When Do You Plan To Start Your Financial Plan

Many people have suffered large losses as a result of the last financial crisis. These large losses have made people seek out alternative investments as a way of protecting themselves. These investments do themselves come with risks and we will be looking at some of these today.

Some people tend to under spend and save a lot of their income. Believing that saving more will have better financial position during retirement. However, this is might be half true. We need to save just sufficient money to meet our financial goals and not just for the sake of saving. You need to have financial plan to determine your optimal saving amount.

Each site that offers an online calculator for retirement will try to provide a free quote for retirement assets. This is to get people interested in the financial services a company offers if money does not add up. When this occurs, it may be important to start some other type of nest egg program like an IRA, real estate investments, or investing in the stock market to generate more money for retirement.

I just want to go over why it is so important to diversify through alternative investments. Traditional investments such as stocks, property, bonds and cash have performed badly on average. The stock market is less than its value 10 years ago. There have been housing bubbles popping as the credit dries up and interest rates are so low that the real value of cash is in decline.

Without a proper financial plan, you won’t be able to identify the investment on return (ROI) that suit your financial freedom. You may end up investing in wrong investment products which might affect you financial plan.

When asking the question of how much should be saved for a retirement, the most obvious answer is as much as possible. This is harder than it seems, especially when someone has kids or has a high standard of living as it takes more money to keep those standards up. It may take some restraint and a lot of foresight, but planning ahead for a good retirement is paramount to the success and happiness of the golden years.

People who ask the question, how much should I save for retirement, are worried about their futures and for good reason. Having a keen grasp of funds is an integral part of planning for the future. Don’t be left out in the cold when retirement comes and lose the standard of living you’re accustomed to. Save as much is possible, use the online calculator, and open up separate accounts if practical.

Without a financial plan, you don’t know the exact price you will be paying for procrastination — either in saving, investing or insuring. You might take it easy until it is too late.

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How Good News Can Be Bad News And Reverse Said By Supernsetips

For weeks, no, months we have been bombed with nothing but damaging news about the economy generally and thousands of individual companies. The stock market has dropped down thousands of items and more than $8 trillion in paper assets have disappeared.

Note I said paper assets because until you turn it into spendable money these numbers are but a figure on a piece of paper. Sure that doesn’t make you experience any better when you bought Lucent at $80 and have seen it go to 80 cents. You could have protected you profits or reduced your loss if you have put an exposed stop-loss order with your broker. Brokers hate this, but YOU must protect you working capital because he is not going to.

This past 2 weeks the tough news has continued to be shoveled out by the news media, but instead of making the market go down it has rallied about 1,000 points. Having been a floor trader for many years my experience with this kind of reaction tells me what is going on. The market is ignoring the bad stuff and has decided to go UP. Hooray! The traders are grasping at anything that looks bullish and not giving any attention to the negatives.

The market had become so oversold that almost anything will cause it to advance. Now you want to know if this is “the Bottom”. No one can know for sure because the long – term trend remains down and is still in place. The voice of the market is now clearly saying, “I don’t want to go down for a while”. It might even allow the stock prices to stay on to rise. How far and for how long – don’t ask. No one knows. The stock market remains an enigma wrapped in a mystery. A few very astute (or lucky) folks are able to understand market language and make profits whether it goes up or down. Mr. Average Broker (also Mr. Average Financial Planner) has no idea what the market is saying. They have not taken the time to take their trade.

Many times what is actually bad news makes the market go up. Here is one example. The weekly unemployment figure comes out to show there were 30,000 fewer jobs. That isn’t good news. The DOW starts up 100 points. Huh? The Wall Street mavens were predicting job losses of 55,000 so this number is a blessing. See what I mean? It is not the actual news, but the difference in what was expected and what actually fell out. You can apply this to almost every statistic put out by important government and private means. The same applies to good news that does not move the market up. What you think you see is not always what you get. Before you hold on any figure as either bullish or bearish find out what number was expected and wait for the response to it. Bad news can be good news and visa versa.

Supernsetips tell you that how a good news may be worst news and vice versa and how it may help you in gaining very good gains just visit on stock market tips .Supernsetips provides you 100% sure stock market tips on jackpot cash market tips.

