This may make you feel better.

From our media partner: The Associated Press.

CEOs, famous investors hit hard by market plunge

By RACHEL BECK
AP Business Writer

(AP:NEW YORK) Here's something that might provide a bit of solace amid the plunging values in your retirement accounts: Warren Buffett is losing lots of money, too. So are Kirk Kerkorian, Carl Icahn and Sumner Redstone.

They are still plenty rich, but their losses _ some on paper and others actually realized _ illustrate how few have been spared in today's punishing market when even big-name investors, corporate executives and hedge-fund titans are all watching their wealth evaporate.

The portfolio damage for some of these high-flyers has soared to billions of dollars in recent months. And they can't just blame the market's downdraft _ some did themselves in with badly timed stock purchases or margin calls on shares bought with loans.

"It's always hard to beat the market no matter who you are," said Robert Hansen, senior associate dean at Dartmouth's Tuck School of Business. "But when the ocean waters get that rough, it is hard for any boat to avoid getting swamped."

It has been a painful year for anyone exposed to the stock market. The Standard & Poor's 500 stock index, considered a barometer for the broad market, has lost about 36 percent since January, with every single sector _ including once thriving energy and utilities _ seeing declines of about 20 percent or more.

Such losses in the last year have wiped out an estimated $2 trillion in equity value from 401(k) and individual retirement accounts, nearly half the holdings in those plans, according to new findings by the Center for Retirement Research at Boston College. Similar losses are seen in the portfolios of private and public pension plans, which have lost $1.9 trillion, the researchers found.

As stocks have plunged, so have the value of chief executives' equity stakes in their own companies. The average year-to-date decline is 49 percent for the corporate stock holdings of CEOs at 175 large U.S. companies, according to new research by compensation consulting firm Steven Hall & Partners.

Topping that list is Buffett, who has seen the value of equity in his company, Berkshire Hathaway, fall by about $13.6 billion, or 22 percent, so far this year, to leave his holdings valued at $48.1 billion. Oracle founder and CEO Larry Ellison has seen his equity stake fall by $6.2 billion, or about 24 percent, to $20.1 billion, according to the research that ran from the start of the year through the close of trading Oct. 29.

Rounding out the top five in that study were Microsoft's Steve Ballmer, whose company equity fell by $5.1 billion to $9.4 billion; Amazon.com's Jeff Bezos, whose equity fell by $3.6 billion to $5.7 billion; and News Corp.'s Rupert Murdoch, with a $4 billion contraction to $3 billion.

News Corp. and Microsoft declined comment, while representatives from Berkshire Hathaway, Oracle and Amazon.com didn't respond to requests for comment.

Those results included the value of the CEOs' stock, exercisable and non-exercisable stock options and shares that haven't yet vested. They are drawn from each company's most recent proxy statement, which means they might not include subsequent stock purchases or sales.

"Everyone wants to see executives have skin in the game, and this shows they certainly do," said Steven Hall, a founder and managing director of the compensation consulting firm. "But in the end, we have to remember they still have billions to fall back on."

But there have been recent instances where executives' large equity positions have blown up _ not only damaging a particular CEO's portfolio but the company's shareholders, too.

A growing number of executives at companies including Boston Scientific, XTO Energy Corp. and Williams Sonoma Inc. have been forced to sell stakes in their companies to cover stock loans to banks and brokers. The company stock was used as collateral for those loans. The falling prices triggered what is known as a "margin call."

"A decrease in insider ownership is bad for corporate governance," said Ben Silverman, director of research at the research firm InsiderScore.com. "Then executives' interests are less aligned with their shareholders."

Investors in Chesapeake Energy Corp. were recently faced with the surprising news that company CEO Aubrey McClendon was forced to sell almost 95 percent of his holdings _ representing more than a 5 percent stake in the natural gas giant _ to meet a margin call. His firesale of more than 31 million shares, valued at nearly $570 million, put downward pressure on Chesapeake's stock in the days surrounding the mid-October transaction.

McClendon has called this a personal matter and said he would rebuild the ownership position, according to Chesapeake spokesman Tom Price.

Redstone, the famed 85-year-old chairman and controlling shareholder of CBS Corp. and Viacom Inc., was forced to sell $233 million worth of nonvoting shares in those companies. That was done to satisfy National Amusements' loan covenants, which had been violated when the value of its CBS and Viacom shares fell below required levels in the loan agreements.

National Amusements is Redstone's family holding company, and the stock sales represented 20 percent of the holding company's CBS shares and 10 percent of its Viacom shares. A spokesman for National Amusements declined to comment.

Certainly some of the biggest investors aren't happy with recent market events.

Earlier this year, billionaire Kerkorian's investment firm Tracinda Corp. paid about $1 billion, at an average share price of near $7.10, for about 141 million shares in Ford Motor Corp. That represented a 6.49 percent stake in Ford.

