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Analyzing Growth Stocks: An Important Focus For Any Investor

Sep 11

Posted by admin in Finance, Investing, Stocks Mutual Funds

Analyzing growth stocks is an important focus for any investor. This is especially important, since stocks are an irreplaceable part of any good investment plan, and since unbiased stock research is hard to find. Still, we need to look at the big picture once in a while. Since so much has changed lately, this may be a good time to ?take stock?. Many have reevaluated their investment strategies. The problem is that many of these reevaluations are moving people away from their goals. As the market has dropped, rather than moving toward buying at the cheaper prices, we?ve seen people move away from stocks, a strategy which has little long-term benefit.

THE PICTURE

It?s all about planning for the future. The first step is to picture the future you have in mind.
Most of us already have part of the picture in our sights. We picture ourselves in a home, with food, heat, clothing — the necessities. Beyond the basics, some of us may picture ourselves raising a family and possibly supporting our kids? education or business ventures or helping them buy their first home. Others may imagine supporting a church or charity, or accomplishing some great humanitarian goal. Most imagine some type of vacation at least once in a lifetime, or a personal goal that we?ve always wanted to achieve. Regardless of specifics, trying to get as clear a picture of your intentions as possible is an important first step. Once we know where we?re going, we can begin mapping our path

THE PLAN

Those who fail to plan, have already planned to fail. It is nearly impossible to reach a goal if there?s no strategy in place. Of course, there are a variety of personal decisions and trade-offs involved in any plan, and only a portion of these involve finances. Let?s focus here on the financial dimension of the plan, because the financial decisions are often the ones that prevent us from reaching our goals. Financial decisions are never easy, and the issues quite often reach to the core of our being. They involve our deepest values, our choices of what is most important in our lives. If other people are involved in our life, we need to balance our values with those of our families.

Creating the financial plan involves three steps: goal-setting, measurement and implementation.

Goal-setting requires us to determine both the specific achievements we desire and the timing of these achievements. For example, it is not enough to know that we want to own a 1000 square foot home on the beach in Hawaii. We must also identify any time-frames we have in mind. Measurement requires us to evaluate the cost of our goals, and determine our pacing. We must figure out what it will take, then, based upon our timing needs, pace our plan by calculating what the per-year savings must be and the growth rate our saving must achieve to accomplish that goal. Pacing for our goals is the most technical portion of the planning process, and often where people fall down on the job. Inflation in the economy is a complicating factor here too. If we don?t take inflation into account, a long-term plan is often doomed. Imagine someone who saved up for 30 years to buy a house, ignoring inflation. She?d have saved up $25,000, and wouldn?t be able to afford anything. Her cost calculation must recognize that money loses value over time. Making these calculations can seem intimidating for the inexperienced. We have charts and graphs that we use to assist our clients in making these judgments, but for those who aren?t nearby, the American Savings Education Council has some excellent resources on the web that are fairly simple to use.

Once we?ve gone to the trouble of learning precisely what we need to achieve our goals, its time to begin translating these specifics into an action plan. This is part of the plan implementation. The implementation stage requires us to determine the best way to reach our (now very specific) goals. The factors we will need to look at include income levels, savings decisions, and investment strategies.

Alas, this is all part of the next installment in this column. Stay tuned.

To send comments or to learn more about Scott Pearson\’s Investment Management Services, visit http://www.valueview.net

Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor\’s Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.

Writen By : Scott Pearson

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Red, Green, Yellow – Or – Stop, Go, Go Very Fast: Which Describes Your Online Trading?

Sep 11

Posted by admin in Finance, Investing, Stocks Mutual Funds

Ever notice how behavior in one area of life can apply to behavior in other areas of life? For example, I\’ve noticed a number of things while driving that apply to online trading. One of them is regarding how people behave toward traffic signals.

In the USA, where I live, all the traffic lights are red, yellow, green -
red for stop, yellow for slow down or caution and green for go.
The lights always change in order from red to yellow to green
and back again to red after a time.

How drivers relate to the changing lights is NOT always the same.
There are three types of drivers and responses to seeing a green light:

Type one drivers believe the light will change to red at any moment. In
anticipation of the change, they begin to slow down far in advance.
I call them \”Red Lighters.\”

Type two drivers know green means it\’s ok to go. They continue on
their present course and speed, making no changes at all as they approach
the light. I call them \”Green Lighters.\”

Type three drivers know the light could turn yellow at any moment,
so they step on the accelerator to catch up to the light as quickly
as possible, not wanting to miss it. I call them the \”Yellow Lighters.\”

Many people apply these same approaches to most of life\’s opportunities,
including online trading. Maybe you do the same thing.

If you see an opportunity approaching, do you slow down, believing that
since it won\’t last you shouldn\’t be too hasty or you could be stuck in a
bad deal? \”Red Lighter.\”

Or, do you see the opportunity coming, and just let it come at its own
pace, taking your time and accepting whatever happens when it reaches
you? \”Green Lighter.\”

Or, do you rush to it, knowing that it could be gone at any moment so
best to jump on it immediately so you don\’t miss out? \”Yellow Lighter.\”

Each of these approaches has its risks, and its rewards.
Red Lighters take no risks, and therefore never \”push their luck\”
by hurrying into anything. On the other hand, what risks are they
actually taking by potentially missing out on opportunity?

