Specializing in Philately – An Introduction

If philately can command one’s attention into the second year, probability is high for the collector to be on course into specializing in some way. The rationale being it is overwhelming to collect everything. Countries have steeply increased stamp issue rate - from tens of different stamps per annum in the early part of the 20th century, to be in the hundreds now - a rate that makes it trying for philatelists to keep up for various reasons. Philatelists on their part started specializing. The types of specializations a philatelist can branch-out into are:

Thematic: These are collections based on some theme. Catalogs and albums geared towards thematic collectors abound. Thematic can be classified broadly into :

1. Topicals: They are categories based solely on the design in stamps. The most common topical categories are Agriculture, Aviation, Birds, Carriages, Castles, Children, Coat of Arms, Dance, Defense, Fairs, Flags, Great People, Insects, Kings, Maps, Marine Life, Nobel Prize, Olympics and other International Games, Philately, Queens, Railways, Red Cross, Religion (Christmas, Hanukkah, Kwanza, Ramzan, etc), Ships, Sports, and Stamps on Stamps.
2. Other themes: Varied areas as First Day Covers of specific countries and/or sub-themes such as Airmail FDCs, UNICEF, UN, Plate Blocks, Sheets, Europa, Classic (stamps issued prior to 1940 only), Covers of specific countries and/or sub-themes, Overprint, Interesting cancellations, UPU (Universal Postal Union) collections, etc belong to this category.

Country: Specializing by country is high in the popularity list. Usually, gathering stamps from one’s native country or countries to which an individual has some connection (adopted country, a country in the same region as you reside, country where you work or have worked before, country whose causes you support etc.) are obvious choices. Another alternative is to accumulate stamps from countries that are a challenge to come by due to political or other grounds. Those include collecting stamps from areas that ceased issuing stamps. Some of the more popular areas for serious collectors include:

1. German States (Baden, Bavaria, Bergedorf, Bremen, Brunswick, Hamburg, Hanover, Lubeck, Mecklenburg-Schwerin, Mecklenburg-Strelitz, Oldenburg, Prussia, Saxony, Schleswig-Holstein, Thurn and Taxis, Wurttemberg, and North German Confederation),
2. Canadian Provinces (British Colombia and Vancouver Islands, New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island), etc.
3. Australian States (New South Wales, Queensland, South Australia, Tasmania, Victoria, and Western Australia),
4. Indian sub-continent (Chamba, Faridkot, Gwalior, Jind, Nabha, Patiala, Alwar, Bamra, Barwani, Bhopal, Bhor, Bijawar, Bundi, Bussahir, Charkhari, Cochin, Dhar, Duttia, Faridkot, Hyderabad, Idar, Indore, Jaipur, Jammu and Kashmir, Jasdan, Jhalawar, Jind, Kishangargh, Las Bela, Morvi, Nandagaon, Nowanuggur, Orchha, Poonch, Rajasthan, Rajpeepla, Sirmoor, Soruth, Travancore, Wadhwan, and Bahawalpur).
5. South African sub-continent areas of Cape of Good Hope, Transvaal, Natal, etc.

Other options include collecting occupation issues, offices abroad, etc.

Read More...

Last Updated: 07/2011.

Triple Leveraged ETFs - An Introduction

The Triple Leveraged ETFs which debuted in November 2008 is still considered as a relatively new product from Direxion. Direxion is a 1997 private enterprise focused in specialized investment products. Below is a list of some of the most popular Direxion Triple Leveraged ETFs:

Product	Ticker Symbol	Performance Benchmark
Direxion Energy Bear 3X Shares	ERY	300% the inverse of the return of an investment in the Russell 1000 Energy Index.
Direxion Energy Bull 3X Shares	ERX	300% the return of an investment in the Russell 1000 Energy Index.
Direxion Financial Bear 3X Shares	FAZ	300% the inverse of the return of an investment in the Russell 1000 Financial Services Index.
Direxion Financial Bull 3X Shares	FAS	300% of the return of an investment in the Russell 1000 Financial Services Index.
Direxion Large Cap Bear 3X Shares	BGZ	300% the inverse of the return of an investment in the Russell 1000 large-cap index.
Direxion Large Cap Bull 3X Shares	BGU	300% of the return of an investment in the Russell 1000 large-cap index.
Direxion Small Cap Bear 3X Shares	TZA	300% the inverse of the return of an investment in the Russell 2000 small-cap index.
Direxion Small Cap Bull 3X Shares	TNA	300% of the return of an investment in the Russell 2000 small-cap index.

The 300% leverage is achieved by using futures contracts and swap contracts. Below is a look at how the expenses associated with leverage affects the overall performance (taken from Direxion leveraged fund introduction sheet):

Product	Formula	Expected Return Sample
3X Bull Funds	Daily Benchmark Return * Daily Beta - Daily Interest Expense – Daily Fund Expense Ratio	2.00% * 3.0 - 0.03% - 0.005% = 5.965%
3X Bear Funds	Daily Benchmark Return * Daily Beta + Daily Investment Income – Daily Fund Expense Ratio	2.00% * 3.0 + 0.06% + 0.005% = 6.065%

The expected return sample assumes a benchmark return of 2% for the bull fund and a -2% return for the bear fund. As shown, the impact of expenses is minimal on a daily basis – in fact, for the bear fund, there is investment income associated with creating the leverage as opposed to an expense for the bull fund because, the bear fund uses short-selling which realizes income that can be invested to produce daily income.

The question to help figure out the risk associated with the leverage is: What happens to an investment in one of these funds (either bull or bear), if the associated index goes up more than 33.34% one day and follows it up with a 33.34% down day? – The answer is that your investment will go to zero – the up-day will wipe out the bear fund while the down-day will wipe out the bull fund. Such an outcome is unlikely but helps demonstrate the fact that in volatile markets that lack direction, these investment options can lose value very quickly. A more realistic example in a market that lacks direction using FAS and FAZ and assuming FAS and FAZ along with the associated index value is all at 100 at the start of the first trading day:

End of Day	Index Performance Percentage	Index Value	FAS Value	FAZ Value
One	-3.00	97.00	91.00	109.00
Two	+3.00	99.91	99.19	99.19
Three	-5.00	94.91	84.30	114.07
Four	+10.00	104.41	109.59	79.85

So, over the course of just 4-days, there is an underperformance - FAS should have been at 113.23 and FAZ should have been at 86.77. Another example that uses FAS and the same assumptions in a market that is in a steady up-trend follows:

End of Day	Index Performance Percentage	Index Value	FAS Value	FAZ Value
One	+3.00	103.00	109.00	91.00
Two	+2.00	105.06	115.54	85.54
Three	+5.00	110.31	132.87	72.71
Four	+4.00	114.72	148.81	63.98

In this scenario, there is an outperformance when compared to the target index value at the end of the fourth day – FAS should have been 144.16 and FAZ should have been at 55.84. Similar outperformance exists in a steady down-market as well.

