Investment Articles

Too often people turn their back on investing because they think that it is simply too hard. I used to have a whole list of excuses

-        Not enough money

-        Not enough time

-        Don’t know where to start

-        Feel intimidated by financial planners

-        Investing is only for smart people

Well the reason I am writing this article is to change your attitude towards investing. In fact I’m going to show you how to make money investing from your home computer.

The key to investing is to find a strategy that suits you and become a master of that system. Do you like stock market or real estate investing? Do you like easy money? Do you like making money fast? Do you want to know how to make extra money or do you want to create a full time income from investing? Depending on your answers the best investment strategy for you will differ it is simply a matter of finding it.

Let me show you why anyone can make money investing from the comfort of their own home

Not enough money: There are investment strategies that only need $100-200. Even if you don’t have one cent to invest the time to start thinking about it is now because if keep saying “I will invest when I have a spare $10,000″ then you never will. Start now and find a strategy that suits your financial position.

Not enough time: You have two options. Make time or be poor. Imagine if you could find one hour per day to dedicate to your financial education. Within a few short months you would be able to begin investing your money. I challenge you to find the time.

Don’t know where to start: There are a number of great resources on the web today and most of them are free. Simply do a quick search for ‘free investment dvds’ or something similar and you will be amazed at what you find.

Feel intimidated by financial planners: If you educate yourself you won’t need a financial planner. If you find a good education system then you will probably know more than them anyway. No one looks after your money better than you and this way you won’t have to leave the house.

Investing is only for smart people: Rubbish. In fact the dumber you are the better. Being highly intelligent can be a problem for investors because they think about every decision too much. The best investors are able to make quick decisions and stick with them.

So now that you know it’s possible to make money investing from your home computer what is stopping you? Take action today and you will be rewarded in the not too distant future. 

Is your money tired of earning 3%. . .

Do you want to Retire Within the Next 3 Years? Believe me it feels great!

The best investment for your neighbor might not be your best investment. Take any investment advice he may have with a grain of salt, because personal finance and money management issues are personal in nature. In other word, your neighbor is likely not in the same financial position you are. He might have a bundle of cash in search of investment opportunities. You might not be in that position.

For example, if you are younger and carry heavy credit card debt plus a mortgage, you’re probably not looking for investment opportunities. You’re trying to keep your head above water. Your best investment is to pay down your credit card debt whenever possible. Where else can you make/save 15% or 18% interest without risk?

If credit cards are not a money management problem for you, you might consider paying off your mortgage early or making larger payments on it. But this could be a major personal finance mistake … if you leave yourself without an adequate cash reserve to cover emergencies, like losing your job. No cash reserves means you can’t pay the bills; and you can’t borrow money if you don’t have a job.

If you anticipate or fear money management and cash flow problems in the future, consider refinancing your mortgage at lower interest rates if you have equity built up. Pull out enough money to earmark as a cash reserve in case the worst happens … like job loss, medical emergency.

Once your personal finance house is in order and you no longer sweat paying the bills, you’re ready to look for some positive investment opportunities to build wealth. I have some investment advice for you in this department. Don’t rely on friends and neighbors for advice. And don’t search for that perfect investment that promises high profits with little risk.

Start investing in mutual funds. Put together a portfolio of money market funds, bond funds and stock funds. Start slow and easy and keep your cost of investing low with no-load funds. Your best investment from here on out is to invest time and effort to learn investing basics.

Mutual funds do the money management for you. But you need enough financial knowledge to be able to pick the funds that are appropriate for you. Let your neighbor share his investment advice, but make your own investment decisions based on your personal financial needs.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com

The person, who sells option contract to the option buyer as his opening trade, is also known as option writer, seller or granter. Opposite trade to the option buyer is taken by the option writer. Because of this, he or she has the counter risk profile of the option buyer. The option writer has a temporary liability. If he or she is being called to fulfill his or her obligation, he or she just likes the insurance underwriter. However, the option writer is paid by the option buyer a premium upfront for taking on that risk, which he or she will keep it. If the option buyer doesn’t exercise his or her option, the option contract will be left to expire worthless. In this case, the option writer will earn the premium that the option buyer pays to him or her early. It is much the same way an insurance underwriter does.

Market movements will cause the option prices react differently. How it will react is totally dependant on whether the options are call or put options. If the market price increases, it gives a positive effect on call options but a negative effect on put options. In the other way round, if the market price decreases, it gives a negative effect on call options but a positive effect on put options.

