TITLE AND SUBJECT OF ARTICLE
How To Avoid
Mistakes When Investing In Shares
The promise of making a lot of money has been heard by many, and many have found out that it just is not as easy as they had heard. They lost money - sometimes a lot of it. They then turned away from the stock market and ended up totally disillusioned about it. The truth is, they may have been somewhat confused about it in the first place. They may have thought it would come to them just like it did to others - without knowing the why’s or the how’s. Here are some strategies ...
shares, invest, trade, market, business, finance, money, stocks, investor, profit, price
The promise of making a lot of money has been heard by many, and many have found out that it just is not as easy as they had heard. They lost money - sometimes a lot of it. They then turned away from the stock market and ended up totally disillusioned about it. The truth is, they may have been somewhat confused about it in the first place. They may have thought it would come to them just like it did to others - without knowing the why’s or the how’s. Here are some strategies that you can use in order to help you to avoid the common mistakes that others have made.
Get A Realistic View
By looking at the market with your eyes open, you can come to understand not only the profit possibilities, but also the possibility of losses. The truth is that the higher the possible gain there is, that it is always associated with the increased likelihood of loss. The safer investments always bring a lower level of profit, and the safest investments have attached to them the lowest levels of profit.
Understand The Market
One of the greatest benefits that you can have to help you avoid a lot of potential pitfalls in your investments is to understand the principles of investing. In other words, read all you can about the process, how to judge a good stock, etc. The more you know about it yourself, the wiser you will be able to invest your funds - and hopefully see a profit. You will also be able to develop a worthwhile investment strategy - both for the short term and for the long term.
It is smart investing to place your available investment funds into a minimum of 6 different kinds of shares. Some suggest that you go as many as 20 in order to diversify safely. Spread your investments into different kinds of stock (sectors) that are not related. This way if one type of market does not do well, then the other ones should. This enables you to still make money from some of your investment.
It is usually a good idea to diversify into more than just the stock market - at least until you really understand what you are doing. The smart investor will take a portion of their investment money and put a percentage of it into secure investments like trust funds which are solid investments, and possibly also bonds, which are the most secure, but do provide less interest.
Seek Counsel From Professionals
Unless you have money to just throw away, it would be a real good idea to seek help from someone who understands the market better than you do. There are professionals out there, financial advisors, brokers, etc., that are more than willing to help you build a solid portfolio for your investments. Their expertise can spare you a lot of unnecessary loss, and get you on to the right track to some solid profit.
Make Your Investments For The Long Term
While there is different thinking about the markets and how to invest, the general idea is to make your investments for the long term. Experienced stock market experts tend not to watch the market everyday, but only check on it once a month and many of them only quarterly. Watching it everyday leads to a lot of anxiety - since the market normally fluctuates a lot from day to day. Overall, though, it generally moves upward.
How to pick the
A realistic indication of how well you can do and my personal share selection strategy to help you
investing, safe, shares, wealth building, stocks, strategy, selection, performance, improve
This is one of the questions that I’m asked the most and it’s an answer that I like to answer in two ways.
The more technical or objective way to answer it is to compare your performance to something concrete. For example the market average in your own country. For us here in Australia it’s the All Ordinaries index which has returned well over 40% in the last few years and has averaged over 10 percent per year over the last 25 years. If you haven’t made a return of at least this rate then you haven’t performed at a satisfactory level. I know it’s a fairly cold way of looking at things but that’s the facts.
So consider this, it is a well known fact that 70% of fund managers don’t actually beat the market average. However, being an individual investor and not faced with the same constraints you should comfortably be beating this average to consider yourself successful.
How do I beat the average you ask – well there’s a very logical answer to this question. It comes from three very important characteristics of any share.
Firstly, the share should be a leading company within the industry. For example within the top 100 largest companies. Those with a proven track record of success.
Second the share’s price history should exhibit the characteristics of a long term uptrend. When you look at chart of such a company you should see it starting in the bottom left hand corner of the page or screen and finishing in the top right hand corner.