Summary:

It is critical to understand the use of leverage and how it impacts the performance of the funds over a period of time. Since these funds track the performance of the associated index at 3 X (or inverse) leverage on a DAILY basis, it is not possible to mimic the performance of the associated index over a period of time. As the latter spreadsheets indicate, if one can guess the market direction correctly, the funds can provide outperformance over the period of time anticipated. Conversely, in a market that lacks direction, these funds are unsuitable.

The legitimate question that begs is if one can get 3X leverage using these funds, why not funds that have leverage 5X, 10X, 100X, etc. Presumably, one can strike gold overnight by guessing the market direction correctly for a single day by holding a 100X leveraged fund. While the advantage is undeniable, technically it is impossible to increase leverage much further – margin requirements limit the amount of leverage possible. A commonly overlooked factor is that the chances of these funds going to zero over a short period of time increases as the leverage increases. Looking at the performance of FAZ/FAZ since its inception should make this pretty obvious - both these indexes show large negative returns over the few years since inception, indicating a strong possibility of both going to zero eventually.

We have nibbled a few times on FAS/FAZ per our previous tweets and blog posts. Following the March lows, we entered FAS for four days realizing a good return and followed it up with a few intra-day round trips that had a net effect of a small positive return. Our opinion is that these products are suitable for the following scenarios:

1. The benchmark index is at extremely overbought levels. Entering the bear-funds at such levels should prove beneficial over the short-term (a few days).
2. The benchmark index is at extremely oversold levels. Entering the bull-funds at such levels should prove beneficial over the short-term (a few days).
3. You anticipate a steady bull/bear market for the benchmark index. Entering the bull/bear funds during such market conditions should prove beneficial over the anticipated period (longer term).
4. Day trading – when the benchmark index is extremely volatile, there is an opportunity to do roundtrips to realize small profits (intra-day).

Because of the leverage and associated risks, the above strategies should only be used with small portions of your overall portfolio. But, the risk-reward ratio is good assuming your strategies are sound and comfortable to work with.

Related Posts:


1. Mutual Funds and Exchange Traded Funds - An Introduction.
2. Triple Leveraged ETFs - An Introduction.

Last Updated: 10/2011.

Economy, Business, Credit, and Debit at the Roundup #6

Welcome to the April 22, 2009 edition of the Roundup.

Jack Russel presents Google Cash Detective-GCD-The Google Adwords Playing Field Shifts posted at Biggest Firesale Of Online Marketing Products Reviewed, saying, "Are you like me? Tired of losing money on Google Adwords? Can't seem to find a profitable keyword-ad-landing page combo? Well, the Google cash detective spy tool is just what struggling ppc marketers need. Read more......."

Debbie Foster presents How To Blog For Profit posted at Internet Income - The Journey, saying, "Individuals that dream of blogging for profit can do so with a minimal understanding of blogging software and the willingness to put in the time and hard work necessary. Yet, only a small percentage of individuals actually get the profits they expected from their blog. So why is that?"

Destroy Debt presents Get Out of Debt Tips posted at Destroy Debt.

apply4-credit presents Should I Pay Only The Minimums on my Credit Cards? posted at Apply4-Credit.

Debbie Ducker presents Blog Carnival - Submit an Article to a Carnival posted at Ducker Promotion Ezine, saying, "baby boomers and retirement age, money generation tips, instant businesses, budget marketing tips and more..."

Deposit Accounts presents A Wish is a Goal Unfulfilled posted at Deposit Accounts.

Sharyce Arciaga presents How to Make Money While Being A Student posted at Internet Marketing Articles, saying, "Learn how to make money while you are attending high school or college."

kathryn presents The Relationship Between Clutter and Money posted at Out of Debt Christian, saying, "Think your clutter isn’t costing you? Think again! It’s not just about being messy or unorganized. Clutter can cost you time and money. There’s no better time than spring to start cleaning up the mess and clearing out the junk. Need motivation? Keep reading to learn about some of the costly affects of clutter."

Britannica Blog presents Business Writing Quizzes: How Well Can You Do? | Britannica Blog posted at Britannica Blog, saying, "Somebody said “Sloppy writing reflects (and advertises) sloppy thinking.” I guess the corollary would be that “Careful, clear writing reflects (and advertises) clear thinking.”"

Shaun Connell presents Why You Shouldn't Get a Short-Term Payday Loan posted at Short-Term Loans, saying, "Today’s struggling economy has had a huge impact on personal finances around the world. People are having a tough time figuring out how to pay their bills, pay off their accumulated debt, and maintain a stable financial situation for themselves."

nickel presents Debt Reduction vs. Retirement Savings posted at fivecentnickel.com.

Keith Gill presents Discover your Friday Night Essence for true Business Bliss | Internet Business - Vision Driven Business posted at Vision Driven Business.

cody butler presents Investing In Cds, How Does It Work? posted at Dream Life Coaching Blog. Ask your questions., saying, "Basic overview to investing in CD's, the pro's the cons and the right time to do it."

Michael Haltman presents Pop The Economic Pimple While The Cancer Runs Wild posted at The Political and Financial Markets Commentator, saying, "I find the bonuses paid to the AIG executives and financial "geniuses" that created and sold the products that has helped to bring the economy of the United States and the world to its knees to be abhorrent and bordering on the immoral. If there is a way to abrogate them within the boundaries of contract law, then it must be done! But that is not the point of this post. That said, let's move on."

Martin Russell presents Viral Video… For Small Business? posted at Word of Mouth Marketing, saying, "I’ve been paying attention to online video for quite a while now. It’s been hot for the internet - but does it have any relevance for viral word of mouth in small business?"

Simon Stapleton presents Should You Take a Lower-Level Job? posted at Career & Personal Development for CIOs, Technical Professionals and Self-Professed Geeks, saying, "This is a burning question on the lips of many IT people who are out of work, or want to move on from a dead-end job. Should you take a role that you consider beneath your abilities and talents to get into the workplace again to put food on your plate?"

