Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts

Tuesday, March 5, 2013

How to Sell Stocks

Everyone who invests in the stock market whether you are doing the trading yourself or simply letting a firm handle your portfolio is going to at some point and time have to sell stocks and knowing how to sell stocks is an essential part of being able manage investments properly.

The first thing to knowing how to sell stocks is going to be to know that whether you are trading yourself online or using a brokerage you are going to pay a commission. In order to maximize your profits you are going to want to look for a good quality brokerage firm or site that has the lowest commission rates. Commission rates happen when you sell stock so you are going to have to take that into consideration.

Consider options such as DRIPs or direct reinvestment programs if you want to avoid commissions altogether when selling stocks. Most people do not realize when looking into how to sell stocks that you can actually sell stocks to friends, family even co workers and since you are selling them directly you do not need to pay a commission for them.

How to Sell Stocks

Look into discount services. These are not full service brokerage houses and they do charge a commission but it is not going to be as high as larger name or full service locations and you can still get great service.

Just as with any other aspect of investing know the market and know what alters it, by knowing this you can know when the best time to sell a stock will be. You can often find out well in advance of any market activity about things that may actually have an affect on the stocks you hold. This means keeping an eye on the areas of interest that pertain to the stocks that you hold. However, this can assist you when learning how to sell stocks in a way that will maximize the return to you.

The type of stock also has an affect on it when it comes time to sell. Just as with anything that is purchased or sold there are times when certain types of stocks are going to be easier to sell than others and this is also something to take into consideration. There are also certain times of the year where certain types of stocks are going to sell better. Knowing this information is essential in order to make the most of your trades and sales.

Selling stocks can provide you with a significant amount of return and benefits if you know what drives the market, what the trends are, when is the best time to sell and what types of stocks are more popular at a particular time. You also need to consider brokerage fees and commissions which come in at the time of sale and look for a firm or company that is going to provide you with the best service for the least amount of commission. There are discount brokerages that supply excellent service at discounted rates, there are DRIPs and there is also the option to do a personal sale rather than go through the brokerage houses. All of these things need to be considered when selling stocks.

How to Sell Stocks
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Read about how you can use Penny Stock Tips to earn thousands of dollars. Learn How To Buy Penny Stocks, it is the fastest way to make tons of money.

Monday, February 25, 2013

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett

One of the most sought after calculations in all of investing is Warren Buffett's intrinsic value formula. Although it may seem elusive to most, for anyone that's studied Buffett's Columbia Business Professor, Benjamin Graham, the calculation becomes more obvious. Remember the intrinsic value formula that Buffett uses is an embellishment of Graham's ideas and fundamentals.

One of the most amazing things about Benjamin Graham is that he actually felt bonds where safer and more probable of an investments than stocks. Buffett would strongly disagree with that today due to high inflation rates (a whole different topic), but this is important to understand in order to understanding Buffett's method for valuing equities (stocks).

When we look at Buffett's definition of intrinsic value, we know he's quoted as saying that the intrinsic value is simply the discounted value of the future cash flows of a company. So what the heck does that mean?

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett

Well, before we can understand that definition, we must first understand how a bond is valued. When a bond is issued, it is placed on the market at a par value (or face value). In most cases this par value is ,000. Once that bond is on the market, the issuer then pays a semi annual (in most cases) coupon to the bond holder. These coupon payments are based on a rate that was established when the bond was initially issued. For example, if the coupon rate was 5%, then a bond holder would receive two annual coupon payments of - totaling a year. These coupon payments will continue to be paid until the bond matures. Some bonds mature in a year while other mature in 30 years. Regardless of the term, once the bond matures, the par value is repaid to the holder of the bond. If you were to value this security, the value is completely based on those key factors. For example, what is the coupon rate, how long will I receive those coupons, and how much of a par value will I receive when the bond matures.

Now you might be wondering why I described all that information about bonds when I'm writing an article about Warren Buffett's intrinsic Value Calculation? Well the answer is quite simple. Buffet values stocks the same way he values bonds!

You see, if you were going to calculate the market value of a bond, you'd simply plug the inputs of the terms listed above into a bond's market value calculator and crunch the numbers. When dealing with a stock, it's no different. Think about it. When Buffett says he discounts the future value of the cash flows, what he's actually doing is summing the dividends he expects to receive (just like the coupons from a bond), and he estimates the future book value of the business (just like the par value of a bond). By estimating these future cash flows from the key terms mentioned in the previous sentence, he's able to discount that money back to the present day value using a respectable rate of return.

