Canadian Coalbed Methane Stocks: 7 Things to Know Before Investing

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One of Canada’s leading petrogeologists, Dr. David Marchioni, cautions investors on what they should be looking for, before investing in the red-hot Canadian Coalbed Methane (CBM) Stocks. There are 7 Key Ingredients that make up a successful CBM play. He warns that some Canadian CBM plays are pricey and mature, although many investors are still climbing onboard the bandwagon. Dr. Marchioni also names his favorite CBM stocks.

coal, china, coal bed methane, natural gas, stocks, investing, canada, exploration, mining

More investors are now inquiring about Coalbed Methane exploration companies. Just as uranium miners were flying well below the radar screen in early 2004, coalbed methane exploration may very well be the next very hot sector later this year and next. Historically, coalbed methane gas endangered coal miners, resulting in alarming fatalities early in the previous century. This is the fate suffered today by many Chinese coal miners in the smaller, private coal mines. Typically, the methane gas trapped in coal seams was flared out, before underground mining began, in order to prevent those explosions. Rising natural gas prices have long since ended that practice.

Today, coalbed methane companies are turning a centuries-long nuisance and byproduct into a valuable resource. About 9 percent of total US natural gas production comes from the natural gas found in coal seams. Because natural gas prices have soared, along with the bull markets found in uranium, oil, and precious and base metals, coalbed methane has come into play. It is after all a natural gas. But because it is outside the realm of the petroleum industry, coalbed methane, or CBM as many industry insiders call it, is called the unconventional gas. It may be unconventional today, but as the industry continue to grow by leaps and bounds, on a global scale, CBM may soon achieve some respect. Please remember that a few years ago, there was very little cheerleading about nuclear energy. Today, positive news items are running far better than ten to one in favor of that power source.

CBM is the natural gas contained in coal. It consists primarily of methane, the gas we use for home heating, gas-fired electrical generation, and industrial fuel. The energy source within natural gas is methane (chemically, it is CH4), whether it comes from the oil industry or from coal beds.

CBM has several strong points in its favor. The gases produced from CBM fields are often nearly 90 percent methane. Which type of gas has more impurities? No, it isn’t the natural, or conventional, gas you thought it might be. Frequently, CBM gas has fewer impurities than the “natural gas?produced from conventional wells. CBM exploration is done at a more shallow level, between 250 and 1000 meters, than conventional gas wells, which sometimes are drilled below 5,000 meters. CBM wells can last a long time ?some could produce for 40 years or longer.

Natural gas is created by the compression of underground organic matter combined with the earth’s high temperatures thousands of meters below surface. Conventional gas fills the spaces between the porous reservoir rocks. The coalification process is similar but the result is different: both the coalbed and the methane gas are trapped in the coal seams. Instead of filling the tiny spaces between the rocks, the coal gas is within the coal seams.

One of the past problems associated with CBM exploration was the reliance upon expensive horizontal drilling techniques to extract the methane gas from the coal seams. Advanced fracturing techniques and breakthrough horizontal drilling techniques have increased CBM success ratios. As a result, a growing number of exploration companies are pursuing the early bull market in CBM. Market capitalizations for many of these companies mirror similar “early plays?we mentioned during our mid 2004 uranium coverage (June through October, 2004). Industry experts told us there would be a uranium bull market. Now, we are hearing the same forecasts about CBM.

SEVEN TIPS BY DR. DAVID MARCHIONI

We asked Dr. David Marchioni to provide our subscribers with his 7 Tips to help investors better understand what to look for, before investing in a CBM play. Dr. Marchioni helped co-author the CBM textbook, An Assessment of Coalbed Methane Exploration Projects in Canada, published by the Geological Survey of Canada. He is also president of Petro-Logic Services in Calgary, whose clients have included the Canadian divisions of Apache, BP, BHP, Burlington, Devon, El Paso Energy, and Phillips Petroleum, among others. He is also a director of Pacific Asia China Energy and is overseeing the company’s CBM exploration program in China.

Our series of telephone and email interviews began while Dr. Marchioni sat on a drill rig in Alberta’s foothills, the Manville region, until he finished outlining his top 7 tips, or advices, on how to think like a CBM professional.

1) COAL SEAM THICKNESS

Is there a reasonable thickness of coal? You should find out how thick the coal seams are. With thickness, you get the regional extent of the resource. For example, there must be a minimum thickness into which one can drill a horizontal well.

2) GAS CONTENT

Typically, gas content is expressed as cubic feet of gas per ton of coal. Find how thick it is and how far it is spread. Then, you have a measure of unit gas content. Between coal seam thickness and gas content, you can determine the size of the resource. You have to look at both thickness and gas content. It’s of no use to have high gas content if you don’t have very much coal. The industry looks at resource per unit area. In other words, how much gas is in place per acre, hectare, or square mile? In the early stage of the CBM exploration, this really all you have to work with in evaluating its potential.

3) MATURITY LEVEL OF THE COAL

This is the measure of the stage the coal has reached between the mineral’s inception as peat. Peat matures to become lignite. Later, it develops into bituminous coal, then semi-anthracite and finally anthracite.

There is a progressive maturation of coal as a geological time continuum and the earth’s temperature, depending upon depth. By measuring certain parameters, you can determine where it is in the chemical process. For instance, the chemistry of lignite is different from that of anthracite. This phrasing is called “coal rank?in coal industry terminology.

4) PERMEABILITY

When you are beginning to think about CBM production, this and the next item must be evaluated. How permeable is the CBM property? You want permeability, otherwise the gas can’t flow. If the coal isn’t permeable at all, you can never generate gas. The gas has to be able to flow. If it is extremely permeable, then you can perhaps never pump enough water. The water just keeps getting replaced from the large area surrounding the well bore. The water will just keep coming, and you will never lower the pressure so the gas can be released.

5) WATER

In a very high proportion of CBM plays, the coal contains quite a lot of water. You have to pump the water off in order to reduce the pressure in the coal bed. Gas is held in coal by pressure. The deeper you go, typically the more gas you get, because the pressure is higher. The way to induce the gas to start flowing is to pump the water out of the coal and lower the “water head?of pressure. How much water are we going to produce? Are we going to have to dispose of it? If it’s fresh, then there may be problems with regulatory agencies. In Alberta, the government has restrictions on extracting fresh water because others might want to use it. One could be tapping into a zone that people use as water wells for farms and rural communities. Both water quality and water volume matter. For example, Manville water is very salient so nobody wants to put it into a river; this water is pushed back down into existing oil and gas wells in permeable zones (but which are also not connected to the coal).