How To Trade In Nifty Future ? – Supernsetips

I have often discovered that some peoples are afraid of investing their money due to either care of losing it or some stay on confused about where to invest it. So I decided to pay some basic idea about investing your money and where should you invest as according to your requirements. While keeping you money in savings account is quite good to make fortune but it is not good for long term.

You can invest money in basically following five types of assets:

Cash (e.g.: savings account in coin bank). Bonds (e.g.: a loan to a company or government). Property (e.g.: residential or commercial properties). Equities (e.g.: shares in companies). Commodities (e.g.: base metals, oil, soybeans etc.).

If we talk about returns by these assets then the general rule of thumb in investing is that the wild the asset the greater the return. For instance if we talk about cash i.e., bank deposits then it has the lowest risk of exposure but at the same time has lowest returns, bonds are quite riskier and has more or same returns, property seems to be more promising and has stable returns and if we talk about stocks and goods then they are wild but have good reappearances. So, while planning to invest you must keep in mind the amount of risk involved, the sum you can invest and the time frame for which you can invest your money.

When to invest.

If you are a salaried somebody and got the business recently then first off you should invest in cash i.e. you should keep some money first then you can think of investing in indemnity. To invest in stock market or portions you must set at-least three to six months of your pay in it. While investment in property seems to be promising but it has some drawback like it is good for long terminus for example if you buy a parcel then you can require increase in value almost after 3-5 years. Secondly, it is quite hard to calculate return on investment in property as there is sets of material postulated in it like rent, maintenance price etc. and dealings takes months to fill in.

Investment in share market is preferred by most because of its ease of use and for the amount of money you can invest in shares, as you can invest any amount. One more vantage is that you can separate the number of shares you bought and sell them according to your need whereas if you talk about property then you cannot sell one room of a plane or house.

So if you are planning to invest for short terminal figure and looking for beneficial return on investment then you should begin thinking about investing in stock market.

Before using any service , if anyone want anyone can try supernsetips.com ’s Paid trial or if anyone want anyone can start with the Free Trial from Share Tips or anyone can join for Intraday Tips

A Company’s Story Must Carry Impingement Value To Obtain Widespread Publicity

In two previous columns, we talked about how quality management attracts Publicity, or PR. Nearly each and every organization is constantly trying to attract the attention of the media. What brings the media to some company’s door? That’s what each public relations man or woman would love to know. For that is what PR people get paid to obtain for their clients.

Quality management is certainly a key motivation in attracting a reporter’s attention. This helps persuade the reporter or a radio/TV producer that the proposed interview isn’t planning to become with someone who has “nothing to say” or just rehashing a clich or tired, old story. The higher the title as well as the much better known a organization, the greater the “impingement” a PR pitch (that’s what publicity people use to sell a reporter) impacts upon a member of the media. If someone from the publicity department at Microsoft calls Fortune magazine to ask about profiling Bill Gates, the pitch will have major impingement value. Handful of names have this kind of clout, either personally or corporately.

In any event, the senior editor from the main magazine will nevertheless inquire about the story angle. The editor will want to know, “What are we planning to speak about?” Ultimately, it can be the outstanding story that sells magazines or newspapers, not just the big name. Not all such stories involve a big name speaking or spouting his thoughts for the day. Frequently, far better stories evolve when there is a strong newsworthy angle. Let’s look at two recent stories – 1 which involves a uranium company and one more one about a coalbed methane (CBM) business, which we’ve covered in this column.

On Thursday, Pacific Asia Chinese marketplaces Energy (PACE) was featured inside the Financing section of Canada’s Globe and Mail newspaper. Headlined “High-Energy Performer,” the opening sentences told us why the reporter was interested: “PACE holds contracts to help China Marketplaces explore for and develop its coalbed methane (CBM) resources – fuel China Marketplaces needs to help satisfy its energy demands.”

The big story, which drew the newspaper to Pacific Asia Chinese marketplaces Energy, was China Marketplaces. PACE piggybacked that story simply because the company may be helping to offer a legitimate solution for the country’s power mix. Component from the big story may be the possible size with the recoverable gas, estimated inside a technical report by Sproule International being as large as 11.2 trillion cubic feet of gas.

