More discussion on High Frequency Trading and why the stock market is rigged.

A great radio interview with Danielle Park wherein she discusses with host Kerry Lutz how the big brokerage firms use high-frequency trading to steal from you.

Very interesting.

FSN Danielle Park Interview

Ice Cream Investing- Step-by-Step

In my book I use an example of stocking up on ice cream to get a superior investment yield.  When the Sobeys flyer came yesterday, I decided to do a step-by-step illustration using my financial calculator.  Let me know if you like this and I'll do more of them...


dave

Radio Interview on FSN

I got interviewed tonight on FSN Radio.

www.financialsurvivalnetwork.com is a great source of news and opinion hosted by Kerry Lutz in FLA, USA.

New Video and an interview tomorrow

Hi, I took some time to modify my 'unboxing' video into a kind of commercial... check it out.

Also, I've got my first interview for a financial podcast coming up tomorrow.  I'll be sure to post a link here so you can all listen in.

dave

First reader feedback about reading the book and doing a deal in one day.

I heard my first piece of reader feedback.  A man who owns a business was approached by an employee who needed to borrow $2,000.  The employee offered to pay the money back by giving $1,200 at the end of the month and $1,200 at the end of the following month.  The repayment terms were proposed by the employee and were probably cheaper for him than going to a payday lender.

The reader said that he had been approached before by employees looking to borrow money and had always turned them down.  After reading the book, he looked at it differently.  He realized that since he pays them in arrears, he actually always owes them some money.  This would mitigate the risk in the deal significantly.  Let's examine how this deal worked for him and his rate of return:

PV  -2,000   He is giving the employee $2,000.  The money is moving away from him, therefore the figure is negative.

N             2   This is a two month deal.

FV           0   This is a fully amortizing deal, the money will be repaid in full after the 2 payments.

PMT 1,200   This is the amount that will be received each month.

I/Y           ?    We want to calculate the annualized yield on this deal.

I input the numbers into my BA II Plus Financial Calculator and get an annual return of 156.79%

I guess that reader's copy of the book has paid for itself already and he only had it for a day.



If you're not sure about how I figured this out or what PV, N, FV, PMT, or I/Y mean, you may want to buy the book.

-dave

The Stock Market is Rigged

In my book, Invest Local, I have a lengthy discussion and demonstration of how the financial industry uses mutual funds to secure guaranteed returns for themselves while diminishing the long term potential for their clients.

Here is a great post regarding the new book Flash Boys that describes how the financial industry takes advantage of High Frequency Trading to skim a tiny percentage off of almost every stock market transaction.

Incredible.  The whole system is rigged against the individual investor.

Here is a great article about the book and its revelations from Charles Hugh Smith.

Enjoy.

dave

Day 2 and I've got a bestseller

I even beat Jim Cramer.

Woohoo! Sold!

I'm so excited.

I just sold two Kindle copies of the book today.

-dave

Books for Sale!!

The book is now live for sale.  "Real" softcover editions are available from the site by going to the 'Buy the Book' tab.  They can also be found on Amazon.com.  Amazon.ca coming soon.

Kindle editions are available for all Kindle stores worldwide.  This is the easiest and cheapest way to get the book and FREE Kindle reader apps are available for all mobile devices and computers.

I have put up links for the US and Canadian store but it is also available in all other Kindle stores worldwide.

Cheers

Dave