Ben presents Emergency Funds for Losing Your Job posted at Money Smart Life.

John Russell presents Gap Insurance - Should You get It? posted at The Low Cost Auto Insurance Guru, saying, "Gap insurance is an additional insurance policy that is usually tacked on to your monthly lease payment or (finance payment if you are financing your car). Usually you don"

CreditCardAssist.com presents Building Good Credit With Secured Credit Cards posted at Credit Card Assist.

Andrew Rondeau presents 99% Of All Managers Know The Basics Of Management But posted at GreatManagement Blog, saying, "I believe 99% of Managers know the basics of Management but only a small percentage actually ‘do it’. Here's why."

Debt Freedom Fighter presents Why Do I Only Qualify for Low Limit Credit Cards? posted at Discover Debt Freedom!.

Savings Toolbox presents Are you Saving For a Job Loss or Job Change? posted at Savings Toolbox.

Tushar Mathur presents Health Savings Accounts explained posted at Everything Finance, saying, "One thing is certain with healthcare: premiums continue to climb higher. As a result, more employees may find that health-savings accounts (HSA) have been added to their benefits packets this year, in some cases replacing HMO and PPO offerings."

Debt Free Destiny presents 30 Day No Spend Challenge posted at Debt Free Destiny.

Myscha Theriault presents Twelve Ways to Become Rent or Mortgage Free | Wise Bread posted at Wise Bread, saying, "Start working towards financial independence by reducing your rent or mortgage overhead."

J.D. Bell presents Property Liens 101 posted at Tax Deed Investing.

stephen todd presents Currency Market - Online Currency Trading posted at Currency Trading, saying, "Currency Market - Online Currency Trading: Would you believe that currency trading is the biggest business in the world? Over three trillion dollars worth of transactions take place everyday in the currency market and online currency trading is now available to everyone. The market is fast and extremely volatile where literally fortunes can be made in the twinkling of an eye."

Margaret Garcia presents 100 Resources for Laid Off Employees and Job Hunters posted at Construction Management Degrees.

Billeater presents Avoid Debt Reduction Scams posted at Billeater.

debt kid presents Getting a Mortgage After Foreclosure Not So Simple posted at DebtKid.

Jack Schmidt presents Blog Carnival - Submit an Article to a Carnival posted at SectorMatic Money Journal, saying, "Personal Finance | Everything for the Big Spender On A Budget! Now you can live like a fat cat, even if you're on a money diet. Laugh all the way to the bank with Jack Schmidt and SectorMatic Money Journal. It's for you!"

Leave Debt Behind presents Quick and Easy Ways Your Teen Can Make Money posted at Leave Debt Behind.

Home Based Business presents MyLot : Earn Extra money with Paypal posted at Online Home-Based Business Opportunity, saying, "What is MyLot? Good Question. I also asked this same question when I first heard this program. I learned that it is another get paid to post site that pays its members’ activity. With MyLot, you get paid for starting a new discussion, commenting on other member’s discussions, and uploading photos."

The Smarter Wallet presents Investing In The Stock Market? Rules To Help You Sleep At Night posted at The Smarter Wallet, saying, "Thanks!"

Andrew Peel presents How Will You Manage Your Money After The Recession? posted at APeel Solutions Blog, saying, "President Obahama has endorsed them, Donald Trump has so has Robert Kiyosaki. What are they? Small businesses is the answer. In particular online home businesses. The main reason some heavy hitters back them is because they have a global reach from your home PC. But do you know how to get wealthy and stay wealthy?"

All Others

Bruno Vigneault presents The Science of Getting Rich posted at How To Make A Miracle Happen.

Relax presents The art of taking risk posted at The Wise Curve, saying, "mastering the art of taking risk will bring you one step closer to success in your career, study, relationship, investment, and many more areas in your life."

Jay Green presents Remote Computer Maintenance: RCM posted at Remote Computer Maintenance, saying, "Save Money"

Alvaro Fernandez presents Brain Health News: Top Articles and Resources in March posted at SharpBrains: Your Window into the Brain Fitness Revolution, saying, "Trading expert Brett Steenbarger's Lesson #4: "When you act as your own trading coach, your challenge is to stay fully conscious, alert to risk and opportunity. One of your greatest threats will be the autopilot mode in which you act without thinking, without full awareness of your situation. If you shift your trading environment, you push yourself to adapt to new situations: you break routines.""

Credit Card Addict presents Reduced Credit Card Limits Hurting Credit Scores posted at CreditAddict.

Money Tipper presents How to Opt Out of Unsolicited Credit Card Offers posted at Money Tipper.

Homemaker Barbi (Danelle Ice) presents 5 Surefire Ways to Recession Proof Your Job posted at Homemaker Barbi, saying, "5 Surefire Ways to Recession Proof Your Job: Guest poster Shellie shares several simple steps that can help you avoid being laid off."

Wenchypoo presents Omnibus Obama Tax Avoidance Tip Sheet and Small Loophole Collection posted at Wisdom From Wenchypoo's Mental Wastebasket.

Kelsey presents Legitimate Paid Surveys posted at Cash To Spend - Online Paid Surveys, saying, "Taking surveys online can make you some extra spending cash. It won't make you rich and ideally you use the extra money to get out of debt or save it for a rainy day."

Nate Desmond presents Giveaway: Free TurboTax Online Premier Tax E-Filing posted at Debt-free Scholar.

Kathleen Gaga presents Street Smarts Marketing & Promotions: Money comes to you when you do this one thing! posted at Street Smarts Marketing & Promotions, saying, "What is the solution you offer your clients? Not what you think the solution is, but the actual solution. The greater the solution, the more money they are willing to"

The Budgeter presents Four Steps To Create A Guilt-Free Budget posted at Keep Your Cash, saying, "A brief rundown on how to create a guilt-free budget"

Roshawn Watson presents Mark to Market NOT Mark to Myth posted at Watson Inc, saying, "Half the country's banks--4,000 in all--would be bust if they marked their loans to what the loans would fetch in an auction. Banks are fooling themselves by refusing to mark busted assets down. Banks are on a prayer mission that somehow prices will come back and they won't have to face reality."

Brian McKay presents Housing Affordability posted at MonitorBankRates.com, saying, "Recent record low mortgage rates and a big drop in home prices has made housing more affordable these days."