6) FUNDING

To be able to access land and do some initial drilling, i.e. the first round of financing, it would cost a minimum of C$4 million. This would include some geological work and drilling at least five or six wells. In Horseshoe, that would cost around C$4 million (say 1st round of finance); in Manville, about C$9 million. This is under the assumption that the company doesn’t buy the land. The land in western Canada is very expensive and tightly held. Much of the work is done as a “farm in?drilling on land held by another for a percentage of the play. (Editor’s note: During a previous interview, Dr. Marchioni commented about his preference for Pacific Asia China Energy’s land position in China because comparable land in western Canada would have cost ?100 million or more.?
7) INFRASTRUCTURE

The geology only tells you what’s there, and what the chances of success are. You then have to pursue it. Can we sell it? Gas prices are “local,?meaning they vary from country to country, depending whether it is locally produced and in what abundance (or lack thereof). How much can we extract? How much is it going to cost us to get it out of the ground? Are there readily available services for this property? Will you have to helicopter a rig onto the property at some incredible price just to drill it? Will you have to build a pipeline to transport the gas? Or, in China as an example, are there established convoys for trucking LNG across hundreds of kilometers?

One addition, which we have mentioned in previous articles, and especially in the Market Outlook Journal, “Quality of Management Attracts PR,?it is important that the CBM company have experienced management. This would mean a management team that includes those who have gotten results, not only a veteran exploration geologist but a team that can sell the story and bring in the mandatory financing to move the project into production.

There are two primary reasons why many of these coalbed methane plays are being taken seriously. First, the macroeconomic reason is that rising energy costs have driven companies in the energy fields to pursue any economic projects to help fill the energy gap. Coalbed methane has a more than two decades of proof in the United States. The excitement has spread to Canada, China and India, where CBM exploration is beginning to take off. Second, the fundamental reason is that exploration work has already been done in delineating coal deposits. There are, perhaps, 800 coal basins globally, with less than 50 CBM producing basins. In other words, there is the potential for growth in this sector.

How Stock Research Evaluation Is Processed

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Before shelling out a great part of your retirement savings to buy stocks, it is very important that you know exactly what type of investment are stocks investments. Stock investment is actually buying a small unit of ownership from a company. The stocks you bought from such company will provide you certain benefits like voting rights and then receiving profits every time the company distributes profits to its shareholders. The amount of profit share you are to receive is dep…

Before shelling out a great part of your retirement savings to buy stocks, it is very important that you know exactly what type of investment are stocks investments. Stock investment is actually buying a small unit of ownership from a company. The stocks you bought from such company will provide you certain benefits like voting rights and then receiving profits every time the company distributes profits to its shareholders. The amount of profit share you are to receive is dependent on the amount of stocks you have bought from such company.

One of the best features of stock ownership is the fact that you as a stockholder of the company are entirely free from any liability however if the company loses a lawsuit and pay a huge amount then you must prepare for the worst since such happenings often lead rendering your stocks worthless.

The good news is you can still prevent such unsightly scenario from happening; all you have to do is to employ the expertise of a stock research provider or a stock broker, whichever you prefer the main objective of your hiring them still remains the same and that is to provide you with effective financial advice on how to lessen the risk of your stock investments and to increase your chances of gaining.

Before implementing any financial strategies, it is important to conduct fundamental analysis. This analysis is accomplished by a stock research provider. The fundamental analysis involves the process of examining the basic of the fundamental financial level of the company or the business which you are eyeing in buying some stocks. The analysis should also include examination of key ratios of a business in order to determine its financial health thus providing you with the idea of the value of its stocks.

Most investors make use of fundamental analysis or a combination with other tools in order to evaluate stocks before finally investing. The objective of evaluating stock investment is to determine the current worth and market value of the stocks.

By making use of key tools for fundamental analysis you will gain in-depth evaluation on stock investment that will guide you in making wise and smart investment decisions. Likewise, understanding the key ratios and terms will also help you in lessening the risks involved in your stock investment.

Probably the most important information any investor would like to know is how much profit they are going to obtain from their stock investment. This is really not surprising since it is just logical that when you invest on something, you of course would like to derive earnings from it.

In stock investment your concern is more on the ability of your chosen company to generate money today and in the future. Earnings are the profits and although it is sometimes hard to calculate but that’s what buying stocks is all about. An increase in earnings or profits basically leads to a higher stock price and usually results to a regular dividend.

During times when earnings fall short, the market may hammer the stock. Companies report their earnings quarterly. Some analysts that monitor major companies notify their stockholders if ever they notice a significant decrease or fall on the companies?projected earnings. Although it is true those earnings play an important role in stock investment but they don’t tell anything about how the market values the stock. If you want to determine just how the market values the stock you might need to use some fundamental analysis tools-this is because fundamental analysis tools focus on earnings, growth and value in the market.

How Soon Will Saudi Arabia Turn to Nuclear Energy?

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How soon will Saudi Arabia join the nuclear club? You might be surprised with our investigation. How will this change the world’s energy picture? Water desalination will be the driving force behind Saudi’s entry into nuclear energy.

Saudi Arabia, Middle East, electricity, nuclear energy, energy, Russia, France, Pakistan, uranium, nuclear power

While a growing number of countries have announced their civilian nuclear energy ambitions over the past twelve months, no other country is likely to have more of a psychological impact on the nuclear energy picture than Saudi Arabia. We believe the Kingdom’s natural gas and water problems will lead them to nuclear, sooner rather than later, probably as early as this year.

After our interview with Kevin Bambrough, which resulted in the widely read article, ‘Explosion in Nuclear Energy Demand Coming,?we began more deeply researching Bambrough’s conclusion. He believes the overwhelming growth in nuclear energy will continue to drive the uranium bull market much higher than is suspected. He believes the uranium renaissance has gone beyond the envelope of just a mining inventory shortage. We researched this further during the course of our investigation into uranium and geopolitics. We were surprised by what we discovered, and continue to be stunned by how accurate Mr. Bambrough’s forecast is likely to play out. We included the special sub-section, which follows, in our soon-to-be-published, A Practical Investor’s Guide to Uranium Stocks. Below is a sneak preview.

