In order to make money, you also need money to make one. But you don’t have to invest a lot of money to make more money. You just need a few dollars and some cunning to earn a lot.Below are some of the ways that you can earn money from the little that you have.Invest in stocksIt can be really frightening but to those who love to take risks, the rewards of the stock market to can skyrocket when you get lucky.
Even a small amounts of money can yield more than you can imagine if you play the market right.There are actually stocks that are valued in less than a cent. This, you can buy in bulk and see if they go up. When they do, sell the stocks and then buy again. This method of buying and selling can give you a lot of earnings but it can also make you lose a lot.If you, however, have a few thousands kept, you can always buy blue chips that you can keep in the long run. Blue chip stocks refer to the stocks of big companies that are valued high.
These stocks do not often go down in value.Invest in mutual fundsAnother way to make more is to invest in mutual funds. Mutual fund managers pool together the money of a lot of people and then invest them in properties, in the stock market, in government bonds and in other high-yielding investments.Because the money pooled together is high, one can expect to also get a higher yield compared to when you are investing just for yourself.It is important though that you study and carefully select the mutual fund company where you will be investing your money in. Make sure that they are credible and have good track records.Put up a small businessWhen you have excess money, nothing can yield a higher reward than your own business. Use some of your savings to finance the business. Who knows, your business may become successful! You don’t have to start really big. In fact, you can even start off your operations inside your home. Start small and then little by little expand.
You will just notice that one day you have a thriving business.You can start with buying and then selling or perhaps start producing small stuffs that you can easily sell to other people. Think of something that you can design or produce; then sell them off to others. It is good to think of a business that is based on your interests. Consider art or crafts if you are fond of these pastimes.Time depositsAlthough the yield in time deposits is not so high compared to other forms of investments, the risk is small.
This is ideal for people who cannot afford to lose their money in various investments. Time deposits are similar to bank accounts except that the initial deposit that they require is larger and you cannot touch your money for a specific period of time.Some time deposits can last for as short as a month while others can continue for more than 3 years. The longer the period of the time deposit, the higher should the interest be.
Friday, April 27, 2007
Wednesday, April 18, 2007
INVESTMENT NEWS GOODOR BAD
As I become more and more involved with the world of investing, I have noticed one thing that causes me to get a little annoyed. That one thing is how financial news is reported. In a world that has everyone connected and up-to-date with so much information; I have begun to wonder how much that impacts the stock market.In my opinion, too much news has played upon the fears of many investors.
This has turned an already risky game into an extremely volatile game. This is because to many investors simply react out of emotion instead of finding the facts out for themselves. I also think some of the professional investors on Wall Street play on the emotions of the small investors.So
I do pose the question as to whether the markets may become too volatile in the future as people are connected 24 hours a day through so many new technologies. Will this constant access to information make it better or worse for the average investor? In the old days before the internet and 24 hour news channels; I would think less irrational selling of stocks based on news and information would have occurred. Today anyone who invests in stocks online is slammed with news good and bad.
Some may say that all this information is a good thing, and investors need to do their own research before putting money in or taking money out of the stock market. I do agree that every investor is responsible for their own actions. However, I think there is increasing number of new investors who will fall victim to their emotions based on too much information.I realize financial news stories and the technologies that distribute them can not be stopped. However, I do feel that media outlets need to put greater care into what they publish. Comments that may make a stock price go up or down quickly that are not based on realities, or may be over-exaggerated could be playing on the emotions of many investors
This has turned an already risky game into an extremely volatile game. This is because to many investors simply react out of emotion instead of finding the facts out for themselves. I also think some of the professional investors on Wall Street play on the emotions of the small investors.So
I do pose the question as to whether the markets may become too volatile in the future as people are connected 24 hours a day through so many new technologies. Will this constant access to information make it better or worse for the average investor? In the old days before the internet and 24 hour news channels; I would think less irrational selling of stocks based on news and information would have occurred. Today anyone who invests in stocks online is slammed with news good and bad.