Dorian Wales presents Learning the financial language will save you money posted at The Personal Financier, saying, "Proficiency in "Financialish" equals money and empowerment"

The Investor presents Compound interest turbo-charges your salary, too posted at Monevator.com, saying, "A 10% salary raise might not seem like much, but over the years steady progression can leave you richer than those who neglect to develop their careers."

Mr. Self Development presents 4 Simple Steps to Financial Success posted at Mr. Self Development.com, saying, "This article is about 4 simple steps to financial success."

Jacqulyn Richey presents Hope for Distressed Homeowers posted at News - Las Vegas Real Estate by Jacqulyn Richey, saying, "With so many homeowners struggling to pay their mortgage, the Making Home Affordable Initiative is a welcome relief. The program is designed to help 9 million homeowners avoid foreclosure."

That concludes this edition. Submit your blog article to the next edition
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road to financial independence, blog carnival.

Carnival of road to financial independence #6

Welcome to the April 21, 2009 edition of road to financial independence.

Beating Inflation

Silver Investor presents Why I'm Piling Into Silver posted at Gold Investing Info, saying, "Given the prospects of stagflation, buying silver is looking like a good investment option."

Summer Munyon presents How To Find The Bottom Of The Real Estate Market posted at Tallahassee Real Estate Blog, saying, "If you want to know the beginning of the next phase of the market turn, just keep an eye on the green line in the graph below. You can visit this graph (updated twice per week) at The Market Bulletin."

Frugal Living

KCLau presents Save money the stupid way posted at KCLau's Money Tips, saying, "Simple ways to save money"

MatthewPaulson presents How to Get a Mortgage with a Great Interest Rate in 2009 posted at Fine-Tuned Finances.

PFCreditCards presents Lower Your Monthly Subscriptions Cost by Calling posted at PF Credit Cards, saying, "It's simple. Just call to lower your monthly bills."

MoneyNing presents Inheriting Generations of Frugal Living posted at Money Ning, saying, "Think ahead and do something for your future generations. Start saving."

Dave presents Quick Tips Vol 5 posted at Cheapo Groovo.

Dollar Frugal presents Dollar Frugal » Blog Archive » Investing in Properties Now posted at Dollar Frugal.

Buck Weber presents 10 Great Resources For Free Books posted at THE BUCK LIST, saying, "The following sites give you access to an amazing number of resources you might not be able to find anywhere else."

Peak Personal Finance presents 3 Smart Personal Finance Tasks You Are Probably Putting Off posted at Peak Personal Finance.

Big Cajun Man presents Canadian Personal Finance Blog » Blog Archive » Advice for New Grads? posted at Canadian Personal Finance Blog, saying, "Start your new life away from school in a smart financial way."

Tiffany Colter presents Free Webinar coming, but until then? posted at Hidden Leaks, saying, "Coupons can be a valuable tool to stretching your dollars, but sometimes they cost more than you think. Find out when you should use them and when you should leave them at home. Plus, sign up for free webinars and get more money-saving tips!"

Kim Staudenraus presents When Frugal Costs You Money | Tranquility Financial Visioning posted at Tranquility Financial Visioning, saying, "There is a fine line between being frugal and being cheap, cheap costs you money, being frugal saves you money. Do you know the difference?"

Jim DeSantis presents 3 Reasons That Can Cause Your Family Budget To Fail posted at Free Family Budgeting eBook from On Line Tribune, saying, "Money is the only tool you have to secure your future and the future of your family and to live a good life today. Unless you get spending under control and start treating your household like the goldmine it really is, you are destined to struggle financially for the rest of your life."

Steve Faber presents Auto Theft Statistics – Where is the Best and Worst Place for Car Theft? | Secrets to Cheap Car Insurance posted at Cheap Car Insurance, saying, "Many people's car insurance bill is among their largest expense. Were you live can play a big role in that, and here's why."

FMF presents Free Money Finance: True-Life Stories of Saving on a Wedding posted at Free Money Finance, saying, "Real-life ideas for saving on a wedding."

FIRE Getters presents FREE Health Care for the Unemployed - Take Care Clinic posted at FIRE Finance.

Patrick @ Cash Money Life presents Should you change your own oil? posted at Cash Money Life, saying, "A look at how much money you really save when you change your own oil."

Silicon Valley Blogger presents FNBO Direct: Best Online Savings Account, ETrade Bank Interest Rate At 3% APY posted at The Digerati Life, saying, "Thanks!"

PicktheBrain presents Is a College Education Worth a Lifetime of Debt? posted at School Loans.

Passive Income

Finance Tips 101 presents Personal Grants To Pay Off Debt posted at Finance Tips 101.

Bank Champ presents High Yield Reward Checking Accounts posted at Bank Champ, saying, "This is a post about how those 5% high yield reward checking accounts work, I suppose it counts as passive income?"

ITAKEOFFTHEMASK presents Time Consuming Activities for Bloggers posted at Make Money Faster!, saying, "Are you guilty of time wasters when you blog? Efficiency is the key to successful blogging and making money online. Make money faster by saving time!"

Peter OBrien presents Chosing Your Keywords posted at Free Internet Marketing Tips, saying, "Keywords will not work for you if you keep them generic. Mostcustomers log onto the internet already knowing what they needor want. Remember, these shoppers can"

Richard Adams presents What Are The Benefits Of Setting Up An Ebay Store? posted at Open An Online Store.

Reducing Expenses

Investing School presents Realized and Unrealized Gains and Losses posted at Investing School, saying, "It is a simple subject but it is often confused. Unrealized and realized gains explained."

Bohden James presents 8 Easy Ways To Save Money Right Now posted at Easy Ways To Save Money, saying, "Money just doesn't go as far as it used to and trying to support a family in the process makes it even tougher. Sometimes it's the easy decisions that get overlooked because they make your life easier. Nobody ever said that saving money was going to be easy. If you want to save money, you have to work at it. Here's 8 simple ways that you can cut those expenses and start saving money today."

Nicholas Powiull presents Conscious Flex: How to Live Your Passion (How I Became a Fulltime Blogger) posted at Conscious Flex, saying, "Many people have emailed me about my new opportunity in becoming a fulltime blogger. It seems everyone is wanting a logical way of how I became a fulltime blogger and how they can produce the same results."

Mike presents This Great Depression Will Be Known As The Great Stagflation posted at Great Depression Version 2: Bear Market and Economic Depression, saying, "The current economic crisis is just beginning. It will wind up being known as the Great Stagflation."

