anthony church
In terms of real estate business, Dubai in itself is a hot selling brand. With Government taking keen interest in execution and completion of so many amazing projects, and the last decade showing a constant growth, Dubai economic future looks bright. Investing in Dubai property is becoming every investor's dream, although some raise questions on issues like high demand vs. low supply and infrastructure problems. Let's have a look at what's positive and what's not with investing in Dubai real estate.
High Demand:
One thing is for sure, Dubai properties are in demand. Investors from all over the world are flocking to Dubai, to get a share in huge profits. Since non-residents of Dubai have been allowed to buy the property in Dubai, Dubai is flooded with interested investors. Everybody seems excited and exuberant about on going development plans. It will take some time before these jaw dropping constructions can be matched at some other place of the world.
Lower Prices - Higher Value:
Rapid increase in property prices has created the impression that real estate prices are high in Dubai, which is completely wrong. One has to consider the rates of equally deluxe apartments and offices in other main cities of the world. Comparison will reveal the true picture. Dubai property is still under valued if we take into amount these factors. Dubai is going through an economic boost and with properties prices hiking quickly; the perfect time to invest is now.
Tax Free Zones:
Dubai government has offered so many incentives to attract investment, tax free zones are one of them. Free zones like Jebel Ali free zone, Dubai international financial centre, Airport free zone and Maritime city, presents great opportunity for investors. Dubai offers unsurpassed tax incentives in the world for businesses. More and more companies from all over the world are setting up their business in these free zones.
Tourism:
Dubai is a dreamland for tourists. It has everything, from mysterious deserts to exhilarating beaches, marvelous hotels and resorts. Approximately 6.5 million tourists will be visiting Dubai annually by 2011. World's biggest arts & entertainment events are held here, making it even more attractive.
Political Situation:
Dubai enjoys political stability and steadiness which is rare in most parts of the world. Since its establishment, Dubai has never been under political chaos, riots or disturbance. Policies are not shuffled and you can invest with the sense of certainty which you will hardly find anywhere else.
Crime:
It's hard to believe but crime rate is almost zero in this part of the world. With no reports of robbery or theft going around, Dubai is a safe place to live. In today's world, this kind of peaceful place appeals everyone desperate to live a life, free from anxiety.
Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Suppliers Dropshippers & Dropshipping Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.
Read more....
30.7.09
Dubai Rotating Skyscraper, Innovation at its best
anthony church
Given the number of stunning, almost miraculous constructions going on in Dubai, it's hard to single out one which outdoes others in its novelty, magnificence and uniqueness.
Talking of uniqueness? What about the first digital building of the world? What about a mega structure building being assembled at factory? How would you like some apartment with the ability to make whole deck rotate on touch of your finger? It's big, it's stunning, and it's spectacular. It's the first wind powered rotating sky scrapper of the world.
With the names like Infinity Design, LERA, Bosch Rexroth and Viega associated to the project, Dynamic Constructions is set to begin the work on this rotating sky scraper in Dubai very soon.
Construction:
Construction work will be completed simultaneously, while putting up the center of the building on-site, floors will be manufactured at a factory, before being carried to the location where they will be elevated and positioned with concrete center. This advance method will prove to be both time saving and cost effective. According to Dynamic Constructions, only 90 workers will be needed on-site. Compare this to more then 2000 workers normally required to build this kind of structures, and you will know the difference. Building the center and floors separately, but at the same time will result in a lot more swift completion of the project.
Rotation:
This is what makes this skyscraper truly phenomenal. Each deck of this Dubai skyscraper can rotate independently, giving the skyscraper a new shape and a new dimension every moment, making the building a visual treat. These floors will be remote controlled with residents having the option to decide on the speed and direction of their liking. What's more? Top five floors would be controlled through voice activated remote controls.
Wind Powered:
Wind energy is the power generated by wind through wind turbines. This process is clean and it doesn't produce any type of air pollution. Dubai rotating skyscraper will have wind turbines placed within its structure. These turbines are capable of generating more energy then what is needed for expected energy consumption of skyscraper. Thus providing loads of energy back into Dubai energy grid.
Another Rotating Skyscraper:
Lots of people are confusing this wind powered rotating skyscraper designed by David Fisher with another building designed by Glenn Howells Architects. That tower will actually rotate on its base and it comes no way near to the grandeur of David Fisher's rotating skyscraper.
Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Pages UK Dropshippers & Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.
Read more....
Given the number of stunning, almost miraculous constructions going on in Dubai, it's hard to single out one which outdoes others in its novelty, magnificence and uniqueness.
Talking of uniqueness? What about the first digital building of the world? What about a mega structure building being assembled at factory? How would you like some apartment with the ability to make whole deck rotate on touch of your finger? It's big, it's stunning, and it's spectacular. It's the first wind powered rotating sky scrapper of the world.
With the names like Infinity Design, LERA, Bosch Rexroth and Viega associated to the project, Dynamic Constructions is set to begin the work on this rotating sky scraper in Dubai very soon.
Construction:
Construction work will be completed simultaneously, while putting up the center of the building on-site, floors will be manufactured at a factory, before being carried to the location where they will be elevated and positioned with concrete center. This advance method will prove to be both time saving and cost effective. According to Dynamic Constructions, only 90 workers will be needed on-site. Compare this to more then 2000 workers normally required to build this kind of structures, and you will know the difference. Building the center and floors separately, but at the same time will result in a lot more swift completion of the project.
Rotation:
This is what makes this skyscraper truly phenomenal. Each deck of this Dubai skyscraper can rotate independently, giving the skyscraper a new shape and a new dimension every moment, making the building a visual treat. These floors will be remote controlled with residents having the option to decide on the speed and direction of their liking. What's more? Top five floors would be controlled through voice activated remote controls.
Wind Powered:
Wind energy is the power generated by wind through wind turbines. This process is clean and it doesn't produce any type of air pollution. Dubai rotating skyscraper will have wind turbines placed within its structure. These turbines are capable of generating more energy then what is needed for expected energy consumption of skyscraper. Thus providing loads of energy back into Dubai energy grid.
Another Rotating Skyscraper:
Lots of people are confusing this wind powered rotating skyscraper designed by David Fisher with another building designed by Glenn Howells Architects. That tower will actually rotate on its base and it comes no way near to the grandeur of David Fisher's rotating skyscraper.
Article Source:
http://www.bestmanagementarticles.com
http://real-estate-management.bestmanagementarticles.com
About the Author:
William King is the director of Wholesale Pages UK Dropshippers & Wholesalers Directory , Pakistan Property & Pakistan Real Estate Properties Portal and Dubai Property & UAE Property & Dubai Real Estate Portal . He has 18 years of experience in the marketing and trading industries.
Read more....