An April 2006 UPI news item confirmed what many have long believed. It won’t be long before Saudi Arabia launches a nuclear project. Kuwaiti researcher Abdullah al-Nufaisi told seminar attendees in Qatar that Saudi Arabia is preparing a nuclear program. He said the government was being urged to launch a nuclear project by Saudi scientists, but had not yet received the blessing by the royal family. Social, not energy, issues could help the Saudi royals embark on a large-scale nuclear program.

Of the Kingdom of Saudi Arabia’s 24 million subjects, more than 40 percent are under 18 years of age. While still manageable, the country’s infrastructure is not prepared to deal with its explosive population growth. The two biggest problems facing Saudi Arabia are potential water and electricity shortages. True, its super oilfields may also have peaked in production and might move into tertiary recovery, but that is unknown. An Islamic revolution, similar to what Iran suffered in the 1970s is probably foremost in the King’s mind. Civil unrest might come about should his subjects suffer from insufficient electricity and inadequate water supplies. One need only look at the widespread electricity shortages Syria experienced in the 1980s and early 1990s.

As reported in the October 14, 2004 issue of Arab Oil and Gas, the Saudis lag well behind Bahrain, Kuwait, Qatar, and the United Arab Emirates in per capita energy consumption. The rate of natural gas consumption, which produces Saudi’s electricity, increased less than Egypt and Syria. Total energy consumption dropped by 3.5 percent in 1999 and 2000.

The internationally heralded “Gas Initiative?of 1998 was the Kingdom’s attempt to lure major western oil companies back into the country to help develop its natural gas reserves. After major oil companies spent $100 million in due diligence to evaluate the Saudi natural gas reserves, the initiative quietly dropped off the world’s radar screen. A Shell Oil executive, whose company is exploring for gas in the country’s Empty Quarter, told Bloomberg Daily Energy News that this was a high-risk venture with a low probability of finding sizeable reserves. In Matthew Simmons?Twilight of the Desert, he repeated what he was told by an anonymous senior oil executive, “The reservoirs are crummy.?
The Saudis need water and electricity to match their population growth. Nuclear energy is likely to be the solution to both those problems. Continued dependence upon natural gas may prove a fatal economic and social error for the royal family. Our research forecasts the Saudis should announce a large-scale civilian nuclear energy program in the near future.

Let’s discuss the water problem first. In a 2002 story reported in the Oil & Gas Journal, Saudi Arabia’s 30 desalination plants produce about 21 percent of the world’s total desalinated water production. Nearly 70 percent of the local water drunk in cities comes from desalinated sea water. As the population grows, Saudi Arabia may spend another $40 billion to build more desalination plants.

Half of the world’s desalination plants are in the Middle East. Most are powered by fossil fuels, especially natural gas. Converting sea water to potable water is energy intensive. The commonly used desalination method of multi-stage flash (MSF) distillation with steam requires heat at 70 to 130 degrees centigrade and consumes up to 200 kilowatt hours of electricity for every cubic meter of water (about 264 gallons). MSF is the most popular technology, but some are turning to reverse osmosis (RO). RO consumes about 6 kilowatt hours of electricity for every cubic meter of water.

Desalination is very expensive. The cost to generate this electricity through natural gas explains why Saudi Arabia spends about $4 billion in operating and annual maintenance costs.

There are numerous precedents in combining water desalination with nuclear energy for electrical generation. The World Nuclear Association highlights the BN-350 fast reactor in Kazakhstan, which has produced 135 MWe of electricity and 80,000 cubic meters per day of potable water for nearly 30 years. In Japan, ten desalination facilities are linked to pressurized water reactors producing electricity. The International Atomic Energy Agency is working closely with about 20 countries to implement dual-use nuclear reactors, which would also desalinate water.

According to the World Nuclear Association’s website, “Small and medium sized nuclear reactors are suitable for desalination, often with cogeneration of electricity using low-pressure steam from the turbine and hot sea water feed from the final cooling system. The main opportunities for nuclear plants have been identified as the 80-100,000 m3/day and 200-500,000 m3/day ranges.?
There are numerous examples of nuclear desalination being considered. In 1977, Iran’s Bushehr nuclear facility was to also have a 200,000 cubic meter/day MSF desalination plant. Construction delays, and the subsequent Islamic revolution, prevented this from occurring. Perhaps when Iran commences its civilian nuclear program, the desalination plant will be revived. China is reviewing the feasibility of a nuclear seawater desalination plant in the Yantai area. Russia has advanced a nuclear desalination project with barge-mounted marine reactors using Canadian reverse-osmosis technology. India has begun operating a nuclear desalination demonstration plant at the Madras Atomic Power Station in southeast India. Another one may soon follow in the southern Indian state of Tamil Nadu, which perpetually suffers from water shortages. Pakistan continues its efforts to set up a demonstration desalination plant. South Korea has developed a small nuclear reactor design for cogeneration of electricity and water. It may first be tested on Madura Island in Indonesia. Argentina has also developed a small nuclear reactor design for electricity cogeneration or solely for desalination.

The Saudis have investigated dual use for nearly thirty years. Since 1978, Saudi scientists have studied nuclear desalination plants in Kazakhstan and Japan. Both studies positively assessed the feasibility of bringing the first dual-use nuclear reactor in Saudi Arabia. Since the mid 1980s, scientists and researchers at the Saudi’s Nuclear Engineering Department at King Abdulaziz University, the College of Engineering at the University of Riyadh, the Chemical Engineering Department of King Saud University, and the Atomic Energy Research Institute have researched and evaluated nuclear desalination. Saudi scientists presented their paper, entitled, ‘Role of Nuclear Desalination in the Kingdom of Saudi Arabia,?at the First International Conference on Nuclear Desalination in Morocco in October 2002.

The country possesses a tandetron accelerator and a cyclotron capable of isotope production for medical purposes. Saudi’s nuclear scientists have been involved with many countries to help their country develop a bonafide nuclear energy program. In late March 2006, a German magazine reported Saudi Arabia has been secretly working on a nuclear program with help from Pakistani scientists. Ironically, many believe Saudi Arabia helped finance Pakistan’s nuclear program. Because Saudi scientists lack the proven experience of the entire nuclear fuel cycle, Pakistan’s expertise, over the past decade, could help accelerate the Kingdom’s pursuit of a civilian nuclear program.