Frank Vertin presents Just Buy Index Funds Directly posted at NO LOAD INDEX FUND, saying, "Buying an S&P 500 index fund through an investment counselor can substantially increase your initial purchasing costs and and drive up your annual management expense fees. Unfortunately, the vast majority of individual investors buy mutual funds and ETFs through brokers and investment advisers. Rarely do financial advisors recommend that you buy index funds with low fees. This is because low cost, no load mutual funds do not pay them as well as loaded, high fee mutual funds."

Richard M. Rothschild presents The Top 14 Low Cost Taxable United States Bond Mutual Funds (Low Minimum Deposit) posted at Bond Market Index Funds, saying, "The top 14 low cost taxable US fixed income funds with a $10,000 or lower initial deposit. Low investment management fees are very important with fixed income funds. Simply put, if you pay higher bond mutual fund fees, then these bond management expenses tend just to be a deadweight loss to you. When you pay more in bond mutual fund fees, you are just wasting your money."

Ralph Jean-Paul presents Building Self-Discipline posted at Potential 2 Success, saying, "The most disciplined business people are usually the most organized, efficient and successful. They are also the people that make the most money. Learn to build self-discipline in your personal and professional life and see the difference it will make."

Raj Patel presents Planning for Emergency Expenses When Paying Down Debt posted at DebtGoal.

Stock Investments

Steve Patterson presents FastSwings - Blogs - US Markets Rally Despite Being Overbought posted at FastSwings, saying, "Looking for a bottom in the stock market to switch from short positions to long positions."

Michael presents Save Money with Discounts on Your Auto Insurance Policy posted at Vital Motion, saying, "No one likes to pay auto insurance premiums, but you can cut down the cost of your policy with a number of different discounts."

jim presents The Complete Idiot's Guide to Value Investing posted at Blueprint for Financial Prosperity.

Larry Russell presents Most Individual Investors Are Poor Personal Portfolio Managers | Personal Investment Management posted at THE SKILLED INVESTOR Blog, saying, "Investors more easily understand investment costs that are directly measurable, such as fees deducted on investment statements. However, many investors ignore or are unaware of the opportunity costs of their sub-optimal investment behaviors. Opportunity costs are usually much more difficult to measure directly, but these investment costs can be even higher than more visible investment fees."

Walter W. Fouse presents 7 Ways to Pick the Best Noload Mutual Funds and ETFs posted at Best No Load Funds, saying, "The vast body of investment research studies show that there really are better approaches to buying and owning mutual funds and ETFs. You do not need to frantically chase fund performance. Performance chasing simply does not work."

James Fowlkes presents 5 Steps to Becoming a Better Investor posted at JamesFowlkes.com.

Stock Trading Brokers presents SEC Considers Proposal for Uptick Rule posted at Stock Trading Brokers, saying, "Bring back the uptick rule. There was actually no harm done when it was there. When it's not broken, don't fix it. Now that people have shed light on it, of course there are criticisms."

Ripe Trade presents Ripe Trade: Leveraged and inverse ETF pitfalls posted at Ripe Trade, saying, "This post explains the underperformance of leveraged and inverse ETFs because they are designed to track the underlying index based on a 1 day performance, these ETF’s wont track well over longer periods of time."

Jae Jun presents How to Invest In the Stock Market-Background posted at Old School Value, saying, "A personal story of why anyone can learn to invest in the stock market."

Zach Scheidt presents Joseph A Banks - Defying All Odds posted at ZachStocks, saying, "Jos. A. Banks Clothiers, Inc. (JOSB) has delivered stunning results despite a very difficult economic environment. The company handily beat expectations and reported a strong fourth quarter due to aggressive promotions. The stock still looks attractive and could be a high flier in coming weeks."

That concludes this edition. Submit your blog article to the next edition of
road to financial independence
using our
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Past posts and future hosts can be found on our

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Telefonaktiebolaget LM Ericsson (ERIC) April 7.5 Calls Exercised

The Telefonaktiebolaget LM Ericsson (ERIC) April 7.5 covered calls we wrote on 1/29/2009 were called away following options expiry as the shares closed well above 7.5. The net effect of those two transactions is roughly 2.5% hit on the return. The total returns from all our transactions are just about break even.

Below is our updated portfolio - it is about 30% in the red. It includes FAZ (Direxion 3X Bear) transaction we exited, as we twittered previously. Our cash position is about 18% - it is expected to go above 20% as we liquidate our FAS (Direxion 3X Bull) position within the next few days.:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	16.99	4.54	(1.83)	0.38
Philip Morris International (PM)	1/4/2005	32.19	37.32	8.57	15.93	0.45
Kraft Foods (KFT)	Various	24.03	22.67	4.04	(5.68)	0.23
Pfizer (PFE)	Various	24.37	14.16	6.31	(41.89)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	17.51	7.80	(30.72)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	2.82	1.26	(74.88)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	18.37	5.73	(53.16)	0.03
Patni Computers (PTI)	8/10/2007	20.85	6.65	2.96	(68.13)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	46.55	4.15	(45.31)	None
Anthracite (AHR)	11/09/2007	7.97	0.49	0.22	(93.85)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	3.65	3.25	(20.82)	None
Harvest Energy (HTE)	11/28/2007	21.01	5.06	1.81	(75.89)	0.22
iRobot (IRBT)	12/18/2007	18.65	8.35	2.97	(54.84)	None
LDK Solar (LDK)	01/22/2008	30.49	8.39	2.24	(72.49)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.70	1.26	(70.60)	0.00
TD Ameritrade (AMTD)	05/21/2008	17.68	16.34	5.82	(7.60)	None
Trina Solar (TSL)	Various	24.90	12.38	5.51	(50.29)	None
Costco (COST)	08/01/2008	62.28	45.77	4.08	(26.51)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	18.99	2.54	(48.59)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	7.17	4.47	2.96	0.00
Direxion Financial Bull 3X ETF (FAS)	04/13/2009	9.86	9.44	4.20	(4.26)	0.00
Cash				18.21
Total Portfolio					(29.30)	2.54

