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Prerequisites in Shares Investing

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Some individuals believe that investing in shares is as easy as heading to a 7-eleven convenience store and buying what you want. Nevertheless, in my opinion, to be able to turn out to be effective in investing in shares you need to have a correct understanding and proper self-discipline. Based on my own expertise, beneath are the 7 prerequisites that you require to do before venturing in stocks investing:

1. Place your finances in order

I remember 1 of my buddy asked me, “How can I commit in that “stock” thing that you’ve mentioned? I’m really fascinated in trading stocks to earn money. But initial, can you lend me some money simply because I utilized up my salary in buying a new netbook and I need to spend my electricity invoice …”

Imagine! How can someone think of investing in stocks when he cannot even prioritize his expenses. People who invest in shares with out proper financial strategy will either finish up more broke or in jail. Reason is because they are the one that will get emotional and panic during the bear market and loses money. Also beware of turning the stock market into online casino as it can be addicting and like any gambling will result to losses. If you are in debt and you’re residing hand to mouth, you ought to first make a budget plan and payment strategy to reduce/eliminate your debt by prioritizing expenses and price cutting. Only once you are out of chaos then you can proceed to the next step.

2. Save money regularly and religiously

Saving money is actually a co-requisite and/or integrated to your financial debt-payment and budget plan mentioned in quantity 1. The “Spend Yourself Initial” mantra that you’ve usually heard is true and efficient. And when I say “save money religiously”, I literally imply you require to do it as if it is a mortal sin not to save money. Make frugality a behavior and you are assured of attaining the wealth that you have been dreaming of. In any investment, money is required either for capital or perhaps for your personal needs whilst waiting around for the outcome of your venture so there is no this kind of thing as starting business at absolute zero capital. (or perhaps there is … in Neverland).

3. Produce an Unexpected emergency Fund

Unexpected emergency Fund is a reserved money that you can use in situation of unexpected emergency like incident, sickness, demise, losing your task, or anything that you can outline as emergency. I am not attempting to scare you but things like these are not impossible to happen.

Stock investing ought to be long term and so I usually inform my pals to commit only spare money or money that you will not need in the near future. To be more goal, you can invest money that you will not require in the subsequent 5-10 years or even longer. If you have an unexpected emergency fund, this will serve as your cushion to protect you during unexpected emergency with out forcing you to sell your stocks at a loss. Getting this fund will also maintain your sanity no make a difference what occur to the marketplace be it bear, bull, pig or any bestial type of market. Here in Korea, it is typical to listen to information about individuals committing suicide during the 2008 monetary crisis so keep this stage a should. In my case, I place up an unexpected emergency fund that is equal to my annual expenditures. Consensus dictates at least 6 months worth of your residing expenses.

4. Research about Shares and Monetary Management

There are a great deal of technical phrases or trading jargon in the stock market globe and it is important to discover it to avoid mistakes. In my background of stock investing, the initial and only loss I incurred is when I bought MEG with out comprehending about warrants. In addition, you need to be savvy in personal finance management because stock investing is just part of your portfolio. As a golden rule in personal finance, do not invest every thing in stocks. You should consider bonds, money marketplace, mutual funds, real estates and and so on as other instruments of diversification and be the professional yourself in optimizing your risk and return.

5. Know the outlined businesses

The common error of traders is investing in ticker symbols and their corresponding graphs. They did not even know what is the business of those businesses. (Heck, they did not even know what the ticker image stands for!). I tried to study technical evaluation before but all I see was unpredictable trend of stock cost. Perhaps I was wrong, but relying solely on graphs for stock picking are nothing but a rational fallacy wherein all individuals say “this shit is expensive and precious so you ought to buy it”.

If you go back again to the definition of shares, stocks are pieces of a business. If this is the situation, it is only rational to know whether or not the shares you’re purchasing is of the businesses that are profitable and well manage. However, some individuals only want to make big time with out exerting effort and so engaged to the “Larger Fool’s Game” in stock market. You could make from this game but 1 day you will become the Biggest Fool of them all.