Now this is the part that often confuses people - discounting future cash flows. In order to understand this step, you must understand the time value of money. We know that money paid in the future has a different value then money in our hands today. As a result, a discount must be applied (just like a bond). The discount rate is often a hotly debated issue for investors, but for Buffett it's quite simple. To start, he discounts his future cash flows by a ten year federal note because it provides him a relative comparison to a zero risk investment. He does this to start so he knows how much risk he's assuming with the potential pick. After that figure is established, Buffett then discounts the future cash flows at a rate that forces the intrinsic value to equal the current market price of the stock. This is the part of the process that might confuse many, but it's the most important part. By doing this, Buffett is able to immediately see the return he can expect from any given stock pick.

Although a lot of the future cash flows that Buffett estimates aren't concrete numbers, he often mitigates this risk by picking nice, stable companies.

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Although this article is a fast and furious overview of Buffett's method for calculating the intrinsic value of stocks, you can learn a lot more from this video link. The video describes in detail the information contained in this article for summing the future cash flows and how to discount them using a calculator. The link also provides a free discount calculator for you to use on any of your stock picks.

Wednesday, February 6, 2013

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett

One of the most sought after calculations in all of investing is Warren Buffett's intrinsic value formula. Although it may seem elusive to most, for anyone that's studied Buffett's Columbia Business Professor, Benjamin Graham, the calculation becomes more obvious. Remember the intrinsic value formula that Buffett uses is an embellishment of Graham's ideas and fundamentals.

One of the most amazing things about Benjamin Graham is that he actually felt bonds where safer and more probable of an investments than stocks. Buffett would strongly disagree with that today due to high inflation rates (a whole different topic), but this is important to understand in order to understanding Buffett's method for valuing equities (stocks).

When we look at Buffett's definition of intrinsic value, we know he's quoted as saying that the intrinsic value is simply the discounted value of the future cash flows of a company. So what the heck does that mean?

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett

Well, before we can understand that definition, we must first understand how a bond is valued. When a bond is issued, it is placed on the market at a par value (or face value). In most cases this par value is ,000. Once that bond is on the market, the issuer then pays a semi annual (in most cases) coupon to the bond holder. These coupon payments are based on a rate that was established when the bond was initially issued. For example, if the coupon rate was 5%, then a bond holder would receive two annual coupon payments of - totaling a year. These coupon payments will continue to be paid until the bond matures. Some bonds mature in a year while other mature in 30 years. Regardless of the term, once the bond matures, the par value is repaid to the holder of the bond. If you were to value this security, the value is completely based on those key factors. For example, what is the coupon rate, how long will I receive those coupons, and how much of a par value will I receive when the bond matures.

Now you might be wondering why I described all that information about bonds when I'm writing an article about Warren Buffett's intrinsic Value Calculation? Well the answer is quite simple. Buffet values stocks the same way he values bonds!

You see, if you were going to calculate the market value of a bond, you'd simply plug the inputs of the terms listed above into a bond's market value calculator and crunch the numbers. When dealing with a stock, it's no different. Think about it. When Buffett says he discounts the future value of the cash flows, what he's actually doing is summing the dividends he expects to receive (just like the coupons from a bond), and he estimates the future book value of the business (just like the par value of a bond). By estimating these future cash flows from the key terms mentioned in the previous sentence, he's able to discount that money back to the present day value using a respectable rate of return.

Now this is the part that often confuses people - discounting future cash flows. In order to understand this step, you must understand the time value of money. We know that money paid in the future has a different value then money in our hands today. As a result, a discount must be applied (just like a bond). The discount rate is often a hotly debated issue for investors, but for Buffett it's quite simple. To start, he discounts his future cash flows by a ten year federal note because it provides him a relative comparison to a zero risk investment. He does this to start so he knows how much risk he's assuming with the potential pick. After that figure is established, Buffett then discounts the future cash flows at a rate that forces the intrinsic value to equal the current market price of the stock. This is the part of the process that might confuse many, but it's the most important part. By doing this, Buffett is able to immediately see the return he can expect from any given stock pick.

Although a lot of the future cash flows that Buffett estimates aren't concrete numbers, he often mitigates this risk by picking nice, stable companies.

