Learning About Charts

By Rick Pendergraft

The value investor argues that fundamental analysis is better. The trader argues that technical analysis is better. Which way is a novice investor to turn?

In the long run, the fundamentals may be better. But when it comes to short-term trading, I base most of my decisions on technical analysis, and then use sentiment analysis as a secondary driver.

If you are not familiar with technical analysis, the chart below is a good learning tool.

This is a chart of the FXI, the iShares FTSE/Xinhua China 25 fund, an ETF designed to be a barometer for the Chinese stock market. China has been a hot topic for investors for several years now, and with the tremendous upswing in the FXI, you can see why. However, as you can also see, the FXI has been declining over the past four months. This downswing has caused a downward-sloped trend line to form, which runs counter to the upward-sloped long-term trend line.

So what do you do with a chart like this? You wait. Wait to see which way the stock breaks before making a move. When two opposing forces converge, the pressure on the stock tends to build. Once the stock moves outside of one of those trend lines, it tends to result in a huge move in the direction of the break.

[Ed. Note: Rick Pendergraft is a professional trader and market analyst. Rick teaches investors how to read chart patterns and how to take advantage of them in his new K.I.S.S. trading program. This program is a great way to earn and learn at the same time.]

What Older People Must Do to Preserve Their Strength

By Craig Ballantyne

Most people have not done enough strength training or built enough muscle mass to avoid falls as they get into their late 70s and early 80s. But there's some good news from Tufts University.

Researchers studied the diets and blood and urine of 384 men and women with an average age of 65. The results showed that a higher intake of foods rich in potassium, such as bananas, oranges, spinach, and tomatoes, may favor the preservation of muscle mass in older people.

The best way to increase strength and muscle mass is with a total-body resistance-training program two to three times per week. But to preserve those hard-earned gains, follow up your workouts with a healthy diet that includes lots of fruits and vegetables.

Travel Tip: Overseas Medical Care

By Jason Holland

A midnight walk on the beach of a small Thai village was the perfect ending to my best friend's first day on the Phi Phi Islands, a tropical archipelago in the Andaman Sea. But he probably should have opted out of the "fresh" pineapple smoothie offered by a beachside vendor before turning in for the night. By 2:00 a.m., he was at the clinic where he'd spend two days with severe food poisoning... and a few thousand dollars.

As my friend found out, getting injured or falling ill while traveling overseas can be more than just an inconvenience. Improper medical care, especially in undeveloped countries, can slow your recovery... and even lead to long-term health problems. Here are few tips to help you avoid this:

• Check with your doctor for advice and vaccinations appropriate to the area you will be visiting.

• Be up to date with your regular vaccinations before your trip.

• Register with the local U.S. Embassy at your destination. You can do this at travel.state.gov.

• Bring all the medication you take regularly, as well as a back-up supply.

• Purchase travel health insurance. The policy you have at home probably won't cover your medical care overseas (or an expensive evacuation if that becomes necessary).

• Practice basic health and safety: Wear your seatbelt, wash hands thoroughly and often, and wear a helmet while riding a scooter or motorcycle.

(Source: CNN)

It's Good to Know: Self-Repairing Material

French scientists have created artificial rubber that, when cut in two, can join itself together again. Within an hour of being cut, the rubber's as good as new. The self-healing is possible because of alterations at the molecular level made by the scientists. Possible applications include self-repairing seals on pipe fittings and children's toys.

(Source: BBC)

Word to the Wise: Winsome

"Winsome" (WIN-sum) - from the Old English for "joy" - means cheerful or light-hearted.

Example (as used in The New York Times): "Willard R. Espy... had such a winsome way with words, such an elegant ear for rhyme, and such a sure sense of the absurd that he once began a poem with the words 'I do not roister with an oyster.'"

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These articles appear courtesy of Early to Rise [Issue #2309, 03-21-08], the Internet's most popular health, wealth, and success e-zine. For a complimentary subscription, visit http://www.earlytorise.com/.