29.7.09
Ethically and Ecologically Responsible Investing
Wilfrid Baptiste
If you're interested in investing, but are reluctant to fund companies whose practices you disagree with (either on moral, ethical, or environmental grounds), it's probably worth pointing out to you that you have options. And those options are related to the concept of Socially Responsible Investing, or SRI.
Portfolio managers that are involved in SRI (also known as green portfolio managers) tend to direct the funds that they're managing toward competitive public companies that are meeting a certain number of conditions that have been previously set and depend largely on the particular firm's ideals. Most of the time, the criteria include companies that are building a more bio-sustainable human economic infrastructure based on renewable energy, energy efficiency, organic foods and products, recycling, and technologies that have a minimal impact on the environment.
Companies that have met those standards and have earned the "socially responsible" tag have already attracted over $2 trillion in funding from investors. On the international scene, socially responsible investing (SRI) is growing at the healthy clip of more than 10% per year. If you take a look at most SRI portfolio managers and the strategies they use, you'll see that they put in place screens that eliminate publicly-traded companies that produce "bad things", which are products and/or services that are deemed undesirable (alcohol, tobacco, weapons, pornography, and pollution). SRI portfolio managers also use other screens that check for a company's record on human rights, women's rights, worker rights, animal rights, and so on.
Thankfully, out of the myriads of companies out there, there are some that can meet a socially responsible investor's desire for healthy financial returns, while at the same time protecting the environment and building an environmentally sustainable economic infrastructure. For example, renewable energy is one of the sectors growing at a torrid pace right now. While its rate of growth is hovering around 25% per year in the U.S., it is even greater in the European Union and parts of Asia.
Of course, socially responsible investing carries its own sets of risks. Buying shares in individual green companies (or even in green funds) is probably riskier than investing in an index fund for example. The reason is that, by definition, SRI excludes some sectors, and in turn that affects your portfolio's diversification. The flip side of the coin is that where there is risk, there is usually greater opportunity for return. Your best bet is to look for "no load" green funds, which are funds that don't carry a sales charge. Also, if you're considering investing into a fund that claims to go the SRI route, it's a good idea to actually take a look into its holdings to see whether they walk the walk or whether their claims of social responsibility are nothing more than a hollow sales pitch. In short, in order to succeed as a socially responsible investor, you need to make informed decisions, seek diversification, and keep your costs low.
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
I maintain a personal finance blog where I talk about socially responsible investing and how to become a millionaire, among other topics
Read more....
If you're interested in investing, but are reluctant to fund companies whose practices you disagree with (either on moral, ethical, or environmental grounds), it's probably worth pointing out to you that you have options. And those options are related to the concept of Socially Responsible Investing, or SRI.
Portfolio managers that are involved in SRI (also known as green portfolio managers) tend to direct the funds that they're managing toward competitive public companies that are meeting a certain number of conditions that have been previously set and depend largely on the particular firm's ideals. Most of the time, the criteria include companies that are building a more bio-sustainable human economic infrastructure based on renewable energy, energy efficiency, organic foods and products, recycling, and technologies that have a minimal impact on the environment.
Companies that have met those standards and have earned the "socially responsible" tag have already attracted over $2 trillion in funding from investors. On the international scene, socially responsible investing (SRI) is growing at the healthy clip of more than 10% per year. If you take a look at most SRI portfolio managers and the strategies they use, you'll see that they put in place screens that eliminate publicly-traded companies that produce "bad things", which are products and/or services that are deemed undesirable (alcohol, tobacco, weapons, pornography, and pollution). SRI portfolio managers also use other screens that check for a company's record on human rights, women's rights, worker rights, animal rights, and so on.
Thankfully, out of the myriads of companies out there, there are some that can meet a socially responsible investor's desire for healthy financial returns, while at the same time protecting the environment and building an environmentally sustainable economic infrastructure. For example, renewable energy is one of the sectors growing at a torrid pace right now. While its rate of growth is hovering around 25% per year in the U.S., it is even greater in the European Union and parts of Asia.
Of course, socially responsible investing carries its own sets of risks. Buying shares in individual green companies (or even in green funds) is probably riskier than investing in an index fund for example. The reason is that, by definition, SRI excludes some sectors, and in turn that affects your portfolio's diversification. The flip side of the coin is that where there is risk, there is usually greater opportunity for return. Your best bet is to look for "no load" green funds, which are funds that don't carry a sales charge. Also, if you're considering investing into a fund that claims to go the SRI route, it's a good idea to actually take a look into its holdings to see whether they walk the walk or whether their claims of social responsibility are nothing more than a hollow sales pitch. In short, in order to succeed as a socially responsible investor, you need to make informed decisions, seek diversification, and keep your costs low.
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
I maintain a personal finance blog where I talk about socially responsible investing and how to become a millionaire, among other topics
Read more....
28.7.09
Should You Invest in Annuities?
D.J Raymond
Perhaps you have heard the phrase, more month left at the end of the money.It means simply you have more expenses than you have money to pay them at the end of the month. Now apply that same thought to your retirement years. You may have a goal to retire at 59 years old. Assuming you are reasonably healthy, you might live to be 75. However, what if your retirement income runs out before the end of your life?
Unfortunately, this is a real issue retires or soon to be retirees face each day. This reason alone forces many people to work longer than they has planned and what should be your glory years turn out to be working overtime. Is there a solution?
The simple solution would be to retire with enough money so it would not be a concern. With todays economy and the constant threat of inflation, how do you know when enough is enough? Consider immediate annuities to protect your assets and provide a steady income for your retirement years.
What is an Immediate Annuity?
The basic definition is a contract between you and an insurance company that guarantees a rate of return for your investment. You pay a one-time premium and receive payouts based on a pre-determined interest rate and your own life expectancy. Essentially the larger your payment the larger your monthly income. You cannot outlive the benefits of your payout and your payout is guaranteed.
How to Buy an Immediate Annuity?
The most obvious factor for most people is obtaining the highest interest rate available, but there are other important factors to consider. Other tax deferred for example variable annuities are backed by stock market investments. Conversely fixed annuities are issued by and secured by the insurance company where the purchase is made. The priority in you selection should be the credit worthiness of the company itself. Researching the various insurance companies and their credit ratings can help you make a wise selection when shopping for an immediate annuity.
Is an Annuity Right For You?
Ultimately, financial decisions should be made by the individuals investing money. There are a number of retirement instruments to choose from. Certainly there are more than enough agents promoting retirement products. Fixed annuities provide security and stability in a time when the economy is uncertain at best. Research annuities and you will be able to make an informed decision based on your own evaluations. Investing in annuities just might work for you
Investing for retirement offers many options. Todays economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities. Security and stability make fixed annuities a wise choice
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
DJ Raymond is an accomplished developer and author. To learn more about Best Annuity Rates visit Investing In Annuities for more articles and information.