Those shares have tumbled as the automaker's financial condition weakened considerably amid slumping sales and tighter credit conditions. That drove Tracinda to disclose twice in recent weeks that it was selling some of its Ford stock _ one batch of 7.3 million shares sold at an average price of $2.43 each, and the other for 26.4 million shares at an average sale price of $2.01 each. That means for about a quarter of his total Ford holdings, he got $71 million.

Tracinda spokeswoman Winnie Lerner declined to comment.

Activist investor Icahn faces an equally ugly situation with his investment in Yahoo Inc. earlier this year, when he bought about 69 million shares for a nearly 5 percent ownership stake. As of June 30, those shares were valued at about $20.60 each, according to a regulatory filing.

Over the summer, he fought hard to get Yahoo's board to agree to a takeover by Microsoft Corp., a deal that never went through. As a concession, Icahn got a seat on the Yahoo board for himself and two allies.

But his Yahoo holdings are off sharply, with the company's shares trading around $13 each. That means he's down more than $500 million since late June. Icahn didn't respond to a request for comment.

As Tuck's Hansen notes, the current market conditions are serving up a reality check _ not just for individual investors but for the biggest names around.

"Fishing isn't called catching, and investing isn't just called making money," Hansen said. "We have to remember that things can go down by a lot."

Copyright 2008 The Associated Press.

A Word of Encouragement for the 'Average Trader'

I'm going to cut right to the chase...READ THIS!! Our good friend Norman Hallett from DirectYourMind.com has been an expert in the psychology of trading for years! He's helped, and helping, thousands of traders a day to get their minds right. So read this article and check out Normans site.

=================================================================

"Deep recession!"

"Depression!"

"End of the world as we know it!"

Anyone who's tuned into CNBC or CNN has heard these statements of doom and gloom.

They may or may not be true.

We are not in control of what happens to the economies of the world.

We ARE in control of how we handle our personal finances in light of these possibilities and, as traders, how we choose to TAKE ADVANTAGE of all situations... including this one.  No, ESPECIALLY this one.

We know that price action is a reflection of what is perceived "to be", not what is.  We know if we take a position and employ money management techniques, then
if we are wrong in our position, we will get pinched and not punched... and we'll re-analyze and go again.

It's the way of the trader.

For the trader, the greater the economic challenge, the greater the opportunity to better ourselves and our family... through our trading.

When most individuals are hiding behind excuses, the trader steps up to the plate.

We are lucky, indeed.

But don't fool yourself. Being a trader, is not easy.

I look at markets in turmoil and I "feel" for the average trader.

The average trader has every good intention, but lacks the two basic elements to consistent trading success...

A formulated trading plan, whose elements are the components of a good trading system or systems, is the first element. And having the mental and emotional discipline to run that plan is the second element.

The GREAT NEWS for the 'average trader' is that it doesn't take years to elevate your level of trading... months, yes, but not years.

The further GREAT NEWS is that we are in historic times.

The opportunities that will unfold over the coming weeks, months and years could result in windfall profits for those traders who choose to master the two elements mentioned above.

Shake-outs like we are experiencing now in the marketplace yield new super-trends that may be followed.. and ridden... by those who are prepared.

So should you "drop back and punt", and stand aside while the market displays its current violent ways?

Only you know the answer to that.

Are your two basic elements solid?

Is your trading plan MEANT to handle extremely high volatility?

For any average trader... these are the type of markets that exploit your weaknesses.

FOR YOU, it's time to re-group and prepare yourself for the opportunities that are about to present themselves as the smoke starts clearing.

Adopt a solid trading plan, based on a solid trading system. AND

Start now to make the development of your trading discipline a PRIORITY.

Without COMMITMENT to these two elements, you will not succeed on a consistent basis and will not be able to take advantage of the opportunities to come.

This is NOT the time for excuses.

It's your time for admission... recognizing that you do, in fact, possess these two elements, or admit that you don't and work NOW on shoring them up.

I've been trading for 25 years I can say with confidence that the opportunities that are about to unfold will be historic.

Fortunes will be made.

The Disciplined Trader with a tested trading plan and possesses solid trading disciplined will gather the money of The Average Trader who continues to downplay both.

It's time to prepare.

Norman Hallett

DirectYourMind.com

A perfect trading example ...

Here is a perfect example of why you shouldn't pay too much attention to the news.

This past weekend, hurricane IKE slammed into the Gulf Coast leaving death and destruction in its path.

One would think that an event like this would cause oil prices to skyrocket, right? Considering that the Gulf is home to major oil refineries, the functionality of these plants would have a direct impact on supply.

