Your Questions About Paper Trading Free

Jenny asks…

North American Free Trade Agreement why does it exist, why important?

I know it’s like a free trade area between Canada, Mexico, and the US. But what are the advantages the disadvantages, what it means etc.? Thanks as much info as you can please…it will be greatly appreciated.

John answers:

The North American Free Trade Agreement (NAFTA) is a precursor to the North American Union between Canada, Mexico and the US…something like which happened with the European Union. There are government papers which support that this is EXACTLY what is happening. The websites that I am going to give you explains this better than I can.

This website will take you to a 20 minute presentation which explains WHY NAFTA is exactly like the EU and what is being planned for the US:

This website is an article about Chertoff, and how tells the people who work for him that the Dept. Of Homeland Security answers to Canada and Mexico and NOT the US people. It also gives information about the SPP (a program to institute the NAU) Look at the links at the bottom of the page to see how the SPP is creating government agencies..they call them “Working groups” but just looking at what they actually do tells the REAL story:

Here is a website which explains the “Myths and Lies” about NAFTA and the SPP:

EDIT: Jim is totally off. In case he hasn’t noticed there are no “High paying jobs” LEFT in the US…they all went to China and India and Korea! People in the US are being laid off left and right and it will only get worse as time goes on because Companies go overseas because it is cheaper for them to do so.

Steven asks…

How do I start buying stock? which on-line brokerage is best to use?

Looking to buy a stock and just keep it. not trade for awhile but just purchase it. is etrade a good site>

John answers:

You open your account with the broker who has the fairest fees and commissions as well as all the research tools you think you’ll need.

AND you open the right kind of trading account for your needs and trading style.

Investigate the different investments you have available to you. Make THE BEST investment you can: Invest in yourself – your own education. Once you have that knowledge, no one can ever take it away.

In the beginning “newbie” traders & investors DO NOT INVEST any money. It probably won’t be long when you’ll feel you’re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in.

You should LEARN HOW:
A] the stock market works. B] to invest in many, many various ways. C] to properly trade
D] Properly manage the money in your trading account.

“Newbie” investors & traders ALWAYS make mistakes. In fact, throughout a person’s trading, he/she makes mistakes.

In the beginning, you READ & LEARN about the market & how it works: Read “Investing for Dummies” As you read & do research about the investments you are interested in, sometimes you’ll come across a financial or investment term you never heard before.
Http:// is a free site. It’s recognized by Y! A as a “Featured Knowledge Partner”.

You can usually find excellent, easy-to-understand definitions of many financial & investment terms by going to Investopedia’s dictionary.

It also has a free, paper trading platform. You can set up a virtual account & almost trade as though you were trading with real money.
Http:// is also recognized by Y! A as a “Featured Knowledge Partner”

THIS IS NOT SPAM: I DO NOT know this man. I am not associated w/ him in any way. I know of him & the wonderful book he wrote. You should invest in a copy of
“The Richest Man in Babylon” by George S. Classon. You can get the book on
Its easy to read & follow. You can write in it & make notes in it. Simply read five [5] pages of this book – or any book – each and every day.
OR You can leave it on the shelf, on a table or on the floor & let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

Ron Berue
Yes, that is my real last name!

George asks…

What do I need to do to be considered a nonprofit organization?

What paperwork do I need to fill out other than Tax Exemption papers, or is that all I need to fill out?

What is the fee for filling the papers? Anybody know?

John answers:

I answer this question a dozen times every day.

I know you have good intentions.
But that’s not enough.

You cannot BE a nonprofit.
A nonprofit organization is a corporation, just like Sears, or General Motors, or McDonald’s.
A nonprofit corporation is a legal entity.
Creating one is a very complex and expensive legal process.
Only an adult can do this.
No, teenagers can not do it.

You must file Articles of Incorporation in your home state, verify that the name you choose is available, apply to the IRS for tax exempt status, obtain an EIN, state solicitation license, and sales tax exemption certificate, create a board of directors, elect board officers, establish a place of business, adopt by laws, hold regular board meetings, keep publicly-available minutes of those meetings, and file umpteen financial reports with local, state, and federal government agencies.
That will cost between $1,000 and $2,000, not counting lawyers’ fees.

THEN you can begin to collect money for your activities.
If you don’t do that, you do not have a nonprofit.
You have a hobby.
And YOU CAN GO TO JAIL for soliciting without a license.

We can not allow just anyone to collect money from the public and claim they will “give it to poor people”.

