Get Wealthy With the Rule of 72Written by Vincent R. Moloney MD
When it comes time to retire how many people would like to have a nest egg that is 2 or 3 or even 4 times larger than what they have? With an answer so obvious allow me to explain how you can make it happen for yourself. First we'll explain Rule of 72. If you divide number 72 by rate of return on your investments answer is number of years it will take to double your money. If you are getting 7% annually then 72 divided by 7 equals a little over 10 so it takes 10 years to double. A 9% return divided into 72 gives us an 8year time span to double. A 10% return needs only 7 years to double. Now what return can reasonably be expected in our real world? Over last 100 years or so United States stock market has returned 10 to 11% per year on average, depending whose figures one reads. We'll use figure 10%. Suppose at age 37 you start saving for retirement. We choose a reasonable sum of 110 dollars a month. In 7 years you notice that you have accumulated 13,200 dollars. Another 7 years go by and you see that you have nearly $40,000. At end of 21 years you have $93,000. By age 65 you notice that 28 years have gone by and you have $200,000 dollars. The rate of return kept steadily increasing. Those of you with some mathematical leanings will recognize this as an exponential rate and also as compound interest. This website has a good calculator: http://www.tcalc.com/tvwww.dll?Save Also notice that 28 represents four 7year spans, time for first dollars to double four times. Observe that during first 7year period you accumulated $13,000, during 2nd 7year period $27,000, during 3rd 7year period $43,000 and during 4th period $107,000. During 4th period you grew eight times as much as in first period. All without changing amount saved, $110 per month.
  Day Trading  Moving Averages vs Support and ResistanceWritten by Mike Reed
When day trading SP and Nasdaq futures, do you rely on your moving averages more than your support & resistant areas?During first hour of trading, support and resistance zones on SP and Nasdaq futures are most important things to watch. The moving averages have not yet had a chance to come into play. After that, if a trend is developing I watch several key exponential and simple moving averages on 2 minute, 5 minute and 13 minute SP and Nasdaq futures charts. These specific moving averages give reliable support and resistance for market as long as slope of moving averages are fairly steep, indicating a trend. When there is no trend, moving averages are flat and pretty much worthless. When a trending market makes a countertrend move, and hits a key moving average on two or more different time frames at same time, probability of a good trade setup increases dramatically. If you get three hits at same time, it’s even better. Sometimes you’ll see one key moving average get hit on five minute SP chart at same time another moving average is hit on 13 minute Nasdaq chart. This also gives a good trade setup.
