Issue #2061
- WEALTHY: When rational thinking leads you down the wrong path (Rick Pendergraft)
- HEALTHY: 10 minutes a day to thwarting stress-induced weight gain (Dr. Al Sears)
- WISE: Mick Jagger on getting started
ALSO IN THIS ISSUE:
- Starting your online business on a shoestring budget (Paul Smithson)
- Is "I’ve heard this before" really such a bad thing? (Michael Masterson)
- It’s Good to Know… about online tattletales
- Add "arcana" to your vocabulary
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Trading in Irrational Markets
By Rick Pendergraft
Most of the time, the market makes some sense. But other times, things just run counter to what my (mostly) logical brain tells me.
Now is one of those times when the market is behaving irrationally. Reports keep showing that the economy is weakening and inflation is a concern, yet the Dow and S&P keep hitting new highs.
Here’s one example of the kind of thing that’s been going on…
Oil had been moving higher since March 23, when Iran captured 15 British sailors for what they called "trespassing." Regardless of which side you believe, the possibility of additional turmoil in the Middle East as a result of this incident sent oil up almost 10 percent in one week. Meanwhile, the Oil Services HOLDRs Trust (OIH) – one of the Exchange Traded Funds (ETFs) I watch – trended higher during the ordeal, but not to the same degree as oil.
When the announcement came that Iran was releasing the British sailors, the rational side of my brain said that oil and the Oil Services HOLDRs Trust would move lower, as tensions were easing a bit. But I’ve been around too long to act on that kind of speculative thinking. And, as it turned out, the rational side of my brain was wrong. Oil moved down over $2 per barrel, but the OIH moved only slightly lower and then rallied. Had you used logic and bought puts on the OIH or sold the ETF short, you would have taken a quick loss, because logic did not apply in this case.
Any time you start thinking you know exactly what is going to happen in the markets, read this quote fromJohn Maynard Keynes: "Markets can remain irrational longer than you can remain solvent."
.
As one of my trading buddies used to tell me, "Trade what you see, not what you think." It might save you some money and a whole lot of frustration.
[Ed. Note: Find out how Rick Pendergraft can help you make money - no matter what the market's doing - as the editor of ETR's new investment service, the ETF Options Trader.]
"If you start me up, / If you start me up I’ll never stop."
Mick Jagger
How to Break Into One of the Most Competitive Internet Markets
By Paul Smithson
Running your own Internet business is an excellent way to create a steady side income that can eventually grow into a multimillion-dollar juggernaut. But finding the right product to sell in order to generate a profit – especially when you’re competing with established brands – can be difficult when you’re starting from scratch.
When you think of making money via the Internet, you may instantly think of people who sell tangible goods that they get in their customers’ hands through snail mail or of consultants who offer their services online. Sure, those are great ways to make money. But if you think they are the only ways, you may be overlooking a great opportunity: the insatiable demand for information.
Information is one of the most competitive markets online. It sells well because it provides a quick fix or shortcut solution to a problem or concern the consumer is having.
You can package information as digital downloads, including e-books, membership sites, newsletters, DVDs, CDs, and audio and video streaming files. And you can sell one format or a combination, such as an e-book with a video bonus series and a membership for buyers.
7 Reasons to Love Selling Digital Information Products
Here’s why information products are becoming increasingly popular with Internet marketers:
1. They offer you a way to start selling with little to no overhead costs.
You can write your own e-book, compile it for free into a PDF download, and the only expense you’ll have is the hosting fee to launch it on a page where people can order it.
That’s info-product launching on a shoestring budget. And it’s even better if you have at least a little capital to invest so you can properly launch your e-book with a great Web design, in a marketplace like ClickBank, and with an affiliate toolbox that you create with graphics and content that your affiliates could use to sell your information for you.
2. You can quickly bring a digital info product to the marketplace and start profiting.
Tangible goods, on the other hand, have to be manufactured – which means it takes a lot longer to take them from idea to fruition.