How to learn these businesses? Go to the company websites or obtain and read the latest financial assertion. Yes I know that it is time consuming but nothing is free in this globe. Also, you do not require to read the financial statement from cover to cover but concentrate on the operation and financial discussion. In reality, in my analysis, only 5% of these hundred pages are only required to be in a position to get the full grasp of the business scenario. I will discuss about monetary assertion in my long term post.

6. Apply initial without using money

If you have carried out the initial 5 actions, then you are almost there. Nevertheless, just like in sports activities you need to do some apply initial before the actual occasion. What I did during that time is I do dummy investing with out money using the PSE Stock Investing Game. This is free and all you have to do is to sign-up and begin trading with virtual money worth PHP 1Million (again, it is just a dummy so do not get carried absent).

The point of this physical exercise is to acclimatize your self in trading with out the danger of dropping money. It is a important step for me that I built-in with Stage 4. Curiously, following more than 1 yr when I stop enjoying the sport, when I check once more my dummy investing account, my portfolio earns more than my real portfolio. This show that investing in lengthy phrase with out emotional intervention is much more lucrative technique than every day monitoring the marketplace … it was a lesson learned.

7. Open up a trading account

The last stage is to open up your trading account. My suggestion is to choose only the brokerage that has a tie up with your bank. This will make your fund transfer much more handy and also it is much less dangerous than the fly-by-evening brokerage business. If you have questions about opening a trading account really feel totally free to ask questions or go to the web site of your brokerage company.

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Investing in Quality Dog Beds

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Elements to Consider While Investing in Quality Dog beds

They say that a dog is a man’s best buddy, yet individuals often do not take that a lot treatment of their pets. Whilst your dog might be providing you with unconditional love, are you in a position to reciprocate the exact same to it? If you answered yes, you might be 1 of the rare couple of that do care deeply for their pets, or are merely lying about it! Nevertheless, right here is now a product that you can use to make up for all the absence of care. The new variety of canine beds accessible for buy are fairly great at what they do and your dog is bound to adore its new place of rest.

One of the issues that make these canine beds so sensible is the reality that they really do more than just make it comfortable for your dogs. Advanced designs, like the orthopedic beds, really assist in correcting the posture of your dog by staying away from it from placing all of its body weight on any one side. This is important, as the right kind of support will help in ensuring that your canine will not have any type of body pains or become exhausted quicker than it should. In reality, these dog beds are created to be universally useful, across a wide breed of dogs.

The canine beds also arrive in a number of various designs and sizes, in situation you do have a canine that is as well large or too small. Moreover, you can get these beds in a number of various variants, which tends to make it that a lot more sensible to scan through the different designs and choose out the most suitable one. Also, you can select from various designs, which even includes heated beds, in situation you reside in excessively cold areas. Summer dog beds are designed to be airy and comfortable, which your dog is bound to like. With much more dog proprietors recognizing that their valuable pets are also going to find the difficult surfaces to be more and more uncomfortable, it has turn out to be extremely necessary to maybe address this problem before things can go out of hand. Following all, you would not want to simply topic your dog to unnecessary body pains, if you can steer clear of it completely with these canine beds. Considering that they are not even that much costly, it really doesn’t make much perception to avoid investing in these canine beds.

If you really want your pet to sleep in design, maybe the memory foam range of dog beds is the way to go. With advanced settings that allow it to remember the preferred position of your pet, it tends to make a extremely good option to choose and possibly the most comfy that your pet can at any time feel. With these beds, your canine is bound to be more relaxed and calm, which is preferably what you would want to goal for.

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Your Questions About Invest In Gold Or Silver

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Robert asks…

Is this a good time to be investing in precious metals?

With the economic meltdown, is now a good time to buy:
1)Gold?
2)Silver?
3)Coins?

Justin answers:

Yes, to all of the above, qualifying 3) meaning junk
silver coins?

There is a possibility that both gold and silver
could remain in a trading range, so to the extent
possible, make purchases during set-backs.

If you have none, then purchase some immediately.
There are times when being price sensitive can
prove costly.