If you estimate that the underlying market will make a concrete move higher, you can buy a contract of call option and after the market has gone up, sell it to earn a profit. Reversely, if you estimate that the underlying market will make a concrete move lower; you should buy put option and after the market has gone down, sell the put option to earn a profit. Based on the above statements, if the market price is going up, the call option prices will go up too. However, the put option prices will go down if the market price is going up.

Let’s try an example of buying a contract of call option on CAT shares and deeply discuss each component. Let’s us make an assumption in this example that CAT shares are trading at $30 in the 5th of February. So, we will buy 1 CAT March 29 call option. The ask price of the option in that moment is $3.4. The premium that we need to pay is equal to the option ask price times 100, which is equal to $340. This amount is not yet deduced by any transaction commission. In this example, buy 1 means buying one contract of CAT call option. One contract of CAT call option will give us the right to buy 100 units of CAT share. One contract is like one agreement that involved 100 units share. CAT is the underlying security on which the option is based. March is the month in which the option expires and it is on the third week Friday in that month. 29 is the exercise price, which is also known as strike price. By owning the call option at this strike price, we have the right to buy 100 units of CAT share at $29 at or before expiry in March.

Alexander Chong –
Author of “Workable Option Trading Strategies”.
http://www.makemoneystocks.com/

Many investors regardless of where they live tend to look at investing from a domestic perspective, as they usually focus their investment dollars on companies in their own countries. They are comfortable with these companies partly because they are the ones covered most often in the various media sources they follow. This country specific perspective can cause investors to overlook excellent investment opportunities in other countries.

For many years some of the best investment returns came from the developed economies of the world. One of the leading developed economies is America, during the past 100 plus years, the growth of this economy has been very powerful.

In the future America will continue to be a global economic leader but some argue due to recent economic challenges that the country is losing its leadership position. Even though the American economy is struggling through a tough period – due to the strength and resilience of corporate America and the people of the country – it will likely come out stronger.

Some market pundits argue that the American economy and corporate America is doomed to a long period of tough times. We don’t agree with these dire predictions and think it is a bad bet to take this stance over the long term.

The American economy is a mature economy and on average, investors that invested in corporate America when it was less mature and rode it while it matured did very well.

Emerging economies including China, India and others are providing opportunities to get in early as they grow toward mature economies. As they grow one can invest in their early development and this is similar to the opportunities available years ago for investors in the development of the American economy. Future economic growth from emerging economies will be more powerful because they have much larger populations than the developed economies.

There are great opportunities for investors in emerging economies and it is important for investors to look outside their own borders for investment opportunities. For no other reason than looking at things from a global perspective will give one insight, into their own domestic companies that do business internationally.

Without a doubt the global economy is dynamic and there are opportunities for investors all over the world. Where each country fits in this global economy is also crucial to understand, especially when considering investments. In the future emerging economies will play an increasingly important role in the global economy, and as they mature will undoubtedly have companies with exceptional growth.

Whether or not an investor looks for opportunities throughout the world, a better understanding of the global economy should help improve returns. When it comes to investing – the world is full of opportunities and looking beyond your own borders can lead to outstanding returns.

Allan Barry Laboucan is a writer, researcher, public speaker, consultant, educator, and the founder of the Allan Barry Reports http://www.allanbarryreports.com which focus on commodities and resource stocks. He started his career almost 20 years ago. As a consultant to publicly traded companies, he worked with them to more effectively communicate their stories to a diverse audience of investors. This led to branching out into writing his reports since 2005. The focus of the reports has always been on fundamental research to find undervalued companies and refining technical information into a common sense report. Mr. Laboucan has national television exposure on BNN-Business News Network and has been a guest speaker at some of the largest investor conferences in the world. Visit http://www.allanbarryreports.com to find coverage of commodities, resource stocks, economics and more.

If you are a person looking to broaden your investment portfolio or even contemplating the possibility of beginning to invest, you need to consider the most overlooked investment opportunity of our time: INVESTING IN THE MOVIES!

It has been said, There is no business like show business, and what an understatement! Investments made in the movies are exceptional when compared to other more well known forms of investment. People have and are investing in very high risk investments (at a loss) all the time. How many times, in the past year alone, have you heard about people losing their hard earned money in the stock market, losing their homes or those who have lost their 401k and had made no other plans for their retirement?