Thirdly the share itself should be outperforming the market average. That makes sense if you want your share portfolio to outperform the market average as well.
If these three criteria are applied to all shares within your portfolio you will be selecting shares that are performing well fundamentally. You will be selecting shares have been moving in an upward direction so it is easier to make money from them. And you will be selecting shares that are already performing better than the average. So logically the shares that you have will be giving you the best possible chance to outperform the market average.
<b>What do you want?</b>
The second way I answer questions on how well people should be doing is by asking them how well they want to be doing. It is always fun to hear people umm and err at this question because they simply don’t know. They don’t know what returns they want so how will they ever know when they’ve achieved what they want. It is much easier to reach a goal if you define it up front. You also know if you are not reaching it and so can do something about it.
People Make Concerning Their Finances And How To Avoid
In our day of easy access to credit cards, loans, and so many things that you must have, it is almost no wonder that so many are getting themselves into financial trouble. Everywhere we turn we face some ad that tells us we cannot live happy unless we have such and such a product. The demands are frequent that tell us we just have to have the latest or the best, but do we really have to have it? Could this be the reason for the financial troubles that so many are experiencing...
credit, cards, loans, mistakes, errors, fix, help, advice, earnings, live, budget, finances, loans
In our day of easy access to credit cards, loans, and so many things that you must have, it is almost no wonder that so many are getting themselves into financial trouble. Everywhere we turn we face some ad that tells us we cannot live happy unless we have such and such a product. The demands are frequent that tell us we just have to have the latest or the best, but do we really have to have it? Could this be the reason for the financial troubles that so many are experiencing today - and maybe even you? Here are seven things that will help you avoid that trap of financial indebtedness.
1. Live Within Your Means
Grabbing hold of the proverbial tiger by the tail and becoming determined to reign in those out of control finances starts with a little bit of self-control. This means that you need to make a decision to buy those necessary things first, and learn to say "No" to the rest - at least until you can save for it.
2. Trying To Get Too Much Too Fast
Many financial problems seem to start right here. Young people want what their parents had, and they want to enjoy all those comforts – right now. But it seems that they fail to realize that it took their parents many years to get where they are now. They do not seem to understand that great part of having a halfway comfortable lifestyle is to do it without a lot of debt.
3. Develop A Budget
A budget is one of those things that people use who either a). do not have unlimited spending resources, and b). want to stay out of debt. It gives you a means to control effectively one of your greatest personal resources - your money, and allows you to use it most successfully.
4. Forget About Comparison Shopping
Unless you are rich (which I doubt, or you would not be reading this article), you probably have a need to save on money somewhere. Through doing comparison shopping for many of your purchases, it can help you to save money on a regular basis. Sometimes we want some things so bad when we see them, that we feel we must have it right now - even if the store across the street might have it for sale at 10% less.
6. Do Not Control Their Finances
A simple thing that many people fail to do is to seek to set their finances in order in such a way that they know where the money is going. If you regularly are asking, "Where is all my money going," then this is probably true of you. In most cases of this sort, people who start keeping a record of their expenses often end up being surprised at how much they spend on trivial things.
7. Have No Savings For Future Needs And Wants
In order to avoid disputes, each player will receives a different color chip and these color chips can only be used for that table only; you much cash them in once you are done playing to exchange these chip with the cash chips where you can cash them at the cashier cage later.
You can make several types of betting at inside betting area; you can bet a number straight up or straddle the line between numbers to select a combination of numbers. The payouts for each type of betting are as follow:
<li>a. Single Number : Pays 35 to 1</li>
<li>b. Split bet between two numbers: Pays 17 to 1</li>
<li>c. Quad bet between 4 numbers (place your chip at the center of 4 adjacent numbers): Pays 8 to 1.</li>
<li>d. Line bet / street bet (you bet on 1 row with 3 numbers): Pays 11 to 1.</li>