Some may say that all this information is a good thing, and investors need to do their own research before putting money in or taking money out of the stock market. I do agree that every investor is responsible for their own actions. However, I think there is increasing number of new investors who will fall victim to their emotions based on too much information.I realize financial news stories and the technologies that distribute them can not be stopped. However, I do feel that media outlets need to put greater care into what they publish. Comments that may make a stock price go up or down quickly that are not based on realities, or may be over-exaggerated could be playing on the emotions of many investors
Friday, April 13, 2007
101TIPS TO BECOME RICH
Building Wealth – Millions of people all over the world seek the key to building wealth, yet it remains an ever elusive achievement to even those that have more resources than the average Joe and Jane. In fact, it doesn’t matter if your black, white, Latino, Asian, Christian, Buddhist, Muslim, Brazilian, Japanese, Kuwaiti, British, German, Spanish, Italian, Cuban, Chilean, American, or Canadian, the key to building wealth is the same no matter your nationality, ethnicity, race, or religion.
Yet so many people seek so many different solutions such as skipping from Merrill Lynch to Goldman Sachs to J.P. Morgan, to seeking out independent financial consultants, to speculating in assets they don’t understand, to buying investment newsletters to do their research for them. And the great majority of people that have been searching in this manner to build wealth are still searching today. Why?The answer is quite simple. All of these investors have a common denominator of failure and one lacking common denominator that is highly predictive of success. Their common denominator
of failure that binds them together is the fact that all of their searches to build wealth were motivated by the desire to find the easy way out to build wealth. The placement of their money in someone else’s hands to manage, the purchase of newsletters to provide their stock picks for them, and the greed driven behavior of gambling in speculative assets. Their common missing ingredient and their reason for lack of success, is their refusal to seize personal responsibility for learning how to manage their own money.So the million dollar question is literally this: What is the fastest way to build wealth?The Answer: Take the time to learn a proper investing system, seize responsibility for your financial future, and manage your own money. Unfortunately there are truly not any viable alternatives to this answer.
We’re here to show you why. Below we provide 101 Reasons Why Managing Your Own Money is the Quickest Way to Build Wealth(1) No financial consultant or investment firm will ever care more about the performance of your portfolio than you. Reasons (2) and (3) are quite lengthy because they help clarify reason (1).(2) This is perhaps the second most important reason. Most people realize that most financial consultants are nothing more than glorified salesmen and saleswomen, even if they do work for a prestigious investment firm. I’m not sure what the statistics regarding this are, but the next time you speak to the branch manager of your brokerage house, ask him to see the annual returns of the top five best-paid financial consultants in his office for the last five years.
Then ask him which financial consultants in the office have earned the best returns for their clients over the last five years and ask to see these returns. Don’t let the branch manager answer your questions by giving you the annual returns of the best five internal or external money managers that the investment firm utilizes. This response does not answer your question. First of all, it is highly unlikely that the top producers hire the top five best performing money managers year after year as any major global investment firm utilizes hundreds of money managers. By this, I mean that most financial consultants make zero decisions about what stocks are purchased with the money that you give them. They hire either internal or external money managers to do this for you. You want to find out what returns the top five best-paid producers in your office earn annually for their clients based upon the mix of money managers they hire for their clients.
If a branch manager refuses to divulge this information, you have to wonder why? If they tell you they do not know, why would it be of so little significance to the firm what kinds of returns the top producers earn for their clients that they don’t even track this information? And if they know, but won’t tell you, why would they not release this information? Shouldn’t the best paid financial consultants in any office be earning their clients the best returns year after year after year over any other financial consultant by a very wide margin. And if not, why are they being compensated so highly? The answers to these questions, if you receive honest answers, should reveal that great salesmen are compensated very handsomely by their firms while almost zero premium is put on the ability of a financial consultant to earn great returns for their clients.(3) Building on point (2), many investors will then say, OK. I’ll find myself the financial consultant, the one that falls in the top 0.5% of all consultants that really know what they are doing, and I’ll hire him or her. Here is why they are wrong again.
