Five secrets to successful investing

Marshall Loeb shares with us the five secrets to successful investing.

  1.  Don’t go back for more. Anyone who has made a bundle off a lucky investment will be tempted to angle for a second windfall, but the odds of getting one are slim. "Be especially wary of investing in stocks or mutual funds that remind you of the one you made a killing on long ago," writes Zweig, "Chances are, any similarities to another investment, living or dead, are purely coincidental."
  2. Don’t trust your instincts. "Many of the world’s best investors have learned to treat their own feelings as reverse indicators," Zweig writes. "Excitement becomes a cue that it’s time to consider selling; fear tells them they should be thinking about buying." The lesson: when it comes to investing, your gut may be lying.
  3. Beware your triggers. "The stock market generates signals that can goad you into trading," warns Zweig. Don’t be Pavlov’s dog. Avoid obsessively checking stock prices on the computer. And if you’re watching CNBC for stock updates, turn the sound down, so the bells and shouts of the trading floor don’t spur you into action prematurely.
  4. Divide and conquer. Investing requires being tolerant of risk, but you don’t want to jeopardize your entire nest egg. Play the odds by putting 90% of your money in a low-cost, diversified index fund. The other 10% can be used for purely speculative trades. But once it’s gone, it’s gone. Don’t dip into your savings to replenish it, Zweig cautions.
  5. Stay calm. If great gains are driving you to buy, or losses propelling you to sell, think before you react. It’s always a bad idea to make investment decisions in the heat of the moment.

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Popular Advice You Shouldn't Take

If you’re in your 20s, the world may not throw money at you — but you’ll get plenty of free financial advice.

For instance, you have been told to save diligently, fully fund your employer’s 401(k) plan and avoid credit-card debt. And those are all good suggestions.

But there are other suggestions that aren’t quite so good — including these four popular pieces of advice.

  1. Amass Cash
  2. Buy Big
  3. Get A Life
  4. Go For Growth

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Know How Your Investors Make Their Money

When you’re raising money for your start-up, it helps to understand how the investors you’re pitching to will make money for themselves. The formula for paying investors is often not as simple as taking their return on investment and allocating it equally among the key players.

For angel funds, venture capital funds and other investment partnerships, there are often complex formulas for how the individuals involved in managing investments make money. You should keep the formulas in mind when developing your fundraising approach.

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Invest Money Tips

Think carefully on how to invest your money because if you make wrong decisions it could cost you dearly.

It is always safer to have a diversified portfolio, that is, to spread you money around in various types of schemes, so that the risks and returns get balanced out.

One of the best means of long-term money management is Real Estate investing.

The way to make money in investing is to find out about companies doing stuff that is really cool before anyone knows about it.

Investing Online

If you are doing an online investing, you must address a key principle – the investment risk assessment principle. There are thousands of different mutual funds that you can start investing your money in, but the question is how do you pick the best one to fit what you are looking for? Or maybe you’re wondering if investing in mutual funds online is the right thing for you to do.   If you are thinking of investing some money then you have thousands of options available in the forms of mutual funds.

Different accounts may be available for mutual fund investing online than are found in the bank you can walk into down the street and it is very worth your while to check in to this before making a final decision.

The differences between traditional investing – when you’d call up your tame stockbroker, discuss the info he had on the company or companies of interest and then buy,buy,buy and ordering the stocks, buying and selling them purely online – is something you should make yourself familiar with in a hurry. If you have invested in the stock market and it is dipping at slow pace, what will be your online investing strategy?

While online investing allows you to access your account at any time, and place orders whenever you wish, any orders placed will only be executed during normal market trading hours and, even then, they may be subject to delay in heavy trading periods.

One of the most convenient aspects of online investing is that you can research stocks and companies, make your decisions and even place buy and sell orders at your convenience.

Another good thing to do when investing online is to try and stay diversified, in other words don’t concentrate all of your portfolio on just one thing, instead develop a well-balanced portfolio of stocks, bonds, and cash.

This type of online investments is perfect if you want to diversify your portfolio and at the same time counteract any losses that may occur if the value of higher-risk stocks drops.

Remember that just because you are investing online, the Internet is not foolproof and you are bound to run into some problems.

Tags: invest, investment, online, investing

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