Those two items enhanced the reporter’s interest in PACE. China needs alternative vitality sources, for example CBM, to improve their vitality mix – from a near total dependence upon coal. And, PACE has a potentially massive resource, which could last a excellent number of many years. Such a gas resource could be sufficiently large to make an impact on China. After all, Chinese marketplaces has proven reserves of just a little more than 30 trillion cubic feet. Another 11 trillion cubic feet, should the possible be proven up, would represent a substantial increase of available gas in an incredibly large nation. By itself, this could later create into a main international vitality story, reported upon by an excellent number of news media. Another impingement about the reporter is getting the satisfaction of reporting upon a good story, nicely before others write the story.

Chatter inside the newsroom: “Did you hear about PACE’s gas discovery in Chinese marketplaces, Bob?” Bob’s Reply: “Oh that a single. Yeah, I wrote about it eight months ago!”

Therefore, there are multiple impingement points in this story. Each “draw,” or a reason to attract eyeballs for the story, is an additional point the story must score, for the reporter and his editor, to overcome the hurdles of being featured in the main publication. Chinese marketplaces can be a draw. The size from the PACE coalbed methane gas resource is a draw. The prospective impact upon China’s energy mix is really a draw. Writing about it before the rest from the pack jumps on the bandwagon? That’s a draw, too. In this case, four draws sufficiently attracted media coverage for this little CBM development company.

Sometimes, the timing is just perfect, as well as the overpowering “big story” accidentally introduces a lucky guy onto the world’s stage. On the exact same Thursday, the PACE story was carried within the Globe and Mail, the Chief Executive of a tiny Canadian uranium business impinged on a Russian news service reporter in Hong Kong. Such was the excellent fortune for Craig Lindsay, a Certified Financial Analyst, who has spent a lot more than 16 years in corporate finance, investment banking and business development, according for the website of Magnum Uranium, for which he now serves as Chief Executive.

While Magnum has a market capitalization of about $15 million, and Lindsay is neither a geologist nor engineer, RIA Novosti news agency touted him as a “well-known vitality expert.” Admittedly, Lindsay gave a great speech on the Hong Kong Club for foreign correspondents. Cleverly, he announced, “Uranium may be the next oil,” throughout his speech. As several other industry experts have predicted, Lindsay also forecast uranium “may hit $50/pound by the end from the year.” So numerous are now announcing this it can be likely to become a self-fulfilling prophesy.

What elevated Lindsay’s publicity was not what he said in his speech. Most of his commentary continues to be currently been reported in numerous publications, including in our columns. (What reporters really hate is rehashing old news to give someone publicity!) It was to whom Lindsay was speaking, and especially the “timing” as to when it was said. Here is how Craig Lindsay got his “15 minutes of fame.”

About six hours earlier, the really same Russian news agency reported that Russia and Kazakhstan had signed a uranium offer worth $1 billion. The photos of Russian President Vladimir Putin and Kazakh President Nursultan Nazarbayev appeared since the photo op which goes with such truly big stories. This was a major event involving two really huge names, and among the biggest names and nations within the uranium sector. This was also Russia’s initial contract to import uranium; Kazakhstan could be the world’s third biggest uranium producer. All of this is “big news.”

The clever Russian freelance reporter, who attended the Lindsay speech in Hong Kong, possibly text-messaged or emailed his editor by Blackberry, tried to piggyback the Russian-Kazak story with his own story. Yes, which is how timing works. As soon as a main event takes spot, other journalists rush to piggyback the event with “their” story. The Russian reporter scored points with his editor and got his story filed (slang for published)

Two cunning gentlemen, the Russian stringer (slang for freelance reporter), and Craig Lindsay (whose name was spelled Kreig Lindsay inside the article), each accomplished their purposes. Mr. Lindsay got his organization in to the world’s spotlight. The Russian stringer got a great story. The reporter threw up a softball question, for which Mr. Lindsay supplied the desired answer.

What was the question the reporter asked Lindsay? That’s pretty obvious from what the reporter published in his post. Here is really a clip from the Moscow News post:

Foreign traders are ready to invest in Russia’s uranium business, if Moscow wants this to take place and establishes a necessary legal base,” Lindsay said. “I believe that Russia is one of several most promising directions for this kind of investments, it is an undeveloped industry, full of chances. My business will be the initial to come to Russia, if the necessary conditions are created,” he added.

