Thursday, August 7, 2008
The Stock Market For the Beginner
By [http://ezinearticles.com/?expert=Billy_Akerman]Billy Akerman
Many people think that being in the stock market is for professionals. In most part it is, but for the amateur they can do just as well if they follow a few simple guidelines. Here are 5 things to remember when trading stocks.
1. When you trade in the stock market you can't let your emotions make your decisions. I've seen people get emotional when their stock has made a major move downward. They panic and dump the shares as soon as possible, thinking that there' more to come. When a stock drops in value, you must see if the company is reporting negative information or if other traders are taking profits from a recent upswing in value. If there are no problems with the company then what you have is a buying opportunity for you to add to your position.
2. Before you invest in any stock you must do your research on that company and the sector that they are in. I like to refer to research as "doing your due diligence". Reading financial reports and balance sheets are a key to knowing if a companies fundamentals are solid. Once you can do that you need to learn how to read their chart. Following the chart will give you an idea if a dip or a spike in price will coming soon.
3. Avoiding "great stock tips" will always save you from getting caught up in the hype of stock. You need to ask yourself why this person is giving this information to you. Is it because they're investing in this and need other people to boost share price? If a person has "inside information" on a company, they wouldn't be allowed to tell you since it's illegal to do so.
4. When you have decided on a stock to invest in, you don't buy all of the shares at once. If you do and the price drops(which they do at times), you won't have any capitol to buy any more. What you need to do is buy incrementally. You need to figure how much total money you will invest into this stock. Divide that in half and that would be your first buy in. When a stock drops below your cost basis by more than 8%, you buy half of the remaining amount you have on the side. If the stock goes up from there you wait and see where it goes to in value. If it drops another 5% from your second buy in, you purchase the remaining shares.
5. Before you buy into a company you must have a exit strategy. Unfortunately there will be times when the stock that you see as a sound investment drops in price too much(or rises beyond 20%) you need to know how and when to get out. Yes, there are other forces at work that will cause a great stock to just drop. To name one, is when investors invest in what they call "shorting a stock". They buy stock for the purpose of going down in value(when you research a stock you can find out how much trading is going on this way. An exit strategy is needed to be in place before you buy into a stock.
I hope that these few tips are helpful to you. I know that they have helped me thought the rough spots.
My name is Billy, I've been trading in the stock market for many years and have now made it my career. I manage a few accounts which have been quite successful. I now run a blog and investment forum where useful articles are published daily. [http://beatingthestockmarket.com]Investment Property Blog [http://forums.beatingthestockmarket.com]Investment Forums
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Factors Responsible For Bear Market
By [http://ezinearticles.com/?expert=John_Efetobor]John Efetobor
The bear market is the interval in the capital market characterized by falling prices for securities. It is a period that separates the men from the boys in the art of stock trading; it is the season when investors who are unsure of the reason why they hold a stock sell out of panic. It is a period when most of the prognosis of stockbrokers and experts are thrown into winds and are torn into shreds. I am amazed at the way most investors appear to be taken unawares by the bears; it ought not to be, because there are always loud signs that always herald a bearish season, unfortunately, only the seasoned stock traders that are able to see them afar off.
I want to show you warning signs you should look out for, that should prepare you before the bear market sets in, remember there will always be a bull and bear market as long as the forces of demand and supply continue in the capital market.
Massive profit taking
Profit taking is the name of the game; stock traders generally look forward to selling off their stocks once their objective for buying into a stock is achieved, but when this action is carried out en masse it can trigger off a bearish session. During the bull market stock traders take advantage to sell of their stocks, the massive shedding will eventually have its toll, so watch out when you observe there is massive effort by stock traders to sell their stocks, know the bear market will come knocking.
Active and prolong primary market activities
The primary market is the other half of the secondary market, both markets function in diverse ways. The primary market is where the vast majority of investors do business, the reason is not farfetched; it is an all comers market. For this reason whenever there is prolong activities in the primary market, in other word, if there are so many initial public offerings and private offerings, investors will channel their funds to the primary, sometimes they may even withdraw their funds, the effect there will be more sellers in the secondary in the secondary market than buyers, supply will outperform demand thereby driving down the prices of shares.
Massive panic selling by emotion driven investors
One of the feature of a bearish a bearish market, is the reaction of emotion and sentiment driven investors. The bearish season over the years from my experience analyzing and trading stocks have always beaten uninformed investors who have not imbibe the entry and exit strategy that I know has most of the time protected wise and seasoned stock traders. When the vast majority observes that the prices of stocks are rallying down they react by selling off their which affects the stability of the secondary market.
The bear market when fully understood can be a great opportunity for wise and seasoned investors to create wealth, because you find stocks which have been hitherto scarce and expensive available and affordable. During the bearish market, you will find securities with very sound fundamentals selling below their real value, which means if had prepare yourself in anticipation of a bear market by your understanding of the activities discussed above, you could be your way to making awesome profits.
John Efetobor is an Investment Communicator, Analyst, Motivational Speaker, Coach, Trainer, Human Developer, Investor and Businessman. He has a [http://stocktradingrevolution.blogspot.com/]Stock Trading Revolution Blog where he writes informative articles on Stocks, stock trading and other Vital aspect of stock investment Visit: [http://stocktradingrevolution.blogspot.com/]http://stocktradingrevolution.blogspot.com for more information.
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Monday, February 4, 2008
Top 10 Financial Resolutions of the New Year
By [http://ezinearticles.com/?expert=Samantha_Chang]Samantha Chang
With the new year just around the corner, most of us are thinking about the holidays and spending time with loved ones. And while Christmas and New Year's Eve are a time to eat, drink and be merry, reality usually sets in on New Year's Day, which leads to the traditional round of resolution-making.
So for the new year (in addition to eating better and exercising more), you might want to consider these 10 resolutions for putting your financial house in order.
1. Think Strategically About Your Money
When it comes to vacations, most people plan months ahead, carefully selecting a destination and the best way to get there. Financial decisions should involve the same type of strategic thinking. You should choose a financial "destination" and then map investment, savings, insurance and household needs to arrive as planned. People who think strategically will know if they're on track to reach their goals and when they need to adjust their plan to match their financial situations.