Because most people never take the time to properly learn how to invest themselves, they never can understand the investment strategies of those that truly know what they are doing. This lack of understanding, despite any efforts on behalf of the consultant to educate the client, inevitably leads to incessant questioning of this consultant’s actions, strategies, etc. which can grow very tiresome very quickly. I have dropped large accounts in the past because of such meddling, sophomoric behavior from clients that had a lot of money. Consultants that truly know what they are doing, despite their efforts, can not educate you fully in 3-4 hours time if you have been conditioned for years to believe the nonsense that global investment firms have taught you. Furthermore, because great consultants realize that so many widely believed concepts about investing are nonsense, and have achieved their great performance by realizing this, they will constantly be fighting an uphill battle against clients that believe this nonsense.
Therefore the chances that they would keep these clients in the long run are slim to none.Even if one finds the rare consultant that truly knows what he or she is doing, and truly has outperformed the markets significantly year in and year out, because these types of consultants invest so differently than the status quo, any lack of exposure to such intelligent investment strategies will undoubtedly cause fear. It is human nature that ignorance leads to fear. In turn, fear causes incessant badgering and questioning, a behavior that 100% of the time will cause a great financial consultant to terminate a relationship with a client. Because great consultants achieve their outperformance by making decisions that go against the grain of what 99% of other financial consultants do, a great level of understanding of how to invest properly is necessary for one to even to maintain a relationship with a great consultant. In the end, even if one doesn’t wish to manage his or her own money AND even if one is able to find that rare 1 in 1,000 financial consultant that really knows what he or she is doing, one still needs to learn a comprehensive investment system just to maintain a healthy relationship with their knowledgeable consultant. Ultimately, this is why you should learn to manage your own money!(4) Global investment firms always tout a message of trust in their commercials. But where is the historical performance that merits that trust? 6% to 10% a year?(5) 6% to 10% will never help you build wealth. You must learn to at least earn 15% to 25% or more every year. At 8% a year, it will take you 9 years to grow $250,000 to $500,000 and 18 years to grow $250,000 to $1,000,000 in a non-taxable account, not considering the erosion in purchasing power due to inflation. At 25% a year, it will take you less than 7 years to grow $250,000 into a $1,000,000 in a non-taxable account. That’s the difference between building wealth and preserving wealth. 6% to 10% a year helps you preserve wealth, not build it.(6) Major global firms will NEVER find the best stocks in the global market and hold them in your portfolio. (7) Reason (4) is true because major firms coverage of small and micro cap stocks are appallingly light. Firms must provide extensive coverage of large cap stocks , the Genentechs, the IBMs, the McDonalds, the General Electrics of the world to appease their clients. However, the Microsofts of the future are small and micro cap stocks now. You can’t build wealth buying and holding the IBMS of the global stock world.(8) Information technology and the flattening of the information world now makes it easier for you to be much more knowledgeable than any financial consultant employed by any of the major investment firms.(9) Financial consultants, because of the payout grid that dictates their salaries, are often motivated by selling you the highest commission based products, not necessarily what is in your best interest.(10) Investors that have actually built wealth through investing like Warren Buffet, George Soros, even Mark Cuban, have all managed their own money. Investors that have already amassed great wealth employ money managers. That should tell you something about what’s necessary to build wealth. (11) Even large global investment houses only have the resources to track about 1,500 stocks.
There are estimated to be over 75,000 stocks that trade globally. Investors want coverage of the most popular stocks in their country which means that the great majority of stocks that firms’ analysts cover are large cap domestic stocks. When I worked for a large Wall Street investment house, many times stocks I wanted to buy that were traded in China, stocks that returned triple digit returns in less than a year, had zero coverage at this firm. You want to own the best stocks in the world, you have to manage your own money. Give your money to someone else to manage, and chances are very very high that you will never own the best stocks and opportunities in the world.(12) There is a reason why you consistently hear statistics like 3% of individuals own 95% of the wealth, no matter what country you visit. The reason is that these 3% of people took the time to learn how to manage their money themselves and thus have truly built wealth. If you don’t believe that your returns should be limited to the knowledge of your financial consultant, then manage your own money.
