Quotes of the Day

If your trading strategy calls for a risk of no more than 100 pips on each trade, currency pairs with wide ranges like the GBP/JPY and the EUR/CAD should be avoided. The CHF/JPY, for example, is a great currency pair for a range-trading strategy and a horrible one for a trend-trading strategy. Major currency pairs such as the EUR/USD or the USD/JPY tend to be very sensitive to what is happening in the U.S. dollar. [2009] - Kathy Lien

(Gross Annual Rent / Purchase Price) x 100 = Cash Flow Zone%. The key number is 10%. If the gross annual rent is 10% or more, you have a very good chance that the property will provide you with good positive cash flow. If the gross annual rent of the property is 8% or more of the purchase price, then the property is still worth further investigation as it sits within the Cash Flow Zone. The majority of properties for sale in any given marketplace will not fit the Cash Flow Zone rule. Your job as a sophisticated investor is to have the patience to uncover the ones that do. If none in your area fits the system, then you will want to change your target area. [2009] - Don R. Campbell

Buying when stochastics are in oversold territory and selling when they are in overbought territory is a strategy that is used quite often by range traders with a great deal of success, but once the market stops range trading and begins trending, then relying on stochastics could lead to a tremendous amount of losses. [2009] - Kathy Lien

Ideally, your marginal tax rate at the time you contribute to an RRSP should be higher than it will be when you start drawing an income from those savings. To measure the impact with precision, you would need sophisticated tax-optimization software, the type that is being developed by a firm called mygoals. Tax efficiency is the main reason for splitting contributions between an RRSP and a TFSA. Another reason is that you never know when you may have to dig a little deeper for some emergency spending in retirement. If you withdraw a large lump sum from your RRSP, it could catapult you into a higher-income tax bracket. You can avoid that by withdrawing the necessary funds from a TFSA instead. [2021] - Frederick Vettese

The e-business you build should stay small. In the Information Age, even small businesses can reach the whole planet inexpensively; and they can be easier to manage but still highly profitable. [2006] - Scott Fox