn’t bet against his company’s stock right now.”

Steve presents Cummins Inc (CMI) Earnings February 1st posted at FastSwings, saying, “Cummins Inc looks like a strong trade going up to its next earnings announcement at the beginning of February.”

Michael presents TradeKing $50 Cash Bonus For New Accounts posted at The Dough Roller, saying, “From now until the end of the month, TradeKing is offering a $50 bonus on all new accounts.”

Options Trading

Flexo presents OptionsXpress Review and $100 Cash Bonus posted at Consumerism Commentary, saying, “OptionsXpress is offering a $100 bonus for new accounts in conjunction with the best trading tools you can find online today.”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the December 17, 2010 edition of carnival of traders and investors.

Trading Forex

Steve Smith presents Know More About Forex Trading posted at Forex Trading System Central, saying, “Trading Forex is not much different than other forms of trading with the right systems make it easier.”

BWL presents Forex Trading 101: Major Currency Pairs, Most Traded Currencies, & More posted at Christian Personal Finance, saying, “A look at some common Forex questions – which currencies are traded the most and some of the major currency pairs…”

Michael Pruser presents A Beginners Guide to ForEx Trading posted at The Dough Roller, saying, “ForEx trading is a dangerous game that should not be taken lightly. Study hard and study often before deciding on this investment strategy.”

Stock Trading

Praveen presents Two Stock Ideas: NETC and RPM posted at My Simple Trading System, saying, “Analysis of NETC and RPM”

Patty Pedersen presents Contrarian Investors: Best Stock Investment posted at AlphaProfit MoneyMatters – Investing Blog, saying, “With 2010 drawing to a close, beaten down stocks are likely to come under more pressure from investors selling these names to recognize losses for tax purposes. The article discusses opportunities in one of the most ‘unloved’ groups in the stock market today.”

Nesher presents What Is Fill or Kill Order? posted at Internet Stock Trading for Beginners.

Financial Planning

Highest CD Rates presents Choosing the Best CD for You posted at Highest CD Rates Info, saying, “Certificates of deposit can be a low risk part of any retirement portfolio.”

David de Souza presents 4 Things Everyone Should Know About Inheritance Tax posted at UK Tax Blog, saying, “Guide to inheritance tax, how it works and what tax allowances you can claim”

Long Term Investing

Ryan @ CML presents How to Calculate the Yield on Cost of a Dividend Stock posted at Cash Money Life, saying, “Tips on calculating the yield on cost of a dividend stock, an important indicator of how your dividend portfolio is performing.”

Mike Piper presents Annuity Payouts: Why Are They Higher than Bond Rates? posted at The Oblivious Investor, saying, “Want to spend other people’s money? Annuities let you do exactly that. (Sometimes.)”

Aussie presents Dividend Investing For Beginners posted at Australian Stock Market Investing Blog, saying, “A well constructed portfolio of high yielding dividend stocks is a great foundation upon which to build a strategy to achieve financial independence. It is the passive income generated by such a portfolio which ultimately provides financial freedom. Watching the steady stream of passive income which results from dividend investing is rewarding in more ways than one.”

Flexo presents The Motley Fool Now Offering Mutual Funds posted at Consumerism Commentary, saying, “One of the more popular personal finance websites today, Motley Fool, is now offering a financial product in mutual
funds!”

Mitch Archuleta presents I’m Afraid of Opening a Roth IRA posted at Roth IRA

Dan presents 6 Reasons You Need More Emerging Markets Exposure – How to Play It posted at ETF Base, saying, “6 Reasons You Need More Emerging Markets Exposure – How to Play It”

Charles Chua C K presents Are You Diversifying and Growing Your Money? posted at All About Living with Life.

FMF presents Time, Time, Time posted at Free Money Finance, saying, “If you’re looking to make the most of your investment, there’s one factor that you MUST take advantage of.”

Economic News

Darwin presents Do the Debt Doomsayers Actually WANT the US To Fail? posted at Darwin’s Money, saying, “How to make sense of the perma-bears predicting the demise of the EU, the US and the fiat currency model.”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Welcome to the first edition of the Carnival of Traders and Investors. There’s some pretty good articles in the mix this month, so be sure to check them out. Not bad at all for the first edition. The carnival is currently scheduled to run once a month, however will increase as submissions and interest grows. The next edition will be Dec 17, 2010.