All the ways in which our culture has understood and acted concerning investing our earnings; have turned to the down side and people are losing out.

Investments such as futures, stocks, real estate, precious stones, rental properties, and even gold can be very high risk. And while there is some risk in all investment opportunities, when it comes to investing in a movie, you are investing your money in the right place.

Just think for a moment about how many movies you have paid to view in the theater, at home, or on the internet. Remember back to your favorite movies from your youth or the movie you just watched last night. Now also think about how many people you know. How many movies have they paid to view? And do you know anyone who has never paid to view a movie? Of course you have not. Hollywood is not getting any smaller and ticket prices are not going down. And for every movie there are investors who make dividends from their investments.

Everyday people come home from work and turn on the television. Couples are continuously using the theater for date night and who does not love putting in a DVD and just relaxing at home. Movies are a permanent fixture in our culture and they are not going in any other direction but up. We as a nation love our celebrities and can not get enough. From the theater, DVD, blue ray, cable, national news, talk shows, magazines and newspapers we are all reminded and sold entertainment at every angle. So it only makes sense to invest in something that is permanent and tied so closely to every American and others the word over.

While we watch our economy continue to move and shift, those looking to invest their money in more secure venues need to seriously consider the movie industry.

Mark Dewey is The Provider of Information on Why to Invest in The Motion Picture Industry. http://movieinvesting.blogspot.com/

The majority of people in this world think that investing is scary and I totally agree with them. Investing is one of the scariest things in the world IF you don’t know what you are doing. If you aren’t consistently making money as an investor then I can assume that you are one of two types of people.

- An Uneducated Investor: eg. You have put your money into the stock market or Property before you really understood how it worked. Generally on the advice of a friend or so called advisor only to see your hard earned money shrink rather than grow like they promised. If you fit into this category then at least you had a go and tried to make some money. Unfortunately the financial world doesn’t hand out any ‘well done’ or ‘2nd prize’ awards. If you have lost money from investing I urge you to use this experience to make you a better investor rather than simply walking away

- Have Been Scared By An Uneducated Investor: Most people’s investment advice happens at a Christmas party or wedding. They talk to other people who have had bad experiences with investing and all they hear about is how much money so and so lost.  

Where Should You Get Your Investment Advice From?

This is a very good question and one that not enough people tend to ask.   The answer is simple.

“Find someone who is already a successful investor and ask them.”

Unfortunately this can be a lot harder than it may seem. You would think that most financial planners and advisers would be the right people to ask but the fact is that most of them successful investors. If they were do you think they would be working for someone else, sitting in a little office giving you advice? No they would be off traveling the world enjoying the money that their investments are producing.

No one will look after your money better than you

If you really want to consistently make money as an investor then you simply need to take control yourself. Read everything that you can, increase your knowledge and take action. There is a whole number of incredible investment strategies available that the average people don’t even know about.

Did You Know

- You Can Insure Your Shares
- You Can Rent Out Your Shares
- You Earn an Income From an Investment Property Without Selling it (Tax Free)
- You Can Make Money When the Stock Market is going Up, Down & Sideways

So what are you waiting for? Expand your investment knowledge today and start consistently making money as an investor tomorrow.

Finally I want to know – are you serious about Becoming a Successful Investor? Would you like to get rid of the ‘Financial Stress’ in your life? Stop worrying and start Consistently Making Money as an Investor.

“The best resource available.” Are you dedicated?

It’s not like you need a doctorate in economics to understand the current financial situation. Some good common sense should work just fine.

While the current administration is whistling past the graveyard, telling us how peachy everything now is, while Fed chairman Ben (”We Saved the World from Disaster”) Bernanke somehow manages to keep a straight face parroting the same wishful sentiments, while unemployment and foreclosures rates rise relentlessly despite the cheeriness, while the dollar still flounders amidst international calls for a new reserve currency, while inflation, the consequence of trillions of bailout dollars finally making their way through the system, is starting to swell like a carnival balloon–while this entire picture is developing–it wouldn’t be terribly difficult to envision a struggling economy ahead, if not one that actually did a double dip into the dreaded recession/depression territory.

If it ever left that territory in the first place.

As obvious as that assessment may seem to many of us, so many more, believe it or not, are actually drinking the administration’s Kool Aid: They’re buying into the idea that we’re on the verge of a glorious boom cycle.

And, even more significantly, they’re putting their money where their optimism is.