Green Lighters just want to travel safely and smoothly.
They don\’t mind what happens along the way so they just keep
going with the flow of traffic. Sounds smart, doesn\’t it? Yet, what
real gain is there in being \”just like everyone else\”?

Yellow Lighters don\’t want to miss any opportunity so will do
whatever is needed to capture the potential reward. But how big is
their risk in being first?

Each is going the same direction, and could even be in the exact same
type of vehicle, but none is actually any more guaranteed to arrive at their
destination than the other. The Yellow Lighter will probably get there the
fastest, but could also get into an accident along the way from so much
speeding. The Green Lighter will arrive safely in a reasonable time, but
will likely arrive with the rest of the crowd and never be early. The Red
Lighter will probably always be late, and will typically spend so much time
on the road that they never get to fully enjoy their destination.

Which are you? Which do you want to be? How do you assess risk and reward
in your financial decisions, your daily activities, your life? Like it or
not, everything we do every day has a risk and an associated reward.

Getting in a car each day and driving to work carries with it the very real
risk of death from a traffic accident, with the reward on the other side of
the commute being a paycheck. Everyone must assess the risks and rewards in
their life for themselves on an ongoing basis, something that I myself do
constantly every day and that I encourage you to do as well. You just might
be surprised at the trades you find yourself making unconsciously.

I invite you to notice your trading style and adjust it according to the
results you wish to achieve. Being conscious of our behavior patterns
and changing them when appropriate can make all the difference in
online trading success.

Jonathan van Clute is a
full time investor, educator, speaker, and online options and sports arbitrage
trader. In addition to his business activities, he is also a musician, video
editor/animator, and one of the world\’s greatest Segway Polo athletes. He
can be reached via email at jonathan@PMLinvestments.com and is speaking at an upcoming teleseminar, visit http://snurl.com/vclights for details.

Writen By : Jonathan Van Clute

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Mythbusters: Saving For Retirement Is Hard

Mar 13

Posted by admin in Wealth Building

Not necessarily. Actually, it depends on your definition of ?hard.? I began a 401K and pension fund when I was hired on at my company 24 years ago. Today, I have a nice retirement. But that was just my individual case and I?m sure your circumstance is far different. So let?s focus on you, instead. Whether you?re twenty or forty, you have to make a tough decision. You have to do without something now to benefit later. In other words, you have to save money now, and that means sacrifice.

The younger you are, the less you have to give up. That?s because your savings multiplies faster over a longer term. Hence, you can put aside a small amount and watch it grow using the magic of compound interest. Assuming that you can get a 5% return on an average investment, we can run a simple chart. That return is based on most common tables that are not tied to equities or bond funds. Although most experts would agree either should generate that type of return. Even guaranteed CD?s, or certificates of deposits, backed by FDIC for safety sake, can offer similar rates. But whatever device you choose, let?s use that number.

So let?s look at one example. Suppose you are 25 years old and make $10 an hour or $400 a week or $1600 a month. After taxes that?s about $1200 monthly. I want just $150 of that, for your monthly investment. Figure that if you were to give up a Starbucks coffee costing $5 every day, there?s your $150 a month. Do that for the next 40 years and you?ve given me $72,000. But, by investing the monthly amount in a 5% returning account, the compound interest turns this into $228,900 by age 65. Not bad for someone doing without a Vente Caf? Mocha Latte every day. Now, as you make more with raises, job changes, etc., and you could quadruple that investment, you?ve got over $1,000,000 for retirement.

But I?ve got an even better plan. Could you squirrel away $5,000 for that first year? I know that?s a lot to ask, but hear me out. If you could manage to put aside $10,000 over two years and invest it, never putting in another dime, you won?t be able to guess what you would amass after 40 years. $50,000! But, if you could somehow get a 10% return instead, investing the same $10,000 for 40 years we would make you about $500,000! That is an example of how the interest rate affects the return. And there are ways to generate a 10% return using equities or mortgages. I suggest you talk to an investment adviser for that information.

The great advantage of this plan is you: (a) didn?t have to give up much, (b) don?t have to be an investment wizard, (c) let time and compound interest work for you, and (d) can look forward to a healthy retirement. Of course, the more you?re willing to give up now, the greater the end result. But working harder isn?t the answer: it?s saving smarter and earlier. Therefore, if you?re in your twenties and figure retirement is decades away, you?re right and that can work in your favor. So start planning now and the rest will take care of itself. Savings for retirement is hard? Myth busted!

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Parents – You Can Become Financially Successful!

Mar 9

Posted by admin in Finance, Wealth Building

Are you struggling to pay your bills because all your money is being spent on your new God given blessing- your children?