2. Develop Financial Relationships
It's never a good idea to make major decisions in a vacuum. Ideally, you should try to develop relationships with people who can help guide your financial well-being. Get to know them, and let them get to know you. That way, they're more likely to go the extra mile to provide the kind of personalized service that can keep your goals on track. A good accountant can help you save money. A banker can help with loans when you really need them, and a lawyer can make sure your personal affairs are in order.
3. Boost Savings, Cut Debt
Limiting debt is critical to reaching your financial goals. Therefore, it's important to keep nondeductible interest to a minimum. As you liquidate debt, you may want to direct those dollars to savings. You can also maximize your savings by contributing to company-sponsored tax-deductible savings programs such as a 401(k), a health savings account or a 529 college savings plan. You should also consider making major household purchases on a "pay-as-you-go" basis. Anytime you reduce debt, you are, in effect, giving yourself a raise.
4. Review Household Expenses and Set a Budget
Cash flow management is fundamental to financial planning. Basically, this means spending less than you earn. To do this, you should decide how much you want to save and then adjust your budget accordingly. Try tracking your expenses for three months so you know where your money is going. This way, it's easier to start making intelligent decisions about spending habits.
5. Plan Ahead for Marriage and Family
You may not have tied the knot yet, but if you do plan to marry someday, you should start planning now. For example, do you and your partner see eye-to-eye on financial matters? Do you know whether you'll use a joint checking account or separate accounts? How many children, if any, do you plan to have? How will a family change your insurance and housing needs? Financial arguments can frequently lead to divorce. By planning ahead, you can help minimize stress on your relationship.
6. Review Employment and Education Options
Too many people fail to take advantage of employee benefits, especially when it comes to retirement plans. Most companies match a portion of an employee's 401(k) contribution. Consider it "free money" or a guaranteed return on your investment. An increasing number of companies also match contributions to college and health savings accounts and provide tuition reimbursement. An advanced degree can enhance your earning potential, so find out if your company can help finance higher education.
7. Develop a Crisis Management Plan
A financial emergency usually strikes when you least expect it. The loss of a job, a change in your personal situation such as a divorce or a health crisis can quickly drain your financial reserves. The best hedge is an emergency savings account equal to at least three-and ideally, six-months of living expenses. Repay the account promptly, even if it means cutting back on other things. The goal is to avoid piling up debt-or worse, bankruptcy. A crisis management plan can provide some peace of mind and keep you moving toward your financial goals.
8. Review Insurance Needs
You can use insurance to protect your assets. Life insurance can provide a decent financial cushion in the event of a spouse's or partner's death. Therefore, it's important to regularly review your policies.
9. Leverage Your Assets
You can leverage assets to take advantage of financial opportunities. For example, if you have a low-interest mortgage, think about directing any extra cash to higher-paying investments rather than paying down the loan. A home equity loan is usually cheaper than a consumer loan, and interest is tax-deductible. If you have a brokerage account, you may want to consider using it as collateral for a loan. The interest may be lower than your investment return and conventional loan rates.
10. Manage Your Taxes
Taxes can take a huge bite out of income and capital gains, so you may want to consider the following steps:
--Maximize your and/or your spouse's 401(k) and IRA contributions.
--Consider opening a health savings account, even if you don't plan to use the money.
--If you own stock, consider selling it before the end of the year if it's generating losses.
--Think about increasing charitable contributions or setting up a trust.
These transactions can all yield tax deductions. By planning ahead and taking small steps now, you can start getting your finances in order by the start of the new year. Happy holidays!
Samantha Chang is the executive editor of The Improper, a lifestyle magazine in NYC. A business and lifestyle journalist for 12 years. Samantha writes about personal finance, fashion and health/fitness. Visit her out at http://www.theimproper.com
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Friday, February 1, 2008
Becoming a Millionaire
Youth has its advantages and one of the biggest rewards is a powerful force that will almost ensure you become a young millionaire. There are simple steps you can take, when your young, that will help you harness the power of this force; making becoming a millionaire a breeze.
Just by following a consistent investment plan you could be enjoying the freedom that comes with being a young millionaire. A simple investment, in the overall stock market, could help you to retire young. Consider these examples:
- $149 invested each month starting when your 18 years old could make you a young millionaire at age 52.
- $687 invested each month starting when your 18 years old could make you a young millionaire at age 40.
Financially educated youth have tremendous advantages that average young adults don't have. Just by being aware that you can retire young with a simple investment strategy is enough to encourage some to take the necessary steps to reach young millionaire status.
Becoming a young millionaire is easy when you start young because you have the power of 'compounding interest' on your side. Compounding interest is defined as the interest earned from the initial money you personally invested plus the interest earned from the amount your investments have already returned. To clarify, the money that you already made from your investments starts to earn you money. So, year after year, you're making money off money you already made.
Investing young allows you to get the maximum benefit from compounding interest. Because you're making money (earning a return) on what your investments have already paid you, the younger you start the faster and larger your investment account may grow. That's why investing young gives you a huge advantage.
1) Savings. The first step on the road to becoming a young millionaire is to set up a simple savings plan. Pay yourself first by setting money aside into an investment before you start spending your paycheck. Getting in the habit of paying yourself first will benefit you your entire life and will help you retire young.
2) Invest young. Don't get caught up in thinking 'investing' is hard; it's actually easy. There are simple investments, available to the inexperienced, that will get you started investing young.
The stock market offers some investment vehicles that are lower-risk while offering the potential for long-term gains. One type of investment vehicle is known as broad based market index investments. These are investments in the overall market like the S&P 500 and NASDQ 100. For example, you can invest in all 500 stocks of the S&P 500 with one simple investment index investment vehicle. The S&P 500 index is one way for the non-professional investor, that doesn't have a lot of knowledge or time, to profit from the stock market.
3) Consistency. Simplicity equals consistency; and consistency is a major factor in becoming a young millionaire. Choosing a simple investment vehicle is the first step. Next it's simple a matter of modifying your investment account so your make consistent investments automatically.
There is a basic investment technique called 'dollar cost averaging'. This plan can be set up so it's automated. Contact your bank to set up your investment plan so each month a set amount of money is invested for you. The best part is that once this structure is set up you can sit back and just review your monthly statements. With a consistent investment plan you could reap huge profits over a long-term.