How to Calculate the Intrinsic Value of Stocks Like Warren Buffett
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Although this article is a fast and furious overview of Buffett's method for calculating the intrinsic value of stocks, you can learn a lot more from this video link. The video describes in detail the information contained in this article for summing the future cash flows and how to discount them using a calculator. The link also provides a free discount calculator for you to use on any of your stock picks.

Sunday, January 20, 2013

Custom Made Stocks For Your Hunting Rifle

A rifle is made up of two basic components. These are the barrel and stock. The barrel is made of high tensile steel with grooves inside. The stock is the rear of the weapon on which the barrel and trigger mechanism is attached. Wood, metal, or plastic are the materials from which the stock is fabricated. The stock serves as a support for the fire arm. All stocks of firearms are integral parts of a weapon. The rifle stock has some basic functions. It is the central piece that holds the barrel and trigger mechanism together. In addition its construction has a hollow at one end so that it fits in with the curve of the shoulder. The purpose of this is a validation of Newton's third law of motion that states that action must have an equal reaction. Thus by fitting into the groove of the shoulder the recoil is to an extent lessened and reaction to the forward movement of the bullet greatly negated. The stock also gives the weapon stability.

Guns particularly rifles have fascinated Americans for long. Big hunters like Wild Bill Hickok, Buffalo Bill Cody and Davy Croquet are part of American folklore. In earlier periods in the Wild West the guns served a particular purpose as a weapon for self defense against Red Indians, rustlers and also for hunting. With the passage of time the love for rifles has not abated and these weapons are purchased in large numbers by Americans from all walks of life for sport, target shooting and self defense. It is therefore natural that a vast number of American gun owners will like to go in for a distinctive stock for their rifles. The promotion and control of rifles is looked after by the National Rifle association. It was established as early as 1871 and is a non-profit group for the promotion of marksmanship, firearm safety, and hunting and personal protection firearm rights in the United States. The clout of the NRA can be seen from the fact that in the United States NRA gun ownership is regarded as a civil liberty which is protected by the Second Amendment of the Bill of Rights.

The most common firearm used for hunting is the rifle while for bird shooting the preferred fire arm is the shot gun. All these weapons can have custom made stocks. They can also be crafted and made to suit your personal tastes. Stocks can be given an individual touch by getting intricate designs and carvings made so as to give your weapon a personal touch. So when you go for a hunt the weapon gives you a sense of pride.

Custom Made Stocks For Your Hunting Rifle

There are a many companies that sell and market stocks for rifles. You can also order stock on the net as a lot of popular e -marketing websites cater to such purchases. Whatever use you have for your weapon, a stock will always remain an essential part of it.

With the development of Fiberglass technology the same has found its way into manufacturing of stocks. Fiberglass rifle stock, composite rifle stock and carbon fiber rifle stocks are very much in vogue. These materials have substituted wood which however remains the principal material used for rifle stock.

Stocks for rifles come in a variety of colors, from which you can pick and choose. You can get Black rifle stocks as well as Camouflage Rifle Stocks. Stocks can also be bought for all types of rifles that include Remington rifle, Savage rifle and the Winchester rifle. A stock is an essential part of your success in using the rifle for whatever you use it for like hunting or Target Shooting. Stock manufacturers will manufacture stock according to your preference. You will of course have to give your option for the style of stock, type of wood, material, design etc. The company will cater to your taste. Once the stock is ordered there is no requirement of sending the rifle to the manufacturer. In any case as things stand most of the manufacturers of rifle stocks do not provide gun smith for services. You will be better off fixing the stock yourself.Its not a very difficult job any way.

Once the stock is received by you from the company, it will require sanding and polishing. Sanding is done by rubbing the stock with sandpaper before the final finishing.Sanding will give the stock a smooth finish. The end result will have a lot to do with your effort and work. After sanding the finishing can be done by oil, urethane, or other finishing compound. In case you need guidance then you can always tap the internet or a friend who knows something about this work. Many sites can be scouted that will educate and inform you as to how to do finishing of a stock. Once the stock is ready, you are on your way for a custom made rifle for hunting or target shooting.