While lacking proven uranium deposits, the country’s Tabuk region has low-grade amounts of uranium and thorium. However, Saudi Arabia has significant phosphate deposits, which some believe could be exploited. The country’s two largest deposits reportedly measure about 750 million metric tons, averaging between 19 and 21 percent P2O5. Mined by the Saudi Arabian Mining Company and the Saudi Basic Industrial Corporation, fertilizer plants at the Al Jubail Industrial City produce about 4.5 metric tons of P2O5 annually. While extraction of uranium from phosphates can be an expensive proposition, the phosphates could provide a ready supply of uranium for the country’s nuclear desalination plants. Then, it would be a matter of uranium enrichment, of which both the Russians and the French would be scrambling to provide the Kingdom.

While the Saudi program many not directly impact world uranium prices, the Kingdom’s decision to advance its nuclear program, beyond the research and medical stage, would signal the entire world that nuclear energy programs will be a primary growth sector for the next fifty to one hundred years. Should the Saudis also commence desalination projects using dual-use nuclear reactors, this could change the entire landscape of the water situation for the Middle East as well as Africa. And it would most likely spark a significant stampede of the Kingdom’s neighbors into the global nuclear renaissance.

Intelligent Stock Trading

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If you want be a successful penny stock trader, you’ll need to be an intelligent trader. There are very few requirements to start trading in penny stocks. It can be broken down into three main things.

1. Money:

The money we are talking about is not just the money that is sitting in your bank account. It is not the money that you use to pay for your rent, your car or your food. Penny stocks can be extremely unpredictable and although you might make a great deal of money …

Penny Stocks, Penny Stock Trading, Buying Penny Stocks, Penny Stock Investing

If you want be a successful penny stock trader, you’ll need to be an intelligent trader. There are very few requirements to start trading in penny stocks. It can be broken down into three main things.

1. Money:

The money we are talking about is not just the money that is sitting in your bank account. It is not the money that you use to pay for your rent, your car or your food. Penny stocks can be extremely unpredictable and although you might make a great deal of money it is also true that may lose everything, so it is important especially when you are starting out with penny stocks that you only use money that you can afford to lose. After you have built up a nice profit, you can re-invest your profits from past trades which will snowball your earnings.

2. Knowledge:

This is without a doubt the single most important factor in determining whether your budding career as a penny stocks investor will be a spectacular triumph or a dismal failure. If you are a newcomer to investing of any kind there are various guides you can buy and it is a good idea to read several of these before spending any money.

Penny Stocks: The Next American Gold Rush by Dan Holtzclaw
Stock Investing for Dummies by Paul Mladjenovic
The Guide for Penny Stock Investing by Donny Lowy

These are all good and although they will not help you with specific decisions such as whether to buy a particular penny stock, or when to sell, they give you a good background on how it all works and are invaluable in building a good knowledge base.

3. Make A Plan:

Before you investing any money, make an investment plan and stick to it at all times. This will help you become disciplined and will also help you organise your time and investments. Keeping things simple will result in less stress. Your plan should consist of the investments you are going to make and why and how much you are investing in them. It should also include your exit point (the price which you will sell your investment at to take profit) and also the time you want to allocate for your investments each day (i.e. The time it takes to monitor and research them).

Now you have got all the major elements in place you are set for the roller coaster ride that is the world of investing in penny stocks But remember that knowledge is the most powerful tool you have to make your penny stocks successful so start learning today.

Ancient Meteor Impact May Hold Key To Uranium Exploration Success At Cluff

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ESO Uranium to Angle Drill near a Promising 1970’s Hole

“I look at about 100 different projects a year, most of which go into the round filing cabinet on my floor,?said Tony Harvey, the senior technical advisor to ESO Uranium (TSX: ESO), and formerly a senior manager of Wright Engineers-Fluor Daniels, which was involved with the design and construction of 14 mines worldwide. Harvey quickly ticked off what is necessary to attract his eye, “I need to see history. I need to …

investing, stock market, commodities, energy, utilities, stock tips, stock trading, uranium, mining

ESO Uranium to Angle Drill near a Promising 1970’s Hole

“I look at about 100 different projects a year, most of which go into the round filing cabinet on my floor,?said Tony Harvey, the senior technical advisor to ESO Uranium (TSX: ESO), and formerly a senior manager of Wright Engineers-Fluor Daniels, which was involved with the design and construction of 14 mines worldwide. Harvey quickly ticked off what is necessary to attract his eye, “I need to see history. I need to see signposts before I give it any credence.?So why is he advising little-known ESO Uranium, after a long, prolific career? Harvey helped found Amex-listed Azco Mining, and more recently was a director of Mexican mining firm, Cobre del Mayo, which sold two of its last three mines, which he helped discover, to Phelps Dodge (NYSE: PD).

“I believe this one has a huge amount of history,?Harvey argued. “Not only have you got the Cluff Lake mine, which already confirms the presence of uranium, but you have got the Shea Creek drilling intercepts which validate it. We have the conductors streaming onto our property. We have the boulders, which is also another sign post.?The boulders, of which Tony Harvey refers, are the six uranium-mineralized boulders near the ESO Uranium project on the company’s Cluff property. Near those boulders, a promising drill hole from the 1970s indicated 0.85% U3O8 over 2.3 meters. It was all but forgotten until the recent explosion of exploration activity in Saskatchewan’s Athabasca Basin, an area which has helped Cameco (NYSE: CCJ) grow into a company with a market capitalization of nearly $12 billion.

What ESO Uranium’s geological team will be looking for at the company’s Cluff property are Cluff Lake style uranium deposits in basement rocks with the Carswell structure close to the unconformity with sandstones of the Athabasca group.

Drilling in the Meteor’s Wake

“The value of the ore extracted at the Cluff mine, in today’s terms, would be equivalent to $2.6 billion,?explained Harvey. “That’s how much was extracted at the Cluff mine.?The company’s vice president of exploration, Benjamin Ainsworth, who is both a senior geologist and a mining engineer, helped explain the Cluff structure. “A meteorite probably impacted at this location and with sufficient force to break right through the layers of Athabasca sandstone on the surface. On rebound, basement rocks got lifted back up. In bouncing back out, it also lifted up the surrounding Athabasca rocks and tipped them up, if you can imagine, like an opening flower.?As a result, the basement got lifted up to the surface and made it easier to find and mine the uranium at Cluff. Ainsworth added, “The significance of that for me and our group is that shows very high grade uranium deposits in the western side of Athabasca.?
Drilling a property helps the geological team better understand the area. Since the Cluff property was mined out, two decades ago, additional scientific study has opened up new doors. At the 67th Annual Meteoritical Society Meeting, University of Quebec Earth Science professors presented a paper entitled, “A Re-Evaluation of the Size of the Carswell Astrobleme.?The Montreal scientists concluded in the 2004 annual conference held in Brazil, “The Carswell impact structure is therefore older and larger than previously estimated?the central uplift considered to be under the annular dolomitic unit would suggest a crater size in the basement of 118 to 125 kilometers wide.?While some believe the meteor hit about 478 million years ago, recent evidence suggests it may have been closer to 1.8 billion years ago.