Read more....
Perhaps you have heard the phrase, more month left at the end of the money.It means simply you have more expenses than you have money to pay them at the end of the month. Now apply that same thought to your retirement years. You may have a goal to retire at 59 years old. Assuming you are reasonably healthy, you might live to be 75. However, what if your retirement income runs out before the end of your life?
Unfortunately, this is a real issue retires or soon to be retirees face each day. This reason alone forces many people to work longer than they has planned and what should be your glory years turn out to be working overtime. Is there a solution?
The simple solution would be to retire with enough money so it would not be a concern. With todays economy and the constant threat of inflation, how do you know when enough is enough? Consider immediate annuities to protect your assets and provide a steady income for your retirement years.
What is an Immediate Annuity?
The basic definition is a contract between you and an insurance company that guarantees a rate of return for your investment. You pay a one-time premium and receive payouts based on a pre-determined interest rate and your own life expectancy. Essentially the larger your payment the larger your monthly income. You cannot outlive the benefits of your payout and your payout is guaranteed.
How to Buy an Immediate Annuity?
The most obvious factor for most people is obtaining the highest interest rate available, but there are other important factors to consider. Other tax deferred for example variable annuities are backed by stock market investments. Conversely fixed annuities are issued by and secured by the insurance company where the purchase is made. The priority in you selection should be the credit worthiness of the company itself. Researching the various insurance companies and their credit ratings can help you make a wise selection when shopping for an immediate annuity.
Is an Annuity Right For You?
Ultimately, financial decisions should be made by the individuals investing money. There are a number of retirement instruments to choose from. Certainly there are more than enough agents promoting retirement products. Fixed annuities provide security and stability in a time when the economy is uncertain at best. Research annuities and you will be able to make an informed decision based on your own evaluations. Investing in annuities just might work for you
Investing for retirement offers many options. Todays economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities. Security and stability make fixed annuities a wise choice
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
DJ Raymond is an accomplished developer and author. To learn more about Best Annuity Rates visit Investing In Annuities for more articles and information.
Read more....
27.7.09
What Is Your Emotional Intelligence Quotient?
Daniel Goleman, author of the book “Emotional Intelligence,” says, "If your emotional abilities aren't in hand...you are not going to get very far."
Your emotional intelligence is measured by your emotional quotient.
EMOTIONAL QUOTIENT
Where IQ measures your general intelligence, emotional quotient measures your level of emotional intelligence. In a sense, it's an emotional inventory. Emotional quotient is the ability to sense, understand, and effectively apply the power of your emotions to build relationship compatibility. It can show you how to improve performance, personally and professionally. EQ also helps you gain awareness and control of your emotions in the workplace.
If you know your EQ, you can better understand how your emotions affect your choices and decisions. A high EQ can help you improve decision making by using your head, not just your heart.
There are five areas of emotional quotient, which fall under two categories - Intrapersonal and Interpersonal.
INTRAPERSONAL EMOTIONAL QUOTIENT - Self-Awareness, Self-Regulation, and Motivation
Self-Awareness - the ability to recognize and understand your moods, emotions, and drives, as well as their effect on others. Take an emotional test by rating yourself in these areas of Self-Awareness:
I rely on my intuition to assist me in my decision-making.
I can name my greatest strengths.
I am usually aware of the way I am feeling.
Self-Regulation - the ability to control or redirect disruptive impulses and moods and the ability to suspend judgment and think before acting. Take an emotional test by rating yourself in these areas of Self-Regulation:
I am calm even in tense situations.
I rarely make impulsive decisions.
I am willing to forego immediate gratification when on a budget.
Motivation - a passion to work for reasons that go beyond money or status, and the ability to pursue goals with energy and persistence. Take an emotional test by rating yourself in these areas of Motivation:
I seek out innovative ways of getting the job done.
I would continue to work if I won the lottery.
When I know what I want, I go after it.
Your Intrapersonal Emotional Quotient is the ability to understand and form an accurate concept of yourself, and be able to use that concept to operate effectively in life.
INTERPERSONAL EMOTIONAL QUOTIENT - Empathy and Social Skills
Empathy - the ability to understand the emotional makeup of other people. Take an emotional test by rating yourself in these areas of Empathy:
I can sense someone's true feelings based on their body language.
The emotional tone of an interaction is easy to decipher.
I would make a great therapist.
Social Skills - a proficiency in managing relationships and building networks. Take an emotional test by rating yourself in these areas of Social Skills:
I find it easy to establish common ground with somebody I have just met.
I have a wide circle of acquaintances.
I constantly look for opportunities to build relationships.
Your Interpersonal Emotional Quotient is the ability to understand other people and relate effectively to them; to understand what motivates others, how they work, and how to work cooperatively with them. Improving your EQ score is how to improve social skills.
Having a high emotional quotient can help you build strong relationships, reduce stress, and motivate yourself to get what you want.
In business, a high emotional quotient is how to improve performance. It can help you be more productive, improve decision making, and become a superior performer. You will be, as author Glenn Sheppard says, "the employee your company can't live without."
Daniel Goleman further says, "When I went on to write my next book, 'Working with Emotional Intelligence,' I wanted to make a business case that the best performers were those people strong in these skills."
Article Source:
http://www.bestmanagementarticles.com
http://business-intelligence.bestmanagementarticles.com
About the Author:
You can fill out an emotional questionnaire and get a free emotional intelligence test from The Estes Group. Annette Estes is a Certified Professional Behavioral and Values Analyst, coach, consultant, trainer, professional speaker, and author of the award-winning book, Why Can't You See it My Way? Resolving Values Conflicts at Work and Home
Read more....
Your emotional intelligence is measured by your emotional quotient.
EMOTIONAL QUOTIENT
Where IQ measures your general intelligence, emotional quotient measures your level of emotional intelligence. In a sense, it's an emotional inventory. Emotional quotient is the ability to sense, understand, and effectively apply the power of your emotions to build relationship compatibility. It can show you how to improve performance, personally and professionally. EQ also helps you gain awareness and control of your emotions in the workplace.
If you know your EQ, you can better understand how your emotions affect your choices and decisions. A high EQ can help you improve decision making by using your head, not just your heart.
There are five areas of emotional quotient, which fall under two categories - Intrapersonal and Interpersonal.
INTRAPERSONAL EMOTIONAL QUOTIENT - Self-Awareness, Self-Regulation, and Motivation
Self-Awareness - the ability to recognize and understand your moods, emotions, and drives, as well as their effect on others. Take an emotional test by rating yourself in these areas of Self-Awareness:
I rely on my intuition to assist me in my decision-making.
I can name my greatest strengths.
I am usually aware of the way I am feeling.
