Stock Market Portfolio

Start You Own Duplex Investment

5 Tips For Long Term Stock Market Investors

Learn Stock Market Trading Before You Lose Your House, Not After!

Learn Stock Market Trading Before You Lose Your House, Not After!

For people wanting to learn stock market trading there is now a wealth of information on line. I know it is not easy to do, but with the correct information, it will not be long before you are trading like the pros. There is a learning curve with every business or opportunity, people try to bypass this, trust me when I say, bypass your education in this industry at your peril!

There are some amazing resources on line and typing in a simple search like ‘free online stock trading information’ in Google will bring up thousands of quality results. Let’s not forget hard copy books, they are excellent and can be purchased from places like Amazon very cheaply. With YouTube you have access to literally hundreds of quality tutorial videos on subjects like investing in shares.

We then move into the area of internet trading classes and online demo trading accounts that all help tremendously with ones learning curve. There are hundreds of these on line learning facilities available some of them are very interactive which makes the whole learning process very enjoyable.

It never ceases to amaze me when people are extremely eager to go spend their hard earned cash and buy stocks on line, but do not spend a dime on their education. Your personal education in stock and shares is the proirity here. Be sure to invest wisely in your education before you even contemplate investing in shares.

The next area to look at is trading automation. Now there are opportunities out there where you can literally automate everything, but there are also programs like the stock picking services who recommend shares, or programs that assist you in the picking of winning stocks to invest in. Some of these services are excellent and I would recommend you give them a go, but not in the early days, stick to studying and learn stock market tips and tricks before you consider investing in stocks and shares.

Stock Market Portfolio Tips For New Investors

Stock Market Portfolio Tips For New Investors

The stock market is a lucrative area to make money in but only when you know what you are doing. So anyone who is planning to invest in the stock market needs to be sure of all the facts and details before any real investment is done.

Gathering information nowadays has become really easy and all you have to do is to get online and start searching. So for the basic information, you can visit quite a few websites that will tell you all about the stock market and how it works.

To give a very simplistic analogy, the stock market is like real estate. You buy a piece of land, it fluctuates in price and when it is higher than the price you paid for it, you can sell and make a profit. Of course, even in this solution lies a very basic difficulty and that is knowing when to sell and when not to.

The sad truth is that absolutely no one can predict the market with 100% accuracy. There are always guesses and second guesses. So when the value of a stock is rising and you are waiting to sell, beware that the stock might suddenly fall and you will lose out selling at the peak. On the other hand, if you sell to soon, you might regret it immediately when you see that you could’ve sold it for twice as much had you only waited a bit more.

There are several resources that are used by stock traders to keep track of their assets and keep track of the market in general. These include constant tracking of the stock market trends and utilizing software to keep track of the stocks that they have invested in.Stock market portfolio tips are a must when you trade.

Keeping an eye on the news is also important because the stock market is heavily influenced by the events of the real world and anything from a government change to a terrorist attack can severely affect the trends in the stock exchanges around the globe.

This is why you might notice that stock traders often obsessively keep track of the financial news TV channels to know exactly what is going and what the experts are saying. There are several famous analysts who are often featured on the TV and for novice and intermediate traders, listening to what they have to say about the industry might be very helpful.

So it may be clear from the description so far, maintaining an active stock market portfolio is no easy task. You have to keep track of the stock market at all times. You have to now what’s going on in real time. There are many websites that offer you each of these features separately, namely tracking software, articles for traders of all skill levels and financial TV. But there are only a few websites that can offer you an all-in-one solution for all your stock investment needs. These websites give you a complete solution to everything you need to keep track in an easily accessible package. You may be a novice or a veteran, you will still benefit from such a site.

Stock Market Investors Beware

Stock Market Investors Beware

Are you REALLY a stock market investor?

When people learn that I’m a financial planner, I’m always asked the same basic questions:  “What do you think of the market?  What do you recommend?”

It seems that people want to have some insight as to how to profitably invest in investments such as mutual funds or stocks.

The first question an investor needs to ask themselves is this:  “Am I really a stock market investor?”

What is meant by this is whether or not the individual has the understanding and risk tolerance to even invest in the market. The reason? These popular investment vehicles are known as speculative investments.