Custom Made Stocks For Your Hunting Rifle
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Friday, December 21, 2012

How to Analyze Stocks (For Beginners)

4 Tips for Analyzing Stocks

If you're ready to invest in individual stocks, then you need to know how to analyze stocks. Thinking that a company is going to do well is no reason to blindly invest in that company's stock. Once you've decided that you want to invest in a company, you need to take a look at how the company is doing, how it has done in the past, and most importantly, what it is planning to do in the future. You then need to decide if the stock is a good purchase based on the current price. Even if the company is going to grow at 25% a year for the foreseeable future, the stock price won't be a good purchase if it's valued like it will grow 50% a year!

The four steps to analyzing a stock are:

How to Analyze Stocks (For Beginners)

Determine how the company makes its money Figure out the company's finances Analyze the future growth of the company Determine whether or not the current price is a good one
Actually, before you start analyzing a stock, you have to do is figure out which stock you want to research! Let's say that I am interested in the (imaginary) company Bill's Brews (BBREWS) after trying their signature Bill's Acorn Ale. I go to a finance website, such as Yahoo! Finance or CNN Money, and type their ticker symbol (in this case, BBREWS) into their stock price widget, and start to do research.

The first thing I want to find out is what all the company is all about. Many companies are diversified and do more than you may know. For example, people know that General Electric makes light bulbs, but they may not know that they also make airplane engines and have a powerful finance arm. In this case, BBREWS makes not only beer, but also a wide range of soda pop. In fact, 60% of revenue comes from soda pop, but only 10% of earnings come from soda pop. In other words, 60% of total sales money comes from sales of soda pop, but only 10% of profits. BBREWS makes much more money for every beer it sells than for every bottle of soda. This may make you more likely to invest in BBREWS, because you see that the product you like - the beer - is the one making money.

Secondly, now that you have a relatively qualitative idea of how the company makes money, you need to get a more quantitative idea. You should find out the price/earnings ratio (the ratio of the stock price to the annual earnings of a stock), the price/sales (the ratio of the stock price to the annual sales), the profit ratio of the company, and comparison numbers for other businesses in this industry. You will also want to get any other financial data from this company that you can get your hands on, but these are the most important numbers for proper analysis of a stock. Average values for these numbers will vary tremendously from industry to industry and depending on which stock sectors are hot, so to tell if the number is low or high, you really need to check out related companies in the same industry. For example, you should compare Bill's Brews numbers to Budweiser, Boston Brewing, and Molson Coors.

Third, you should find out what analysts are thinking about this stock and read their opinions. You should also find out what recent growth rates in profits and sales have been. Check if company insiders or institutional investors, who may have a better idea of how the stock will perform, are buying shares of the stock. If a CEO thinks that the stock of his company is undervalued, he will be more likely to buy it, and if he thinks that it is overvalued, to sell it. Since the CEO probably knows more about the stock than most people, this is a good indicator that it may be undervalued. Analysts also spend long periods of time studying individual firms and finding out if they are overvalued or undervalued. You should also read news reports about the company to see if there are any catalysts for higher than anticipated growth. For example, let's say that Bill's Brews just won an award for "Best American Ale" this year. This may lead sales of Bill's Brews to increase in the coming year.

Finally, now that you have determined all of this, you need to synthesize all of the data to decide whether or not the stock is a good buy. This is definitely more than an art than a science, but you should determine that the numbers you have found make a good investment. One rule of thumb is that the PEG ratio (price/earnings to growth) should be less than 1. In other words, the P/E ratio (found in step 2) should be the same or less than the annual percentage earnings growth rate. For instance, if the P/E ratio is 10 (the stock price is 10 times annual earnings) and the expected growth rate is 15% annually, the stock may be a good buy. If the P/E ratio is 25 and the expected growth rate is 10% annually, it may not be a good buy. However, this is only a rule of thumb and there are many exceptions to the rule.

Now you are ready to analyze stocks on your own. There is nothing like knowing that your investing future is in your hands, and that you will be able to determine when a stock is a good buy and when it isn't. Good luck finding the right stock investment for you!

How to Analyze Stocks (For Beginners)
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Bill Laboon writes economic [http://agtam.com/blog/category/economics/] and stock investment advice [http://agtam.com/blog/category/investing/] at his blog, A Geek Talks About Money.