Self-Regulation - the ability to control or redirect disruptive impulses and moods and the ability to suspend judgment and think before acting. Take an emotional test by rating yourself in these areas of Self-Regulation:
I am calm even in tense situations.
I rarely make impulsive decisions.
I am willing to forego immediate gratification when on a budget.
Motivation - a passion to work for reasons that go beyond money or status, and the ability to pursue goals with energy and persistence. Take an emotional test by rating yourself in these areas of Motivation:
I seek out innovative ways of getting the job done.
I would continue to work if I won the lottery.
When I know what I want, I go after it.
Your Intrapersonal Emotional Quotient is the ability to understand and form an accurate concept of yourself, and be able to use that concept to operate effectively in life.
INTERPERSONAL EMOTIONAL QUOTIENT - Empathy and Social Skills
Empathy - the ability to understand the emotional makeup of other people. Take an emotional test by rating yourself in these areas of Empathy:
I can sense someone's true feelings based on their body language.
The emotional tone of an interaction is easy to decipher.
I would make a great therapist.
Social Skills - a proficiency in managing relationships and building networks. Take an emotional test by rating yourself in these areas of Social Skills:
I find it easy to establish common ground with somebody I have just met.
I have a wide circle of acquaintances.
I constantly look for opportunities to build relationships.
Your Interpersonal Emotional Quotient is the ability to understand other people and relate effectively to them; to understand what motivates others, how they work, and how to work cooperatively with them. Improving your EQ score is how to improve social skills.
Having a high emotional quotient can help you build strong relationships, reduce stress, and motivate yourself to get what you want.
In business, a high emotional quotient is how to improve performance. It can help you be more productive, improve decision making, and become a superior performer. You will be, as author Glenn Sheppard says, "the employee your company can't live without."
Daniel Goleman further says, "When I went on to write my next book, 'Working with Emotional Intelligence,' I wanted to make a business case that the best performers were those people strong in these skills."
Article Source:
http://www.bestmanagementarticles.com
http://business-intelligence.bestmanagementarticles.com
About the Author:
You can fill out an emotional questionnaire and get a free emotional intelligence test from The Estes Group. Annette Estes is a Certified Professional Behavioral and Values Analyst, coach, consultant, trainer, professional speaker, and author of the award-winning book, Why Can't You See it My Way? Resolving Values Conflicts at Work and Home
Read more....
26.7.09
6 Tips for Beginning HYIP Investors
Chris Sandberg
Beginner investing can be very difficult and since folly here can cost you a great deal, it's nice to have a little hard earned experience handed to you to help you along your way. And since this information is free, if you review and apply the following guidelines I lay before you, it may just be the best investment you ever make.
HYIP's or High Yield Investment Programs are one of the latest internet investment schemes that are gaining a lot of global attention not only for the return on investment that they promise to give, but also because of the number of individuals who are losing there wallets by placing there trust in such programs.
HYIP's by nature are known to have a higher percentage of investment risk, but also a dramatically larger percentage of yield. In the last few years they have become more known as "ponzi schemes".
Ponzi schemes typically involve promises of abnormally high returns to investors in a short period of time. The first investors enrolled into the program are the first to profit and do so by the funds invested by subsequent investors. Eventually the whole scheme collapses or falls in on itself leaving the majority of its investor's deficient the principal amount they invested.
The online community has produced several forums and monitors to help protect investors who choose to pursue this high risk form of investing. You can quickly check the current status of a desired program and read comments or reviews to. You can also be notified on a day by day basis as to whether or not the program is still paying out to its investors.
Some hard earned practical tips and guidelines for beginner investing are as follows;
1. The number one rule to HYIP investing is to only invest in what you can afford to loose. The chances of you loosing your investment are very likely if you don't carefully follow the following steps.
2. Diversify! We have all heard this before. Do not put all your eggs into one basket. If you are hoping to invest five thousand dollars than you might want to consider investing $1000 into five different programs or $500 into ten different programs. Don't loose it all in one place.
3. When looking for High Yield investment programs, make sure there is legitimate contact information on the website allowing you to contact the program's administrator if you have any questions after investing. You would be shocked to know that a large percentage of investors don't even have a method of contact other than an email address.
You should always test the email address to validate that it is an active address as well as to test the response time of there customer service.
If there is a phone number present, test it as well and make sure that it is an active line. Do you get a live person on the phone when you call?, or is it always a message box telling you they will contact you back? This can be a strong indicator of a small basement ran scam trying to take your money. Scammers know that many will check for a phone number but not call it until their promised returns don't show up in their account.
Don't be so foolish, due diligence will save you more money than anything else in the arena of HYIP investing.
4. Check the life of the HYIP of interest. How long has it been around? Here you don't want to invest into a program that is to new as it has yet to be proven. You also don't want to invest in one that is to old as it may be about to crash considering most HYIP last less that a year's period of time.
5. Percentage of return should also be considered as well as the old adage "If it's too good to be true than it usually is". The smallest promised gains in the HYIP world return about 1% daily, which gives you a higher yield than just about anything else you could invest in. The key here is not to get greedy. The higher the promised yield the greater the risk.
6. Lastly, don't let emotion get in the way. Study your interests, define a plan and stick to it. Emotional investing will get you no where!
If you're a beginner on investing in HYIP's, these tips should help you greatly as they are all hard lessons to learn by yourself. Do yourself a favor, employ the tips above, dramatically reduce your risk and lastly of course, make some money!
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Chris is a writer for http://getrichinvesting.com, where he gives tips investing in rental property.
Read more....
Beginner investing can be very difficult and since folly here can cost you a great deal, it's nice to have a little hard earned experience handed to you to help you along your way. And since this information is free, if you review and apply the following guidelines I lay before you, it may just be the best investment you ever make.
HYIP's or High Yield Investment Programs are one of the latest internet investment schemes that are gaining a lot of global attention not only for the return on investment that they promise to give, but also because of the number of individuals who are losing there wallets by placing there trust in such programs.
HYIP's by nature are known to have a higher percentage of investment risk, but also a dramatically larger percentage of yield. In the last few years they have become more known as "ponzi schemes".
Ponzi schemes typically involve promises of abnormally high returns to investors in a short period of time. The first investors enrolled into the program are the first to profit and do so by the funds invested by subsequent investors. Eventually the whole scheme collapses or falls in on itself leaving the majority of its investor's deficient the principal amount they invested.
The online community has produced several forums and monitors to help protect investors who choose to pursue this high risk form of investing. You can quickly check the current status of a desired program and read comments or reviews to. You can also be notified on a day by day basis as to whether or not the program is still paying out to its investors.
Some hard earned practical tips and guidelines for beginner investing are as follows;
1. The number one rule to HYIP investing is to only invest in what you can afford to loose. The chances of you loosing your investment are very likely if you don't carefully follow the following steps.