Angle Drilling This Time

ESO Uranium plans a six-hole drill program to learn more about their Cluff property. The first hole hopes to confirm what was found earlier, “We’re going to drill right up against the CAR-425 hole drilled originally in the 1970s, which indicated uranium of about 0.85 percent U3O8 over 2.3 meters.?They will drill adjacent to the uranium-mineralized boulders. Ainsworth explained how the company’s strategy is different from previous drilling, “We’re drilling angle holes to give us a better opportunity to find more of the structures that can be carrying mineralization in that sort of system.?In the 1970s, holes were vertically drilled. Harvey added, “We’re going to be stepping out to the southeast, which bring us then closer to the original Cluff mine.?The company plans 150 to 200-meter holes. Ainsworth noted, “The CAR-425 drill hole, which we’re coming up close to, is 146.5 meters deep.?
Robert Beckett, ESO Uranium’s exploration manager, agrees about the 55 degree angle holes the company will be drilling at the Cluff property, “They were drilling vertical holes, and we’d like to go back and check it with an angle hole on the theory, which we interpret as some kind of subvertical system.?Beckett talked about additional drilling to the south, after the property had been explored, revealed “the structure extends from the edge of the basin all the way through Shea Creek.?He added, “We believe it extends onto our property to the north at 11 o’clock, just to the north. We see the extension of those conductors coming up through Shea Creek ?conductors and by extension, structures, extending up onto our property. And the structures are the key thing ?the destruction of the upper fold and the unconformity in the bedrock, it gives you the right kind of conditions for the deposition of uranium.?Before Beckett joined ESO Uranium, he had been district geologist for Esso Minerals and for the Saskatchewan Mining Development Corporation, which later merged with El Dorado Nuclear to become Cameco Corp. He was the exploration manager at Midwest Lake and the project manager of the Port Radium mine.

The Hook Property

Another property in the ESO Uranium portfolio, which requires additional preparatory geological work and exploratory drilling, is called the Hook property. It’s about ten miles south of the Shea Creek deposit and covers approximately 130,000 acres. The western one-third of the property has been minimally explored. ESO Uranium CEO Jonathan George said about it, “The Hook is one of the areas I’m particularly excited about, now that we’ve received the airborne geophysical survey, is because the conductors have shown up very strongly, coupled with dravite, which is an alteration clay, a key indicator to uranium deposits.?Mr. George believes his company may have a new targeted area. “Cameco is drilling right on the doorstep on another project they have,?he added. Cameco, he pointed out, is drilling just to the south and east of ESO’s southern rim, below the company’s border.

Ainsworth was also optimistic, saying, “That’s part of the reason why that ground was selected earlier ?Cameco had that position, and I could see, in the available information that there were structures and good probabilities of other types of systems being available.?George said, “We’re going to be drilling because we see an intense alteration on surface, of which that source has never been found. The alteration coupled with the structure leads us to believe we’ve got a great shot down there.?
“I think we’re much closer to having a hit at Cluff immediately,?Ainsworth insisted. “It is probably a good thing to get some news on the table very early on.?He did warn that there is a lot of risk in drilling for uranium deposits. “The geometry of these things is damn small.?George pointed out that the world’s richest uranium deposit, McArthur River, hosting about 400 million pounds of uranium, had half of its deposit in an area about half the size of a football field. “I think that’s mind boggling,?he said, “that a $7 billion project would be on an area that small.?
Conclusion

Drilling is imminent on the Cluff property, depending upon ice thickness in Saskatchewan. News should be available fairly quickly. Ainsworth warns, “The individual deposits at Cluff are actually quite small.?While quite a bit of work has been done in the Cluff area, many have recognized it’s very easy to miss. But Ainsworth cheerfully exudes, “The key thing here is that the grade is so high that pursuing it further makes it worthwhile.?
Another key to ESO Uranium is the strength of their exploration team. Technical adviser Tony Harvey has numerous credits to his long career. Robert Beckett has spent decades exploring in Saskatchewan and for the precursor company to Cameco, he was the in charge of the northern half of the Athabasca Basin. Benjamin Ainsworth held numerous senior positions with Placer since 1965, having once served as president of Placer Chile.

According to ESO’s Corporate Communications Manager, Tom Corcoran, “We currently raised about C$4.7 million, which has been earmarked for exploration on and in the ground. If we don’t spend it on drilling or exploration work, we have to give the money back.?ESO Uranium planned to start drilling in early February, having had to slightly delay the start of drilling, according to Robert Beckett, until the weather got colder. Drilling is imminent, and results should appear fairly quickly. Ainsworth offered an insight about how soon we will know about drilling results, “One thing about uranium, unlike drilling for gold and other metals, you get a radioactive signal on a drill core as you’re logging it. So you get a pretty good idea if you’ve got something there or not. You’re not going to get a very precise assay at that point, but at least you can focus very quickly. You can see these uranium minerals with a naked eye.?
We’ll be looking forward to seeing those drill results shortly.

Chasing Value Versus Growth

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A lot of opinions had been thrown regarding the benefit of value investing versus growth investing. The proponents of each styles of investing insists that their method is superior over the other.

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A lot of opinions had been thrown regarding the benefit of value investing versus growth investing. The proponents of each styles of investing insists that their method is superior over the other.

I believe that each has its own merit. Being a proponent of value investing, let me state the case for value investing. First, value investors buy companies in a mature industry. That said, it is easier to predict earning of such company. This is why I lean towards value investing. I am in favor of reducing risk instead of chasing return. Anybody can make an estimate that a small biotech company A will rake in X amount of profit after several years. But, if your prediction is not accurate, then how do you determine the fair value of the common stock? Your valuation will be out of whack. Disease comes and go. Technology fames and fades. It might defy common sense to some but I prefer a low or no growth industry.

Another benefit of investing in value stocks is that you might get decent dividend yield from the companies. They are growing less and management feel that they do not need all that profits to fund expansion. As a result, they propose dividend payments to shareholders. This helps reduce risk.