Tuesday, December 18, 2012

Understanding Stocks and Shares - The Stock Market For Beginners

Understanding stocks and shares is not a difficult job if you don't get too overly technical and just look for the stock market basics. Stocks are nothing more than purchasing a little piece of a business. When owners of a business need to raise money, they have several options. The first is the normal one, borrow money from a lending institution. The second one is to issue bonds. A bond pays a specific interest rate to those that purchase them. There's a date when it comes due and the company pays the loan in full. The third option is to go public with stock.

When a company goes public, it issues stock. The company creates a specific amount of shares, we'll keep it simple and use the number 1,000,000. Everyone that buys a share of stock from the company when they do the initial public offering (IPO) just purchased 1/1,000,000 of the company. Even though it sells many shares, it keeps some stock back for itself. Understanding stocks and shares is a matter of knowing that a single stock is one share of all those that the company issued.

Understanding stocks and shares also involves their purchase and sale. You can buy shares directly through many companies on a systematic basis. This saves brokerage fees. If you sell shares, you also can do that through the company direct. The problem when you do both is that you never know what price you'll get until the close of the stock market since share trading doesn't take place until then when you go direct.

Understanding Stocks and Shares - The Stock Market For Beginners

Most people get involved in trading stock as a form of investing and want to make the maximum return on their money. You need a brokerage account to do that. You don't need a broker if you have some understanding of stocks and shares. To provide you with that information, here's a some stock market for beginners basics.

1. Select the stock you want to purchase. After you open a brokerage account, get a basic understanding of the type of stock, and shares you want, be on the look out for three or four companies you know and whose products you really like.

2. Check the background of the companies and their management. Read every article you can.

3. Find the symbol of the companies and track the stock. You'll probably start to see a pattern after a few weeks.

4. Decide the type of investor you want to become. It's not enough to simply have an understanding of stocks and shares, you need to know how you're going to invest. Decide whether you want to buy and hold. This type of investing comes when you believe that over time, the company will grow. You can also buy and trade rapidly. This is day trading and is used to make money on the patterns of price fluctuations.

Understanding stocks and shares is time consuming at first if you jump in with both feet, but once you follow stocks for a few weeks, you'll start to see how simple it really is.

Understanding Stocks and Shares - The Stock Market For Beginners
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

If you want to be rich then the easiest way to achieve this goal is to become an investor.

Learn an amazing Stock Market Investment Strategy that everyday people are using to earn ,000 per month.

SharesPropertyMoney.com is giving away a Free Investment DVD about Understanding Stocks and Shares

Friday, December 14, 2012

How to Invest in Penny Stocks - I Reveal My Easy Way to Profit

The first thing I want to do is to explain what this article will cover. I will set out the exact strategy I am using to invest and profit from penny stocks, despite the recently crash in the stock markets. I have made over ,000 per month for the last 3 months by trading penny stock in my spare time, not bad for a relative beginner. I will explain how i am doing this below.

Many people are saying that now is a terrible time to be investing in the stock markets and to an extent they are right. I would not go near any banking stocks if you paid me however there are still many more tremendous investment options available that are making me money at the minute.

Due to the high correlation between all of the huge companies in the major stock indices such as the Dow Jones or the FTSE my current strategy avoids these large cap companies. Instead I have been buying stocks in penny stocks. These are much smaller companies that are much less affected by the big falls in the prices of the big corporates. In addition as many professional investment managers sell their positions in the big corporates more and more are diverting their funds into these smaller firms creating rising prices.

How to Invest in Penny Stocks - I Reveal My Easy Way to Profit

The thing that puts most people off trading penny stocks is the lack of information out there on small companies. Where do you begin? I had exactly this problem until I stumbled across a service that changed my strategy for good. I subscribed to a service that basically runs a computer program over a database of literally thousands of penny stocks. As it goes it does hundreds of calculations and identifies those where the relative indicators show the stock is undervalued or likely to rise in price. In effect it gives me a shortlist of great stock from which to invest.

I gave worked out that I would still have made money if i had invested in all of the recommendations I have received however I have added an extra layer on to the top which has meant I have made much more money. I work through each of the short listed stocks and scour the internet for customer reviews, appraise their websites, look for broker recommendations, check forum postings etc. Once I have dome this i am relatively quickly able to form an opinion about the viability of the stock.

My final caveat is that I only actually go ahead and make the investment if i understand the companies business model. For example if they make some obscure aerospace components i know nothing about i steer clear. If they make sports equipment that i know and can appraise i will go ahead and invest.