4) Multiply your money. The basic stock investment method mentioned above will get your money working for you immediately. For those of you looking to become a young millionaire sooner there are ways you can speed up this process. Learn about the investment vehicles discussed below and you will be able to afford the things you want sooner and achieve wealth at a faster pace.
A. Real estate. Real estate investments can be credited with making the majority of young millionaires. It gives you the power of leverage so you are making money of money the bank loaned you. When done right you could expect to double your investment each year! Just by purchasing real estate while you're young could easily make you a young millionaire.
B. Entrepreneurship. It's never been an easier time in history to start a business. Plus now day's you can have a global company with small initial investment. Entrepreneurs not only make money from their business each month but also they can sell all or part of their business for additional money.
You could start a business that earns you an extra few hundred a month or one that is your entire source of income. Either way it can help to secure your financial future plus give you greater cash flow now. What's more, there are tax benefits available to business owners that will keep more earned money in your pocket.
Becoming an entrepreneur can help you become a young millionaire and give you the luxury of being able to retire young.
The sooner you start investing the sooner you can become a young millionaire. You'll discover by following a simple investment guide you can easily retire young. You have the power of compounding interest on your side that will do most of the work for you. The best part is you will be able to do what you want when you want, retire young, have free time and be able to afford the things that you really like. Start now and the take steps to become a young millionaire today!
Vince Shorb, the leading financial literacy advocate and young America's success coach, guides young adults step-by-step to become young millionaires. He developed the first multi-media course, 'Financially Free by 30', that gives them exact plans to retire young. Go to http://www.FreeBy30.com now to access exclusive free videos.
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Tips and Techniques for Successful Investing
By [http://ezinearticles.com/?expert=Joseph_Kenny]Joseph Kenny
The main objective of any investment is to make money and gain from a profit. Experienced investors usually study market trends before investing. However, inexperienced investors depend on the advice from financial advisors and brokers to guide their investments. Money always grows with time in the stock markets. A successful and profitable investment involves a lot of patience and constant monitoring of market fluctuations. In order for an investment to be profitable, it is important to adopt flexibility and diversification of funds. Listed below are some important points-to-remember:
Flexibility: Investors need to be flexible with their investments. Investment strategies involve regular analysis and reviews of the financial market. Amateur investors should seek help from financial advisors on their investment portfolio. Long-term planning and asset allocation are very important to an investment portfolio. Mutual funds, variable annuities and variable universal life insurance or VUL products provide good ground for investment flexibility. Another type of investment is Survivorship Variable Universal Life Insurance or SVUL. SVUL covers two people in one life insurance policy. The benefit is payable after the death of the last surviving insured person. The investment portfolio should be designed to help diversify the investments.
Diversification: Diversification involves making different investments to gain from higher returns. This risk-management technique of investing helps to diversify the investments in stocks, bonds and cash. It does not waive off the risk of loss totally, but it definitely creates more avenues for profit. The investor can invest in a number of different companies, foreign securities and mutual funds. Even if one company declares a loss, the investor still has the other investments to fall back on. Diversification is a good method to counter the risk involved in the total loss of an investment.
Simple Approach: It is safe for amateur investors to follow simple guidelines for investing money. Immature investors should not invest in companies that they are not very sure about and haven’t researched. A simple approach to investment is to stake money in recognized companies that offer high returns and show a consistent growth pattern. It pays to conduct a research on the company before making an investment.
Be Disciplined: Market trends fluctuate due to several reasons. An investor’s judgment should not be based on momentary instability. It is not advisable to make a change in the adopted strategy mid way. However, regular analysis and timely reviews help to keep abreast with important information of the stock market.
Invest Smartly: Investors need to be well informed and alert all the time. Cautious long-term planning is as important as being patient. Investors ought to be methodical when following an investment strategy. It is equally important to understand and monitor the economics and trend of a company. The investor should be updated regularly on business, political and stock related news to learn the political implications that may affect the company in future.
Investments carry the element of risk and therefore investors are advised to investigate before investing. It helps to follow the general guidelines of investment and invest smartly.
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Portable Alpha - Investment Strategies
So much is being written about the emergence of “Quantitative Funds” and why this type of investment is becoming popular among both individual and professional investors. Eleanor Laise, in her Wall Street Journal article titled “Stock-Picker Jobs Going to Computers” wrote that “investors are attracted to quant funds for their non-emotional, disciplined method of investing. It is a well known fact amongst investment professionals that “investor psychology” is the most difficult variable for anyone to manage. Our fear and greed most often get in the way of good judgment and a well thought out investment strategy.” One method of developing a quantitative portfolio includes adding alpha to the investment screening process. Although the idea of alpha is thought to be complicated and only for the technically inclined, it’s available for any investor and now easier than ever to utilize. With this strategy readily accessible, it makes sense to build a portfolio of long-term investments and then augment the return by actively trading a portion of the portfolio using technical analysis and portfolio management.
The real question is not if it can be done, but how can it done. Specifically, how does an investor, be it individual or professional, utilize the power of portable alpha? Before the “how to” can be understood, one must appreciate what alpha is and what investments are available that make utilizing portable alpha easy.
What is Portable Alpha?
According to Lawrence C. Strauss, in his Barron’s Online article titled “Does Low Volatility Mean Lower Returns” alpha “the money-management industry’s buzzword du jour refers to the measure of a stock’s performance beyond what the market provides. But how to calculate Alpha and more importantly how to compare various investment alternatives simultaneously using the same definition of Alpha has been a difficult problem for investors to solve.” Alpha, in its purest sense, is the measure of a fund or portfolio's risk-adjusted return relative to the market. A positive alpha value, such as 1.0, means that the fund or portfolio outperformed the market by 1.0%. The higher the alpha value, the more incremental gain is awarded for actively managing the investment by choosing securities that outperform the market, as compared to merely accepting the market return.
Portable alpha is “portable” because it can be applied across various asset classes. If a manager or individual investor increases a portfolio’s risk-adjusted return relative to the market (alpha) by investing in securities that have little or no correlation with the market, then that manager has created portable alpha. Portable alpha is a powerful investment tool because it can provide investors with greater diversification in their portfolios, lower risks and greater total returns as compared to conventional asset allocation.
There are other varieties of alpha, but in all cases a positive alpha value indicates that the fund or portfolio manager has "beaten the market" through fund or stock selection. Alpha Advisor Service, LLC uses a weighted alpha factor which places more emphasis on recent price movement as opposed to past activity. The purpose of doing so is to pinpoint stocks and funds whose positive momentum is building rather than those that have reached the peak of their uptrend.