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Investing In Gold – Long-Term Trend

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Investing In Gold – Long-Term Trend

In my previous post here, I recommended investing in gold now, with a long-term perspective. Unlike traders who buy and sell gold for profit from short-term changes in its price, long-term investors in gold should be more acquainted with the historical
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CHART OF THE DAY: The Greatest Investing Lesson Of The Past Five Years

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CHART OF THE DAY: The Greatest Investing Lesson Of The Past Five Years

999 respondents answered the question, "Which has been the greatest investing lesson for you during the past five year?" Nearly 60 percent of respondents believe that "central banks and governments will continue to bail out troubled creditors."
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How to Invest $1000 Right Now

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How to Invest $1000 Right Now

Investing is an essential of building financial security, but it can be intimidating when you're first starting out. Saving up $1,000 to invest can take a long time and a lot of effort, and you definitely don't want to make mistakes in your first
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Your Questions About Advantages And Disadvantages Of Investing In Mutual Funds

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Joseph asks…

What are advantages and disadvantages of investing in mutual fund?

What are advantages and disadvantages of investing in mutual fund?

financi4 answers:

Advantages

1. Diversification
2. Professional Management
3. Convenience
4. Liquidity
5. Minimum Initial Investment

Disadvantages

1. Risks and Costs :hanging market conditions can create fluctuations in the value of a mutual fund investment.
2. No Guarantees
3. The Diversification “Penalty
3. Costs.

William asks…

What are the advantages and disadvantages of saving or investing in these?

What are the advantages and/or disadvantages of saving or investing in each of these:
-Common stocks
Mutual funds
-Life insurance
-A certificate of deposit
-A savings account of US savings bond

~
Thanks

financi4 answers:

Stocks:
Advantages – potential for best gains.
Disadvantages – highest risk

Mutual Funds:
Advantages – Still high potential for gain with much less risk than single stock. With a single mutual fund you can have a very diversified portfolio.
Disadvantages – Expenses generally higher than stocks; many have minimum investment requirements.

Life insurance – in order to really consider this an investment, you would have to go with Whole life insurance. Term life pays nothing once you cancel the policy, so it’s not really an investment any more than Auto or homeowners insurance.
Advantages – Generally a safe investment
Disadvantages – Whole life policies can have expensive premiums; returns usually lower than mutual funds or stocks.

CDs:
Advantages – Most are federally insured up to a point. Make sure you get a CD that is FDIC insured (or NCUA insured if you get it from a credit union). Even if the bank becomes insolvent, your money, up to $250K, is federally insured.
Disadvantages – Low return; if you need to withdraw the money before the CD matures, there is usually a penalty – generally a few months worth of interest.

Savings bonds:
Advantages: Backed by the full faith of the US government. Unless the US government dissolves, your money is safe.
Disadvantages – worst return. In fact, right now US bonds are yielding 0%. Even in good times, Savings bonds offer very low interest generally.

You can do your own numbers with one of these savings calculators

Steven asks…

What are the advantages and disadvantages of using a foriegn bank for savings??

also is it wise to invest in foriegn currency or mutual funds ??

financi4 answers:

U`ve asked 2 questions in 1 let me reply first.
1. Advantages of a foreign bank – great cusomer relationship services, well maintain accounts, good interest rates. Disavantage : – They are not local and may wind up business if it wont work properly and u get screwed.
2. Reply to Second question it is better to be invested in Mutual funds than foreign currency. Mutual Funds can get u 20% anualised income and dividend but foreign currency cant grow that much.

Ken asks…

This is what I have so far but i need help with choosing the 5 mutual funds Can anyone help me out?

Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of articles he read describing good investment opportunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn’t very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cliff’s only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level. 1. Explain some disadvantages of Cliff’s current investment approach. 2. Construct a portfolio for Cliff, limiting your selections to 5 mutual funds (assume that he sells his current stock and bond holdings). Make sure your plan indicates specific dollar amounts for each portfolio component. Make sure your plan also explains your selections for each portfolio component. Visit an investment firm that deals in mutual funds, such as, Vanguard.com, AmericanCentury.com, Fidelity.com, etc. and select 5 mutual funds that will diversify Cliff’s portfolio. Record the fund name, ticker symbol, 5 year average annual returns (can use 3 year if 5 year is unavailable), the amount to be invested in each fund, and the amount returned in 3 years using the 5 years average annual return for the wedding. 3. Explain how Cliff should periodically rebalance his portfolio, indicating how frequently re balancing should be done.