By definition, speculation means that an investor is willing to lose money in an effort to take the risk to achieve a higher rate of return.  That means that an investor in the stock market will most definitely experience a loss at some point in the future in exchange for the possibility of achieving higher rates of return than one might achieve in more conservative investments.

Should you be investing in the stock market?  Let’s take a short quiz:

When the market dropped last year and your account values went down, at any time did you have the urge to sell before they lost more value? Did you choose not to invest more when the accounts were down, even though you’re familiar with the truism to “buy low and sell high?” Did you actually sell investments at any time while the market was down? Did you get emotionally upset or angry when your account balance was down?

If you answered “yes” to any of the above questions, then I would suggest that your tolerance for risk does not support investment in the stock market.

Speculation in these markets requires that one accept losses as part of the game.

In other words, while the risk of loss can be minimized through intelligent allocation of the money over different types of assets, the probability of loss of value at some point in the investment cannot be avoided.

Having an understanding of the risk you’re taking when you put your money in the investment markets is essential to being an investor.  The blunt truth of it is if you want to sell or get upset when your accounts are down, then you shouldn’t be invested so aggressively.  Only if you can confidently answer “no” to the above questions should you be invested in such speculative investments.

When you’re investing money for retirement that means you have at least 10 years of time to leave the money alone to grow. If you need the money before 10 years, then in most cases the stock market is definitely not the place to invest the money.

Alternative Options

Where does a person invest their retirement money?

One alternative option is called a Fixed Index Annuity.

Fixed Index Annuities are long-term investment programs offered through insurance companies where one can invest his money and guarantee the principal.  Interest is then credited to the account based on the performance of a stock market index (such as the S&P 500).  If the index goes up in a particular year, then the account is credited a portion of the gain up to a certain “cap” (a ceiling or limit).  If the index goes down, then the account loses zero — nothing.  The tradeoff is that you will give up some of the upside in exchange for no losses.  This is certainly not a panacea, but it does have application in the appropriate circumstances.

There are other alternative options to the stock market.  Be a wise investor and ask your financial planner what they are.  See my article Alternatives to Investing in the Stock Market.  Be armed with data and be able to intelligently pose questions to your Financial Planner about what is right for you.

Americans for Tax Reform President Grover Norquist speaks at the Heritage Foundation’s Conservative Bloggers’ Briefing on March 18, 2008.