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	(1.39)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Taiwan Semi (TSM)	7/27/2006	8.70	03/03/2009	7.76	NA	(0.78)
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Direxion Financial Bull 3X Shares (FAS)	03/23/2009	5.94	03/23/2009	6.22	4.63	0.19
Direxion Financial Bull 3X Shares (FAS)	03/24/2009	6.45	03/24/2009	7.12	10.30	0.44
Direxion Financial Bear 3X Shares (FAZ)	03/26/2009	19.67	03/27/2009	19.91	1.22	0.05
Direxion Financial Bull 3X Shares (FAS)	03/30/2009	5.49	03/31/2009	5.20	(5.35)	(0.23)
Direxion Financial Bear 3X Shares (FAZ)	04/09/2009	10.47	04/13/2009	11.03	5.40	0.22
RQCDU – Ericsson April 7.5 Calls	1/21/2009	NA	04/18/2009	7.50	NA	0.65
Ericsson ADR (ERIC)	5/5/2008	11.83	04/18/2009	7.48	(36.80)	(3.04)
Realized Gain/(Loss) YTD	-	-	-	-	-	0.46

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

eBay Stamp Lots - An Introduction to Bidding

Many philatelists resort to bidding on eBay and/or other online forums at some point to add on to their collection. For a novice, to avoid getting fleeced it is best to be familiar with the terms used as well as with the tactics employed by both dealers and bidders. This post focuses on how to bid successfully on eBay lots while steering clear of the gotchas.

The following guidelines can be handy when purchasing stamps on eBay:

• Buy It Now: Touted as the no-hassle way to buy something on eBay, availing of this option is unfortunately the most expensive way to purchase from eBay. For a small percentage of eBay lots, the Seller sets a sale price (Buy It Now price). To buy the item bypassing the bidding process, all that needs to be done is to use the ‘Buy It Now’ button and pay the asking price.
• Buy it Now or Best Offer: This is a variation of ‘Buy It Now’ but with a little spin - the buyer can provide a counter-offer stating the amount he is willing to pay for the item. The seller can choose to either accept the highest offer or list the item again. Again, the buyer is at a disadvantage as there are no guarantees on getting the item even if one is the highest bidder.
• Reserve vs. No Reserve: Certain lots on eBay have a reserve price indicating the seller’s unwillingness to part with an item below a certain price. The reserve price is not published, but once a bid goes above the reserve price, the listing will reflect that the reserve has been met. This is one way sellers protect themselves against low-ball winning bidders.
• Free Shipping: This is an incentive from the seller’s part but is usually limited to local (within the same country) shipping.
• Guesstimating the number of stamps in kiloware lots: A good rule-of-thumb to go by: Off-paper: 1 kg – 20K, 1 lb – 8K, 1 oz – 500, 100 gm – 2K, On-paper: 1kg – 4K, 1 lb – 1.6K, 1 oz – 100, 100 gm - 400. Always ensure that the listing calls for close-cut single-paper or off-paper kilo ware lots. Other alternatives are less desirable as the weight of the paper shipped will far exceed the weight of the stamps.
• Watching Items and History Search: It is good strategy to research items of interest before actually bidding on them. Any item on eBay can be placed on one’s watch list. Carefully analyzing the bidding history for items in the watch list can position one better when it comes to placing a bid. Another approach to track similar lots on eBay is to search for the item using the ‘Advanced Search’ option and then selecting the ‘Completed Listings’ check box. This will provide a result set of the price realized for completed auctions of the searched term.
• Bidding Strategies: Employing proxy bidding is the best overall strategy for eBay stamp lots. The strategy involves bidding with the maximum price you are willing to pay for and the high bid will be listed as one increment over the existing high-bid or the starting price whichever is higher – Proxy bids happen automatically until your maximum bid is reached as others bid on the same item. This strategy helps avoid several pitfalls: a) Shill bidding – an illegitimate strategy used by sellers to artificially inflate the price of a listing by self-bidding by means of a separate ID or similar tactic, b) Bid Shielding – another illegitimate strategy where three or more IDs are used – the first places a low ball bid while the others place artificially high bids. The high bids are retracted just before the end of the auction, leaving the low-ball bid as the winning bid, c) Sniping – a proxy bid placed seconds before the end of an auction. This is a legitimate strategy although some consider it unfair. There are online services like gixen.com that automates sniping for you, and d) Incremental Low-Balling – a legitimate strategy used mostly by greenhorn eBayers whereby they bid just enough to lead the auction but continue doing so every time they get outbid. A variation of the same is when experienced buyers do incremental bidding but with bigger chunks to discourage incremental low-balling.
• Dealer Strategies: Since buyers do not see the item physically, the bid is based on the Images, Title, Description, and Quality rating. Alas, technology favors the dealer – it helps enhance desirability by disguising the true nature of the item. Carefully consider the feedback of sellers to alleviate potential problems.
• High-values: This just implies that the face value of stamps when purchased from the post-office is high. For Used stamps, having this description does not enhance the value of the listing and so categorizing them as ‘High-Value’ is deceitful. In contrast, for MNH listings, this is useful information.
• Re-listings: These happen when buyers do not honor their end of the bargain; mostly it is failing to pay for the items they bought.
• Second-Bid Offers: These are offers from eBay sellers soliciting you to buy the item as the owner of the second-highest bid because the highest bidder backed off. It is illegitimate to do so per eBay rules and chances are high for the solicitation to be a scam.
• Retracting: For certain special circumstances eBay permits retracting a bid. But, this option should be avoided as far as possible and the onus is on the buyer to perform due diligence on EVERYTHING before placing a bid.

In general, being aware of strategies used to gain an advantage in the bidding process and having a clear-cut proxy bidding strategy should help avoid paying more for items you want to bid. We still recall our misery when our winning bid on one pound of High-values turned out to include nothing other than used $1 stamps and that too the same stamp.

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Last Updated: 07/2011.

Mutual Funds and Exchange Traded Instruments (ETFs, ETNs, and CEFs) – An Introduction

Mutual funds (open-end fund) draw on money from investors to acquire stocks, bonds, or other assets. In return investors receive shares of the mutual fund proportional to these invested assets. The funds are considered open-end for the reason that shares can be continually issued or redeemed based on investor demand. Also absent for mutual funds is the secondary market– Investors buy shares from the mutual fund and redeem it by selling it back – no trading occurs between investors. On the other hand, with exchange traded instruments (ETFs, ETNs, and CEFs), shares outstanding increase or decrease less frequently and only in large chunks (multiple of “creation units”). They are called Exchange Traded as there is a secondary market for these instruments where they can be traded identical to any other stock.