Investments That Facilitate Using Portable Alpha
Applying portable alpha to your portfolio can be accomplished by using trade-friendly investment funds provided by ProFunds, Rydex or Fidelity. These companies provide a wide variety of mutual fund selections, including index, sector, bond, precious metals, and international, which can be traded frequently, most without penalty, early trading fee or commission. Some of these companies offer funds designed for hedging strategies. Or for the slightly more aggressive, a few of these companies provide leveraged funds which are designed to outperform their benchmark index through the use of leverage. Exchange Traded Funds, which come in as many styles as mutual funds, also provide an easily-accessible tool for adding alpha to a portfolio.
Many analytical sources provide statistical profiles of investments, most of which are mathematically accurate. The predominant short coming in these tools is that they do not consistently analyze all alternatives. Bond investments will be measured using benchmarks unique to bonds while small cap stocks will be measured against the Russell 2000 etc. To select the best investments, using a level playing field by which to measure portfolio returns is the most attractive.
How to Utilize Portable Alpha
The first step towards utilizing portable alpha involves developing an asset allocation strategy specifically tailored to personal investment objective, risk tolerance and time horizon. Determine how much of the portfolio should be strategically allocated to specific asset classes such as stocks, bonds, sectors, international investments, precious metals and cash. Assign a percentage of investment dollars to each class, and then prepare to fill in the asset class with an appropriate selection of investments.
To select the best investments for each asset class, rank the investments by alpha score from highest to lowest. Then pick the top one or two options for investment within each asset class. Put in place a trailing stop loss on each investment at a reasonable level and watch its performance. If the price violates your watch level, sell the investment and replace it with the next most highly ranked alternative from its class. If no alternatives are available with a positive alpha, hold those dollars in cash until such time as a candidate presents itself. Don’t invest those dollars in another asset class; hold them until a candidate in the particular class becomes available.
This approach satisfies the buy and hold dogma that is unfortunately so engrained in the minds of today’s investors. It supplies adequate diversification while at the same time providing a level of return that’s in line with market expectations. Hopefully, by this point recent market activity has convinced most investors that the idea of buying a stock or fund and holding it indefinitely is no longer the optimal investment strategy. Human nature has a tendency to result in buying and selling at the worst possible moments, minimizing gains and maximizing losses. That’s why the development and implementation of a disciplined investment strategy is so advantageous to today’s investors.
Taking this approach one step further and evolving from a strategic allocation to a tactical or dynamic allocation is the easiest way to generate excess investment returns within a buy and hold strategy. Tactical allocation is predicated on the belief that not all asset classes perform in the same manner and that investment cycles do exist. With so many index funds and ETF’s that mimic the performance of market indices and style-box investments, analyzing the alpha scores of these investments is the quickest way to determine where to increase or decrease a portfolio’s allocations.
Today, with so many internet-based trading platforms available through brokerage firms and banks with minimum fees and almost no trading commissions, active personal investing makes more sense then ever. Affordable high-speed internet connectivity, computers, cell phones and internet brokerage accounts coupled with powerful mathematical statistics such as portable alpha are negating any excuses for experiencing unacceptable investment returns.
I provide a twice-weekly newsletter designed for investors seeking to utilize portable alpha. We analyze over 1700 securities including stock, ETF, and mutual fund investments as well as provide "Buy Recommendations" and "Sell-Limit Watches." If you're interested, try our 30-Day FREE Trial and see for yourself how easy and rewarding it can be.
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A Head Start on Intelligent Investing
By [http://ezinearticles.com/?expert=Amit_Malhotra]Amit Malhotra
Apart from the theoretical knowledge that an investor gains before investing in stocks, the practical changes and lessons get well off while going through the actual process. Each investor always seeks for making profits but 90% of people end up losing to the stock market, however, very few of all the investors realize the "the risk break" technique. There are various investment strategies that contribute highly to the making of loaded returns.
First strategy points towards well-constructed portfolio that takes into account its integrated investments and diversification. The combined asset classes along with properties and equities get a well-refined structure. It always gets a volatile portfolio that has strength to recover fast even if the market is breaking down.
Another principle strategy includes the investment accompanied by the margin of safety. The margin of safety refers to the discount availed while purchasing any share at its intrinsic value. It not only raises the profit share but also depreciates the level of risk at its downside. It is to be noticed that the shares purchased at under-valued rates tend to have more chances to have a price hike, at least to meet its fair price. Also, they generally prove to be a source for stable earning because of their liquid cash value.
All investment strategies are planned keeping in mind the volatility of a particular market. Hence, next investment strategy includes your expectations for volatility and earning profits from it. No other market, than stock market is more volatile, hence any investor must use the chances of volatile market and device the breaking down for the profits. Most of the investors stop investing in drowning markets, which is not the criteria to be followed. Rather short selling and buying of shares that are expected to rise in future must be invested in. Also, the two ways to diminish the negative effects of market volatility are:
Dollar-cost averaging: buying equal dollar amounts of investments is the right way to achieve the dollar-cost averaging.
Investing in stocks and bonds: for an investor to invest properly in stocks, it is important for him to first save on the money and then try to grow it. Hence, it is important for him to invest in bonds to save the money and then invest in stocks to make sheer profits. Also, investing in bonds get a preserving tool for the hard earned money.
The other investment strategy includes knowing the type of your investments. What kind of investor you are and which objective you are investing in stocks are important to know? Though the investor type could be many but in technical terms the investor can be of two types, on the basis of frequency of investments.
Investors who are investing once in a while, does not posses much of the inclination towards stock market are the passive investors. If you are a passive investor then it is no point being investing in short term investments. However, for serious and inclined investors stock trading is a serious business and a mix for many investments including day trading may be tried. [http://www.sogotrade.com]Sogoinvest [http://www.sogotrade.com//AccountSetup/Default.aspx]Open an account with sogoinvest
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Stock Investment Strategies: For more Financial Independence
A good planning and strategy is required to accomplish any kind of work perfectly. This is also true when it comes to stock investment. So, if you want to reach your monetary goals within a specified timeframe – you will have to follow stock investment strategies. In this way, you can manage your funds accordingly.