2. Diversify! We have all heard this before. Do not put all your eggs into one basket. If you are hoping to invest five thousand dollars than you might want to consider investing $1000 into five different programs or $500 into ten different programs. Don't loose it all in one place.
3. When looking for High Yield investment programs, make sure there is legitimate contact information on the website allowing you to contact the program's administrator if you have any questions after investing. You would be shocked to know that a large percentage of investors don't even have a method of contact other than an email address.
You should always test the email address to validate that it is an active address as well as to test the response time of there customer service.
If there is a phone number present, test it as well and make sure that it is an active line. Do you get a live person on the phone when you call?, or is it always a message box telling you they will contact you back? This can be a strong indicator of a small basement ran scam trying to take your money. Scammers know that many will check for a phone number but not call it until their promised returns don't show up in their account.
Don't be so foolish, due diligence will save you more money than anything else in the arena of HYIP investing.
4. Check the life of the HYIP of interest. How long has it been around? Here you don't want to invest into a program that is to new as it has yet to be proven. You also don't want to invest in one that is to old as it may be about to crash considering most HYIP last less that a year's period of time.
5. Percentage of return should also be considered as well as the old adage "If it's too good to be true than it usually is". The smallest promised gains in the HYIP world return about 1% daily, which gives you a higher yield than just about anything else you could invest in. The key here is not to get greedy. The higher the promised yield the greater the risk.
6. Lastly, don't let emotion get in the way. Study your interests, define a plan and stick to it. Emotional investing will get you no where!
If you're a beginner on investing in HYIP's, these tips should help you greatly as they are all hard lessons to learn by yourself. Do yourself a favor, employ the tips above, dramatically reduce your risk and lastly of course, make some money!
Article Source:
http://www.bestmanagementarticles.com
http://investment-management.bestmanagementarticles.com
About the Author:
Chris is a writer for http://getrichinvesting.com, where he gives tips investing in rental property.
Read more....
25.7.09
Penny Stock Investing and Trading
By: Ron Kaye
If you ask anyone in the finance world what they think about investing or trading penny stocks, the answer that you will probably get will be: "Don't do it. You will lose your money since 90% of penny stock companies are scams. penny stock companies just want to sell shares and are not interested in developing their businesses." The truth is that investing or trading penny stocks is a very risky business. So here is the most important tip about penny stocks: Invest only money that you can afford to lose.
If penny stocks are so risky then, why do people invest in or trade them?
The answer is because you can make a lot of money in a short time if you know what you are doing.
If you are still reading and have decided that you want to trade penny stocks, you need the right tools and good advice to help you survive and even win some money.
Step # 1 - Finding the Right Penny Stock to Buy
To discover the right one stock, you will have to do some investigation, or Due Diligence. There are a lot of websites that will help you with your DD and you can find a list of useful ones at www.stocks-reporter.com.
The following points will guide you in learning important information about a company in which you are interested in investing:
1. Share structure: AS (Shares Authorized) and OS (Outstanding Stock and Float)
2. Transfer agent transparency
3. SEC filing
4. Financial track record
5. Competitive position in its industry
6. Business model
7. Earnings power
8. Valuation or the potential value of the company.
For example, when looking into share structure what you want to see is that there is no dilution. A good sign is when the company has maximized the OS and is close to AS. Watching Level 2 will also give you good indication if there is any dilution from the company. A good strategy is to follow insiders who know the company better than anyone else.
Step # 2 - Deciding When to Buy
After finding the penny stock that you plan to buy, you have to find your entry point and how to execute it the right way. Following the trading in that particular stock for a few days together with chart analyzing will give you a lot of valuable information. At this point it is highly recommended for anyone to learn some basic chart reading or at least let others analyze the chart for you. You can ask for help on many of the popular message boards that discuss stock trading and chart analyzing. An important tip about how to execute the trade in a penny stock is: Be very patient and always try to buy at the BID price.
Step # 3 - When to Sell or The Exit Strategy
The exit strategy is something very personal to different traders or investors.
It is very important to implement your strategy immediately after executing the buy order. In most cases, a good idea would be to set a sell order of 50% of your position at around 20%-30% PPS spike. Another 10%-20% rise of PPS and then sell another 50% of your current position and let the rest ride for a while. In general, your exit strategy should be very flexible and change with news, momentum, and volume. 90% of the time, though, you should sell at the ASK so it won't affect the run.
TIP: Remember always to take profits.
Happy Trading
Author Bio
Ron Kaye is an editor for Stock Investing and Trading Reports, sharing information on undervalued penny stocks and small caps stocks via email alerts articles and Stock investing discussion Forum.
Article Source: http://www.articlegeek.com/ Read more....
If you ask anyone in the finance world what they think about investing or trading penny stocks, the answer that you will probably get will be: "Don't do it. You will lose your money since 90% of penny stock companies are scams. penny stock companies just want to sell shares and are not interested in developing their businesses." The truth is that investing or trading penny stocks is a very risky business. So here is the most important tip about penny stocks: Invest only money that you can afford to lose.
If penny stocks are so risky then, why do people invest in or trade them?
The answer is because you can make a lot of money in a short time if you know what you are doing.
If you are still reading and have decided that you want to trade penny stocks, you need the right tools and good advice to help you survive and even win some money.
Step # 1 - Finding the Right Penny Stock to Buy
To discover the right one stock, you will have to do some investigation, or Due Diligence. There are a lot of websites that will help you with your DD and you can find a list of useful ones at www.stocks-reporter.com.
The following points will guide you in learning important information about a company in which you are interested in investing:
1. Share structure: AS (Shares Authorized) and OS (Outstanding Stock and Float)
2. Transfer agent transparency
3. SEC filing
4. Financial track record
5. Competitive position in its industry
6. Business model
7. Earnings power
8. Valuation or the potential value of the company.
For example, when looking into share structure what you want to see is that there is no dilution. A good sign is when the company has maximized the OS and is close to AS. Watching Level 2 will also give you good indication if there is any dilution from the company. A good strategy is to follow insiders who know the company better than anyone else.
Step # 2 - Deciding When to Buy
After finding the penny stock that you plan to buy, you have to find your entry point and how to execute it the right way. Following the trading in that particular stock for a few days together with chart analyzing will give you a lot of valuable information. At this point it is highly recommended for anyone to learn some basic chart reading or at least let others analyze the chart for you. You can ask for help on many of the popular message boards that discuss stock trading and chart analyzing. An important tip about how to execute the trade in a penny stock is: Be very patient and always try to buy at the BID price.
Step # 3 - When to Sell or The Exit Strategy
The exit strategy is something very personal to different traders or investors.