How to Invest in Penny Stocks - I Reveal My Easy Way to Profit
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

If you would want to use the same strategy I am using here is a link to a review of the stock analysis tool I currently use. I wish you all the best, good luck.

Sunday, December 9, 2012

Investing Money in 2011-2012 - Stocks Vs Bonds

Investing money in 2011 and 2012 puts the investor between a rock and a hard place as investing has become more difficult. Investing in stocks has gained favor vs. bonds in recent months. What's going on, how should you invest, and why do I say investing has become difficult?

The stock market just about doubled in value between early 2009 and early 2011, and investing money in stocks (equities) and selling bonds appeared to be the new trend in investing for 2011. Does this mean that investors are confident that the U.S. economy is well and getting better? Not necessarily. More than likely it means that investing in equities appears to be the lesser of two evils. Bonds and bond funds have a cloud hanging over their head. Interest rates could start rising significantly in 2011 or in 2012 and this spells trouble for anyone investing in bonds.

There are very few statements you can make in the world of investing money that are universally accepted as fact. One of them is this: when interest rates go up, bond prices (values) go down. In simple terms, the fixed interest payments that these securities pay become less attractive to investors as rates go up. So, many investors will sell their bonds... sending prices down... and put their money someplace else. Since the government had been holding interest rates down for months to stimulate the economy, rates are likely to go up in 2011 or 2012, if the government stops this policy as planned. Investing money in bonds will then be a loosing proposition if rates rise significantly. That's a fact and about as black and white as investing gets.

Investing Money in 2011-2012 - Stocks Vs Bonds

Stock investing is more of a gray area. High and rising interest rates can slash corporate profits and this tends to send stock prices down. But in early 2011 rates might have been rising, but they certainly were not high by historical standards. Corporate profits were strong and investors dumped bonds and switched to stocks. The other major alternative for investing money was safe investments like one-year CDs and money market funds. With both of them paying less than 1% a year, there was little reason for the average investor to invest in either. The only real advantage in safe investments at these low interest rates is safety and liquidity.

In other words, none of the three basic investment areas where most people invest look very attractive. That's what makes investing money in 2011 and going forward difficult. If interest rates continue to climb bonds are guaranteed losers and stocks will eventually get hit. Safe investments might not look attractive when they start paying at 1% or 2%, but they will at 3%, and that's where folks will put there money.

So, how should most people invest money for 2011-2012? Cut your exposure to bonds and avoid long-term bonds and funds that invest in them. Long-term bonds and funds will get hurt the most if rates rise significantly. Go with intermediate or shorter term bond funds. Move some money into money market funds. They are safe and the interest they earn will automatically go up with rising interest rates. Investing money in stocks or equity funds should remain a part of your overall strategy, but avoid aggressive growth issues or growth funds that don't pay significant dividends. Look for dividend yields of at least 2% in high quality stocks or equity funds. Growth stocks are often hardest hit when corporate profits fall.

Diversification and balance are your keys to success when investing money in 2011-2012. There are times you can invest aggressively, and there are times when a more cautious approach is called for. With interest rate hikes looming over the markets, this is not the time to throw caution to the wind. 

Investing Money in 2011-2012 - Stocks Vs Bonds
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim's 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

Thursday, December 6, 2012

Extremely Profitable Penny Stocks - Free List

If you want to get involved in the Penny Stock market and you are looking for a Penny Stocks Free List you might be going about this the wrong way. Before you start investing in this highly volatile market, you need to learn to minimize your risk and maximize your profits!

You probably already know this, but Penny Stocks are Options just like the Blue Chips, but they trade for or less a share. Additionally the Markets that you will find them on are NASDAQ Small Caps, PINK SHEETS, Over The Counter (OTC), Over The Counter Bulletin Board (OTC-BB) and the Canadian Venture Exchange (CDNX) you can visit any of these markets and get limited information on stocks that they have listed.

However, one of the biggest reasons that there are very limited Lists of Penny Stocks readily available is because of the nature of this market. In the vast majority of cases Penny Stocks are stocks that are based solely on Speculation. There is little to no history on these companies so Advisors have to really know about the company inside and out before they can make a solid recommendation. That is why investing in the Penny Market without Expert Tips can be very dangerous.

