Fear and Greed in the Financial Markets

Have you ever heard that fear and greed are what drives financial markets? Well it’s true. It’s been shown that the best times to buy stocks are often when it seems everybody else is most afraid to, and that the best times to sell stocks are often when it seems everybody else wants to own them, and is happiest about how much money they have been making in the market. The problem is that this is often very hard to do, and psychologically difficult to actually take action at these times. The reason is primarily due to human emotions and the role they play in making decisions that create anxiety for most people, specifically when it comes to their finances and the money they have at risk in the financial markets.

In addition to “going against the crowd” when attempting to buy when others are afraid, other sayings abound such as “don’t try to catch a falling knife”, etc. that intimidate people into going against “conventional wisdom”, and not “going against the grain”.

Fortunately, as we all have seen, financial markets behave very similar to other principles found in numerous examples in nature – like the tides for example, which can only go in and out so far, or like a pendulum that can only swing so far in one direction before momentum stalls and it will begin to swing in the other direction. Financial markets will always eventually begin to move in the opposite direction after some time, when these extremes are reached and can be identified.

Knowing this, what if there was a trading system that could show you exactly when to buy and sell in these situations because you have been able to identify, with proven historical accuracy, when the probability that markets will continue to rise or fall has gotten to a minimum? This knowledge could in turn give you a high comfort level in following through with your decision to buy when fear had reached an extreme, and to sell when greed had reached the other extreme.

This type of system should be able to help you identify market extremes, similar to being able to predict how far the tide will go out before it starts to come back in, or how far a pendulum will swing in one direction before it starts to swing in the other. In this manner, no matter how far markets have risen or fallen, one can with a reasonable degree of accuracy, identify when markets should be about to turn in the other direction.

If one is able to make this determination, one can then apply this information by executing any one a number of different trading strategies to take advantage of the upcoming expected market move. These strategies include buying ETFs, index funds, options on indexes (directional strategies) that will profit with a move in the expected direction, and/or selling credit spreads on stocks or indexes (non-directional strategies) that will profit with a move of the underlying stock or index in the opposite expected direction.

Have you ever been frustrated by seemingly always buying and selling at the wrong times when investing and/or trading in the stock market? Chances are it has been because of peaks in fear and greed. A successful trading system should be able to confidently identify, and profit from, peaks in fear and greed in the financial markets.

Emotional Response Marketing – What is it and How Does it Work?

One of the key elements of successful marketing is communication. How is this communication achieved? By approaching the people, at an emotional level. Human beings are highly emotional creatures. They are impulsive and much of what they buy is based on their emotions rather than logic. Emotions have a powerful control on all of us. We all respond to them. I mean, think when was the last time you stopped yourself from eating that huge creamy (full of FAT) beef cheese burger, which you saw in an amazing commercial, or in other words when was the last time you decided to purchase something without thinking emotionally. There’s hardly any purchase that does not involve emotional evaluation. Emotions compel us to imagine that a certain product is perfect for us.

So what is emotional response marketing? The answer is simple; it’s the game of persuasion. Every campaign is designed to attract a response. This response is usually produced by emotional reactions of a customer, when he judges the effectiveness and benefits of a product. If your campaign is capable of triggering the positive emotion out of the customer, than consider your business a success.

It’s all about being personal and conversational; In order to excel in the market, you must have a direct emotional link with the public, knowing all what is there to know about their needs, fears, desires and concerns. It’s all about making them believe that your company comprehends their problems and how your products or service can serve as a solution to these problems.

So how do you use this strategy in your advertisements, or sales letters or on your websites? Primarily, it’s essential to understand the need to produce a buying desire.Your goal is to attract the buyer with such an attractive presentation of your product, that he is compelled to choose “order”, “buy”, or “ask for more info”.

Some of the basic methods used in emotional marketing on the internet are the usage of referrals, testimonials, blogs, and forums. It’s human nature to trust each other’s words. The right usage of words is really important and requires market research. Your words should reflect the consumer’s feelings. Words such as confidence, happy, safety, pride, fun, beauty make people feel valued.