All organizations – profit and nonprofit – have expenses.
Rent – utilities – office furnishings, supplies, and equipment – wages, salaries, and employee benefits – transportation – insurance – lawyer and accounting fees – and lots more.
Believe me, they get nothing for free.

And yes, wages.
Ten percent of the American public works for nonprofits – paychecks, vacations, sick days, health insurance, pensions, the whole nine yards.

The Red Cross, Salvation Army, United Way, most universities and hospitals, churches, homeless shelters, athletic organizations, boy and girl scouts, labor unions, NCAA, NFL, MLB, NHL, NBA, Republican Party, Democratic Party, US Chamber of Commerce, Planned Parenthood, PTA, Public Broadcasting System, are all nonprofit.

They all need money to operate.
The millions of people who work for them do not do it all for free.

There are no laws about it, but a nonprofit that spends no more than about 20% of its income on administrative expenses – like those listed above – is considered to be well -run.
The rest of the money goes to program expenses.

Managing a nonprofit is a whole specialty.
You have to learn to balance the organization’s financial needs with its duty to provide services.
You need to know about fundraising, recruiting and training staff and volunteers, program development and service delivery, marketing, budgeting, board relations, public relations, media reliations, government relations, financial management, legal requirements, and lots more.
You do NOT just create a website and sit back while the money flows in.
It does not work that way.

When the company brings in more money than it spends, the excess is called a profit.
The company can distribute that profit to its stockholders.

When the nonprofit organization brings in more money than it spends, the excess is called a fund balance.
There are no stockholders.
The money stays with the organization to continue its work.

There are thousands of rules governing both for-profits and nonprofits.
For profits pay taxes.
Nonprofits do not, but they do file extensive income and expense reports with the IRS and other government agencies.

Charities are only one of about 32 different categories of nonprofits.
The others are political, labor union, trade associations, etc.

Lots of detailed info here.

There were 973,961 charities in the US in 2010.
They are all competing for very scarce dollars.
You do not need to reinvent the wheel.
Find one doing work you’re interested in and volunteer.


I have been a volunteer, staff, manager, board member, board president, consultant, and lobbyist for nonprofits for 30 years.

Nonprofit Organizations: Myths and Facts

Sandra asks…

Where can I find a list of marketing people or assistants for large companies?

I am looking for a free list of people or companies to contact. I would also be looking for a list of magazines with their address.

John answers:

Try first the trade publications, like magazines and journals that announce promotions and do personnel stories. Also, the business section of your locale paper is a good starting place. If your city publishes a business journal newspaper you are likely to find something there. Talk to people. Just ask. But don’t appear snoopy or sly. If asked why you want to know be honest. If you are looking for a job let them know. Visit the companies lobby and pick up their literature and annual report. They are a marketing firm. The first thing they have to market is themselves. Or just ask the receptionist.

Sharon asks…

What is the best automatic investment frequency?

Regardless of commission on trades, is it better to invest 60$ once a month or 15$ every week?

I’m new to investing and wondered how the frequency affects the outcome and I must be trying the wrong google search.
the commission would be the same for me in the situation presented.

John answers:

Typically, the same frequency as your paycheck. However if you are concerned about excessive transaction costs then define a proportion of your portfolio to invest with the remainder kept risk free. Ben Graham advocates to only invest just shy of 50% in stocks with the rest risk free in investment grade bonds and cash equivalents. Claude Shannon once proved mathematically that given the efficient market hypothesis which would leave an equal probability of stocks going up as down, the optimal would be a 50/50 portfolio. Then define a criteria for rebalancing such as the portfolio being 10% out of balance (you actually don’t want to rebalance too often, once a year is about right and Ben Graham advocates rebalancing on a date that you will remember such as the fourth of July). You then simply deposit a percentage of your paycheck at whatever interval you receive your salary, into the money market portion of your portfolio and when the portfolio is out of balance by the prescribed amount, you rebalance either by buying if the percentage of the portfolio kept risk free exceeds the threshold or by selling if the percentage of the portfolio at risk invested exceeds the threshold. That way you are automatically buying low and selling high.

Search on “Shannon’s Demon”, “Kelly Criterion”, Daniel Bernoulli’s 1738 paper “Exposition on a New Theory of the Measurement of Risk”, Latane, and watch Warren Buffett’s speeches on youtube, pay particular attention to his russian roulette analogy when talking about LTCM and note how that references the geometric mean of outcomes.

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