Having said that, I believe that the return of growth stocks will be higher than value stocks. No, I don’t mean you can profit handsomely buying overpriced stock. You should of course buy it at a reasonable price. You should not overpay for any stocks, including growth stocks. Growth stock is companies that are growing or expected to grow rapidly in future. Is advertising a growing industry? Yes, but it is not growing big. How about pay per search or pay per call advertising? Oh, yes. If you invest in these types of companies, you are investing in growth stocks. These new forms of advertising is less than 5 % share of total advertising budget. Can their share grow? You bet. Just like television gets some share of advertising pie, pay per click advertising will get more of its share if it is cost effective for advertisers to do so.

We can say that value investing takes less return for engaging in little risk. Growth stock, on the other hand, takes in more risk in order to garner greater return. That is fine. There are, however, other kind of investing that will burn your pocket. A lot of investors engage in an investing style that get little reward while taking a big risk! Buying a stock at any price is one example. Do not misunderstand growth stocks with buying at any price. It is just plain silly. There are calculations and predictions involved in buying a common stock. Determine its fair value and decide whether you want to invest on a stock based on the risk/reward that it offers.

How to make money in the stock market

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The very basic option trading strategy

options, stocks, shares, call, put, earning, strategies, investment, low risk,naked options spread, bullish, bearish

There are abundant of money in the stock market. However, not everybody can get the money out from there. Some people can gain a lot from the stock market but some has lost a lot of money there. It is very indecisive. Sometime at that moment, you loss money but after a few days, you may earn a profit and sometime is reverse. So, how should we do to get the money out from the stock market? Usually, there are two ways to get the money out from the stock market; that are investing and trading. The difference between trading and investing is trading involves buying and selling share, future or option within a short period of time; whereas investing is buying share, future or option and hold it for quite a long time, usually one year or more before selling it.

What is the difference between share, future and option? What we know is that option is much cheaper than the share and future, usually is tenfold lesser than the share price. So, if you have an amount of money that enough for you to buy 100 units share, you can use that amount of money to buy 1000 units option. And the return of investment is almost the same between share and option. Therefore, you will earn around tenfold if you buy option rather than share or future. However, the disadvantage is that if you lose on that trade, you will lose almost tenfold also. When we trade option, the amount of money that we can profit and lose is almost same as if we trade share. However, we need a lot of money to buy share compared to buy option. This causes the percentage of the profit and loss for buying option is much higher than share. The example is like when you buy $10 for one unit of share and $1 for one unit of option. When the share price drops for $0.10, the percent drop for buying share is 1% but for buying option, the percent loss is 10%. That’s why the percentage of the profit and loss for buying option is huge compared to buying share even though the share price fluctuates in a small amount.

Due to the high profit and loss when buying option, trading or investing option is just like gambling. It is quite normal that the return of investment is more than 100%. But it is also quite normal that you could lose all your money in the investment or trading. In order that you can earn more than lose, you need to know some basic option trading strategy and technical analysis. Option is different from the share. Option has time value; whereas, share does not have time value. The value of one share will not depreciate due to the passage of the time. It is only affected by the supply and demand and also the company performance. However, option value will depreciate when the time has passed. When the time reaches to the option expiration date, there is no more time value for that option. That’s why, you need to use strategy to trade option, in order that you can minimize the loss and maximize the profit.

The very basic two option trading strategies are bullish call spread and bearish put spread. Bullish call spread is used when the stock price is anticipated to rise in the coming months; while, bearish put spread is used when the stock price is anticipated to drop in the coming months. Steps that are involved in this strategy are buying in the money option and selling out of the money option. In the money option is the option that has time value and intrinsic value; whereas, out of the money option only has time value. When the stock price moves to the positive side (generated money side), in the money option will generate profit and the out of the money option will cause loss. However, the minus of the profit and the loss is the net profit that has generated from this strategy. When the stock price moves over the out of the money strike price, the profit will become maximized. Continuously moving of the stock price to the positive side will not generate any profit. In this situation, we will close both positions to take the profit out from the market.

If the stock price moves to negative side (opposite side that cause loss), in the money option’s value will depreciate and the out of the money option will generate profit. However, the profit, which is generated from the out of the money, is limited to the price that you have sold. The subtraction between out of the money’s profit and in the money’s loss is a negative value. This is because the profit that is generated from the out of the money option is less than the loss that is caused by in the money option. Out of the money option’s profit is limited in this strategy and in the money option’s loss is unlimited. If the stock price continuously moves to the negative side, you may lose all of your capital. So, what is the difference from buying naked option and buying option using spread strategy? The difference is that you may lose more money if you buy naked option and lose less money if you buy spread. This is because you do not generate any profit when you just buy naked option; whereas, profit is generated from the out of the money option if the stock price moves to the negative side. The disadvantage of the spread is that the commission, which is charged by the broker firm, is double compared to the naked option. This is because, naked option only involves one position; whereas, spread involves two positions. Each position will be charged with commission separately.

Besides, the purpose of selling out of the money option in the spread strategy is to minimize the loss of the time value of the in the money option. Actually, both in and out the money option’s time value would depreciate when the time has passed. Because we do not own the out of the money option; therefore, we can keep the money that we have received from selling that option. When the time value of this out of the money option has depreciated, we used lower price to buy back the option. So, we sell at high price and buy back at low price; therefore, we earn money. The money that we have earned usually is enough to cover the loss of the time value from the in the money option. However, you still lose the intrinsic value of option if the stock price moves to the negative direction.

So, bullish call and bearish put spreads are two of the very basic option trading strategies. However, it is not guaranteed 100 % win from the stock market. You still need to learn to predict the stock price direction accurately using technical, fundamental and news analysis.

Alexander Chong

Author of “Workable Option Trading Strategies?
http://www.makemoneystocks.com/

Know Your Broker Before Trading Online

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Proper investment strategies should always include researching your broker, but in today’s world of new technologies and online investment, what questions should you be asking?

Know Your Broker Before Trading Online

Proper investment strategies should always include researching your broker, but in today’s world of new technologies and online investment, what questions should you be asking?

The following are some key questions to ask your broker, which can save you both time and money:

* What tools are available from your broker? Stock quotes, news, charting, level II data and advanced order types are among many key tools for traders. Be sure your broker has the tools you specifically need.

* How fast are orders being executed? Keep in mind that online trading can significantly speed up the order process in comparison to placing orders over the phone.

For example, RushTrade offers Direct Access Trading, which allows you to direct your order to the execution venue of your choice. This can result in faster executions, improved price and greater control of your orders.