There are four main factors on which your stock investment strategies will depend:
Objective: The amount of funds you are investing will determine your goal.
Time period: A particular time that you have set to achieve your financial goal.
Return: How much return you are expecting within a certain timeframe.
Subtle risks: how much risk you can take to achieve your objective.
Moreover stock market investing is an excellent way to gain profit from the growing economy. Unlike savings, you are not affected by the inflation rate. Keep the above four points in your mind and you will always feel good as far as your investment and returns are concerned. Stock traders who are already experienced in the stock market investing know everything about the volatile nature of the stock market and are earning millions of dollars from their investment.
What if you are a new stock investor? Nothing to worry about, you can find a wealth of stock market information on the Internet. Important information regarding how to start online stock investment; what are the trading stock options about stock trading companies and above all what are the investment strategies that you should follow – all such basic information are available on the Internet.
The next biggest advantage of stock investing is that everything has become accessible online – from buying and selling of stocks to stockbrokers. Sitting at your home, you can buy and sell stocks online. Online brokers are also available, who not only help you in buying and selling of stocks, they also advice you and keep you updated with the stock market trends.
Being volatile in nature, stock market has always been considered as a risky platform for investment. But the very next question that would arise in your mind is how people are earning so much money through the same investment plans? The answer is quite simple but realistic. These investors are aware of every subtle risks involved with stock investment. Successful stock traders always keep themselves abreast of the latest market updates. With such knowledge, you can also choose stocks that will fetch maximum return.
Online investment method has made things much easier. The only thing you need is a PC and the Internet connection. Search stock trading companies online, find their terms and conditions and the commission rate. You can look for different online trading companies – compare them and find the suitable one as per your requirement. Online financial experts are also available and you can clear all your doubts and go ahead in discussing your stock investment strategies.
Stock market investing is one of the quickest methods of becoming richer. However, always remember - plot a good financial investment strategy first, and then spend your hard earned money to gain financial independence.
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Thursday, January 31, 2008
Recession Proof Your Online Business
Ok, unless you live under a rock and get you news by carrier pigeon, most people know the USA currently teeters on the brink of recession.
Though I maintain my own opinions about what this will actually mean to the average person, there's no denying that the economy may slow down and sales may slack off a bit.
So, in order to prevent this possible downshift in the economic engine from affecting you, I offer the following advice to help recession-proof your online business.
*See It To Believe It*
No matter what you sell, you can use video to demonstrate either what you sell or the results customers should expect.
Product, service, software - it doesn't matter. You can either use full motion video or screen capture video to "show and tell" people why and how your offering helps them.
In a down economy people try to make every dollar count. Thus, consumers will spend more time on research and comparison before buying just about everything.
Use video to set your business apart as every online playing field gets more competitive.
*ASK What They Want*
Ask the people who buy from you, or are considering buying from you, what they want most right now - then figure out a way to sell it to them!
Too many online businesses assume they know what their customers want and need. But in a down economy you must maximize the value of every customer for your business.
You can do this quickly and easily with a survey via email where you ask them about what they need and want as it relates to your area of business. I personally use www.OneMinutePoll.com to conduct my surveys.
*Become Invaluable*
Find a way to go beyond just selling a product, service, or software.
Become invaluable to your customers. Become the last thing they would ever throw overboard if their economic ship started to sink.
You can often do this by combining whatever you sell with information and news they can't easily obtain elsewhere.
The easiest way to do this is to include special reports, ebooks, videos, or articles on your website, with purchases, or in an email newsletter.
If you sell the same thing everyone else does, you're just a commodity judged on price.
If you provide added, demonstrable value to your customers, you transform into a "resource" they can't let go.
*Stuck In Traffic?*
Most online businesses lapse into one or two main sources of online traffic generation (no, this doesn't include "hoping" for traffic).
Whether using pay-per-click, banners, email or some other method, we all tend to gravitate towards what "worked in the past."
Unfortunately, in a down economy, those traffic sources may dry up, increase in cost, or stop converting (or all of the above). But, as the saying goes, when one door closes, another opens somewhere else.
You must constantly look for and test new sources of traffic because you might just find one that could revolutionize (or save) your business.
Make it a priority to find and test at least one new source of traffic per month.
Recession-proofing your online business is easier than you think.
It simply comes down to discovering what enough people want, effectively demonstrating you provide it, and making yourself an indispensable part of their lives.
Copyright (c) 2008 Jim Edwards
Jim Edwards is a syndicated newspaper columnist and the creator of an amazing course that will teach you step-by-step and click-by-click..."A Quick and Easy Way For YOU to Painlessly Set Up Your OWN Moneymaking 'Mini' Websites... Without Being a Computer Geek, Buying Expensive Software, or Paying Outrageous Fees To A Webmaster!"
Click Here => http://www.MiniSiteCreator.com
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Recession Proofing Your Home
By [http://ezinearticles.com/?expert=Roy_Primm]Roy Primm
What is a recession? A recession is when six months of negative economic growth happens (two consecutive quarters). Or in plain English, six months where the U.S economy shrinks in producing and selling goods and services. Ouch!
Making the mistake of refusing to think about it, thinking that will make it go away or not affect you is a risky mistake.
For example, if you're ever confronted by a mad, hungry wolf - burying your head in the sand and thinking happy thoughts is no survival strategy! But it does position you with your soft spot in the air, thus guaranteeing the wolf an easy, warm, ham dinner.
The same goes when an economic slowdown hits. Those who are the most prepared survives and even thrives in it - those who aren't won't. Regardless of how much or how little money you have.
For example, you may recall the last recession we had in 2001, dozens of Wall Street millionaires went broke almost overnight. Not to mention the hundreds of dotcom companies that went bust in tech heavy Silicon Valley in 2000. So, it's not the money but preparation that helps you survive an economic slowdown or recession.
Make up your mind now to refuse to participate in any one's recession - real or imagined, by preparing a survival plan now. As the saying goes, those who fail to plan - plan to fail.
Here's Five Ways to Recession Proof Your Home
As always feel free to share this information with someone you care about.
1. Routine Maintenance Preserves Your Money
Keeping up routine maintenance around your home will save you the cost of having them repaired or replaced. This will act as an enormous money -saver to reduce your expenses during a economic slowdown.