3. The process of filling orders is automated.
There’s nothing to pack up and take to the post office. The moment your customers place an order, they’re immediately taken to a page where they can download the product. You truly get to take in "passive profits" once the system has been set up.
4. You can get affiliates to market your info product for you.
That way, you don’t have to spend as much on advertising as you would if you were dealing in tangible goods.
(By the way – as long as we’re on the subject – you can become an affiliate yourself and make plenty of money by selling other people’s info products. You can promote those products at absolutely no charge by placing content on various social networking sites and inserting your affiliate ID codes. Or you can take it one step further and create your own presence on the Web, capturing customers’ contact information for your own list before funneling them into someone else’s site.)
5. Your profits are considerably higher with an information product, too.
Let’s say you write a hard-copy book that sells at a bookstore for $20. After the publisher, distributor, and retailer take their cuts, you’d wind up with a pittance. But that same book, converted into digital form and sold by you on a website, can bring in, maybe, $67. And aside from a nominal fee charged by the hosting service you use, the profits are delivered straight to you.
Even if an affiliate sells your e-book and keeps 50 percent, your profits are still higher than they would be for a published author whose book is sitting on the shelves of a major book chain.
6. There is nothing for you to stock.
The only space your info product takes up is space on your computer.
7. Your info product sells 24 hours a day, 7 days a week, 365 days a year.
Your website doesn’t close up like brick-and-mortar stores do.
What Kind of Information Should You Sell?
Regardless of the format you choose for your first info product – e-book, newsletter, DVD, etc. – make sure you choose a topic for it that you’re excited about promoting.
You may find, for example, that a lot of people are looking for information about witchcraft – but is that something you care much about? Is that a subject you could immerse yourself in for months and years to come as you build a business – and, ultimately, an empire – around it?
Just as important as choosing a topic you’re passionate about, of course, is making sure it lends itself to information people actually want to buy.
To do that, check out the ClickBank marketplace, (clickbank.com/marketplace.htm) which houses over 10,000 digital items for sale. Sort your searches by category to identify the most popular subjects – then narrow them down to one you’d be interested in selling. (You can also sort ClickBank’s results by other criteria that can be helpful, including the number of affiliates that made money on a particular product in the last 30 days.)
Once you’ve identified the perfect topic for your first info product – one that not only excites you but also has a built-in market – you’re well on your way to becoming a successful Internet entrepreneur.
[Ed. Note: Ready to step up to the plate and start your own Internet business? If so, online marketing expert Paul Smithson and ETR's team of friendly experts are standing by to help you. We've partnered with Paul, creator of the XSitePro website-building program, so you'll be able to come to ETR's 5 Days in July conference with nothing - no product, no marketing skills, no technical know-how - and walk out 5 days later with your own online business. No experience required, and it only takes a few minutes to get started!]
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Notes From Michael Masterson’s Blog: The Most Common Criticism of Business Books
The other night, I got on Amazon.com to check out a few new business books. The professional reviews are always positive; the reader reviews always mixed.
With readers of investment and business books, the most common complaints are "Most of this is just common sense" and "I’ve heard most of this before." Neither of these complaints is valid, and successful businesspeople understand that in a way wannabes and losers never will. Good business and investing books should be 80 to 90 percent common sense and tried-and-true techniques. Why? Because success comes from the application of formulas that have been proven over time to work.
Business and investment writers – at least the best ones – act like coaches and trainers for athletes. That means they tell it like it is, even if the truth is simple.
When Tiger Woods works with his coach, he doesn’t complain that the coach is not telling him anything new. Tiger and his coach both know that knowing something and doing it are two different things. Good coaches focus on the fundamentals, because they know that 90 percent of success is determined by getting that stuff right. The trick to coaching is to come up with new ways to teach the same foundation skills. Even the most experienced athletes make basic mistakes when they get into a slump.