Are you emotionally stressed because of your tight financial situation but don?t know the way out?

You are not alone. There are many parents who are in your financial situation.

It is not a surprise to learn that it can be a struggle when you read the following statistics.

It can cost a middle income family an average of $250,000.00 to raise a child from birth to the age of seventeen.

In the baby?s first year, the expenses can amount between $9,000- $11,000. This can include clothing, cots, prams, baby food, or even baby delivery charges.

The good news is that parents can become financially successful even though these expenses have arisen.

Here are effective top tips for becoming financially successful today. They must be put into practice for them to work.

First, ensure well before a baby is born that you discover what benefits you are entitled to from your government. Benefits change from country to country so you need to investigate right now. Don?t delay.
If you already have children and are not sure about your entitlement to benefits then investigate right now.

The second top tip is to hire a finance building of wealth building coach or mentor. This step is essential because they will teach you the correct habits needed to build financial success so as parents or when the baby arrives you have clear financial goals and those essential habits are in place.

The investment made with a finance building or wealth building coach could save you hundreds or even thousands of dollars over a life time.

The third important tip is to invest 10% of all your income into a separate account which you never use. This is essential because you need to build wealth for your future. When 10% is allocated into a special account and never touched it will accumulate. Invest 10% and live of the other 90%. People have been known to retire as millionaires by using this one tip!

The next tip is an also important. Always budget your money and allocate your money to envelopes. This way you know that all your bills are being paid and always have an envelope allocated to your children?s needs.

Work these tips effectively all the time and you will have found the solution to your financial problems!

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Make Money Fast – A Low Risk Way To Build Long Term Wealth

Mar 9

Posted by admin in Investing, Wealth Building

If you want to make money fast you need to do it yourself and its easier than many people think. You need a way that?s easy to understand and gives you high growth potential with low risk.

The way to do it below is used by most of the worlds wealthiest investors and is easy to understand, even if you have had no previous experience.

Of course, as soon as you get started compound growth will kick in and make your money grow fast. For example invest $30,000 and in little over 10 years you could be a millionaire, with the triple digit annual profits avialbale in this investment!

Other people have done it and you could to and this can be done by investors with no previos experience

So what does the method involve?

It involves buying land.

Now you may never have considered land as an investment before but consider this

- Profit potential can be 100% or more

- Land is cheaper to invest in than property

- Land is easy to invest in and prime land is a luqiod investment

- No other investment has such high growth to low risk

- Land investing can be extremely tax efficient

The potential

People who took a chance and invested in coastal property in California, Hawaii and some parts of Florida have made huge gains. A $30,000 investment in any one of the three states mentioned above 30 years ago could have returned over $1,000,000.

Check out this location

Today, areas exist in the world with the same potential as they did in the above states and the new boom markets are in Central America.

With coastal properties and land up to 70% cheaper than in the USA and just a three hour flight away, Americans who want an affordable second or retirement homes are buying in increasing numbers.

These countries are seeing a boom in land and property prices and Costa Rica and Panama attracting huge investment.

Large gains and low risk

The boom in land prices is seeing many investors able to make triple digit annual gains with low risk by buying prime land for development.

If you are looking for a way to make money and build wealth consider land investing, its one of the best ways to build long term wealth quickly with low risk.

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Making Money Daily With Stocks And Shares: 1st June 2006

Jan 5

Posted by admin in Stocks Mutual Funds

The trend downward is being led by mining again. This is a slower decline than the last dip and could indicate a consistent trend. A consistent trend down is not good [unless there are spikes].

But once we get to the lows of last time there’ll be a push to take a risk on a rally. Which I guess is likely. People need to make money, right?

Not a good day to buy, but as we’re near the low of last time, a good time to set up a Limit Order.

Lots of consolidation going on. Which is always a good opportunity to make money if you can guess who the next target will be.

Lots of mixed signals: oil bouncing around the $70 mark; the Japanese recovery etc. Mixed signals are good, because some people will bet down and some will bet up and if you’re on the winning side you’ll make money. This game is all about Knowledge and Translation and gaining from the differentiation.

Click to read daily comments and keep updated: http://www.wanttosaysomething.com/

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Making Daily Money From Stocks And Share Trading: 30th May

Jan 3

Posted by admin in Investing, Stocks Mutual Funds

As expected, the trend is downward today. The mainland European markets were down yesterday and oil is up today ($71.50) – there have been street fights in the US about high prices, it’s called GAS RAGE.

Not a good day to buy.

There’s been a rally from the lows of the last week or so but I think we’re in a bear market [short term]. This is a boring phase, things will tinker along, up one day and down the next with no overall movement until something drastic drives the direction.

I’m expecting, hoping for and ready to pounce on a dip and another rally. I love spikes.

Sounds like a weaker dollar is on the way. I don’t know what this means yet, but I think it is a sign of a lack of confidence in the US economy from all sides – those that buy it to raise its value / hold it as a safety etc. Surely the Euro is becoming a good alternative. What does that mean for the world?

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