It is very important to implement your strategy immediately after executing the buy order. In most cases, a good idea would be to set a sell order of 50% of your position at around 20%-30% PPS spike. Another 10%-20% rise of PPS and then sell another 50% of your current position and let the rest ride for a while. In general, your exit strategy should be very flexible and change with news, momentum, and volume. 90% of the time, though, you should sell at the ASK so it won't affect the run.
TIP: Remember always to take profits.
Happy Trading
Author Bio
Ron Kaye is an editor for Stock Investing and Trading Reports, sharing information on undervalued penny stocks and small caps stocks via email alerts articles and Stock investing discussion Forum.
Article Source: http://www.articlegeek.com/ Read more....
24.7.09
Good Retirement Investing Advice & Strategy-Tips to Rebuild Retirement Savings
by ROCCO BEATRICE
Retirement Blues: From Pension Plan to 401k Plan-Sound Retirement Investing Advice
We are all still feeling the impact of the financial crisis from 2008. The pension crisis has been brought to the attention of Congress. When President Bush was leaving office, one of his final actions was the signing of an act called the Worker, Retiree, and employer Recovery Act of 2008. This act was designed to decrease the number of employers who were reducing the pension benefits offered by the company. The bill included provisions that includes aid for single-employer pension plans, temporary penalty suspensions for anyone who was aged 70 1/2 or older who did not make required distributions from their 401k plans or IRA plans and relief for multi-employer plans. The act was a huge relief for retirees who were not making distributions. The original penalty of up to 50% was suspended.
Even though this act did offer some relief, it did not stop companies from eliminating pension plans that were once offered to the employees. Most employers have made the shift to offer a 401k plan instead of a traditional pension package. Unfortunately, the financial crisis hit hard, and it affected 401k plans and accounts, decreasing the portfolio value of the plans. This loss in retirement savings has been devastating for many individuals. They were already battling with the loss of value on their homes and losing jobs, and now they are faced with a reduced retirement savings account. The combination of all three creates a difficult situation to manage. Despite the major losses, there is additional relief ahead. There are ways to rebuild your lost retirement savings.
Tips to Rescue and Regain Retirement Savings
The first, and most important, thing to do is avoid cashing out on your 401k retirement plan. Terminating a 401k plan would require you to work longer and will cause you to have reduced income when you do finally retire. Even if you choose to stop contributing, do not cash out your IRA or 401(k). The second thing to do is to rebalance your current assets and maybe even think about what's better, a 401k or Roth IRA. Many employers will offer a quarterly or semi-quarterly rebalancing program. During this time, you can change your investments. If you have one investment that had a high return, you may want to invest more money into it for the next quarter. Make sure you do not place all your eggs in one basket. Be sure to maintain a balanced portfolio. You don’t want all of your money ties up in one investment. If that investment plummets, you will lose all of your savings. The third tip is to remember that saving for retirement takes time. Keep in mind that when investing in 401k plans, the more you invest when the market is low, the faster you will recover the losses.
Even though the current financial situation is disheartening, remember that the market will rebound. It is best to keep contributing if you can afford to do so. When the market does rebound, you will quickly make up for any losses you have incurred over the past two years. While it may not seem a positive thing, this crisis could be the best time for anyone under 40 to begin building wealth for retirement. Now is the best time to invest. You will reap the benefits hugely when the market rebounds.
But we need to learn from our mistakes and take a slightly different approach. Take a look at a Roth on RoidsTM which goes up with the stock market, but never goes down with it.
Best IRA Rescue provides services on your IRA investments and traditional IRA and will help you reduce your inherited and beneficiary independent retirement account taxes in your estate assets. Roth on ROIDS is your advanced Roth IRA retirement planning strategy and one of the best IRA tax-savings strategies with benefits of a guaranteed death benefit, guaranteed principal, tax-free growth, and tax-free distributions from policy loans. Contact us if you have any questions on your IRA retirement planning. Roth IRA-Best IRA Retirement Investing Advice Strategy Boston, MA: 71 Commercial Street #150 Boston, MA 02109 California: 543 Victoria Ste. J, Costa Mesa, CA 92627 toll-free: 888-93ULTRA (888-938-5872) tel: +1.508.429.0011 fax: +1.508.429.3034 Read more....
Retirement Blues: From Pension Plan to 401k Plan-Sound Retirement Investing Advice
We are all still feeling the impact of the financial crisis from 2008. The pension crisis has been brought to the attention of Congress. When President Bush was leaving office, one of his final actions was the signing of an act called the Worker, Retiree, and employer Recovery Act of 2008. This act was designed to decrease the number of employers who were reducing the pension benefits offered by the company. The bill included provisions that includes aid for single-employer pension plans, temporary penalty suspensions for anyone who was aged 70 1/2 or older who did not make required distributions from their 401k plans or IRA plans and relief for multi-employer plans. The act was a huge relief for retirees who were not making distributions. The original penalty of up to 50% was suspended.
Even though this act did offer some relief, it did not stop companies from eliminating pension plans that were once offered to the employees. Most employers have made the shift to offer a 401k plan instead of a traditional pension package. Unfortunately, the financial crisis hit hard, and it affected 401k plans and accounts, decreasing the portfolio value of the plans. This loss in retirement savings has been devastating for many individuals. They were already battling with the loss of value on their homes and losing jobs, and now they are faced with a reduced retirement savings account. The combination of all three creates a difficult situation to manage. Despite the major losses, there is additional relief ahead. There are ways to rebuild your lost retirement savings.
Tips to Rescue and Regain Retirement Savings
The first, and most important, thing to do is avoid cashing out on your 401k retirement plan. Terminating a 401k plan would require you to work longer and will cause you to have reduced income when you do finally retire. Even if you choose to stop contributing, do not cash out your IRA or 401(k). The second thing to do is to rebalance your current assets and maybe even think about what's better, a 401k or Roth IRA. Many employers will offer a quarterly or semi-quarterly rebalancing program. During this time, you can change your investments. If you have one investment that had a high return, you may want to invest more money into it for the next quarter. Make sure you do not place all your eggs in one basket. Be sure to maintain a balanced portfolio. You don’t want all of your money ties up in one investment. If that investment plummets, you will lose all of your savings. The third tip is to remember that saving for retirement takes time. Keep in mind that when investing in 401k plans, the more you invest when the market is low, the faster you will recover the losses.
Even though the current financial situation is disheartening, remember that the market will rebound. It is best to keep contributing if you can afford to do so. When the market does rebound, you will quickly make up for any losses you have incurred over the past two years. While it may not seem a positive thing, this crisis could be the best time for anyone under 40 to begin building wealth for retirement. Now is the best time to invest. You will reap the benefits hugely when the market rebounds.
But we need to learn from our mistakes and take a slightly different approach. Take a look at a Roth on RoidsTM which goes up with the stock market, but never goes down with it.