This is what I have so far but i need help with choosing the 5 mutual funds Can anyone help me out?

Some disadvantages of Cliff’s current investment approach are that he has not kept track of his investments. Having made the investments Cliff should have kept track of them. He should hold on to the investments that are doing well and sell the ones that are not. Investing without any specific targets or goals, doesn’t help when he is trying to accumulate funds for retirement.
Different investments have different risk and should be kept in mind while investing. He has no dollar amount as a target, while investing it is important to have the dollar amount that he wishes to acquire. Based on these and the expected returns, a monthly allotment can be made. Without the target, it is difficult to put aside any amount of money. His portfolio should if possible be a diversified portfolio so that the instability in returns is reduced. This means that he should include some low risk securities such as Treasury Bills.
Advantages of Mutual Funds: Professional Management – The primary advantage of mutual funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
Diversification – By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you. Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn’t be possible for an investor to build this kind of a portfolio with a small amount of money.

Economies of Scale – Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay. Liquidity – Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. Simplicity – Buying a mutual fund is easy.
Cliff can invest the $90,000 as follows:
Asset HoldingsAmountProportion

Growth stocks$27,00030%
International stocks$18,00020%
High quality bonds$22,50025%
Zero coupon bonds$13,50015%
3 to 5-year CDs$ 9,00010%

Total$90,000100%

Rebalancing the portfolio means moving from risky assets to safer assets as you time passes. The logic behind that is that an investor would not like to lose capital as he grows older, since the sources of income would be limited. As people approach retirement, they tend to become more risk averse. Their investment strategy also tends to emphasize capital preservation. This increased conservatism is a very normal response. However, this shift in risk tolerance requires tha

financi4 answers:

Don’t forget to set aside $20K (or an amt that will grow to $20K) for Cliff’s wedding in 3 years – that’s short-term money, and should be kept in “safe” investments. Also (I don’t know if your prof cares about this), Cliff should have an emergency fund equivalent to 6 months’ living expenses – this should also be kept in safe investments.

For retirement, I would allocate as follows:

VFINX – 30%
FDIVX – 20%
FSLCX – 15%
FSICX – 20%
TRREX – 15%

I hope that helps. Good luck!

James asks…

mutual funds, ETFs, Forex investment for longterm?

1. what are the advantages, disadvantages of each, inshort comparison?

2.i m from Pakistan, Arif habib investment is the group i wanna invest in with a SMALL AMOUNT, in mutual funds. He is also the president of Pakistan stock exchange. that i am sure is a plus point.

3.ETFs have to be handled by oneself. on the contrary i am a salaried person have no time to take care of my investment or buisness. so i need managers to look out for me. they have been working for the past 5 years. their minimum is 26% profit, max is 80% in 2002. the charges 1.5%. by long term i mean 5 or 10+ years.

4. how long would should an investment on average take to double in such a mutual fund?

5. can mutual funds in Asia sub-continent really meet inflation rate?

6. Are there other investment opportunities which one u think is best and why, for a person like me, ? i m looking forward to looooooooooooooooooong detailed answers. Thanx :)

financi4 answers:

ETFs are cheaper than mutual funds. ETFs have very low annual expenses, nearly 20 basis points or 0.2% less. As against this, actively managed mutual funds show average expenses exceeding 135 basis points (1.35%). This does not include the extra 2% – 5% as loads, 12(b)-1 marketing fees, transactions costs, and soft dollar expenses mutual funds, passed on to you but never informed, except in very fine print that nobody cares to read. ETFs have a lower turnover than most mutual funds. As ETFs do not require active management and hold nearly a steady stream of stocks, there is hardly any portfolio turnover.

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