The spreadsheet below compares the features of exchange traded instruments with mutual funds:

Comparison Term	Mutual Fund	Exchange Traded Instruments
Trades in an Exchange	No – bought/sold from/to the mutual fund company	Yes – Trades just like a stock.
Price	Net Asset Value (NAV) at the End of the Trading Day	Market Value that varies through-out the day. Could trade at a premium or discount to NAV.
Purchase Costs	More – except no-load mutual funds that do not have front and back-end loads – they still charge a small fee in most cases	Less – Brokerage fees and the bid-ask spread which is both relatively small.
Ongoing Fees	More – Actively managed funds have much higher fees while index mutual funds have lower fees although usually not as low as comparable Exchange Traded Instruments	Less.
Automatic Dividend Reinvestment	Yes	No
Options	No – not traded in stock exchanges at all	Yes
Granular Purchase Option	Yes – you can buy for any amount as long as minimums are met	No – you have to purchase whole shares (not fractional).
Minimum Investment Requirements	Mostly Yes	No with some exceptions
Portfolio Turnover	More – no protection against other investors redeeming shares thereby forcing the fund to realize capital gains/losses	Less – Immunity from tax consequences due to other investor activity
Capital Gains Taxes	Yes – ongoing	No – only when sold.
Cash Drag (Performance impact due to holding cash instead of other investments)	More – mutual funds usually hold more cash to satisfy on-going redemptions	Less – with certain exchange traded instruments that are structured as Unit Investment Trust there can be a cash drag because of a regulatory requirement to hold dividends in non-interest bearing accounts until distribution.

The three types of Exchange Traded Instruments (ETF, ETN, and CEF) can be summarized as:
ETF:
- With an Exchange Traded Fund (ETF), assets are acquired by selling large blocks of shares called “creation units.” Selling large blocks is a regulatory requirement and allows for the formation of a secondary market. Since no money is exchanged in the primary market (creation units are exchanged for large blocks), there is no tax event at that level. The creation units are sold, after being separated into a large number of individual shares, thus forming the secondary market.

ETN:
- Exchange Traded Notes (ETN) is structured as a debt instrument. Debt instruments by nature are prone to credit risk – risk involved with the debtor (in this case the entity that issues ETNs) not honoring the obligation. This situation arises if the issuing entity goes bankrupt or runs into financial trouble. ETN’s promise a return tied to an index or other market benchmark (less fees). As with ETFs, “creation units” and secondary market creation are applicable to ETNs too. However, ETNs are a riskier investment option due to the added credit risk involved – this risk is somewhat mitigated by the fact that issuing agencies usually have good credit ratings.

CEF:
- Closed End Funds (CEF) are launched through an Initial Public Offering (IPO) process and the funds realized are then invested. Shares are traded in stock exchanges thereby forming the secondary market. Since a fixed amount of money is raised at IPO, shares outstanding remain stable.

Below is a spreadsheet that summarizes how they differ from each other:

Comparison Term	ETF	ETN	CEF
Investor Holds	Shares that represent assets held	Shares that represent a Senior Debt Contract	Shares that represent assets held.
Recourse	Assets Held	Issuer Credit	Assets Held
Risk	Market	Market & Issuer	Market
Institutional (multiple of creation unit) Redemption	Custodian	Issuer	NA
Benchmark Tracking Error	Yes	No – it is a prepaid contract	Yes
Valuation	Net Asset Value (NAV) – usually trades close to this value	Indicative Value based on associated benchmark level	Net Asset Value (NAV) – can trade at a significant premium or discount.
Maturity	None – investors can redeem anytime at multiples of “creation unit”	Varies – can be a few years to 30 years or more – investor receives cash that conforms with the investment return promised (benchmark return minus fees)	None
Distributions	Yes - dividends	None	Yes - dividends
Tax Treatment	Dividends taxed on an on-going basis. Capital gains taxed when selling	No on-going taxes. Capital gains taxed when selling	Dividends taxed on an on-going basis. Capital gains taxed when selling

Summary:

There are several thousands of mutual funds with more than ten trillion in assets under management. This compares to around thousand exchange traded instruments with close to a trillion in assets. Even so, exchange traded instruments offers far more flexibility and the fees on the average are fewer explaining the faster growth of exchange traded instruments compared to mutual funds. There are distinct structural differences within the three exchange traded instruments with associated differences in their investment and risk profiles. As with any investment vehicle, careful consideration needs to be given to these factors before committing money.

Related Posts:

1. Mutual Funds and Exchange Traded Funds - An Introduction - 04/09.
2. Triple Leveraged ETFs - An Introduction - 04/09.

Swagbucks - A Frugal Take

A 101 primer to bring to speed those not familiar with Swagbucks, - it is a search engine that promises “swag bucks” as gratis for conducting searches using their search engine interface. These swag bucks can then be traded for gift cards and other products available at the Swag Store – buying power varies – an Amazon.com $5 gift card can be purchased with 45 swag bucks while an iTunes $15 gift card costs 145 swag bucks. Swag bucks are sometimes referred to as digital dollars which is a misnomer – one swag buck dollar roughly equates to 12-15 cents and cannot be converted to real money – merchandize or gift cards has to be purchased from the site to realize the value.

Swagbucks the brainchild of Prodege LLC, is an LA startup specializing in “branded search engines”. Branded search engines allow for swag bucks to be earned and exchanged in the “store” portion of the site to buy brand related merchandize. Akin to the Google or Yahoo search toolbar, a branded search engine tool bar can also be downloaded and plugged into the browser for single click searches allowing for easier use. Other popular such sites include searchwithkanyewest.com, searchwithbeyonce.com, and searchwithrandymoss.com. The home page for Swagbucks is comparable with its branded counterparts where users accumulate credit and redeem them on a variety of merchandize.