2. Don't Move ... Improve
During economic slowdowns it's always better to improve your home whether than trying to sell your home in a buyers market. If you can it's best to wait for a more advantageous time when the market improves. And instead improve your home with updates and other important maintenance projects.
3. Don't Panic - Protect
Now's a time to think more defensively. This means instead of buying new items, focus more on preserving and protecting what you have. For example investing in products that make what you have last longer like cleaning, maintenance and preservation products to keep what you have working efficiently.
4. Drive Your Computer - Instead of Your Car
With gas rising above three dollar mark it's important to find ways to use our car less or at least more efficiently. One of the easiest ways to is use your computer drive instead your car to drive. Online shopping will save you the cost of car maintenance, gas and wear and tear. So take advantage of this effective time-saver.
5. Give Your Home A Security Check up
Unfortunately when the economy slows down home burglaries and other economic crimes go up. As more people seek to find ways to make or supplement their income in unlawful ways make sure your home doesn't present a tempting target to an alert burglar.
As the economy grows tighter your preparation and planning will help you and your home ride out any economic storm better. By acting on the above suggestions you'll have less surprises. Of course no one knows what the future brings for the countries economy. But you'll feel more confident and in control by taking advance actions to protect yourself, your home and your family.
With recession forming on the lips and minds of government officials, wall street and business leaders by the day, you should start forming an action plan now.
Roy Primm Founder and Publisher of [http://www.BlackHomeOwnerNews.com ]BlackHomeOwnerNews.com the largest source of information for black homeowners. Subscribe to free newsletter and receive the latest home value increasing tips, free government grants benefiting homeowners. Get free ebook 99 Ways To Live Better On Less Money at ... [http://www.shopperscoach.com ]ShoppersCoach.com
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Tuesday, January 29, 2008
How to Avoid Internet Business Scams
By [http://ezinearticles.com/?expert=Megan_Vaillancourt]Megan Vaillancourt
So you want to own an Internet Business? You want to earn money online, but are a little fearful over scams that are circulating on the Internet. The first thing to realize is that our big dot com world is not as scary as you may believe. Yes, it is high-tech, and yes there are hackers and people out there scamming others. But there are simple strategies you can implement to protect your investment.
First of all there are not a lot of Internet Business that are scams. The business models that are out their are more legitimate, then we have ever seen in the past. The SEC has done a great job in protecting our investments. The biggest scams come from the people you partner with. If you are serious about starting an Internet Business, then you need to get to know the mentor that will be training you to earn money online.
Reputable Internet Business will teach there members to help their business members. Regardless of the company or service there are always people out there that are not going to follow through with there promise to show you how to build An Internet Business. If you are new to the Internet how can you protect your
hard earned money?
An 11 step plan to starting an Internet Business
1.) Ask Questions - Ask questions and reask the same questions. Make sure that the person is answering the questions the same way. If someone is misleading you then nine out of ten times will mess up there stories. Keep a good log of there responses and make sure they match up.
2.) Search Your Mentors Name - If you are talking to someone about there business ask for there name and correct spelling. Tell them you are going to Google and Yahoo to check them out. If legitimate they are not going to have a problem with that. Check their data.
3.) Check To See if There Is A Team Effort- It is crucially important to make sure there is a team effort. If there are not team trainings, or other mentors to talk to then I would be worried about contact with your mentor after you join. Make sure to ask them if they have team training calls or if there are other leaders that can help you build your online business.
4.) Testimonials - Ask for Testimonials. Most leaders will have a testimonial page for you to view. HINT: Make sure they have pictures or audio. It is harder to forge testimonials when you have a picture of someone or an audio.
5.) Don't Be Pressured - Making a business decision is big. You should not be pressured or feel like you have to make a decision today. Its your investment and your decision. If someone pressures you to join. Then I would back away.
6.) Plan of Action - What is the Plan of Action once you join. What is your responsibilities. How do those responsibilities allow you to earn money online? How long before you see a profit? Ask These questions. Don't fall for that you have little to no work. This will be your business and you want to clearly understand what your task is to having a successful business.
7.) What Sets Them Apart - Why are they different then any other mentor or mentoring team. Why should you choose them. Its not always about How much money they make, how are they going to teach you to earn money online.
8.) How Much Money Do They Earn Online - Okay in normal life this is ethically not a good question to ask. But in the Internet Business world it is okay. Yes they can tell you anything but usually people who are really making money will have a video of proof or a copy of receipts. Ask them for it? Its okay you are qualifying them.
9.) Marketing and Advertising - This is The core of your business. If they don't have a marketing or advertising plan you will not earn money online with any Internet Business. Make Sure To Ask them, have them be exact, and what your advertising expenses will be. . HINT: Marketing is not one source it is multiple sources that work together to bring quality traffic to your site. Don't fall for we have one marketing and advertising firm that will earn you an extraordinary income.
10.)The Automated Question - Automated Business are the wave of the future. Everyone wants automated. No work and you will earn money online. That is absolutely false. Anyone who is successful with there Internet Business will tell you it has taken some work. Watch for over hyped statements like you will
not have to do little to no work and you will make all sorts of money. That is just not true! Warning bells should go off.
11.) Explanation Calls - Every good team and mentor will have a call where you can invite potential clients to learn more about the opportunity Find out if they have something like that to help with your endeavors.
These are a baseline of questions that you should ask anyone that you are partnering with. Your biggest chance to earn money online is by networking with the right type of people. Its your investment, and you may like the person you are talking to. But liking someone is not going to allow you to build a profitable Internet Business.
You are anxious to move forward in your endeavor to earn money online. I congratulate you on your decision. However, I caution you to not make quick decisions. This is your first business decision, take the tips above to make your first step towards creating a Profitable Internet Business
Megan Vaillancourt
Creator And Founder of the highly acclaimed Mentors 4 U. A mentoring program for Passport To Wealth and My Internet Business
Author on Online Marketing, and Business http://www.PassportMentors.com http://www.MyInternetBusinessEarnsMoney.com
Questions Please Feel Free To Contact
Megan Vaillancourt
802-285-2006
or email me [mailto:mentors4u@gmail.com]mentors4u@gmail.com
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Starting an Internet Business
By [http://ezinearticles.com/?expert=Kathy_Austin]Kathy Austin
Have you thought of finding a convenient work from home opportunity for some time now? The advancements in technology has now granted you your wish and brought the opportunity of a lifetime right away. Well, now, it is possible to have an Internet business and work at flexible hours as per your convenience. With the Internet being the most preferred mode of communication, the opportunities for starting an Internet business are truly unlimited.