The reality of the situation is that crude oil prices plummeted on Monday morning, dropping dramatically below the $100 a barrel price range for the first time this year.

If you haven't watched our trading video "How To Trade From A Desert Island," here is the link. You'll learn that listening to the market is more important than listening to the news.

You may also want to take a look at our "How To Trade Crude Oil In 90 Seconds" video. We have not changed our proven trading approach to this market. We are using the same technique that has shown such stellar returns over the past four quarters.

You can see our returns right here.

There are going to be some great trading opportunities for the balance of the year and particularly in Q4. If you would like to capitalize on the opportunities ahead, I strongly suggest you take our "30 Day Risk Free" trial to MarketClub. I personally use MarketClub to spot big move either up or down in stocks, futures and the forex markets.

Enjoy the videos and every success in your trading,

Adam Hewison
President, INO.com
Co-Creator of MarketClub.com

TRADERS CONTEST: Do you have a good trading story? First prize is an Apple iTouch! Enter your story here. There is no entry fee.

"Saturday Seminars" - Developing the Psychological Edge to Maximize your Trading

Do you react like a "deer in the headlights" when a trade moves against you? Developing techniques and skills to turn around your trading can mean the difference between success and failure. In her first presentation at TAG, Robin Dayne will teach you how to pull yourself out of a "tail spin," conquer over trading and overcome the fear of getting into a trade. No matter what type of trading you do, all obstacles and errors in trading can 99% of the time be traced back to one's emotions. Robin will show you how to develop a plan to emotionally start your day and to create the confidence to get in and out of a trade. Whether you are a novice or professional, her method will help you develop a psychological edge!

Dayne Will explore:

  • Managing Emotional Trading Swings
  • Creating Trading Certainty
  • Breaking A Losing "Tailspin"
Dayne

Known as "The Trader's Coach," Robin Dayne has been sought after and appeared on ABC News 20/20, CNBC - Power Lunch, Business Week, Street.com and other trading venues. After years of studying psychology and coaching thousands of clients to realize their maximum potential, Robin found her "niche" coaching all types of stock traders. A trader herself, she learned from some of the best and studied in one of the most active Day Trading offices on Wall Street. Combining her personal experiences with her psychology expertise she has developed trading strategies and techniques to turn any trader around. These invaluable skills are taught today in her 1-1 coaching, "The Intricacies of Day Trading" seminars, and chat rooms, focusing on ones trading psychology and the "foundation" skills of trading needed to succeed.

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For more audio and video seminars please visit INO TV

Attitude = Altitude in trading

One of the most important tools that a trader possesses is his or her mind. Attitude can either make or break you as a trader.

To become a successful trader it begins with believing in yourself and having a winning attitude.

Everyone wants to be a winner, at least they think so. Unfortunately, most are not willing to perform the tasks necessary to become a consistent winner.

Winners generally achieve success by being focused on a goal. Being focused allows winners to remain committed to the tasks at hand. Most winners perform a lot of hard work, including a willingness to deal with sometimes mundane duties. Most of all, winners perform with an "I am responsible for both my failures and successes" attitude.

So, where does the would-be trader start to become a success? By focusing on the tasks at hand. Most of all, treat trading as a business. And, as in any business, money management is critical.

Money management, next to trend, is probably the aspect of trading most overlooked by smaller investors. Man, by nature, is an optimistic creature and the amateur trader often acts instinctively. Unfortunately, this instinct or optimism is often the undoing of the smaller trader.

When a person enters a trade, he does so with the hope that it will be a winner. When the position goes against him, he keeps thinking (or hoping) "it will come back." He knows he should have a stop in place, but hope keeps telling him to stay just a little longer since everybody knows, "you always get stopped out the day the market turns." Eventually, hope turns into frustration, desperation and, finally panic which prompts the trader to issue a GMO (get me out) order.

If the trader hasn't learned his lesson by this point, he develops the "I have to get it back" syndrome. He generally rushes into another poorly planned trade, throwing good money after bad.

Winners show several different characteristics. They enter the market knowing they can be wrong and, in fact are wrong as often as they are right. They have learned markets don't run on hope. They understand markets tell them when they are right or wrong. When a trader is losing money and getting worse, the market is telling them to get out.

Bad Trades

A bad trade is like a dead fish:The longer you keep it, the worse it smells.

Good Trades

When a trade is making money, the market is telling them they are right and to let the position ride.

Don't ever do this ...

Winners don't add to, or "average", losing positions. They dump the trade and go looking for a new opportunity. Successful investors may add to the winning trades. When ahead, they press their advantage while remembering that at any time the market can turn on them and prove them wrong.

In trading keep your mind clear and do not get emotional about a trade. Remember you are not married to a stock rather you are in the dating game.

Learn more about common sense trading.

Adam Hewison

Co-founder of MarketClub