Nowhere in Lindsay’s speech did Magnum Uranium’s Chief Executive discuss investing in Russia. However, the reporter NEEDED a good quote. It had to tie-in with “investing in Russia for uranium development.” Lindsay accommodated. He didn’t commit to investing in Russia, but he kept the door open. Magnum Uranium recently announced the acquisition of a 1,080-acre land package in Converse County, Wyoming. The business is also exploring for uranium in each Wyoming as well as the Athabasca Basin. Its finances are possibly currently stretched from each exploration and acquisition activities. Magnum’s industry capitalization would probably be insufficient to launch investments into Russia, at this time.

However, Lindsay did a great job acquiring his organization this caliber of publicity. And he got the uranium sector excellent publicity. He capitalized upon an impinging story – a story that did show up for the world’s radar – by correctly supplying an answer the Russian journalist was trying to prod out of him.

This is the essence of how journalists and publicity-seekers work together. If the PR person gives the journalist the story angle he is searching for inside of the larger story, chances are it will appear in print. Piggybacking a “main event” is probably the most common way to increase one’s impingement value to a reporter. And by being a cunning interviewee for his Russian reporter, Craig Lindsay just got Magnum Uranium into this column as nicely!

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Option Trading With Max Safety In Mind

I want to talk about what Maximum Safety and Maximum Reward option trading is all about. It’s been the motto of San Jose Options mentoring program for quite some time now. First of all, let me tell you how this concept came about.

This motto has bleak and humble origins from my early days of options trading. I had some rather horrible experiences when I was starting out because, just like other option traders, I started trading Iron Condors. I knew a little bit about credit spreads at the time, but never actively traded them. One look at the risk graph and I could tell, credit spreads were risky business.

I traded the traditional option spreads that have been traded for decades, but couldn’t help thinking there could be a safer way to trade. I had my winning months, but they were always followed by one rock bottom day. Thousands of dollars I successfully made always managed to find its way out the window from a single large move on the market.

I had been giving options trading a lot of serious thought. There must be a better way to trade than these tired, traditional strategies. How could I get anywhere if I continued being dealt large losses on my trading account? A bunch of small victories doesn’t add up to much after one large loss.

I came up with Maximum Safety, Maximum Reward option trading years ago. I was testing all the ideas I could come up with. This is what I’ve been doing for several years now, and I don’t see any signs of me stopping. I’ve come to realize that I need to maximize the Greek called Theta while, at the same time, minimizing Gamma and Vega. Once I have that down, I’ll have exactly what I’m looking for.

We have made some great leaps over the last few months. Today we were comparing a strategy that we call the Revolver to the traditional Iron Condor. We found that we can achieve the same Theta as the Condor, but the Vega as well as the Gamma are much lower. For example, while having the same Theta on the trade, the Iron Condor would incur a $8,000 loss on a 10% move to the upside. However, our strategy will only incur a $200 loss with a similar move. To the downside, our strategy also outperforms the traditional Iron Condor. Our Revolver is proving to be at least twice as safe and the Iron Condor.

To conclude I would just like to say that if you really want to find success through trading options, then you really need to focus on Maximum Safety and Maximum Reward. Again, this means that you’ll need to maximize your Theta while minimizing Gamma and Vega. I hope you have found this article to be informative and helpful. Good luck on your option trading, and until next time, have a great day!

Put Max Safety, Max Reward Option Strategies to work for you! Visit the pioneers of constructing low-risk option spreads at San Jose Options mentoring.

What Happens When A Stock Market Crashes?

A stock market crash can be summed up as a situation where share prices of stock listed on the stock exchanges plummet. Despite the fact that there are many economic variables that will cause a stock market crash, two main reasons for stock market crashes are also the investing public’s loss of confidence in the economy and mass panic.

Many times, the effects of stock market crashes can be awful for a country’s economy. There have been infamous stock market crashes that resulted in the loss of billions of dollars, and as more and more people become involved in the stock market, crashes have touched more lives recently.

One of the most infamous stock market crashes began on October 24, 1929 and would be come to be known as Black Thursday. The Dow Jones Industrial lost fifty percent during this stock market crash, setting off the beginning of the Great Depression. Another famous crash happened on October 19, 1987, also known as Black Monday. The crash started in Hong Kong but quickly blazed around the world.