* Does your broker get paid for order flow? Some brokers may receive payments for sending orders to preferred market makers. This can lead to a conflict of interest. Make sure you know your broker’s policy.

* Do they offer a trading demo? Find out whether there is a cost involved for a trading demo. RushTrade, for instance, offers a demo of its Direct Access software free on its Web site.

* Is the Web site or trading software easy to use? Dealing with a slow or unwieldy site can really hamper your trade executions when speed is the name of the game.

* Can I trade after hours? Ask yourself whether this is important for your investing needs. RushTrade’s Direct Access software will allow after-hours trading.

* Are there any hidden fees? Brokers might tout low commissions but then hit you with unexpected fees. Look for brokers that do not charge low balance, inactivity or maintenance fees.

Are There Any Great, New Mining Stocks Left?

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Where are the hot and cold spots around the world for resource investors? The stampeding bull market in commodities has investors reaching for new ideas. Highly respected newsletter writer Lawrence Roulston of “Resource Opportunities?favors Canada, Alaska and China for investing in mining and energy companies.

China, Canada, Alaska, coalbed methane, stocks, investing, finance, metals, minerals, coal, gold

Where are the hot and cold spots around the world for resource investors? The stampeding bull market in commodities has investors reaching for new ideas. Highly respected newsletter writer Lawrence Roulston of “Resource Opportunities?favors Canada, Alaska and China for investing in mining and energy companies.

StockInterview: Let’s get the cold spots out of the way so investors are forewarned about which countries to avoid.

Lawrence Roulston:
A lot of the (mining) companies that went overseas in decades back are recognizing the political difficulties with dealing in some jurisdictions. These include places like Indonesia, Columbia, and several of the African countries, such as Congo, Sudan and Eritrea. All of those places where there are great geological prospects, but are more and more risky to deal in. I think some of that mining is coming back closer to home, which is right here in Canada.

StockInterview: So Canada is on your “favorite countries?list?

Lawrence Roulston:
At the very top of the list would be Canada. As of right now, taking into account the geological potential, political situation, infrastructure and all the other issues, I would (highly) rate Canada and British Columbia. They have had decades of work. But for the last decade, there hasn’t been very much going on. The companies are just coming back and picking up with what’s been going on. Similarly, Ontario, Quebec ?tremendous geological potential ?and it’s been kind of ignored for a long time. Canada is now the most important place in the world for diamonds, representing 50 percent on exploration spending for diamonds.

StockInterview: Is there a specific mineral or metal that makes Canada especially appealing?

Lawrence Roulston:
It’s the whole gambit. Canada has always been one of the top metal producers, and it’s coming back to life. Of course, gold is at the top of the list, but also base metals and uranium. The Athabasca Basin in northern Saskatchewan is far and away the most important area to be looking at, geologically. It’s currently the biggest source of uranium and contains the highest grade deposit. There are other uranium prospective areas in Canada that are just emerging. The Thelon Basin in the Northwest Territories, north of the Athabasca Basin, is very similar, geologically, to the Athabasca Basin. It had some work done in the 1970s, and it’s been pretty much ignored until very recently. Going a little further north to Hornby Basin, it is a similar kind of situation. In Labrador, the central mineral belt is just emerging as a very important place to be looking for uranium.

StockInterview: Do you have any favorite companies, which you are following and which have good prospects?

Lawrence Roulston:
NovaGold Resources (TSX: NG; Amex: NG), for example, with the Galore Creek. It’s a billion ton deposit with enormous metal content. (Editor’s Note: Galore Creek has been called one of the largest and highest grade undeveloped porphyry-related gold-silver-copper deposits in North America.)

StockInterview: What is another of your favorite areas, which has gone largely undetected during this bull market?

Lawrence Roulston:
Nevada would be at the top of the list of anywhere in the world to be working and Alaska right behind it. There is huge potential in Alaska. Mining companies have only scratched the surface of exploration up there. Two of the largest metal deposits in the world are in Alaska. These are both discoveries going back decades, but work over the last couple of years has brought them to the point where they’re now recognized as among the largest metal deposits in the world: Donlin Creek, a 25-plus million ounce gold deposit, and the Pebble deposit, held by Northern Dynasty (TSX: NDM). The Pebble deposit is significantly larger than, and of comparable grade to, Ivanhoe’s (NYSE: IVN) Oyu Tolgoi (copper-gold) deposit in Mongolia. (Editor’s Note: The Donlin Creek project is a joint venture between NovaGold and Barrick Gold.)

StockInterview: Anywhere else in the world where you can find a great, but still “new?resource investment opportunity, in light of how hard the commodities bull has been stampeding the past few years?

Lawrence Roulston:
Often the better value to be had, or the better opportunity, is in being a little bit out of step with the crowd. One of the areas offering some outstanding opportunities is China.
China has done a tremendous amount of geological work, over the last few decades, but all from the perspective of finding, and then quickly developing, small deposits. There has been very little effort devoted to taking a bigger picture type look at China. The companies that have been able to take a kind of bigger picture look at China have begun to develop what I think are going to be some pretty spectacular results over time.

StockInterview: Isn’t it tough, though, doing business in China?

Lawrence Roulston:
There is still a perception out there that China is a difficult place to do business. Most people from the west walk into China cold and try to do a deal. It would be impossible for them. But, for western companies that are able to team up with groups that are well established within China ?so that they’re able to find their way through the system over there ?then there are outstanding opportunities. There are mountains of geological information ?all in Chinese, of course. You’ve got to be able to work within that system and get the information, know how to put the deals together.

StockInterview: What do you mean by “knowing how to put the deals together??
Lawrence Roulston:
If I was to go over to China and try to do a deal to get access to a coalbed methane property, I wouldn’t have a clue about how to begin. On the other hand, I could walk into the Petroleum Club in Calgary, and meet a half dozen guys and talk to them. I could build on my leads, and probably in a day be talking about a deal. When you go into China, unless you have somebody on your team that can get into the system and deal with the people, because of language issues, cultural issues and just having access to the information and knowing what sort of terms that they might be looking for?It’s a different culture from every perspective, and not the least of which is a different way of doing business.

StockInterview: In your April issue, you recommended one company, which overcame those hurdles, meets your criteria and already has a coalbed methane deal in China.

Lawrence Roulston:
Pacific Asia China Energy (TSX: PCE) established connections in China. They can draw on their contacts and their network. They can get into see the right people, where they can actually talk seriously about doing deals, and have an enormous leg up over somebody that walked in cold and tried to establish and build contacts and put a deal together. I think it is an absolutely outstanding opportunity that they’ve seized on.