Stock Market Investors

You Can Be A Stock Market Investor

You Can Be A Stock Market Investor

The main question you must ask yourself before you decide to invest in the stock market is whether or not you want to do this full time or part time, or maybe just an occasional investor.
For some investing in the stock market may be too much of a risk, for others it may not be risky enough. Whatever you’re feeling is one thing remains constant, investing in the market can be a terrific place to put your money.
This article addresses some of the qualities an investor should have in order to make a reasonable return in the stock market. The Stock Market is like a friend, either you have the personality to get along with the market or you don’t. Let’s take a look at some of those qualities.
Sure, there are folk tales you may hear about the guy who bought abc Company stock for a share and sold it 60 days later for 0 a share. This scenario probably has happened , but it is not the reality of being an investor. The following points should be considered when you are considering becoming an investor.
Can you make decisions and Are you self-disciplined in your thinking?
The first step anyone must take into account is their own personality.
1) Are you objectively a person who is organized in your thinking? Do you know how much money you have to invest?
2) Do you know how to set objectives in your finances?
3) Have you set goals for savings and followed through on those objectives?
An investor has to have a clear set of objectives in their choice of investments.
4) Is the amount of money you intend to invest a one time wind fall?
5) Are you able to set aside a certain amount of money each month to investing that is disposable income?
In effect what you will be doing is moving some of your pass book savings to an investment. Patterns development in peoples lives. Are you able to transfer your savings pattern to include a regular investment in the stock market?
If you are currently earning a small percentage on your pass book savings account what rate of return would you be satisfied in receiving? The key to investing is to know your expenses and income and decide how much money is disposable income. It is this excess that will be your investment dollars.
Are you able to set goals and listen to good advise?
If you decide to do your investing through a Stock Broker then you will need to be able to listen to their advice and accept than what they are telling you. Once you have determined that investing may be a possible avenue for you to consider the next step is setting goals.
A goal is the objective of your investment. It could be for retirement, a vacation home, a rainy day fund or a new boat. Whatever your goals are determines the type of investing you will be looking for in your research. If it is a long term goal like retirement you may seek a tax exempt municipal bond fund or a mutual fund with certain characteristics.
If you want liquidity like a pass book savings account where you can draw money as you need it there are some investments that may fit. The important aspect of this step is to know your objectives and then draw up a budget or a plan.
All of the major fund companies have managers and consultants. Are you able to set forth your objectives and ask for advice in picking out a fund that will fit your needs?
This does not mean you need to sign up for the first consultant who takes your call. It means can you listen to advice and make a decision on various alternatives offered to you. After you have gathered all the information you believe is necessary for your decision can you apply your personal goals with the information presented and make a final decision?
This may seem like an odd inquiry, can you make a final decision? Unfortunately, some people will feel quite comfortable going to a car show room and purchase a ,000 automobile. The color, impression, and internal motivators. But when it comes to investing, the buy is not as dazzling. It takes consideration to commit ,000 to an investment in paper form even though you may be purchasing stock in the flashy car company.
Can You Let Go?
The final and perhaps most important aspect of deciding if you are a stock investor is, YOU. After you have gone through all of the self analysis, goals, research and advice of others and made your final decision the next step is critical.
Do you have the personality to allow your investment to take its course? Can you sleep at night? Unless you are a day trader who plays the upside and downside of the stock market and I would not recommend this to anyone starting out. You have to be able to roll with the punches.
Trust your instincts and review your investment on a monthly or quarterly basis. If you buy individual stocks, place a limit order on the account. A limit order allows your broker or on-line account to sell if the price goes down.
Day Trading has come into it’s own over the last few years and can be a great method for the at home investor to make a living, but this method is not for the faint of heart or the beginner, you need to have some experience or guidance before tackling this type of investing.
The mutual fund investment works differently that buying individual stocks. If you are satisfied that your choice of a fund met all of your criteria for investing let it alone and review it only periodically. If your mutual fund for any reason meets with unexpected long term problems you can change funds. I would review the fund on a quarterly basis and discuss this with the fund account manager or representative.
This is the investor personality that you need to have in order to have a lifetime of success in the stock market. If you have it, it works. If you don’t, try another type of investment.
You can be good at making excuses and you can be good at making money, but you can’t be good at both. The bottom line is if you have the desire or the need to supplement your current income with some type of investment and fear or excuses have been holding you back. Then there is no time like the present to get started.
Wall Street and the stock market is a great place to begin your investing career. Whether it be in mutual funds, or picking winning stocks, or maybe it will just be at your work with your 401k program, it doesn’t matter where you get started, what is important is that you get started.
There are many great places on the internet that can help you get started in stock investing, you just need to surf the net and you will find more than enough sources to help you get started.

Wall Street: Where Money Grows

Wall Street: Where Money Grows

When working, I listen to Bloomberg Television. Commentators and guests banter about the stock market, the Federal Reserve, interest rates, corporate stock, and national news. The day changes, the news is similar, but never trumpery.

As interesting as daily stock market news is to me, I often wonder if market reports matter when most investors are too busy and distracted to pay attention. Investors stay-tuned for the closing market averages; if the market is up, all is right with the world. If the market is down, “I’m in it for the long haul.” If the market cascades unexpectedly, investors second-guess investment decisions.

“Buy! says the Bull” “Sell!”, says the Bear. Who is Right? Stock and bond trading is a tug-of-war between the Bears and the Bulls (similar to the Democrats and the Republicans): one group sees what’s right, the other group sees what’s wrong. Both are opportunists.

If too many become Bulls, the suspicious Bears salivate; when the Bear corrals the Bull, the Bulls know their time is near. Bear traders see the glass half-empty; bull traders see the glass half-full. Together, they make a “market” where stocks, bonds, mutual funds, options, commodities, and derivatives are traded. The Bull and the Bear each get it right, but seldom at the same time; that’s how markets are made.

“Securities markets are a fast-moving, glamorous, complex, multi-billion-dollar business.” The largest located in New York, London, and Tokyo and and the emerging markets located in Sao Paulo, Karachi, and Jakarta, and they all have a history.