I wonder about the people who make the "I’ve-heard-this-before" sort of criticism. Who are they and what are they looking for? Are they super-successful businesspeople looking for their next hundred million? Or are they losers or (at best) struggling nobodies? My guess: the latter.
When you read business books, do what I do: Don’t expect to be transformed by a bunch of brand-new ideas. Instead, look for some new way of expressing something you already know to be true so you can be motivated to do what you already know you should do.
Eighty percent of success is the result of taking action. Good business and investing books should, therefore, be 20 percent new ideas and 80 percent old ideas put forward in a motivating new way. Getting charged up to implement one good, old idea is worth 100 times a book’s price.
- Michael Masterson
[Ed. Note: To read more of Michael's unedited, uncensored (and sometimes unexpected) ruminations, check out his blog here.]
Is Stress Beating You Up?
By Al Sears, MD
Contrary to what you see in many ads for weight-loss products, the stress hormone cortisol does not directly cause weight gain. But I just came across a convincing study showing that stress over long periods can trigger increased insulin. And too much insulin can lead to weight gain.
Remember that insulin is the hormone that regulates fat storage. And many of us tend to eat high-carb, sugary "comfort foods" when we’re stressed. Here’s a better way to deal with stress: Whenever you feel stressed, turn your conscious attention to your breathing.
At first, don’t try to alter your breathing in any way. Just observe it. Do that right now, while you’re reading this. Notice which muscles you are using. Notice the seamless transition from inhalation to exhalation. Feel it in every part of your body. This focus of your attention is therapeutic in itself.
Now, simply take a little longer to exhale. Slowly, smoothly, quietly blow out just a little more air. Feel the physical tension release, and you will forget all about the stress.
This is a source of great power in every sense of the word. Your muscles relax, then recharge. Your mind becomes still, then refocused. Your cortisol levels come down … and you are ready for the world again.
Make this a ritual. Just five minutes of focused breathing twice a day can make a remarkable difference.
[Ed. Note: Dr. Sears, a practicing physician and the author of The Doctor's Heart Cure, is a leading authority on longevity, physical fitness, and heart health.]
It’s Good to Know: About Online Tattletales
Bad drivers, people who park illegally in handicapped-only spaces, litterbugs, rude people, and others who misbehave in public… beware. Several websites have popped up that allow your fellow citizens to report your behavior – and even post pictures, your license plate number, and other evidence of your antics. Check out Irate-Driver.com, Rudepeople.com, Litterbutt.com, or Caughtya.org to see if you’ve been caught in the act.
(Source: USA Today)
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You’re going to walk in with nothing – no product, no marketing skills, no technical know-how – and you’ll walk out with your own online business.
Best part? You can pick your new business from an area of interest you know and/or love. We’ll get you up and running with everything you need: domain name, running website, search engine submissions… the works.
Most importantly, you’ll wind up with an online business designed to throw off profits for years to come. And once you’ve been through this program, you can copy the plan as often as you like. The only limit to how high you can go is your own imagination… and your motivation to succeed.
Will it take some time? Of course. We’re not interested in giving you hype about overnight millions. Will it take work? Certainly. Anything of value requires effort.
But if you spend five days of your summer vacation with us this July, you might not have to worry about vacations at all in the future… because you’ll be well on your way to having the freedom to do as you please, where you please, whenever you please.
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- Patrick Coffey
Word to the Wise: Arcana
"Arcana" (ar-KAY-nuh) – from the Latin for "secret" – is specialized or mysterious knowledge, language, or information that is not accessible to the average person.
Example (as used by Paul F. Campos in Jurismania: The Madness of American Law): "Here we must enter briefly into the technical arcana of employment law."
[Ed. Note: Become a more persuasive writer and speaker ... build your self-confidence and intellect ... increase your attractiveness to others ... just by spending 10 VERY enjoyable minutes a day with ETR's new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007
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