Yesterday I posted about trading UTS Energy Inc. Today I lost my shirt on that trade and I’m not feeling happy about it!
I had thought UTS bottomed out but it fell another 35% when the costs for the Fort Hills Oil Sands Project Ballooned today How stupid I feel….
This is the first time I have lost in a trade of this kind in the market in a long time.
I went against all my own rules of investing and tried to catch a falling knife which is a big “No, No”.
I also went against another rule of mine

Don’t get emotional about investing

I couldn’t help it today I feel just terrible I had made such a bad trade and even posted about it!
The only rule I really followed through with and I’m happy so far about is -

Don’t turn a trade into an investment

I made the trade, I lost the money and I sucked it up and I’m trying to live with it.
I still think there is a lot of money to be made in this volatile market but I need to find the true bottom rather than trying to guess it.
I ignored the charts I usually read and invested emotionally.
You always need to follow rules when investing and I think I was being greedy and stupid.
When you play with fire you get burned and that’s exactly what happened to me today.

Kelly Parks
www.wealthforinvestors.com

The Stock Market is in complete turmoil after Lehman Brothers Inc filed for bankruptcy and oppertunities are everywhere!
The one I picked out for a “TRADE” today is UTS Energy Corp (Ticket Symbol UTS.TO) at the price of 2.30$.
UTS Energy has a 20% interest in the famous Fort Hills oil sands project. The other big players are Petro-Canada Oil Sands Inc with a 60% stake and Teck Cominco Inc with also a 20% stake in the project. The Fort Hills oil sands project is 14,400 acres located just 90Km from Fort McMurray, Alberta and has estimated resource of 4 Billion barrels of oil.
In trading today UTS Energy fell more than 20% at one point on reports that they would have trouble coming up with 350$ Million dollars for the first stage of financing.
Reuters news quoted UTS excecutive Will Roach-

“Obviously it’s increased risk on the financing, given the financial turmoil,” Roach said in an interview. “Obviously the market is giving us some advice that they think it’s going to be more difficult.”

The stock has fallen from it’s summer high of around 7$ dollars and I wouldn’t recommend turning it into a long term investment until we hear more news on UTS’s financing and the price of oil pulls back a little more.
They say never try and catch a falling knife, I think I might go out on a limb for a “Small Trade”
UTS at 2.30$ Canadian (UTS.TO on the TSX)

Kelly Parks
www.wealthforinvestors.com

These days being a mentor is a multi-billion dollar business. Mentors come in the forms of goal coaches, financial gurus, even spiritual teachers. CEO’s and business leaders are going to companies to find mentors to help them achieve their goals. Having a mentor, someone you can bounce any ideas off of is essential to one’s growth. Having this person watching over your shoulder can save you the headaches of making mistakes, which could cost you big in investing.

When looking for a mentor find someone that is successful in whatever you want to be taught in. You can find these people through friends, seminars, even online. Some people make a living off being mentors and charge money to have access to their skills. Beware when choosing a mentor; I have heard massive horror stories of people losing their shirts on bad advice. I have nothing but good things to say about Robert Allen and Robert Kiyosaki, both of whom have companies that give out investing advice. For about 10,000$ dollars you can have your own personal mentor but having one over the phone only gets you so far; try and find someone that is in the same city as you or is willing to meet with you. People using “mentor farms” may get burned by their mentors but also if they quit the program or stop trying.

To get the most out of a mentor have someone that is willing to push you! Always be on your toes and don’t bother if you’re not ready to have a teacher or take the next step because you are just wasting your money and time. When all you can do is truly think about investing that’s when you should go out and look for a mentor. Think of them as a personal trainer at the gym. You aren’t going to pay for a personal trainer if you can’t even figure out a way to get off your couch to get down to the gym are you?

Paying for a mentor can be an excellent tool, but you would be amazed at the amount of people that would be willing to be a mentor for free. I was at a seminar last year and people were standing up looking for apprentices that wanted to learn how to become real estate investors! If you can’t find one keep looking in local advertisements or even www.craigslist.com because getting a mentor could be worth millions to you!

Kelly Parks
www.wealthforinvestors.com

“Financial Experts” recommend that the average person should save 6 months of earned income into an emergency fund. An emergency fund can be left in a high interest savings account, money market funds or even a saftey deposit box. Where you hold your emergency money should be very low risk as this money should be used as a last resort. Here are some examples of things where a person might need to dip into this fund:

-Medical Bills

-Natural Disasters

-Loss of Job

- Recession

- Having to take care of a loved one

These are just a few of the things that your emergency fund can bail you out of.

Saving six months income is quite a daunting task for anyone. Each individual will vary on the length of time it would take to invest into a emergency fund, but for most of us 6 months income…WOW! What I suggest for those that can’t afford the 6 months income emergency savings is that they budget a small amount of money for this fund in a money market or GIC account. This way you can eventually work your way up slowly for this nest egg emergency fund.

In the mean time, get a line of credit from your bank this will only be used in emergencies, no other time. You never want to bombard yourself with bad consumer debt but if you are in the situation where it could be life or death ,this is a great option. Lines of credit are much lower interest than a credit card and if you have online banking this can be paid off instantly with a transfer of funds.

Another thing to look into if you have credit card debt is “insurance”. Visa and Mastercard offer insurance and their costs are very very minimal. In the case of accident where you are unable to work, they will help you with your balance and payments. This is a great insurance to have and is a must for anyone carrying any amount of credit card debt.

If you do run into an emergency call your bank about payments you might owe them and explain your situation, this will definitely help. Banks want your business and don’t want anything happening to their customers. People are their biggest asset and if you can make some sort of deal with them they will definitely be as greatful as you are.

There is more to emergency funds than just cash in a bank account. Make sure you have covered all your bases just in case! If the emergency money is there it can save your credit rating, home, relationships, even your life.

Kelly Parks
www.wealthforinvestors.com

A “Real Estate Investment Trust”, or REIT for short, is a way for investors to invest in a portfolio of one or more real estate holdings within units/shares, much like stock. REITs are heavily traded on stock exchanges and can give excellent distributions through the rent they receive from tenants within the investment portfolio. These can be a great way to gain predictable income into your investment portfolio.

League Assets is a newer real estate investment trust that is opening eyes across the world. The company’s portfolio possesses over 200 million dollars in real estate assets and is completely private. Being a private REIT gives it a greater advantage because it is not susceptible to fluctuating markets, although this makes the REIT not liquid. There is a pre-determined period set by League in which you have to hold your units before you can sell them; anytime after a year, you are able to sell the units in your REIT. League has returned approximately a 15% annual return, which can be broken down in either a 15% return in unit price gain or a 9% distribution and a 6% unit price gain. League will deposit distribution money right into your chequing or savings account and for Canadians out there, under the right conditions it is RRSP eligible. League gives distributions, not dividends that are currently 90% tax free in Canada.

League holds mostly commercial properties within the REIT, all of which are Canadian. The best part about League Assets REIT is that there is no minimum to invest. Public Real Estate Investment Trusts traded over the stock market sometimes bloat the value of their holdings, but not League. Every 3 months a third party appraises the properties and the units value for the REIT. The one thing I can say about League is their ability to be in touch with their investors at all time. League even has what they call the BLUE BOOK, which is free and can be sent to your home! The blue book explains everything about your investment from how they make their money to investments within League’s portfolio. I definitely recommend investing with League and checking out the blue book.You can download it here DOWNLOAD

Kelly Parks
www.wealthforinvestors.com