By the time October was over, stock markets in Hong Kong had fallen 45.5%, the United States had fallen 22.68%, and Australia, Spain, the United Kingdom and Canada suffered intensely in addition. In stock market history, this marked the biggest one day percentage decline – the Dow Jones fell by 22.6% in one day.

No one could seem to explain the crash in 1987. The main events and news that were occurring at the time could not seem to predict the disaster and any obvious reasons for the collapse couldn’t be identified. This crash brought many questions about the theories and assumptions of modern economics to the table. After the crash, computer systems were upgraded in the stock exchanges to handle larger trading volumes more efficiently. The New York Stock Exchange also introduced the concept of a circuit breaker, which halts trading if the Dow declines a prescribed number of points for a prescribed amount of time.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies. This article, What Happens When A Stock Market Crashes? has free reprint rights.

Chinese Economy Still Growing In Global Recession

The country of China (People’s Republic of China) has an economy third in size worldwide. The United States and Japan are the first and second in size. China is second largest when it comes to trade. Its exports are larger than every nation except the United States. China economy is growing at a fast pace. It has been growing at an average of 10% per year over the last three decades. China stocks are going up.

China had little effect on the world economy before the latter part of the 1980s. It took nearly a decade for economic reforms of the late 1970s to have an impact. Growth was generated in investments, consumerism and the living standards of many citizens.

Although 10.8% of the citizens live on a dollar a day, the poverty level has decreased radically. It was 53% in 1980 and was down to 2.5% in 2005. The standard determining poverty seems to be measured differently in China, however. Even with exchange rates taken into account, $1 per day sounds meager.

China has a large population and covers a huge geographic area. These make it a powerful influence on a worldwide economic market. China’s development into a world power provides an example for developing countries.

Smaller developing countries would have to scale their activities to fit their size. Using capital investment to promote growth is working in China. It has been made more profitable by giving incentives to private businesses. Placing a focus on rural as well as urban areas has proved successful.

A stronger exchange rate for the yuan, if achieved, would be beneficial. It would lower the price of imports and lessen the demand for imports. Growth of services and consumption would be preferable to growth of industry and investments.

The full potential of production and exporting of goods has almost been reached. In spite of a depressed worldwide economy, China economy is growing at a fast pace. Prospects are even more promising that at the high point of financial crisis in the world. China’s already successful economy remains as likely to continue growing as it ever was.

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Get Forex Robot And Trade Like Pro In Next 48 Hours

There is much talk going on about the IvyBot Forex Robot. And most of these talks are praises and positive reviews regarding this forex software. As of now, the IvyBot is considered as one of the best trading robots ever to grace the field of foreign exchange market industry. Among, and mostly, I must say, these praises and reviews are about the performance of this forex software. Come to think of it, who would not talk about a product with a good reputation such as this one, and add to that is the high percentage of profitability it can guarantee a trader in the market? Especially if that forex software offers a lowest of risks imaginable.

Once you key in all the necessary belongings you want to put in to your commerce, you’d let now the Foreign exchange robot to run by its personal system, letting you run away from the computer. You’ll be able to save extra time now; you will not be ready now for applicable indicators for you to commerce efficiently in the Foreign exchange Market. By robotically letting your Foreign exchange Robot do the trading for you, they can execute your plans with out your help. By this, you’ll be able to let go of your emotions on doing all your trading, for some trades in the Foreign exchange Market lure you to make use of your intestine feeling, making you forget of all of your solid strategy.

The common precept in buying and selling states that ‘purchase low, promote excessive’. This has been around in the Forex Market area for a long time. But, among the Foreign exchange traders often overlook this single advice. There are times that the forex is low, however some traders are hesitant to buy the currency, as a result of they fear that it might go lower. Additionally, when greed comes into play, some don’t simply promote in hopes that it would go higher. The Foreign exchange Robotic could prevent all these mishaps, you are actually ensured that your plans are carried out, you could purchase and sell on your most advantage.

Some traders though, used the Forex Robot without really thinking, they just log on to their accounts, and guess positions they think they are advantageous. Of course, the Forex Market is not all pure luck, without thinking and educating yourself in the Forex Market, you would often lose. But there are traders too who used blacktest to double check if their plans and strategies are really working, this wound enable them to gain more from the business, by taking advantage of all the good things that a Forex Robot software can do.