In the 13th century, a small group of investors issued 96 shares of the Bazacle Milling Company in Toulouse, France. Trading paper for grain did not catch French imagination (or anyone’s) until the 18th century and the beginning of the Industrial Revolution.

* The 1700′s brought innovation and advancement: 1712 – Thomas Newcomen patents the atmospheric steam engine.
* 1756 – John Smeaton invents hydraulic cement.
* 1769 – Nicolas Cugnot invents the motorised carriage.
* 1775 – Alexander Cummings invents the flush toilet (thank God).
* 1778 – Oliver Pollock, a New Orleans businessman, creates the $ symbol
* 1798 – Income tax introduced by British parliament (but of course)

New York Stock Exchange investors started “ringing the trading bell” in 1790. A 12 foot high wooden stockade separated that “trading floor” from the British and the Indians. On May 12th, two years later, 24 traders and merchants met under a Buttonwood tree at 68 Wall Street to sign the “Buttonwood Agreement” that empowered them to trade securities for commission. Their agreement is the first of many for the NYSE.

Essentially, stock market entrepreneurs sold paper in place of commodities. Trading cows, land, or lumber became too cumbersome. Further, selling a companies “paper” raises capital for the company, and gives ownership to the investor. Farmers harvest the grain, “listed ” companies process and investors hope they do it right so they can shop for groceries.

The French voiced what every investor sometimes feels: if you cannot hold it in your hand, ownership is risky, while local farmers did not like big city highfalutin ideas. Holding a tangible object may be at the root of all risk concerns. Don’t make a promise, take me to the store so I can have “it”.

On Friday afternoons, I would visit my 82 year-old grandfather. Grampa would sit in his sun porch while I asked him questions about his youth. He owned a lumberyard and believed in tangible goods. I was working for Merrill Lynch at the time, and we always talked about the stock market. One day he said, “The stock market is filled with thieves and hoodlums. It is not as safe and predictable as real estate.”

On his first point, I could not agree; on Grampa’s second point, I would agree that many folks have more value in their real estate (home) than their stock market portfolio. However, real estate prices are contracting, and the stock market is up today. Further proof you should own a little of both because it’s all about asset allocation.

More Stock Market Portfolio Articles

Real Estate Speculators In Puerto Vallarta, Mexico See Silver Lining

Real Estate Speculators In Puerto Vallarta, Mexico See Silver Lining

By: Jim Scherrer

Thanks in part to the tech and housing bubbles, Americans have experienced an unusually strong growth in net worth during the past 15 years, The graph depicts a typical stock market portfolio value growth of more than 200% during the first five years of this period followed by the bursting of the tech bubble and then returning to more than 200% followed by the bursting of the housing bubble and finally recovering to nearly a 150% gain.

The combination of stock portfolio growth, housing value appreciation, easy credit, and refinancing capabilities put most Americans of the Pre-Boomer and Boomer generations in a financially comfortable position and an optimistic mood for most of the past decade.

Having confidence in the economy and the feeling of financial strength, many of these about to retire people started planning for retirement and the thought of a second home on the beach or Sierra Madre hillside in sunny and beautiful Puerto Vallarta, Mexico seemed like a very logical and affordable plan.

In 2000, representing the Alliance for Change and the Mexican National Action Party (PAN), Vicente Fox, and then six years later, Felipe Calderon (both Harvard graduates), promoted strong foreign investment philosophies thereby creating an environment conducive to capital expenditures in Mexico.

With the retiring North Americans shopping for a beautiful place to retire and the Mexican government inviting them with open arms, conditions were ideal to ignite a ten year housing boom. Consequently, from 2000 to 2008, the demand for condos seemed to be insatiable and developers from all over Mexico, the US and Canada, and even Europe raced to Vallarta in order to cash in on the land rush.

The developers started buying up all of the remaining beachfront property and the available prime hillside lots and soon thereafter, they started planning their developments. By 2001-2002, construction of the first projects was underway. It seemed as though the supply just couldn’t keep up with the demand as many of the projects were at least 30% sold out prior to breaking ground and were completely sold out well before the project was finished.