Success stories, trials or tests always attract positive response. Through these you are actually proving the dependability of your product. People always seem to rely on pre-tested products.

Colors also play a significant role in emotional marketing. There’s a whole range of colors that trigger particular emotions in human beings.for example, green is associated with feelings of relaxation, white with purity, red with love or attention etc. Isn’t it funny that during the valentine season, everyone is buying something, even if they don´t have anyone to give it to. Well! The red color works its wonders.

Then you have Symbolism and images; yet another way to get to your customers hearts. An image of a baby laughing while eating a baby food product will surely trigger the maternal emotions of all the mothers.

In short, when a product or service stimulates positive feelings in a buyer, it often results in purchase. Just go and create something extraordinary out of the ordinary keeping the feelings and desires of the target market, in mind. Emotional response marketing if done THOUGHTFULLY can generate huge profits and sales.

Affiliate-Associate Marketing

E-commerce helped to turn conventional marketing strategies upside down, and added dynamism to the marketing landscape. The internet generated article marketing, added another notch to niche marketing, and also launched affiliate or associate marketing. As a result, affiliate marketing is now at the top of every strategic business plan. Because of its success, it is now regarded as the top online marketing strategy. So just what exactly is affiliate marketing, and why do you need to know about it?

In response to the first question, affiliate marketing is a marketing technique where a merchant, (product owner or service provider), rewards affiliates, for each referral. These referrals are generated as a direct result of the affiliate’s marketing initiatives. Every business owner needs to understand affiliate marketing, because it is big business. It now generates billions of dollars in sales revenue on an annual basis. Revenue flows both to the business owner, and to the affiliate.

When well orchestrated, affiliate marketing is a very effective marketing tool. It will result in an increase in website traffic, as well as an increase in revenue. Essentially, it is a revenue sharing approach to marketing, and involves a contract between a merchant on the one hand, and an affiliate on the other. Merchants will be able to gain maximum exposure for their brand, without having to spend any money if there are no results. This exposure will lead to increased revenue and profit. The affiliate will also increase revenue, as payment is based on the number of referrals made.

In terms of revenue sharing, affiliate marketers are paid a commission for the business they refer. They will either direct traffic to the merchant’s website, or help to sell their products by placing the merchant’s advertisement on their site. The joint venture between the merchant and affiliate is usually formalized by way of an Affiliate Program. There are several programs which are now used, the two most popular are Pay Per Click, and Pay Per Performance.

As the name Pay Per Click suggests, the affiliate is paid each time a visitor ‘clicks’ on the banner or link that directs them to the merchant’s website. The affiliate will be paid even if the visitor does not make a purchase. This is probably the least lucrative affiliate program option, because payment tends to be small, usually about $0.05 to $0.10 per click. Pay Per Performance includes both Pay Per Lead and Pay Per Sale. With Pay Per Lead, the affiliate marketer will get paid on every occasion that a visitor clicks through to the merchant’s website, and then takes some action that creates a lead for the merchant.

With Pay Per Sale, an affiliate gets paid every time a sale is generated by a visitor that clicks through from the merchant’s ad on the affiliate’s site. This is a more lucrative option, as the commission can be as much as 20% of the final sale price. However, it is only beneficial if the conversion rate of leads to sales is relatively high, for the product or service. Affiliate marketing is now a very profitable method of advertising products and services. The merchant is able to market their product on several sites, and in the case of a Pay Per Sale program, those ads are free until a sale is made. In this way, merchants can ensure that their marketing dollars are being put to the best use.

One of the most successful proponents of affiliate marketing is Amazon.com. Amazon has built a successful associate marketing program, which boasts over 1 million affiliates. As with any good marketing tool you do have to plan for success. So the basis of any affiliate program must be a good overall business plan, a good product and a solid marketing strategy.