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Is It a Bull or Bear Stock Market? – Expectations Knows!

Why does the stock market go up one day then fall flat on its face the next? The media always has an explanation. One day the economy is on a road to recovery and the next is doomed to fail. If we were to make investment decisions based on the medias interpretation, we would be buying at the highs and selling at the lows.

If it is already raining outside, how does a forecast for rain help us? What we really need to know is when the sun is coming out. What we need is a barometer. When a barometer’s pressure is rising we can expect good weather is on the way. When the barometer’s pressure is falling, we should prepare for bad weather. So what is the barometer for the stock market?

The simple and most logical answer is, expectations. When expectations are falling as with a barometer, we can expect the market to start deteriorating. When expectations are rising like a barometer, we should expect the market to start improving. Probably the most important point to understand is when the pressure can’t get any lower or higher.

Stock market direction is our reaction to expectations improving or deteriorating. An example of how expectations influence our behavior is best expressed by the following.

Imagine twin siblings attending the same school and enrolled in the same classes. One of the twins typically gets straight “A’s” while the other regularly gets “B’s”. On report card day both twins come home with straight “A’s”. Which twin will have the biggest reaction from their parents? The obvious answer is the “B” student, but is it warranted?

The straight “A” student works hard all of the time, while the “B” student is capable of getting straight “A’s”, but chooses to only get them when he or she wants a big reaction from their parents. This example shows us that the parents’ larger reaction with one twin over the other was determined by expectations.

This example also shows us that once we reach a peak in high expectation there is no other direction to go but down. It’s impossible for a straight “A” student to exceed expectations at this level. The higher we move in expectations the smaller is our margin for error.

The above example plays out in the markets regularly. How many times do we see a company report earnings and beat estimates by a large margin, yet the stock sells off because it just was not enough? On the other hand, how many times have we seen a company miss earnings, but one little data point beats expectations and the stock takes off? The difference between these two companies is the level of expectations the market has for them.

If we just look at the daily market action, we are just looking out the window. If we really want to forecast future market conditions, we need to know which way expectations are going and at what point it can’t get any worse or better.

To learn how to create an indicator that tracks the stock market expectations and identify its limits, read ” The Art of Expectations “.

Goal Setting In Online Marketing

I learn a very valuable lesson about goal setting online when I first started selling on eBay. It took me 3 months to become an eBay Powerseller and a Top Rated Seller – but those were a rigorous 3 months that I had to endure due to the fact that I was marketing like a mad man on eBay.

And I say that it was “rigorous” because I had put myself on a daily marketing plan everyday, and I followed it each and everyday. Combine this with packing products, buying supplies, and driving down to the post office everyday… you can easily see how someone could get burnt out from selling on here. But if I had employees, that would have been a different story.

The point I’m trying to make here is that I set small goals for myself each and everyday that I was selling on eBay – and it paid off. When I finally ended my tiresome eBay business and decided to launch my own website, the same goal setting tactics that I created for eBay became the basis of how I was going to promote my website online.

Because of this, I didn’t have to scramble around worrying about what I was going to do everyday in my business. When I looked at my goals sheet, I made sure that every goal that I achieved, I checked it off the list. And the next day I did the same thing, and the following day also, and etc.

You should do the same in your business also. It’s not good to not have a plan online. Even if the bulk of your marketing is done via paid advertising, you still have to figure out what the most effective places are online to be advertising at. Some of your top choices could be Google AdWords, Bing Ads, PPC content network, advertising on high traffic blogs and websites, and even purchasing advertising slots in forums.

The more you set out goals for yourself, the easier your life will be when it comes to marketing your website. Whether your agenda is paid advertising, free marketing, or both, you will still need to set goals. And with free marketing, this is definitely something that is true.

It’s so easy to get wrapped up around a variety of different strategies that people say are working for them, but when you try to apply it – it doesn’t work. But you should know that free marketing does work, but you will have to do A LOT of it. It’s not cake walk. It’s not like paid advertising where you can set it and forget it. Free marketing is something that you have to do everyday, and is something that you have to monitor on a daily basis also.

You need a goal setting roadmap. What are your plans tomorrow to promote your business? This is a crucial reason why people fail online. They don’t test, track, or set any kind of goals. It’s like having an online business is an exercise in futility for them. Don’t be like these people. Set goals so that you can reap the benefits later.

Be sure to take these goal setting tips for your internet business to heart and make sure that you can implement them everyday. You want to set enough goals per day where you are productive, but also where you have a good bit of leisure time for yourself.

Good luck with setting goals in your online business.

Internet Marketing – 2 Questions To Ask Before Promoting Products

In any online business, certain questions have to be asked before starting your venture. There are some questions that are so pivotal to your success that if you don’t know the answer to them, it could be the difference between success and failure. Yes, all off of a few simple questions.

Now if you want to have success online, it’s very important that you know the answers to these questions. Never take for granted the simplicity of internet marketing, and think that you will have overnight success. It doesn’t work that way. You have to put in hard work, and market your business like a marketing rebel.

I want to share with you a few questions that will help you get started towards making profits in your business simply and easily. These questions shouldn’t be overlooked. Otherwise… you could wind up failing faster than you can see sales. Here’s the first question you should ask yourself:

1) Did I pick the product first, or the niche?

This is a very important question. You never want to create or find a product and then go in search of someone to sell it to. Instead, it should be the other way around. First find a starving, hot niche, and offer them the product that they are looking for. You will get a lot of sales simply by doing this. And it’s very easy to do.

Simply go and do a little background research before you start selling anything. Is there a forum in the niche that you can participate in? Do the keywords for this niche get a lot of searches every month? Can you make a blog out of this niche? Are there a lot of places to advertise online for this niche? These are the kind of questions you need to be asking.

Do yourself a favor and analyze your online business. Did you pick the product first, or the market? If you picked the product, you may have to start all over again and go back to step 1, because if you don’t… you will find yourself spending a ton of money, just to get mediocre sales. Here’s another question to ask yourself:

2) Are you willing to spend a lot of hours on your business everyday?

You will hear from people that they only work 4 hours per week on their internet business. They can do this because they invest a lot of money into advertising. But if you don’t have heavy advertising funds, then you will need to do some free marketing. There’s nothing wrong with free marketing, you just have to do a lot of it to see the results that you’re looking for.

You typically have to spend a lot of hours everyday in your business if you’re going to do the free marketing route. Put yourself on a daily marketing plan and carry out those goals everyday. This is one of the best things that you can do for yourself, and I guarantee that you’ll start seeing better results if you do so.

Make sure you have great answers to the 2 questions above, because if you can come up with great answers, you will more than likely make money in your business.

Good luck with marketing your business online.