Best IRA Rescue provides services on your IRA investments and traditional IRA and will help you reduce your inherited and beneficiary independent retirement account taxes in your estate assets. Roth on ROIDS is your advanced Roth IRA retirement planning strategy and one of the best IRA tax-savings strategies with benefits of a guaranteed death benefit, guaranteed principal, tax-free growth, and tax-free distributions from policy loans. Contact us if you have any questions on your IRA retirement planning. Roth IRA-Best IRA Retirement Investing Advice Strategy Boston, MA: 71 Commercial Street #150 Boston, MA 02109 California: 543 Victoria Ste. J, Costa Mesa, CA 92627 toll-free: 888-93ULTRA (888-938-5872) tel: +1.508.429.0011 fax: +1.508.429.3034 Read more....
23.7.09
Income Investing: Selecting the Right Stuff
By: Steve Selengut
When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become susceptible to all kinds of special cures for the periodic onset of higher interest rates. We'll be told to sit in cash until rates stop rising, or to sell the securities we own now, before they lose even more of their precious Market Value. Other gurus will suggest the purchase of shorter-term bonds or CDs (ugh) to stem the tide of the perceived erosion in portfolio values. There are two important things that your mother never told you about Income Investing: (1) Higher Interest Rates are good for investors, even better than lower rates, and (2) Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult.
Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago. Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!
How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosian. Was it the IRS or Institutional Wall Street that took them away?
Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.
Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line... and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob"... i.e., investors.] The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.
The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs... costs that need not be disclosed to the consumer, particularly at issue. Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.
What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention... and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits... you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.
Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!
Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.
Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness... well, that's Wall Street, and the baby needs shoes.
The final article in this Income Investing trilogy will be on managing the Income Portfolio using the Working Capital Model.
Author Bio
Steve Selengut
www.sancoservices.com
Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
Article Source: http://www.ArticleGeek.com - Free Website Content Read more....
When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become susceptible to all kinds of special cures for the periodic onset of higher interest rates. We'll be told to sit in cash until rates stop rising, or to sell the securities we own now, before they lose even more of their precious Market Value. Other gurus will suggest the purchase of shorter-term bonds or CDs (ugh) to stem the tide of the perceived erosion in portfolio values. There are two important things that your mother never told you about Income Investing: (1) Higher Interest Rates are good for investors, even better than lower rates, and (2) Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult.
Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago. Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!
How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosian. Was it the IRS or Institutional Wall Street that took them away?
Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.
Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line... and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob"... i.e., investors.] The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.
The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs... costs that need not be disclosed to the consumer, particularly at issue. Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.
What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention... and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits... you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.
Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!
Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.
Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness... well, that's Wall Street, and the baby needs shoes.
The final article in this Income Investing trilogy will be on managing the Income Portfolio using the Working Capital Model.
Author Bio
Steve Selengut
www.sancoservices.com
Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
Article Source: http://www.ArticleGeek.com - Free Website Content Read more....
22.7.09
Investing in the Stock Market for the Individual Investor
By: Harry Hooper
Foreword
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.
If you are considering investing in the stock market it is very important that you understand how the markets work. All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.
The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company. If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.
When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.
People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.
Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.
By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.
A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.
Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.
Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.
The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.
Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.
Bull Market - Bear Market
Anyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?
A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.
In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.
Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
Brokers
Traditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip Stocks
Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.
The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.
Income Stocks
Income Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.
Value Stocks
Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.
Defensive Stocks
Defensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.
Market Timing
One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.
One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.
One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.
Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.
One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.
One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".
As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.
Benefits
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!
The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.
Day Trading
Day Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price. It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.
Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.
There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
Author Bio
Harry Hooper has over 30 years experience in portfolio management. He is the senior stock tracker for http://www.stock4today.com.
Article Source: http://www.ArticleGeek.com - Free Website Content
Read more....
Foreword
Over the past few years the stock market has made substantial declines. Some short term investors have lost a good bit of money. Many new stock market investors look at this and become very skeptical about getting in now.
If you are considering investing in the stock market it is very important that you understand how the markets work. All of the financial and market data that the newcomer is bombarded with can leave them confused and overwhelmed.
The stock market is an everyday term used to describe a place where stock in companies is bought and sold. Companies issues stock to finance new equipment, buy other companies, expand their business, introduce new products and services, etc. The investors who buy this stock now own a share of the company. If the company does well the price of their stock increases. If the company does not do well the stock price decreases. If the price that you sell your stock for is more than you paid for it, you have made money.
When you buy stock in a company you share in the profits and losses of the company until you sell your stock or the company goes out of business. Studies have shown that long term stock ownership has been one of the best investment strategies for most people.
People buy stocks on a tip from a friend, a phone call from a broker, or a recommendation from a TV analyst. They buy during a strong market. When the market later begins to decline they panic and sell for a loss. This is the typical horror story we hear from people who have no investment strategy.
Before committing your hard earned money to the stock market it will behoove you to consider the risks and benefits of doing so. You must have an investment strategy. This strategy will define what and when to buy and when you will sell it.
History of the Stock Market
Over two hundred years ago private banks began to sell stock to raise money to expand. This was a new way to invest and a way for the rich to get richer. In 1792 twenty four large merchants agreed to form a market known as the New York Stock Exchange (NYSE). They agreed to meet daily on Wall Street and buy and sell stocks.
By the mid-1800s the United States was experiencing rapid growth. Companies began to sell stock to raise money for the expansion necessary to meet the growing demand for their products and services. The people who bought this stock became part owners of the company and shared in the profits or loss of the company.
A new form of investing began to emerge when investors realized that they could sell their stock to others. This is where speculation began to influence an investor's decision to buy or sell and led the way to large fluctuations in stock prices.
Originally investing in the stock market was confined to the very wealthy. Now stock ownership has found it's way to all sectors of our society.
What is a Stock?
A stock certificate is a piece of paper declaring that you own a piece of the company. Companies sell stock to finance expansion, hire people, advertise, etc. In general, the sale of stock help companies grow. The people who buy the stock share in the profits or losses of the company.
Trading of stock is generally driven by short term speculation about the company operations, products, services, etc. It is this speculation that influences an investor's decision to buy or sell and what prices are attractive.
The company raises money through the primary market. This is the Initial Public Offering (IPO). Thereafter the stock is traded in the secondary market (what we call the stock market) when individual investors or traders buy and sell the shares to each other. The company is not involved in any profit or loss from this secondary market.
Technology and the Internet have made the stock market available to the mainstream public. Computers have made investing in the stock market very easy. Market and company news is available almost anywhere in the world. The Internet has brought a vast new group of investors into the stock market and this group continues to grow each year.
Bull Market - Bear Market
Anyone who has been following the stock market or watching TV news is probably familiar with the terms Bull Market and Bear Market. What do they mean?