Trading Stocks

Wenchypoo presents New IRS Rules for Investors posted at Wisdom From Wenchypoo’s Mental Wastebasket, saying, “As if investing isn’t tough enough already!”

MoneyThinking presents Mac Goodness: The Future of Putting Stock in Apple posted at Money Thinking, saying, “I use a PC, but I’m not a PC snob. I like Macs as well, I just don’t have the money to spend on them, and honestly, a PC fills my needs better than a Mac. If you’re a stock market junkie, have you realized that Apple is on its way to going above ExxonMobil’s largest stock market cap? I didn’t either, but there was a huge investor conference call recently that Steve Jobs, owner of Apple, was in on. Why does Jobs think this is going to happen?”

Long Term Investing

Mike McFate presents Mutual Funds or Exchange Traded Funds (ETFs)? Which is Best? posted at CompanyInvest.com, saying, “Tips in this article can save readers 100′s of thousands of dollars over their investing life.”

Passive Family Income presents High Yield ETFs – An Alternative to Dividend Paying Stocks? posted at Passive Family Income, saying, “There are many financial tools that can be used by the average investor to generate dividend income. From high yield REITs and CanRoys to blue chip companies who are members of the dividend aristocrats, the opportunities seem to be endless. Another option for income investors seeking to quickly build a diversified portfolio are high yield ETFs.”

Sun presents How to Buy ETFs posted at The Sun’s Financial Diary

HomeList presents The Temptations of the Stock Market posted at The Investor’s Journal.

BWL presents 5 Things You Must Know Before You Start Investing posted at Christian Personal Finance, saying, “A look at a few things that need to be learned before investing a single penny…”

Financial Planning

Susan Howe presents Is Whole Life Insurance Really a Good Investment? posted at The Budget Life Blog, saying, “One of the claims you hear from insurance salespeople is that life insurance is an investment. Since a whole life policy builds cash, if you live past the age you feel you need life insurance, you can turn it in to the insurance company, or you can get a life settlement, and walk away with a chunk of cash to use as you wish.”

Kyle McNamara presents Top 10 Financial Blogs for College Students posted at Criminal Justice Degrees Guide.

Money Management

Marvin Grossman presents Dave Ramsey is Bad at Math posted at fivecentnickel.com, saying, “If you’re familiar with Dave Ramsey, then you’ve no doubt heard of his ’snowball’ approach to paying down your debt. In short, Ramsey suggests that you make minimum payments on all but the debt with the lowest balance.”

Trading Education

Michael Pruser presents What is a Short Sell? posted at The Dough Roller

Mike McFate presents Using the VIX to Forecast the Market posted at CompanyInvest.com, saying, “Great article about how you can use the VIX to forecast the stock market.”

Economic News

Darwin presents US Deficit Panel Recommendations: Cuts, Cuts, Cuts posted at Darwin’s Money, saying, “The US Deficit Panel shocked the country and the Obama administration alike with an early release of their recommendations to reign in the US debt. No stone was left unturned – from elimination of the mortgage tax deduction federal salary freezes and more. Check out the full scope of changes recommended from the commission and consider what these changes would do to equities and bond markets if enacted.”

Marvin Grossman presents We’re No. 4! What the slip in U.S. competitiveness means posted at Money-Rates.com Savings Investor, saying, “Find out what the slip in US competitiveness might mean to CD rates.”

Michael presents A Return to the Gold Standard posted at Consumerism Commentary

Trading Forex

Steve Smith presents Choosing Forex trading systems posted at Forex Trading System Central, saying, “Selecting the best Forex trading system can make all the difference in your success and failure.”

Features of FAP Turbo Forex Robot presents FAP Turbo Forex Robot ? Dumbfounding Features of FAP Turbo Forex Robot posted at Fap Turbo Expert Guide Review.

Day Trading

John presents Learning How to Day Trade Stocks posted at Buy Stocks Online, saying, “In the financial market to trade means to buy or sell financial instruments like stocks, currencies and more. One of the most popular styles of trading is called day trading.”

That concludes this edition. Submit your blog article to the next edition of carnival of traders and investors using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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