The business model of Swagbucks is not complicated. Search interfaces like Google, Yahoo, MSN, and Yahoo clearly differentiate between organic and sponsored search results. It is this distinction that holds supreme the search engine’s ranking of the importance of a page based on the search string – interleaving this result set with sponsored links defeats this purpose. This is the niche exploited by the likes of search engines as Prodege: they return interleaved results and rewards users for that inconvenience. They license the search technology from two of the big search engine providers but the licensing fee, rewards to users, and the company’s business profitability are supported through sponsored interleaved links in the site. Hinged on this interleaved nature of the links is the expectation of much higher and relevant click-through rates and fees. The screen shots below display how Swagbucks search engine result screen compare to that of Google for the same search string:

SwagBucks Top Five Results Display for "Investing 101" search:



Google Top Five Results Display for "Investing 101" search:



Summary and Recommendation:

Our history with Swagbucks is now in its fourth month. Google is still our primary search engine, but we frequent the Swagbucks toolbar we have in place. In these four months, we earned close to 250 swag bucks and availed Amazon.com gift cards from the site – please refer to our tweets at twitter.com for a history of our gift card redemptions and earnings pattern. The reward is indeed a draw else there is little rhyme and reason to venture past one’s primary search site (Google or one of the other big search interface providers). There is no denying that additional time is spent on sifting the organic results in the site and the time value of money may not be justified in the earnings through Swag Bucks. However, with buying decisions, Swagbucks searches can be complementary – in the research phase of a buying decision, the primary search site can provide relevant material quickly and once the buying decision is in place, Swagbucks turn interesting as they also deliver vendor offerings in an interleaved manner.

To recap, the inclination to use the Swagbucks site for routine daily searches for information is best curbed at the very onset as significant time can be spent sifting through sponsored results. Likewise, in the research phase of a product buying decision, a better option is the primary search engine. However, once a buying decision is made, our recommendation is to use both search engines to arrive at the best deal possible. We will continue to use Swagbucks in this manner…

3/2010 Update: As of 2/25/2010, SwagBucks was inflated by 10 times. Previously, you needed 45 SwagBucks for a $5 Amazon.com Gift Card. Now, it will take 450. The good news is that your existing SwagBucks and new awards are also inflated by 10 times and so there is no real change.

Please use the following link to Sign up: SwagBucks.

Last Updated: 3/2010.

Common Philatelic Terms

The postings over the last few weeks focused on the vocabulary used for stamp varieties, nicknames, errors and other famous stamps. This post is more of a glossary of popular terms every promising philatelist should know. Below is our list:

Term	Explanation
Albino	A stamp with die colors completely missing
Bank Mixture	Stamps usually on paper sourced from a financial institution.
Bourse	A stamp show or marketplace where stamps are bought & sold.
Boxed Postmark	A rectangular postmark as opposed to the normal circular ones.
Bridge	A small band of paper between perforations in sheets of stamps.
Bull’s Eye	Stamps with cancel with date right in the middle of the design.
Catalogue Value	The retail value of postage stamps as mentioned in one of the major stamp catalogues
Centering	Position of the design of the stamp in relation to the paper it is printed on
Circular Date Stamp (CDS) Postmark	A circular cancel that shows date & place of mailing.
Compound Perforation	Stamps with different perforations on the sides
Crash cover	A letter salvaged from a wreck that has been delivered with a postal mark explaining the damage
Die	The metal on which stamp designs are made (engraved or etched) for production
Die Cut	Machine cut applied between self-adhesive stamps that keeps the backing paper intact
Double Impression	Two impressions of the stamp design on a stamp
Duplex Cancels	A stamp with two cancels – one indicating location & date and the other a mark that obliterates the design.
Face Value or Denomination	The amount of money paid when purchasing a stamp from the postal service
Fancy Cancel	A cancel that has a pictorial design of its own.
First-flight Cover	A cover that was carried on a first flight opening a new airmail route – a cachet describing the event is usually part of the cover design
Gutter	The space between two adjacent stamps in a sheet
Handstamped	Cancelled by hand using a rubber stamp or similar device
Imperforate between	Two stamps attached together with perforations on all sides but either the vertical or horizontal middle perforations missing
Imprint	Any information printed on the selvage of a stamp sheet.
Laid paper	A type of paper used to manufacture stamps characterized by parallel lines (horizontal or vertical) visible when held against light
Lightly Hinged (LH)	Hinged so that the hinge mark is barely noticeable.
Variety	Same stamp but with differences in color, perforation, watermark, etc
Microprinting	Printing made of tiny lettering on some postage stamps used as a security device, part of the design, and/or identification
Mint	Stamps that were not used for postage
Mint, never hinged (MNH)	An unhinged uncanceled stamp
Mission Mixture	Stamps usually on paper sourced from a charitable mission.
Mute	Stamps with no identification markings. Also applies to cancels as in “mute cancels” when the cancellation doesn’t have any information
Numeral Cancelations	Cancelations that use numbers to identify mailing office
Offices Abroad	Stamps of one country used in another country characterized by overprints
On cover	Stamps collected on the original envelope.
Oxidized	A stamp that has changed color due to oxidation.
Pen cancelation	A cancelation applied by pen
Pictorial Cancel	A cancelation with a distinct design
Plate	A sheet of metal on which stamp design is engraved for printing
Plate Number	A number shared by all sheets of stamps run through a given plate.
Quadrille	A type of stamp album page that have ruled squares that help with arranging stamps in the page.
Regummed	Stamps with gum applied after issue usually to defraud collectors.
Rouletting	Slits between certain types of stamp sheets that facilitate separation.
Safety Paper	Special paper used by postal authorities to make stamps that make it difficult to forge
Selvage	The portion of a stamp sheet that is not part of a stamp.
Service Inscription	A stamp design in which the type of service is indicated as part of the design.
Shade	Minor color freaks.
Sheet	A set of stamps joined together produced from a single plate
Silk	A special type of paper used by postal authorities for stamp production in which silk threads are included as part of the paper making mixture used as a security measure to prevent forgery.
Slabbing	The procedure of encasing stamps in tamper-protected casing, usually after grading/authentication.
Socked on the nose	A cancel that obliterates the design in a stamp.
Stain	Paper discoloration in a stamp.
Straight Edge	A stamp with no perforations on one or more sides (but not all)
Tag	phosphor coating on stamps that aid with automatic mail handling
Tēte-bēche	A pair of stamps connected together, but with one upside down
Thematics	Collecting by a theme
Tied to cover	A cancelation that ties a stamp to a cover. Relevant when a particular collectible cover is valuable with the original canceled stamp on it.
Ungummed	Stamps that were issued with no gum by the postal authority
Unhinged	Stamps that were never hinged
Used	Stamps that were used for postage
Universal Postal Union (UPU)	International postal body that standardize postal usage across countries.
Wove paper	A smooth paper used in stamp production

Though this word list is not all encompassing by any measure, they do rank high in popularity. As always, if you are aware of a term that you believe should be in this list, please comment or let us know by using the “Contact Us” link and we will be sure to incorporate it.

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Last Updated: 07/2011.