Extremely Profitable Penny Stocks - Free List

Blue Chips or Larger Stocks are different in the fact that these publicly traded companies on this market have a history. In many cases, a long history. Therefor it is very easy for brokers and analyst to find trends that can predict future gains. And that is why research for larger options is not the same as the penny options.

So, if you are just looking for a Penny Stocks FREE List thinking that once you have the ticker symbols you can start investing, you really need to slow down and do some research, or better yet, find an expert who has already done the research for you!

One of the best Penny Stock Advisors I know of is actually so confident in their Tips that they will give you 0 of their money to invest with. Below is a Penny Stocks Free Lists and the profits that I made from each one simply buying and selling when my Advisor told me to.

Naturally Iowa INC (NLIA.PK) .21 (10/07) $.040 (10/07) %2B 90% Gain My First Trade Made .50 Tara God Resources (TRGD.PK) .48 (10/07) .80 (10/07) %2B71% Gain Profit 0.16 Healthsonix INC (HSXI.PK) .15 (10/07) .22 (10/07) %2B46% Gain Profit 5.00 Holloman Energy Corp (HENC.OB) .94 (11/07) .17 %2B24% Gain I didn't invest 0.00 Shiming US INC (SGUS.OB) .47 (11/07) .77 (11/07) %2B63% Gain Profit 0.00 Skinvisible INC (SKVI.OB) .18 (12/07) .15 912/07 -20% Loss I didn't invest 0.00 TOTAL PROFIT FROM (12/07) TO (12/07) 0.50

Not bad for a first time investor! I knew the penny stock market was something that I was very interested in, but knew absolutely nothing about. As you can see, my amounts are small potato's but not a bad profit for a small investor. My profits this year are even higher and I expect eventually to get a nice little income simply by following the Hot Penny Stock Tips from my Weekly Advisor.

Extremely Profitable Penny Stocks - Free List
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

97% of Penny Stock Traders Fail So Don't Go It Alone. Use Other Peoples Money and Expert Picks! Start Making Profits on Your First Trades Today Without The Risk! - [http://www.bestpennystockstobuy.com]

Friday, November 30, 2012

Canadian Penny Stocks - How You Can Buy Penny Stocks Online Within Canada and the United States?

So you have heard of the massive profits possible in trading penny stocks and you want a piece of the action? Lets get up to speed then. A penny stock is a share of the common stock of a company that trades for a price of less than and is traded over-the-counter (OTC). In simpler words these companies aren't listed on major exchanges such as NYSE, Nasdaq, Toronto Stock Exchange etc.

So where do you buy them? If you are a U.S. investor, you can three options - (1) buy Canadian company listed in pink sheets, (2) open an account with a Canadian broker or (3) open an account with a US broker that has access to Canadian securities. These options boil do whether you use a broker or do it yourself. In the case of option (1), Pink sheets LLC publishes daily a listing of companies that are available through them. If you are going this route, you are better off doing as much research and talking to as many people as you can because this is an unregulated secondary market i.e. this doesn't have any rules imposed by the SEC. In the case of the other two options, the companies are usually listed on the TSX Venture Exchange till they meet the requirements for listing of the TSX (Toronto Stock Exchange). Also, the broker through which you buy penny stocks might be able to provide additional research services but due diligence is still necessary. In case of options (1) and (3) you avoid the cost of currency exchange while buying and selling.

Two other concerns that investors should be aware of - liquidity and difficulty of trading. Liquidity, as you might already know, means that we are able to buy and sell a stock in a relatively short timeframe. The good news is that most of the stocks traded on Pink Sheets are traded every day. This is definitely a place where a broker's advice would be beneficial. As far a difficulty of trading goes, what you as an investor should bear in mind is that as long as you place limit orders, know your market and are aware of trends, you are in good shape.

Canadian Penny Stocks - How You Can Buy Penny Stocks Online Within Canada and the United States?
Canadian Penny Stocks - How You Can Buy Penny Stocks Online Within Canada and the United States?
Check For The New Release in Health, Fitness & Dieting Category of Books NOW!
Check What Are The Top Cooking Books in Last 90 Days Best Cheap Deal!
Check For Cookbooks Best Sellers 2012 Discount OFFER!
Check for Top 100 Most Popular Books People Are Buying Daily Price Update!
Check For 100 New Release & BestSeller Books For Your Collection

Want to maximize profits by trading penny stocks? Visit http://www.stock-trading-made-ez.com/ for the stock trading strategies that work for you.