StockInterview: There are many coalbed methane opportunities in Alberta. Why look to China?

Lawrence Roulston:
One of the things that makes China interesting is the entry cost to get into a coalbed methane (CBM) play in China is fairly modest. For example, to go to Alberta, or anywhere in the United States, and get access to the exploration rights, or exploitation rights, is enormously expensive. In China, they walked in and, for a fairly modest up-front commitment, obtained a control position in a CBM prospect.

StockInterview: How does Pacific Asia China Energy’s coalbed methane property in Guizhou, China rate against other coalbed methane plays?

Lawrence Roulston:
I think it’s an outstanding opportunity. Chinese government agencies have done an enormous amount of work at delineating the coal. To be able to step into that amount of data as a starting point to build up their CBM resource? The bottom line is that they’re not out there looking for coal. They know exactly where the material is, and they’re able to quickly start defining the issues like recoverability. They’re drilling in order to establish the basic physical parameters of the flow rates and the content within the coal. I think the companies which are able to effectively exploit the CBM technology in China are going to be the pioneers in that area.

StockInterview: To Americans, any business in China might appear to be “pioneering,?since most of still think of China as a third world country.

Lawrence Roulston:
I’ve been to China many times and I’ve been to parts of China where most people, as tourists, would never get anywhere near, because I go there to look at mineral exploration projects and mining projects. I’ve been to every corner of the country as well as the major cities. What I see happening everywhere I go is a pace of development that I’ve never seen anywhere else in my life, anywhere in the world. That is, 1.3 billion people are going from a basically rural farm-based economy to a modern industrial economy at a pace that has just never before been conceived.

StockInterview: How do you quantify that?

Lawrence Roulston:
This is a number that most people won’t get, and you won’t get until you’ve been over there and have seen it. There are 300 million people in China that are already well into the middle class. By middle class, I am comparing (the Chinese middle class) to the same absolute standards as we would apply in Canada or the United States in terms of dollars in your bank account, value of your house and your car, and everything else. There are 300 million people that have already achieved that status, which is more than the people at that status in North America. There are another 1 billion people who are busting their butts to get to that level.

StockInterview: But isn’t the rest of the world’s rural population just as industrious and ambitious?

Lawrence Roulston:
I’ve been in Africa, the Middle East, Asia and Latin America. If you go into any of those areas and you walk into the small towns, a lot of people are sitting around drinking coffee, crying the blues and complaining about how terrible life is. Go into a similar area in China, and the people are out working in the fields. In the middle of winter, they’re fixing up their fences, the dams and terraces, and clearing rocks, removing trees and stuff like that. It’s a high level of industry I’ve never seen in any other part of the world. So it goes from that ground level right up to the entrepreneurs, and the guys who are building the high rise condominium complexes in Shanghai.

StockInterview: How long will it take before American investors realize the impact China has on the global economy?

Lawrence Roulston:
It’s going to happen in a gradual way. I think those that keep their heads buried in the sand are going to get left behind as the world pulls ahead. I would suggest any investor in any company ask the question of the company: “Is that company involved in some way in China??There are a lot of North American companies that have a very significant presence in China in terms of doing business over there, of getting established, of selling products or manufacturing products in China.

StockInterview: Why is China so important with regards to this commodities bull market, and are there still opportunities for investors?

Lawrence Roulston:
There is a lot of geological potential, and there is the perception that it’s difficult. Therefore, there isn’t yet a big crowd of people over there chasing after deals. The flip side of it is that China and its neighbors in southeast Asia, representing 3 billion people, are going through the modern industrialization process. That is going to continue to create a massive demand for metals for, I believe, a decade or probably even a couple of decades into the future.

StockInterview: And most likely, the U.S. investor is going to be left behind or the last one into the pond?

Lawrence Roulston:
The bottom line is that Americans tend to be more inward focused. The other evening I was having dinner with an oil man from Texas who had spent a lot of time in China. He had seen China first hand and was very bullish. I asked him, “How many of your countrymen do you think really get it about China??And he responded, “Oh, about five.?Then he said, “Congress doesn’t get it, investors don’t get it and the man in the street doesn’t get it.?Americans just don’t understand what’s happening over there yet.

5 Steps To Researching a Stock Trade Before Investing

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Once you determine which business cycle the economy is currently in you can start researching for a trade. It is best to have some sort of a system in place that will be used before EACH trade. Here is a simple 5 Step formula to help get you started.

research, fundamental, technical, investing, analysis, stock, online, trading

Once you determine which business cycle the economy is currently in you can start researching for a trade. It is best to have some sort of a system in place that will be used before EACH trade. Here is a simple 5 Step formula to help get you started.

5 Steps to Investing Online:

1. Find a stock
This is the most obvious and most difficult step in stock trading. With well over 10,000 stocks to trade a good rule of thumb to consider is time of the year. For example, as I write this, it is the beginning of spring. It would make sense to consider stocks that traditionally make runs, or slide if you are bearish, during this time of year.

2. Fundamental Analysis
Many short term traders may disagree with the need to do ANY Fundamental Analysis, however knowing the chart patterns from the past and the news regarding the stock is relevant. An example would be earnings season. If you are planning
on playing a stock to the upside that has missed its earnings target the last 3 quarters, caution could be in order.

3. Technical Analysis
This is the part where indicators come in. Stochastics, the MACD, volume, moving averages, RSI, CCI, support levels, resistance levels and all the rest. The batch of indicators you choose, whether lagging or leading, may depend on where you get your education.

Keep it simple when first starting out, using too many indicators in the beginning is a ticket to the land of big losses. Get very comfortable using one or two indicators first. Learn their intricacies and you’ll be sure to make better trades.

4. Follow your picks
Once you have placed a few stock trades you should be managing them properly. If the trade is meant to be a short term trade watch it closely for your exit signal. If it’s a swing trade, watch for the indicators that tell you the trend is shifting. If it’s a long term trade remember to set weekly or monthly checkups on the stock.

Use this time to keep abreast of the news, determine your price targets, set stop losses, and keep an eye on other stocks that you may want to own as well.

5. The big picture
As the saying goes, all ships rise and fall with the tide. Knowing which sectors are heating up stacks the chips in your favor.
For example, if you are long (expecting price to go up) on an oil stock and most of the oil sector is rising then more likely than not you are on the right side of the trade. Several trading platforms will give you access to sector-wide information so that you can get the education you need.