Archive for April, 2009

When to Sell Stocks

Thursday, April 30th, 2009

Buying a share of stocks in a company is a good investment you made. We all know that stocks go up and down depending on the economy. But the economy also depends on the stock market. When is the right time to sell your stocks?

Some people think that the right time to sell your stocks is when the stock’s value goes down but in a certain point it again goes up then on another week it again goes down. In this case, it is so hard to decide when to really sell your stocks. When the stock value is about to drop your broker will advise you to sell it. 

An investor sells his stock when he has already reached his financial goal. This is what the person does when their only reason for investing is to sell their stocks when they reach their retirement and transfer their money into safer investments like saving it on the bank. Buying a house or a car or sending you kid to college are also the reasons for selling your stocks. 

The next major reason to sell your stocks is when the stability of the company where you invest is at stake. If there are many changes in the business you have chosen to invest in it also affects the value of stocks to drop and be unstable.
 
If the value of your stocks goes up or if the money you have invested doubled it is also a perfect time to sell your stocks. You will never know on the next days ahead it might go down again.

Being a new investor, you have to consult a broker who is more knowledgeable than anybody in terms of stock market. They will surely help you decide before buying or selling your stocks.

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Different Types of Investments

Thursday, April 30th, 2009

There are three different types of investments.  These include the stocks, bonds and cash. Each type of investment has several types of investment that falls under it.

You have to learn about each and every type of investments. Stock market could be a scary place for those who know little or who knows nothing about investments.  What you need is thorough knowledge and information to learn all the direct relation to the type of investors that you are.  There are three different types of investors. These are the conservative, moderate and aggressive types of investors. These different types of investors also cater to the different types of risk tolerance; the high risk and low risk.

The conservative type frequently invests in cash.  It means that they put their money in the interest bearing the savings account, money market accounts, mutual funds, US Treasury bills and Certificate of Deposits.
These are very safe investment that can grow over a long period of time and these are low risk type investment.

Likewise, moderate investors frequently invest in cash and bonds.  They may also play at the stock market. They also invest in the real estate. These are low risk type investment too.

Aggressive type of investors commonly do most is to invest in the stock market.  They also venture into real estate with high risk investments.  This is when they invest in an older apartment building, then invest more money in the renovation of the property.  Then they expect to be able to rent the apartments out for more money that the apartment currently worth or to sell the property for a profit for their initial investments.  Some cases work out just fine but in other cases it does not.  This is high risk type investment.

It is better to learn about the different types of investments before you invest.  Keep in mind the risk involve and pay attention to past trends as well.
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5 Mistakes to Avoid in Investments

Thursday, April 16th, 2009

In anything, we can’t help not to make mistakes. But when it comes to investments, what risk will you take to commit mistakes? Remember we are talking about your hard-eraned money which you invested.

  1. Not investing at all. The biggest investing mistake  you could ever make is to put off investing until later. In short, make your money work for you. No matter how small your investment is if your money can grow from it, then never think twice to invest!
  2. Investing while you are still in a financial mess. If you invest before you are financially capable is another big mistake. try to organize your financial condition first, and then start investing. Clean up your credit, start paying off high interest loans and credit cards, and save  at least three months of living expenses. When this has been taken cared of, you are ready to start letting your money work for you.
  3. Investing to get rich quick. This makes you vulnerable and easy prey to scammers. You will more than likely lose. Instead, invest for the long term, and have the patience to wait and allow your money to grow. It is wise to invest in short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
  4. Putting all of your eggs into one basket. Make sure you invest in various types of business for the best returns. Also, don’t move your money around too much. Pick your investments carefully, invest your money, and allow it to grow .
  5. Investments in collectibles to pay off.  Never think this way. If this were true, everyone would do it. Always count on investments that are made with cold hard cash.

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Know Your Investments Goals

Wednesday, April 15th, 2009

Why do you want to invest?

This is the basic question that any first time investors should answer. Oftentimes, many first time investors want to jump right in with both feet. Sad to say, many people of this type aren’t so  successful. Investing isn’t simple; in anything, it requires some degree of competence. Hard as it may be, but it’s always best to remember that in some  investments there is the risk of losing your money!

Before you put your money in , it is better to know not only about investing and how it works, but also about knowing your goals. You can ask yourself the following questions: What do you want to achieve with your investments? Will you be funding your child’s college education? Will you be buying a home? Will it be for retirement? Your goal must be clear to you so that you can make better investment decisions along the way.

Too often, people invest money bcause they want to be rich overnight. Possible but rare. As a guide, do not start investing in the hope of becoming rich overnight. It’s a bad idea.  Thsi oftentimes result to becoming victims of scams or faud. Good investment principle will make your money grow slowly over time, and be used for retirement or children’s education. But  if your investment objective is REALLY to get rich quick, you should learn more about high-yield, short-term investment as possible before investing.

If you are new in investment, talk to a financial planner before making investments. He can help you determine what type of investment  you need  to achieve the financial goals you set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals. 

Keep in mind that if you want to invest successfully, research and know what your market will be .

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