You could now select a web business idea that not only suits your requirements but also keeps your tastes and preferences intact. Some of the wonderful Internet business ideas worth exploring include:
Content Sharing: Content has become the new mantra for success online. For communicating your ideas and presenting your products online to your potential customer, you need to have a compelling content that can make an impact. Content sharing would include the written matter or text files, audio files, music and even videos. Content sharing is here to stay and offers tremendous opportunities of working from home at your convenience. Not many companies, however, are able to provide quality content as per the deadlines. There is a huge business opportunity waiting to unfold. Opportunity does not knock twice so open your doors and welcome it right now.
Video sharing: The Internet has turned up to be the most preferred mode of communication today. People spend a lot of time online and find it the best way to stay connected with family and friends. Users would like to publish their videos online for others to see. With the growing number of Internet users, starting a video sharing website of your own is definitely a good business idea. With your website gaining popularity and the increasing user base, there would be several advertisers who would be ready to pay you a handsome sum for being able to advertise on your website. It is for you to now make the most of this wonderful business idea and be a successful entrepreneur online.
Dating Website: Dating websites have come to be the most popular sites online known to generate the highest revenue. What better Internet business idea can be there than to launch a dating website of your own. Have a wonderfully designed dating website that understands the pulse of your target audience and you are on your way to success without any doubt.
Forums: Forums are among the latest trends now. Communicating with the customer is very important, however, communication should be two way; only then will you be able to get the right feedback. This explains the growing popularity of forums where you can post any topic or your comments in reply to a topic. Designing forums could thus, prove to be a good Internet business idea.
Music sharing: With people spending more and more time online, the trend of sharing things online is the new craze. Earlier if you needed a particular song you would request your friends to lend you a CD. However, now you would just need go to a music sharing site and download it. Music sharing websites attract a lot of traffic and thus, generate a lot of revenue in the form of advertising. Create your own music sharing website and success would then surely be on your side.
The number of Internet business ideas ( [http://www.goarticles.com/cgi-bin/showa.cgi?C=716035]webbizideas) have increased manifold. There is a world of opportunities out there waiting for you to explore. High time to kick start your venture and vision.
Kathy Austin is a writer, read more articles for [http://www.goarticles.com/cgi-bin/showa.cgi?C=716035]Webbizideas here.
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Start an Internet Business Without Money
By [http://ezinearticles.com/?expert=Jo_Mark]Jo Mark
There has never been a better time to start your own business than now. In years gone by, it was quite expensive to start your own business. Now, using the Internet, you can start your own business without investing a cent. All you need is a website or blog, which you can get for free, and a little hard work.
Begin by doing a search for a free website. If you have no knowledge of computers, you might be better off with a blog. You can enter information onto a blog without any knowledge of computer languages such as html (which you need to know to start a website).
Determine the main focus of your website or blog. Studies have shown that targeted sites that focus on one specific area are more successful than sites that provide a little of this and a little of that. So, put some thought into this aspect of your business and come up with one main focus of your site. This is called your niche.
After determining your niche, you need something to promote. Look for products that are related to the content on your site. Because you do not have your own product, you will sell someone else's (called the merchant) through an affiliate program. Through affiliate programs, your only job is to entice people to visit the merchant's sales page. Each time one of your referrals makes a purchase, you receive a commission. You do not have to bother with collecting payment, dealing with customers, or delivering the product; the merchant takes care of all those details.
To find good affiliate products, register with either ClickBank or Commission Junction. These are two of the largest companies in the field and they offer tens of thousands of products. It is free to register as an affiliate. After registering, locate suitable products that are related to your niche.
Place ads on your site directing visitors to your merchants' sales pages. Promote your site to attract visitors (called traffic). You can do this using free classified ads or by writing articles. Both of these marketing techniques are free. It may take a month or so, but slowly but surely, you will begin to make some money. As you attract more and more traffic, you will see your income increase.
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Using an Internet Business to Create Wealth
By [http://ezinearticles.com/?expert=Jo_Mark]Jo Mark
Many people seem to create wealth and money easily while others struggle just to make ends meet. Too many people are looking for the easy or quick way to do things. Fast profits, fast food, easy money... Many of these seemingly easy roads to quick profits turn out to be worthless gimmicks. The only one that makes money is the promoter. Those who struggle to make ends meet seem to be attracted to this type of program and lose money time after time.
What are some of the real requirements to create wealth using your online business?
1. Develop a plan.
You need to develop a solid plan. Develop your business plan using successful individuals as a model. Don't try to re-invent the wheel. Do what you know works.
2. Work your plan!
The key word here is work. It is the rare business indeed that requires no work and pays big dividends. Almost all successful businesses require some sort of work. And most successful business owners started out working long and hard. Many of them started out by working 12 to 14 hours a day. If you feel that it is not worth it making that kind of effort, maybe you weren't cut out to create wealth. Maybe that is the reason that you have been struggling just to make ends meet.
2. Use technology.
Whenever possible, use technology to perform mundane repetitive tasks. In almost every case, it is much cheaper to spend a few bucks upfront and get a computer to do a routine task than it is to do it yourself time after time. This frees you up to work on more important and more productive parts of your business. Spending time on the most productive parts of your business will create wealth and make you money!
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Thursday, January 24, 2008
A Solid Day Trade System
A Solid Day Trade System
By Mark Crisp
This is why so many people are lured into day trading as it is often seen as the holy grail of trading, the one that can make you rich overnight.
It is no surprise then that in recent times the internet and even TV has become swamped with people toting their latest day trade system and how it can make you rich overnight, I wonder then how many of these vendors would run for the hills if someone were to ask them for actual proof of income from using the system? I'll bet it would be a lot!
Dealing in foreign currency, stocks and shares or any such market is akin to gambling. You are basically gambling on whether the prices go up or down, of course this is a rather educated gamble. To do this you will need to watch the market trend to get a feel for it. The longer you watch the market trend for the more accurate your predictions will be. The problem is in the forex market time is money and waiting too long can mean missing great opportunities.
There are many people out there who will tell you that you can predict market trends after watching the market for just a few hours, personally I think this is more akin to a leap of faith than actual research.