A bull market is defined by steadily rising prices. The economy is thriving and companies are generally making a profit. Most investors feel that this trend will continue for some time. By contrast a bear market is one where prices are dropping. The economy is probably in a decline and many companies are experiencing difficulties. Now the investors are pessimistic about the future profitability of the stock market. Since investors' attitudes tend to drive their willingness to buy or sell these trends normally perpetuate themselves until significant outside events intervene to cause a reversal of opinion.
In a bull market the investor hopes to buy early and hold the stock until it has reached it's high. Obviously predicting the low and high is impossible. Since most investors are "bullish" they make more money in the rising bull market. They are willing to invest more money as the stock is rising and realize more profit.
Investing in a bear market incurs the greatest possibility of losses because the trend in downward and there is no end in sight. An investment strategy in this case might be short selling. Short selling is selling a stock that you don't own. You can make arrangements with your broker to do this. You will in effect be borrowing shares from your broker to sell in the hope of buying them back later when the price has dropped. You will profit from the difference in the two prices. Another strategy for a bear market would be buying defensive stocks. These are stocks like utility companies that are not affected by the market downturn or companies that sell their products during all economic conditions.
Brokers
Traditionally investors bought and sold stock through large brokerage houses. They made a phone call to their broker who relayed their order to the exchange floor. These brokers also offered their services as stock advisors to people who knew very little about the market. These people relied on their broker to guide them and paid a hefty price in commissions and fees as a result. The advent of the Internet has led to a new class of brokerage houses. These firms provide on-line accounts where you may log in and buy and sell stocks from anywhere you can get an Internet connection. They usually don't offer any market advice and only provide order execution. The Internet investor can find some good deals as the members of this new breed of electronic brokerage houses compete for your business!
Blue Chip Stocks
Large well established firms who have demonstrated good profitability and growth, dividend payout, and quality products and services are called blue chip stocks. They are usually the leaders of their industry, have been around for a long time, and are considered to be among the safest investments. Blue chip stocks are included in the Dow Jones Industrial Average, an index composed of thirty companies who are leaders in their industry groups. They are very popular among individual and institutional investors. Blue chip stocks attract investors who are interested in consistent dividends and growth as well as stability. They are rarely subject to the price volatility of other stocks and their share prices will normally be higher than other categories of stock. The downside of blue chips is that due to their stability they won't appreciate as rapidly as compared to smaller up-and-coming stocks.
Penny Stocks
Penny Stocks are very low priced stocks and are very risky. They are usually issued by companies without a long term record of stability or profitability.
The appeal of penny stock is their low price. Though the odds are against it, if the company can get into a growth trend the share price can jump very rapidly. They are usually favored by the speculative investor.
Income Stocks
Income Stocks are stock that normally pay higher than average dividends. They are well established companies like utilities or telephone companies. Income stocks are popular with the investor who wants to own the stock for a long time and collect the dividends and who is not so interested in a gain in share price.
Value Stocks
Sometimes a company's earnings and growth potential indicate that it's share price should be higher than it is currently trading at. These stock are said to be Value Stocks. For the most part, the market and investors have ignored them. The investor who buys a value stock hopes that the market will soon realize what a bargain it is and begin to buy. This would drive up the share price.
Defensive Stocks
Defensive Stocks are issued by companies in industries that have demonstrated good performance in bad markets. Food and utility companies are defensive stocks.
Market Timing
One of the most well known market quotes is: "Buy Low - Sell High". To be consistently successful in the stock market one needs strategy, discipline, knowledge, and tools. We need to understand our strategy and stick with it. This will prevent us from being distracted by emotion, panic, or greed.
One of the most prominent investing strategies used by "investment pros" is Market Timing. This is the attempt to predict future prices from past market performance. Forecasting stock prices has been a problem for as long as people have been trading stocks. The time to buy or sell a stock is based on a number of economic indicators derived from company analysis, stock charts, and various complex mathematical and computer based algorithms.
One example of market timing signals are those available from www.stock4today.com.
Risks
There are numerous risks involved in investing in the stock market. Knowing that these risks exist should be one of the things an investor is constantly aware of. The money you invest in the stock market is not guaranteed. For instance, you might buy a stock expecting a certain dividend or rate of share price increase. If the company experiences financial problems it may not live up to your dividend or price growth expectations. If the company goes out of business you will probably lose everything you invested in it. Due to the uncertainty of the outcome, you bear a certain amount of risk when you purchase a stock.
Stocks differ in the amount of risks they present. For instance, Internet stocks have demonstrated themselves to be much more risky than utility stocks.
One risk is the stocks reaction to news items about the company. Depending on how the investors interpret the new item, they may be influenced to buy or sell the stock. If enough of these investors begin to buy or sell at the same time it will cause the price to rise or fall.
One effective strategy to cope with risk is diversification. This means spreading out your investments over several stocks in different market sectors. Remember the saying: "Don't put all your eggs in the same basket".
As investors we need to find our "Risk Tolerance". Risk tolerance is our emotional and financial ability to ride out a decline in the market without panicking and selling at a loss. When we define that point we make sure not to extend our investments beyond it.
Benefits
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It's true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!
The Internet has make investing in the stock market a possibility for almost everybody. The wealth of online information, articles, and stock quotes gives the average person the same abilities that were once available to only stock brokers. No longer does the investor need to contact a broker for this information or to place orders to buy or sell. We now have almost instant access to our accounts and the ability to place on-line orders in seconds. This new freedom has ushered in new masses of hopeful investors. Still this in not a random process of buying and selling stock. We need a strategy for selecting a suitable stock as well as timing to buy and sell in order to make a profit.
Day Trading
Day Trading is the attempt to buy and sell stock over a very short period of time. The day trader hopes to cash in on the short term fluctuations in a stock's price. It would not be unusual for the day trader to buy and sell the same stock in a matter of a few minutes or to buy and sell the same stock several times a day.
Day traders sit in front of computer monitors all day looking for short term movement in a stock. They then attempt to get in on the movement before it reverses. The real day trader does not hold a stock overnight due to the risk of some event or news item triggering the stock to reverse direction. It takes intense concentration to monitor the minute by minute movement of several stocks.
Day trading involves a great deal of risk because of the uncertainty of the market behavior over the short term. The slightest economic or political news can cause a stock to fluctuate wildly and result in unexpected losses.
There are a few people who make respectable gains day trading. The people who probably make the most are the self proclaimed "experts" who sell the books or operate the web sites that cater to the day trader. Because of the profits to be made from sales to people who want to get rich quick, they make it seem as attractive as possible. The truth is that in the long run more people lose than gain by day trading. This does not translate into a very good investment.
Author Bio
Harry Hooper has over 30 years experience in portfolio management. He is the senior stock tracker for http://www.stock4today.com.
Article Source: http://www.ArticleGeek.com - Free Website Content
Read more....