For example, how many times have you asked your financial consultant, I’d like to invest in gold, or I’d like to invest in dollar declining funds, or I’d like to invest in Chinese markets, only to have your financial consultant stare at you blankly and say, “the safest way to invest is what I’m doing for you now.” I once heard this anecdotal story. A wealthy individual asked his financial consultant, one of the top producers at his firm, why he didn’t own any stocks in the Chinese stock market. The consultant said just give me some time and I’ll get you a list of stocks that we can buy. When he produced the list, the list contained the American-based Chinese restaurant chain P.F. Changs stock. If this is the kind of advice a top producer gives, you may think how can he be a top producer? Just read this entire list, and you’ll realize how easy it is for these types of situations to exist at top investment firms.Although this list contains 101 reasons, for the sake of space, we cannot list all 101 reasons here. To read the rest of this "101 Reasons" list, please follow the link below
Yet so many people seek so many different solutions such as skipping from Merrill Lynch to Goldman Sachs to J.P. Morgan, to seeking out independent financial consultants, to speculating in assets they don’t understand, to buying investment newsletters to do their research for them. And the great majority of people that have been searching in this manner to build wealth are still searching today. Why?The answer is quite simple. All of these investors have a common denominator of failure and one lacking common denominator that is highly predictive of success. Their common denominator
of failure that binds them together is the fact that all of their searches to build wealth were motivated by the desire to find the easy way out to build wealth. The placement of their money in someone else’s hands to manage, the purchase of newsletters to provide their stock picks for them, and the greed driven behavior of gambling in speculative assets. Their common missing ingredient and their reason for lack of success, is their refusal to seize personal responsibility for learning how to manage their own money.So the million dollar question is literally this: What is the fastest way to build wealth?The Answer: Take the time to learn a proper investing system, seize responsibility for your financial future, and manage your own money. Unfortunately there are truly not any viable alternatives to this answer.
We’re here to show you why. Below we provide 101 Reasons Why Managing Your Own Money is the Quickest Way to Build Wealth(1) No financial consultant or investment firm will ever care more about the performance of your portfolio than you. Reasons (2) and (3) are quite lengthy because they help clarify reason (1).(2) This is perhaps the second most important reason. Most people realize that most financial consultants are nothing more than glorified salesmen and saleswomen, even if they do work for a prestigious investment firm. I’m not sure what the statistics regarding this are, but the next time you speak to the branch manager of your brokerage house, ask him to see the annual returns of the top five best-paid financial consultants in his office for the last five years.
Then ask him which financial consultants in the office have earned the best returns for their clients over the last five years and ask to see these returns. Don’t let the branch manager answer your questions by giving you the annual returns of the best five internal or external money managers that the investment firm utilizes. This response does not answer your question. First of all, it is highly unlikely that the top producers hire the top five best performing money managers year after year as any major global investment firm utilizes hundreds of money managers. By this, I mean that most financial consultants make zero decisions about what stocks are purchased with the money that you give them. They hire either internal or external money managers to do this for you. You want to find out what returns the top five best-paid producers in your office earn annually for their clients based upon the mix of money managers they hire for their clients.
If a branch manager refuses to divulge this information, you have to wonder why? If they tell you they do not know, why would it be of so little significance to the firm what kinds of returns the top producers earn for their clients that they don’t even track this information? And if they know, but won’t tell you, why would they not release this information? Shouldn’t the best paid financial consultants in any office be earning their clients the best returns year after year after year over any other financial consultant by a very wide margin. And if not, why are they being compensated so highly? The answers to these questions, if you receive honest answers, should reveal that great salesmen are compensated very handsomely by their firms while almost zero premium is put on the ability of a financial consultant to earn great returns for their clients.(3) Building on point (2), many investors will then say, OK. I’ll find myself the financial consultant, the one that falls in the top 0.5% of all consultants that really know what they are doing, and I’ll hire him or her. Here is why they are wrong again.
Because most people never take the time to properly learn how to invest themselves, they never can understand the investment strategies of those that truly know what they are doing. This lack of understanding, despite any efforts on behalf of the consultant to educate the client, inevitably leads to incessant questioning of this consultant’s actions, strategies, etc. which can grow very tiresome very quickly. I have dropped large accounts in the past because of such meddling, sophomoric behavior from clients that had a lot of money. Consultants that truly know what they are doing, despite their efforts, can not educate you fully in 3-4 hours time if you have been conditioned for years to believe the nonsense that global investment firms have taught you. Furthermore, because great consultants realize that so many widely believed concepts about investing are nonsense, and have achieved their great performance by realizing this, they will constantly be fighting an uphill battle against clients that believe this nonsense.