Hurray for Stocks (Now Head Calmly for the Exits)

In other words, optimism for stocks and an economic recovery in general is inexplicably bullish right now.

That, however, at least in the context of the last few years, can be a rather ominous sign.

“The headlines on our daily S&P chart show the critical psychological transformation, from a fear that the economy was ‘the worst since the Great Depression’ to widespread assurances now that the ‘coast is clear,’” was how the respected Elliot Wave Theory recently depicted current investor sentiment.

For this market-forecasting firm, the world’s largest incidentally, our recent transformation from fear to…well…greed comes as no huge surprise. It was back in April of 2009 that Robert Prechter, editor of the Elliot Wave newsletters, predicted that, “By the end of wave 2, many market followers and economists will proclaim that the bear market is dead and the boom is back.”

And now, today, we have such headlines as…

“Bernanke says recession ‘very likely over’”-Sept. 15

“Ride this new bull market to gains”-Sept. 12

“Great recession over”-Sept. 9

Eerily accurate prediction…but these headlines are just samples of the “confident proclamations” out there. Elliot Wave also reported “declarations of imminent recovery by everyone from George Soros, the IMF, Abby Cohen, more than 90% of economists polled by the Wall Street Journal and 75% of 2004 asset managers surveyed by Merrill Lynch.”

Investors take note: Widespread optimism like this constitutes a signal, to The Elliot Wave Theory and other analysts at least, that the very opposite is about to occur. And occur with a vengeance. “The door to the last, great selling opportunity is wide open at the moment. But it must be close to slamming shut because the headlines now anticipate higher levels just as adamantly as they saw no bottom in sight last February-March.”

Consistent with the market philosophy of Ralph Nelson Elliot, Prechter’s distinguished mentor, Elliot Wave believes that we’re at the end of the “Wave 2″ transformation of the market before we suddenly enter “Wave 3,” a period where economic conditions turn wilder and more radical. “Third waves move far and fast. They make good opportunities for aggressive speculators, but can become a death knell for longer-term investors’ portfolios.”

More Bears in Bulls’ Clothing?

There are more signs to make a contrarian sweat. The Daily Sentiment Index (www.trade-futures.com) recently reached 89% stock bulls, while a Dogs Of The Dow (www.dogsofthedow.com) investor sentiment survey hit 71.1% for the coming twelve months.

All of this is like a slam-dunk to contrarians that things are about to turn bearish.

So how do these very same contrarians view gold and silver, given the nearly unanimous optimism over the precious metals? Predictably, Elliot Wave also believes that gold and silver are in for a correction.

The key word here is “predictably.”

What happens when even contrarian views become too anticipated or too popular? Does that blunt their overall efficiency? And at what point do overwhelming market fundamentals nullify (or, at least, postpone) such things as Elliot Wave dynamics?

Sure, you could use that same argument to counter virtually any contrarian prediction, including the foregoing one about stocks. Specifically, though, should such unprecedented events as a U.S. hyperinflation or the replacement of the dollar as the world’s reserve currency (or whatever constitutes Elliot Wave’s dreaded Wave 3) take place–once-in-a-lifetime economic calamities that would irresistibly favor gold and silver–would that cause the contrarian rulebook to be tossed out the window for the time being and for precious metals to “go stratospheric” anyway? 

The well-known Chinese curse is, “May you live in interesting times.” Like it or not, we’re all fated to see the answers to these and other compelling questions in the “interesting times” just ahead.   

Kevin DeMeritt, President of Lear Capital, is a published author, analyst and expert guest on more than 1000 radio programs, including Rush Limbaugh and Coast to Coast with George Noory, discussing today’s economy, gold and the geopolitical picture. Now more than ever, his insights are welcome by nervous investors. Visit http://www.LearCapital.com for all the investing help you need.

In these uncertain economic times, it can be hard to find an investment that you are comfortable with. Many investments can carry certain amounts of risk with them and there is the uncertainty of whether you will get back everything you have put in. However, there is a potential solution to this problem and it comes in the form of fixed rate bonds.

Whereas investments like equities and property cannot guarantee full returns on your capital, fixed rate bonds can. If you are happy to put your money away and leave it untouched for a number of years, this could be the right investment for you. Bear in mind, fixed rate bonds will require a lump sum investment, but this often works out for the best because it maximizes the interest you can receive.