The trader even when armed with the very best day trade system will make wins and make losses what is important is to make more wins than losses as there is no way that you will make enough profit in a day (unless you are very lucky) to stay afloat very long. There are many software packages and a whole bunch of day trade systems out there to help you along the way, it is nigh on impossible for a machine to predict exactly what is going to happen in a short space of time.
The best advice I can give you if you want a solid day trade system is to get an online trading account that comes with software to make your life easier and then use a demo account to ensure your profitability until you are entirely comfortable to start playing for real with your own hard earned money.
There are many books out there on forex trading both on and off-line and I would suggest that you read as much about day trading as you can if you are new to this exciting career.
Get your Momentum Stock Trading System and sign up for my free weekly online trading system newsletter here at: http://www.stressfreetrading.com
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Wednesday, January 16, 2008
Garage Sales
Decided to look around and gain some more information about how this blogging stuff works. Decided that having a clear direction and a profile could help traffic stay, which means more bookmarks, yada yada, more money from internet for me.
Since I now have an Idea what I'm going to be writing about in this blog, how about I do that!
In 2005 I went all year without getting "a real job" one of my favorite ways of making money during that time was just to go to yard sales and by things I knew I could resell for more than I was buying it for. I can't remember exactly what I was making from it, my best guess would be $30 per day minus a few dollars for gas.
Mostly I was selling books and CD's back to stores. It isn't rare for someone to sell a shoebox or more of used CD's for $5, often stores that sell used CD's will buy them from you for $1 or slightly more per individual CD. Although I started out by doing a the same with books you have to avoid buying so many types of books that it just wasn't worth after a while to be buying books for anything more than my personal pleasure.
Several other items I remember making good money off of was exercise equipment, furniture and aquariums. I was able to buy a bowflex for $25 which I sold to a friend for $100 who then tells me he sold it for $300. I bought a 100 gallon aquarium knowing another friend would love it for $20, they gave me $50 for it.
Remember, all around you people for some reason or another are selling things for much less than they are worth. All you have to do is be there when they want to get rid of it and take it somewhere where people will pay more for it.
Friday, January 11, 2008
Easy Rules to follow for Beginning Investors
2. Compound interest is one of the greatest inventions of man. Take advantage of it and open up an online savings account. Many online savings accounts have annual returns of around 5%. This money will compound on itself so that the interest your money is earning will itself earn interest as the account stays open. Many stocks have similar features, the dividends on the stocks I purchase are automatically reinvested in that company. This is a form of compound interest.
3. The market is down this week, what should you do? Buy. Make sure that a company is either in good financial health first. But when the market starts falling and you want to make more money, you need to start buying. Remember "Buy low, Sell high!". It is actually that easy. There are many different players and factors that influence the stock market. Some of them even earn themselves titles, like "Santa Rallies" where retail stocks begin climbing during the winter months as people head out to buy presents and investor try to figure out what they are buying and what companies will benefit the most.
There are also seasonal sell offs when major financial institutions sell assets in order to realign their portfolios. Just because the major companies are selling these stocks doesn't mean they are a bad investment for you though!
4. Pay yourself first. This is a strange statement, and possibly dangerous if you can't control yourself, but another important rule to investing is to take the money you may ordinarily waste on superfluous items and instead "pay yourself first" and put that money to work for you in the stock markets or atleast in a high yield savings account.
Investing is not as complicated as it looks and if you are willing to put just an hour into researching a stock pick you will be reasonably prepared to make investment decisions for yourself and begin to own your own financial future.
Thursday, January 10, 2008
When will Bear Stearns be a buy?
They do have a new leader now though. My first impression of him wasn't very positive, guy seemed like he had notes of buzzwords written on his palm.
Bear seems though to be slightly undervalued right now, making it an attractive investment and a potential take-over target. But the question I have is how much longer will Bears misadventures conitue to bring it down. Will it recover in a descent amount of time or will it as I'm afraid be brought down much lower as a result of lousey internal culture and biases.
I'm going to wait a few more months. I just thought you might like to know.
Wednesday, January 9, 2008
Can't afford to fill your gas tank?
On the financial channels the debate rages on about whether or not the U.S. economy is heading toward recession for 2008. Those people buying only as much gas as they need kind of hints to me we already are. I'm waiting until the earnings reports come out to make any sell decisions. But right now I think we are just in the middle of a typical January sell-off. As the big financial institutions try to get rid of some of their holdings to raise capitol.
The new CEO of Bear Stearns was on CNBC earlier today. "Conservative" was his buzz word, I swear that every sentence he said had it in there atleast once. When asked about whether or not Bear Stearns had enough cash available he found ways to put it in there even more often, to the point I actually started laughing.
I'm going to start prowling for good buys this weekend. I can't really afford much. I'll probably only spend about $250. But I'm confident that I will be able to find a stock in the $5 range that will wind up paying a $0.25 - $0.30 dividend for 4th quarter of 07. Most likely a Mid-cap with ties to the "housing meltdown" or the "credit crunch". I've always enjoyed the mellow dramatic language of economists. I just call them all the same colorful thing, might explain why I make more money off the markets than my reporting on them.
I'm coming from the viewpoint that hey, shit happens. The outgoing Presidents best gift to the next president is always a shakey economy. Bush got one from Reagan, Clinton got one from Bush, and Bush got one from Clinton. I hope the next president will make that list more diversified.
The China Olympics are coming up. Which combined with the housing problems and credit problems is going to drive down materials. I'm not aware of any major building projects China has planned for after the Olympics and see their preparations for the Olympics as a major driver of mining stocks the last few years. I did better with PCU and BHP than I have with oil.
But yeah, if you're short on money. Invest. Filling up a Suburban may cost $120, but my $250 invested has a good chance of being $500 if not more on a good earnings report. Heck, even if its not so great I'm not going to pick a stock that isn't a step ahead of its competitors as far as making a recovery in Value.
Friday, January 4, 2008
Getting Traffic
I'm also considering using Article posts to expand my reach. I'm trying to write longer posts, and more frequent. I believe that this is going well but I won't be sure until I start sending articles to posts.
500 words per article is what I'm shooting for. 10 articles a day should give me a proper base. Having english as my native language and the ability to write in a way that interests people should also help me.
500 word articles. 10 articles a day.