Therefore the chances that they would keep these clients in the long run are slim to none.Even if one finds the rare consultant that truly knows what he or she is doing, and truly has outperformed the markets significantly year in and year out, because these types of consultants invest so differently than the status quo, any lack of exposure to such intelligent investment strategies will undoubtedly cause fear. It is human nature that ignorance leads to fear. In turn, fear causes incessant badgering and questioning, a behavior that 100% of the time will cause a great financial consultant to terminate a relationship with a client. Because great consultants achieve their outperformance by making decisions that go against the grain of what 99% of other financial consultants do, a great level of understanding of how to invest properly is necessary for one to even to maintain a relationship with a great consultant. In the end, even if one doesn’t wish to manage his or her own money AND even if one is able to find that rare 1 in 1,000 financial consultant that really knows what he or she is doing, one still needs to learn a comprehensive investment system just to maintain a healthy relationship with their knowledgeable consultant. Ultimately, this is why you should learn to manage your own money!(4) Global investment firms always tout a message of trust in their commercials. But where is the historical performance that merits that trust? 6% to 10% a year?(5) 6% to 10% will never help you build wealth. You must learn to at least earn 15% to 25% or more every year. At 8% a year, it will take you 9 years to grow $250,000 to $500,000 and 18 years to grow $250,000 to $1,000,000 in a non-taxable account, not considering the erosion in purchasing power due to inflation. At 25% a year, it will take you less than 7 years to grow $250,000 into a $1,000,000 in a non-taxable account. That’s the difference between building wealth and preserving wealth. 6% to 10% a year helps you preserve wealth, not build it.(6) Major global firms will NEVER find the best stocks in the global market and hold them in your portfolio. (7) Reason (4) is true because major firms coverage of small and micro cap stocks are appallingly light. Firms must provide extensive coverage of large cap stocks , the Genentechs, the IBMs, the McDonalds, the General Electrics of the world to appease their clients. However, the Microsofts of the future are small and micro cap stocks now. You can’t build wealth buying and holding the IBMS of the global stock world.(8) Information technology and the flattening of the information world now makes it easier for you to be much more knowledgeable than any financial consultant employed by any of the major investment firms.(9) Financial consultants, because of the payout grid that dictates their salaries, are often motivated by selling you the highest commission based products, not necessarily what is in your best interest.(10) Investors that have actually built wealth through investing like Warren Buffet, George Soros, even Mark Cuban, have all managed their own money. Investors that have already amassed great wealth employ money managers. That should tell you something about what’s necessary to build wealth. (11) Even large global investment houses only have the resources to track about 1,500 stocks.
There are estimated to be over 75,000 stocks that trade globally. Investors want coverage of the most popular stocks in their country which means that the great majority of stocks that firms’ analysts cover are large cap domestic stocks. When I worked for a large Wall Street investment house, many times stocks I wanted to buy that were traded in China, stocks that returned triple digit returns in less than a year, had zero coverage at this firm. You want to own the best stocks in the world, you have to manage your own money. Give your money to someone else to manage, and chances are very very high that you will never own the best stocks and opportunities in the world.(12) There is a reason why you consistently hear statistics like 3% of individuals own 95% of the wealth, no matter what country you visit. The reason is that these 3% of people took the time to learn how to manage their money themselves and thus have truly built wealth. If you don’t believe that your returns should be limited to the knowledge of your financial consultant, then manage your own money.