You possibly can say by now, that by the help of those Forex Robots, you can also make your self higher in your business. And by that, you get extra credit score by gaining more profit from the same old; now you can be a kind of smart merchants who bought rich from the business. Once more, Foreign exchange Robots give you virtually all the benefits there’s within the Foreign exchange Market, plus that it might provide you with quite a lot of free time to do extra things.

Having the perfect things on hand would allow you to succeed from Forex; do not go into the battlefield on the earth of Forex with none assist from a Foreign exchange Robot.

John adams is professional forex trader and writer on the forex market. He also a very experienced in using forex technology Click here on Forex Software Reviews, He has listed the Best forex robots , Click Here To Find the Secrets of Forex Software and Claim your $500 bonus http://www.sneakymoneysystem.com

Want Superior Financial Opportunity, Then Know More About The Penny Stocks

\’Penny Stocks\’ has turn out to be one of the remarkable ways through which we can earn lump some amount in stock market. They are considered by many as one of the finest money making investments currently available. Let\’s briefly study what makes \’penny stocks\’ so appealing investment wise. Most people who invest in stocks do so with the idea of reaping large fast cash rewards over a very short time frame. This utopian concept is rarely achieved unless some reasonable and logical risk factors are taken into thought. \’Penny stocks\’ symbolize for investors the calculated greater risk but also garners the maximum possible reward.

A lot of people do not wish to pursue long term investing because it is very difficult to find the opportunities which can helps us to make money easily and most of the times it is not worth the wait. \’Penny On the other hand, \’Penny stocks\’, provides the excellent instrument to attain the maximum profits for which you are looking for. They are also pleasing because the \’Price Per Share\’ (PPC) is typically incredibly low which is appropriate for both the serious investor as well as any 1st time traders. Additionally, when comparing \’penny stocks\’ against \’higher priced stocks\’ one can frequently buy numerous penny shares for the similar price as just one standard priced stock. This rather not important trading thought is a huge leverage factor most newbie investors routinely overlook.

The premium valued \’penny stocks\’ frequently present the maximum chance to discover monetary success. Though, not anything is guaranteed and thus it is imperative for all investors to correctly support themselves with analysis tools or stock screening technology which can assist recognize perspective investment targets. A quality stock screener should have the potential to display many stocks in actual time mode so you can check the quick up and down fluctuations of any \’penny stock\’. This feature is significant so every investor recognizes the most excellent time to invest and the best time to pull out of any given position. Little position changes in \’penny stocks\’ can make fast net gains with a minimal investment of funds. The only influential feature concerning profit and loss is measured by the quantity of accuracy your stock screening software provides.

Receiving time sensitive and exact stock data is imperative to the success of investing in \’penny stocks\’ or any investment opportunity. So, the stock screening product you wish has a straight bearing on whether the \’penny stocks\’ you opt to purchase will bring the rich profits you deserve or losses which no one wants. Also be conscious of trade screener that distribute late stock quotes that tend to give you false market readings which can potentially alter your profit and loss bottom line.

This factor is particularly serious if you intend to Day Trade the \’penny stock\’ market where volatility reigns supreme. Several companies may also force clients into thinking they are receiving real time data but in realism no real-time comparison or support data is available until the markets close, thus making it too late to react to the day\’s events.

To succeed in the fast paced market of the \’penny stocks\’, your trading software needs to be accurate, flexible, simple to use and able to update all stock movements in real time mode. To benefit from the most excellent stock screening software on the market today for \’penny stocks\’ visit http://www.garsworld.com for a FREE 7 Day Trial of StockVision.

Basic Investment Principles In The Stock Market – Part 2

This is part 2 of the four part series on the discussion of principles of investment in the stock market. In the first part, the first principle involved realizing that the stock market is just another investment vehicles and that before you start investing in the stock market, you must realize that there are other vehicles of investments. We continue by discussing the next two principles. If you wish to view the entire article, please visit my blog.

2.) Investing in the stock market is a roller coaster ride – The advantage in the stock market is that when it goes up, big profits are often made. But when it drops fast, big losses are made also.