Due to the success of these initial projects, the developers immediately started planning future, substantially larger projects. By 2006, there were more than 100 developments (many mega-projects) in the planning stage and pre-construction sales were well underway. Many were multi-tower or multi-building complexes with hundreds of condos that were to be constructed in phases.

As soon as the design of a new project had been completed and attractive conceptual drawings had been prepared, the developers would set up a trailer or perhaps an office in one of their completed projects and start their pre-construction sales activities. Of course, the first “invitees” allowed to take advantage of the pre-pre-construction prices (slightly above the cost of construction) were those that had previously bought in one of the developer’s completed projects. Immediately thereafter, the general public was offered pre-construction pricing and construction began.

It was not uncommon to sell at least 30% of the first phase of a project prior to breaking ground with many of these buyers being speculators having no intentions of ever taking possession of their units. After all, they had witnessed a 15% annual appreciation in condo values during the prior five years and realizing the project would take perhaps three years to complete, they could plan on “flipping” their unit upon completion of the project for a 50% gain. There seemed to be no risk of non-completion and the investment appeared to be a no-brainer!

There were hundreds, perhaps more than a thousand condos bought by speculators between 2006 and 2008; most of which have been completed however some, unfortunately, may never be completed. Most of the purchases in Mexico are all cash and therefore very few properties were mortgaged; those that were, were done so with a minimum of 20% down. A typical payment plan was 10% down and 30% every six months with a two year payment and construction schedule. By the time the first phase of many of these projects had been completed, the developer’s list prices had increased by as much as 30% over the pre-construction prices representing a handsome profit to the developer.

As luck would have it, things didn’t work out as planned for the developers or the speculators! With the global recession starting early in 2008 followed by the swine flu scare and then the Mexican border town drug cartel war, real estate sales in all of the fine Mexican resort destinations came to a virtual standstill. With the housing slump in full force, prices no longer continued to appreciate; in fact they began to weaken. By 2010, with thousands of new condos on the market (the supply now greatly exceeding the demand), many projects were put on hold postponing the future phases, a few projects were even abandoned with the first phase only partially finished, and new projects in the planning stage were shelved.

In order for the developers to sell off their remaining inventory of condos, they are now forced to reduce their prices; some have dropped them to pre-construction levels or just slightly above their cost of construction. The speculators that had assumed the pre-construction risks have now paid in full and have received their completed condos; in order for them to sell their units, they are now competing with the developers who are also trying to unload their inventories.

The above scenario seems to paint a pretty dark cloud for the speculators and therefore you might ask, where’s the silver lining? Well, for one thing, it’s quite clear that we’ve reached a bottom when the developers are just trying to recoup their expenses. Also, because so few speculators have mortgages, there are virtually no foreclosures and for the most part, they are not financially forced to sell. Consequently, neither the developers nor the speculators are going to sell at a loss and prices appear to have bottomed at 2006-2007 levels or 30-40% off their highs of 2008. At these price levels and without the risk of non-completion, the savvy investors and retiring Boomers are slowly absorbing the inventory of new condos in Vallarta.

The other silver lining can be found if you consider what those speculators could have done with their cash in January 2007 if they had not invested it in a Mexican resort condo that has gained them nothing during the past three years. By reviewing the graph, you’ll see that if they had invested their money in an S&P 500 stock portfolio, they would have lost about 23% during the same period of time. Alternatively, they could have bought a condo in Florida, California, Arizona, or Nevada where foreclosures are abundant and lost as much or more. Most speculators have a tough time accepting things in this light but it’s a fact of life; by breaking even, they’re better off than they would have been otherwise!

Finally, what does this mean to us? Well, it’s a buyer’s market in PV that we’ve never before witnessed and will probably not see again in the future. There are currently hundreds, if not thousands of incredible finished condos available on the market at rock bottom prices. For those about to retire that still have some cash and are interested in a second residence where the winter weather is perfect, the scenery majestic, and the fun galore, it would be foolish not to at least consider the favorable circumstances that currently exist south of the border. Not only do they provide a silver lining for the speculators, but more importantly, they represent a golden opportunity for the real estate buyers in Puerto Vallarta, Mexico.

Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of more than 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.

Find More Stock Market Portfolio Articles