For example, how many times have you asked your financial consultant, I’d like to invest in gold, or I’d like to invest in dollar declining funds, or I’d like to invest in Chinese markets, only to have your financial consultant stare at you blankly and say, “the safest way to invest is what I’m doing for you now.” I once heard this anecdotal story. A wealthy individual asked his financial consultant, one of the top producers at his firm, why he didn’t own any stocks in the Chinese stock market. The consultant said just give me some time and I’ll get you a list of stocks that we can buy. When he produced the list, the list contained the American-based Chinese restaurant chain P.F. Changs stock. If this is the kind of advice a top producer gives, you may think how can he be a top producer? Just read this entire list, and you’ll realize how easy it is for these types of situations to exist at top investment firms.Although this list contains 101 reasons, for the sake of space, we cannot list all 101 reasons here. To read the rest of this "101 Reasons" list, please follow the link below
Monday, April 9, 2007
The 5 Worst Stock Investment Strategies
Most investors approach the stock market with the wrong
frame of mind. But it's not their fault. They've been
conditioned to follow investment strategies that simply lead
them in the wrong direction towards financial disaster.
So to prevent YOU from making the same mistakes, I'm
going to lay out all the horrible investment strategies for
you so that you don't make the same mistakes as everyone
else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of
"veterans," have the mentality that they're going to strike it
rich. Well that's great, that's optimistic, but they expect it to
happen right away. This is probably the worst investment
strategy you can have¡because it isn't an investment
strategy!
They're assuming that they can beat the system and crack
the code of the stock market that investors have been
struggling to find for years! The tortoise is going to runs
laps around the hare in this one, guys. What you need to
do is develop an investment strategy that can work for you
over the long run.
Don't Gamble
The majority of investors don't know when to buy low and
sell high. This is one of the basics, but people continue to
follow hot "investment strategies" and "trends" to strike it
rich. In gambling, it's not about the big take. Good poker
players, for example, make the most with their good hands
and lose the least with their bad ones. Here's an
investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the
"insider tip" that guarantees millions. But here are some
questions to think about¡How many people have heard
this tip before you? Has the investment strategy been
circulating for long? And who did you hear it from? If this
insider information was given to you by a friend instead of a
listed company director, you're not going to have that great
of an edge. If this hot and quick investment strategy has
been around for a while¡it's not going to be very quick any
more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is
just going to bring trouble. Stashing stocks away so that
they can grow and mature into some rewarding fund later
in life is NOT going to bring profit. There are too many
things that can go wrong, with the company or the actual
market, to create beneficial odds for yourself by using this
old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and
investing blindly will kick you out of the market before you
know what hit you. This is an information age. There are
investment strategies, techniques, and dozens of ways to
analyze EVERYTHING. Use them. Study up. Don't just sit
there with your eyes closed making the best guess you can
come up with. Create an investment strategy that works for
you. Stay on top of your game and more importantly¡your
money.
frame of mind. But it's not their fault. They've been
conditioned to follow investment strategies that simply lead
them in the wrong direction towards financial disaster.
So to prevent YOU from making the same mistakes, I'm
going to lay out all the horrible investment strategies for
you so that you don't make the same mistakes as everyone
else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of
"veterans," have the mentality that they're going to strike it
rich. Well that's great, that's optimistic, but they expect it to
happen right away. This is probably the worst investment
strategy you can have¡because it isn't an investment
strategy!
They're assuming that they can beat the system and crack
the code of the stock market that investors have been
struggling to find for years! The tortoise is going to runs
laps around the hare in this one, guys. What you need to
do is develop an investment strategy that can work for you
over the long run.
Don't Gamble
The majority of investors don't know when to buy low and
sell high. This is one of the basics, but people continue to
follow hot "investment strategies" and "trends" to strike it
rich. In gambling, it's not about the big take. Good poker
players, for example, make the most with their good hands
and lose the least with their bad ones. Here's an
investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the
"insider tip" that guarantees millions. But here are some
questions to think about¡How many people have heard
this tip before you? Has the investment strategy been
circulating for long? And who did you hear it from? If this
insider information was given to you by a friend instead of a
listed company director, you're not going to have that great
of an edge. If this hot and quick investment strategy has
been around for a while¡it's not going to be very quick any
more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is
just going to bring trouble. Stashing stocks away so that
they can grow and mature into some rewarding fund later
in life is NOT going to bring profit. There are too many
things that can go wrong, with the company or the actual
market, to create beneficial odds for yourself by using this
old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and
investing blindly will kick you out of the market before you
know what hit you. This is an information age. There are
investment strategies, techniques, and dozens of ways to
analyze EVERYTHING. Use them. Study up. Don't just sit
there with your eyes closed making the best guess you can
come up with. Create an investment strategy that works for
you. Stay on top of your game and more importantly¡your
money.