So when the market goes up we take advantage of the situation by selling and when the market goes down we take advantage of the situation by buying. When I first invested in the stock market almost 2 years ago, the Philippine Stock exchange index was only about 2000 + points. I\’ve seen it go up to 2500 points and drop back to the 2000 level in the middle of 2006. It then slowly and steadily climbed up to the 3200 level in the 1st quarter of 2007 and then drop in a very short period of time during the final days of the 1st quarter of 2007. It then climbed steadily to a high of 3700+ points in July 2007 but dropped below 3000 points a month after. It then climbed steadily to its highest at 3800+ points by October and dropped to its present 3600 points.

The point here is that it is really a roller coaster ride. Profits and losses are made during those up and down moments of the market.

3.) Know what type of investor you want to become – There are two types of stock market investors, long term investors and short term investors. This is a very vital question that each serious new investor should ask himself. This will ultimately affect whether you should buy or sell a certain stock.

Take note that If you are a long term investor, this means means that you hold your stocks from 5 to 10 years or more. This actually means that you believe in the company that you are investing in. Since you are putting in your money for a long period of time, you must be certain that such money you put in is considered already as extra.

Long term investors also do not have to worry about the gruesome day to day technical analysis that has to be monitored. For as long as they believe in the fundamentals of the company there is no problem if the stock is held for a long period of time. But if you are a short term investor, that means you decide to cash in within a months time to 6 months time, then you should consider several things. You have to monitor the day to day activities of the market.

Like the long term investor, you have to make sure that you can afford to put in your money for a long period of time but not as long as the long term investor. The reason for such is because during the short period wherein you plan to invest and pull out your stocks, you may incur losses during that time so you may decide to wait a little longer.

Most of the stocks I hold are considered as medium and long term investments. This is because when I started out I determined to be more of a long term investor. There are stocks that I hold that I consider as short term investments. However majority of the stocks that I hold are considered as medium to long term investments.

Are you willing to learn more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, money management, business, making money online and Stock market investing

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Stock Market – Basic Principles – Part 4

In this article we will be discussing the last three principles of investment in the stock market. In the past articles we have already discussed the first seven principles. If you want to see the entire article, visit my blog.

8.) You must devote your time to study – When you want to invest in the stock market you should devote time to study what it’s all about. You can’t just place in your money and hope that it will somehow grow someday. You have to read books and materials on the stock market. When I started investing I dug out materials in the internet related to the stock market especially the Philippine stock market. I bought books on the stock market. The Philippine stock exchange has an “investor’s primer” for those who are new to the stock market. (See the Philippine stock exchange website for more information.)

You can also attend seminars on how to trade in the stock market. Several brokerage firms have conducted free seminars for those who are new to the stock market. I attended a 2 day seminar by CITISEC Online last year. CITISEC online is one of the most innovative, well managed and most active brokerage firms in the country. The information that you could learn is astounding. Studying the stock market requires continual study. You should not stop learning.

Do the best you can to read all the materials out there and attend all the seminars if possible. Do not give up just because you encounter terms that you could not understand. For example when you went over this article you would probably scratch your head since there are terms that are difficult to understand. Terms such as “points”, Philippine Stock Exchange Index (PSEi), “Blue Chips” or “Bull run” may sound foreign to you. Add to the fact that you don’t even understand what a stock is and how it works. So what ? When I first began I did not even know what these things are.

Stuff like these are never taught in school. I only learned them by reading and having a hands on experience in trading. I highly suggest that you watch the movie “Pursuit of Happyness” This is a story about one man’s struggle to learn the stock market. Years later he made millions through stock trading. This movie is based on a true story and is sure to inspire you!

9.)Know what is happening in the world around you – There are several factors that affect the stock market. Be aware of the news that is making headlines in the news paper. For sure this will give you a hint on the direction that the market will take. Never skip the business news. It is here where you will be given an idea as to which stock you should buy. I prefer reading the online version of the Philippine Daily Inquirer in order that I may know where the market is heading.

10.) You must start now – The best way to learn is to experience it yourself. Start small if you wish but start now. Don’t procrastinate. However don’t rush immediately without studying how to go about it. After you have at least learned the basics of investments then you can start buying your first stock. There’s nothing more exciting when you have made your first sale at a profit.

Would you like to know more about investment strategies ? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, money management, business, making money online and Stock market investing

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