If you do your research you will find unlike the average savings account, which is offering around three per cent in interest, the average fixed rate bond has an interest rate closer to five per cent. And let’s not forget there is also the guarantee that this will remain the case for a set period of time until the account reaches maturity as it is not affected by changes in the base rate.

You can choose to receive your interest earnings either monthly, annually or when the bond reaches maturity, so you could have a nice lump sum at the end of the investment.

However, it has to be said that a fixed rate bond can have some drawbacks. Unlike a savings account or cash ISA where you can withdraw and transfer money whenever you like, with a fixed rate bond there are more restrictions. If you decide to put your money away for say five years, it is best to leave it untouched; otherwise you could incur withdrawal charges or even lose part of your initial investment if you withdraw your money before the bond has reached maturity.

With so many fixed rate bonds to choose between, it is a good idea to shop around for the best deal – otherwise you may end up regretting putting your hard earned money into a plan which isn’t offering you the best rate of interest.

You will also need to decide the length of the bond. In this case you are not limited in your choices, you could put your money in a 3 or 6 month bond if you are looking to invest in the short-term, or if you are thinking more long-term a 5 or 6 year bond could suit you.

To get a better insight in to what is available, check out some comparison sites like http://www.fairinvestment.co.uk and http://www.moneyfacts.co.uk – where you can compare a wide selection of fixed rate bonds and find the right deal for you.

Andy writes for a number of financial websites specializing in savings and investments.

Much money has been lost on following a friend’s advice, and almost all of them are “a sure thing” in their minds. I have heard one too many stories of elderly people who dumped some of their savings into an “investment opportunity” only to find that it was not a wise investment.

There is much more to investing than just finding a person that has done it before and taking them at their word. Anything bought on a whim is a poor investment , even if you make money. I like when James Cramer says, “I don’t believe in ‘buy and hold’, I believe in ‘buy and homework’.” Any investment can start with good advice, but the best investment is found when it is followed up with a little homework.

When you buy stock in a company, you are buying a piece of the company. You should understand how they make their money, what products or services they offer, how much money they bring in or lose, how much debt they have, and what the future looks like.

You do not have to pay someone to tell you this information. It is all easily accessible from any investment website. You can find a short description of the company by entering the ticker symbol (the 1-4 letter code for each company) into any website where you can get a quote. There should be an overview that describes how a company makes money. There should also be a link to see the company’s financials (Balance sheet) where you can find how much debt they have and most websites on the company profile will tell you how much earnings the company made for each share owned (EPS or Earnings Per Share). You should also be able to find out what paid people (analysts) think about the future of the company with a link as well.

Homework is not rocket science. If you just spend a little time getting to know the company before jumping on the investment bandwagon, you will find the best investment is the one that is not a fluke.

Jamie V. Smith
Founded the Best Investment Center to help new investors get in the game of investing and make money in stocks.

To a large extent, it is worth mentioning that the markets basically plays lip service to no one no matter ones status, temperament blend etc. So we may now ask, how does my temperament affect the way I trade?

The sanguaine is likely to be an unserious person and this hampers his/her trading deccisions.
The choleric is likely to be one who thinks price should just go where it is going and the constant fluctuations of price may tend to rile his anger and ensure unsteady indecisions, hence losses.
The melancholy on his own becomes too analytical for the market that before he comes to a point of decision taking, the market has already played itself out.
The phlegmatic becomes so unperturbed in his trading that he allows his losses to run the mile race.

So how should these blend with their trades?
The base word in trading is discipline to follow. It may be a system, a plan or a pattern but one requires the discipline to follow through.

The equity market is filled with pattern of trades that does not require analysis at all or all that. It just requires you acting like a robot. The best part of it is being able to minimize risk and then looking for profits.

Basically, there are no markets suited for a particular temperament,, be it the stocks, options, futures, forex, oil and so on. All these market have their own proportionate amount of risk and these risks come without warning so you definitely have to be prepared for it.

A word of caution though, Learn the trade, then trade the risk otherwise the trade learns you and you definitely become the risk.

It does not take a genius to trade these markets successfully but it does take a little discipline to follow patterns guided by your strict money management technique that will overtime make you confident in whatever trade you place and in whatever markets you finally decide to join.

For a more complementary analysis on trades suited for your temperament, you can see http://forexpavillion.googlepages.com.

I’m just a start up guy with loads of experience and still counting. Forex trading just got better. Learn the trade, keep the pips.

http://forexpavillion.googlepages.com