Tuesday, April 3, 2007
Making Money from Stock Market
Making money from stock markets requires trading in the stock market. Cautious buying, holding and selling of stocks generate profits and money. Stock trading is the function that interacts and organizes in the stock market.This market involves buying and selling of millions of shares all over the world, and generates profit.As a beginner, you must understand in effect how the market works. You really don’t have to know all of the technicalities of buying and selling stocks.The first and foremost you need to know is the functioning of the exchange floor, irrespective of whether you trade through the floor or electronically.When the market opens, hundreds of people are seen fast moving about shouting and signaling to one another, staring at monitors, and entering data into terminals, or busy on cell-phones on the exchange floor. It looks like a complete fiasco. However, by the time the end of the day approaches, the market has worked out all the trades, and is all set for the next day.These are the steps in a simple trade on the exchange floor of any major Stock Exchange: You instruct your broker to buy a number of shares of a company at the current market price.The broker’s order department passes the order on to their floor clerk, the dealing official, in the exchange.From this person it goes to one of the firm’s floor traders whose task it is to find another floor trader wanting to sell that number of shares of the company you wanted. Each floor trader has particular knowledge of which floor traders deal in what stocks.The two come together on a price and seal the deal. The notification process moves backward along the line and your broker gets back to you with the final price. You receive the confirmation notice in the mail after a few days.Beginners should avoid complicating things trying to get rich in a day by venturing into every nook and cranny without knowing a thing or two about them. To begin with, you need a broker to handle your trades – individuals don’t have access to the electronic markets. Your broker accesses the exchange network and the system finds a buyer or seller depending on your order. Choose the right broker rationally. This is a crucial point of money making from stocks.Depend on your comprehension and your broker, who must be a professional. Never bypass understanding fully the cause(s) behind a bad result when it occurs. Learn from your experiences, document them, and keep reading them once
Monday, April 2, 2007
THE ROLE OF ONLINE STOCK BROKERS
It is very difficult to know the best way to go about making your money work for you. For generations the stock exchange has given consumers the opportunity to invest their money into companies that they felt would perform solidly, thus increasing the worth of their stock. In essence, the stock market acts as a facilitator between buyers and sellers, as they exchange stock that they hold in companies. These companies use the money they receive from their investors to further their business and increase profits; increased profit means a higher worth for the stock. And round and round it goes. Traditionally, those looking to invest went to a stock broker in any number of brokerage companies who would assist the investor in the buying and selling of stock and the building of their financial portfolio. But in this age of the Internet, investors need only turn on their computer to be linked into the stock exchange. Subsequently, to keep pace with this changing economy, online stock brokers entered into this new world of finance in order to assist virtual customers in achieving their financial goals.Online stock brokers work within investment companies that offer online resources as either their entire service or as part of their traditional brokerage service. Some of the more commonly used online stock brokers are Ameritrade, ETrade Financial, Fidelity, and Schwab. Such brokers operate much as traditional brokers - assessing the investor's financial situation, the financial plan they want to execute, and the stocks in which they are interested.Working through these online stock brokers, investors create an account where they can access their financial information at the click of a mouse. Online brokerage houses offer an extensive amount of information in order for investors to make informed decisions regarding their trades; stock quotes are kept scrolling at all times on the website; historical performance on each stock can be accessed; and in-depth information regarding each company's history and financial status is available for investors to perform research prior to investing.Investors turn to online trading and online stock brokers for a variety of benefits, not the least of which is low broker fees; online broker fees generally run between $7 and $10 per trade. There is also the control investors have to make decisions on behalf of their own portfolio. Investors are able to choose what stocks they want to buy - regardless of what the stock broker prefers. Online stock brokers - unlike traditional stock brokers - do not exert much control over the stocks of the investor. Online trading offers investors a whole new level of independence.The world of investment has changed; no longer are investors required to physically visit their stock brokers in order to examine their portfolio, set financial goals, and buy and sell commodities. Today's savvy investors work from their computers along with online stock brokers in order to be hands-on participants in their own financial future.
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