Best Stock Market Investment Tips

If you want to invest your hard earned funds as well as create returns in stock market. Here’s few best stock market investment tips which you have to consider before investing.

To begin with the stock market is simply the instrument for getting your monetary targets. You will invest your dollars to increase for a few upcoming expenses like your kid’s college, your dream home, or just to your retirement.

Best Stock Market Investment Tips

Although ahead of investing in market you should need the basic knowledge of how market investment runs & stick to the very best stock market investment tips to become an effective investor. Investing in a market suggests basically purchasing the ownership interest in a firm. If the company performs well, value of shares hold by you also increases & your profits would rise. In case this company performs poorly the worth of shares is more likely to go down.

Whenever you purchase the share, you are simply buying a little piece of firm. You become a joint-owner of the firm with all other shareholders. This enables you to attend shareholder meetings & be involved in the certain decisions & you may vote on the company matters & be heard.

Lots of people generally do not want to be investor just to attend shareholder meetings and be involved in certain decisions. People make investments since they need their cash to grow on their behalf and multiply. The market offers several methods to invest your cash and make benefits.

When it comes to investment, you may invest your cash in market via the mutual fund, by yourself, or through the help of the stockbroker. But Mutual Funds rarely beat the stock market due to rules added to them. The only one you may count on is you, thus study the best stock market investment tips to be a profitable investor.

The market gives many benchmarks however the 3 hottest indexes are the Dow, the NASDAQ, as well as the S&P 500. The prices of those indexes were dependent upon the stocks they track. As an example, the S&P 500 tracks 500 stocks. If these 500 stocks increase on the average, the S&P 500 index climbs. Set your market investment goal to hit the market. Your investment profit needs to be greater than the benefit of major indexes.

Every investment has risk, the more risk you are taking, and the more returns you make. Just as one investor you purpose need to be to at first determines the risk you could be ready to take and invest your money accordingly. To illustrate, a penny stock is more risky than a huge company such as Microsoft or Wal-Mart. On the other hand, a penny stock can easily increase 100%, 200%, 300% or more. Although big firm stocks such as Microsoft or else Wal-mart can be much riskier if you choose you invest your money in it.

The above are only some Best Stock Market Investment Tips. To understand more regarding the market and make profits in stock market, subscribe to the Free Stock Market Newsletter, the Weekly Wealth Letter.

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The No 1 Investment Tip

Get rich fast. 350% profit in just one month! 25 and already a millionaire investor. This share will at least TRIPLE over the next year.

Sounds really good? Yea, and they’re probably too good to be true.

You are probably reading this because you are interested in the next big investment tip. You want to invest your money but promises of fast returns often derail you to click onto articles like this.

So here’s my No.1 investment tip: Don’t follow tips.

Don’t Follow Tips

It’s always very tempting to listen to what you friends are saying and then follow suit. You see, if they are right about the next hot investment, both of you can reap the rewards and celebrate together. And if they’re wrong? Well all sorts of thoughts come into mind. Oh man I listened to the wrong person. Maybe I should have followed Alex’s advice instead. He seems better at investing.

All except maybe I should have done my own due diligence in my investment decisions. Doing due diligence does not equate to spending hours listening to the tip-giver and trying to get yourself convinced that this investment shall be the next big thing.

Carrying Out Your Own Due Diligence

It refers to taking a step back from all the noise and starting to understand what you may be going into. There are definitely many pros in buying a certain share, but do consider the downsides. What if the deal did not go through? Is this industry really thriving? Having a balanced view of the potential investment is crucial.

How Much Can You Put Into Investments?

Next, understand your current financial position. In my view, investments should always be made with the excess funds one have, not with the money you need on a routine basis like rent, meals and transport etc.

Assuming you have $2000 in extra cash, is it enough to make the investment? Share prices may be above $2 whereby $2000 is not enough to purchase 1 lot (1000 shares) of the shares which is normally the smallest quantity. Next, have a plan to execute your investment.

Have a Plan and Follow it

An investment plan should be simple and customised to your own needs. To develop a plan, first consider the following points:

1) How much spare money do I have for investment? Will I need it any time soon?

2) Am I comfortable to put this money into investments, knowing that there is a possibility of me losing everything?

3) I’m not a daring person, so $____(your own funds) is the maximum I’m willing to lose.

Knowing how much you are willing to risk is critical because many just jump into investing without knowing their psychological limits. Once they make a loss, they just decide to hold on to the shares till it comes back to the original price and then sell them away, relieved that they did not make a loss.

This action is dangerous because share prices may not rebound back to the previous levels or worst still continue to tumble. As losses become bigger, you may feel helpless and regretful. Even if prices rebound and you manage to sell it at previous levels, you have just wasted your effort and time to monitor this ‘investment’.

By knowing the maximum you are willing to risk, you can learn to cut your losses when you are wrong in investments.

Example of an Investment Plan

For example, you may have done your due diligence and decided that Singtel is a good stock to own. As of my writing now, Singtel’s share price is currently $3.86. You have $4000 spare for investment.

You feel that your tolerance for risk is high and you are willing to risk a maximum of 25% of your money, which equates to $1000. You’re looking for dividend returns from Singtel and you are willing to sell Singtel at a profit if the share price reached $5.

With the $4000, you buy 1 lot of Singtel shares:

1000 shares (1 lot) X $3.86 = $3860
Total Investment Amount = $3960 + $30 (estimated commission charges) = $3990

If the share price falls to $3.00, do not panic. You have already established that your maximum allowable loss is $1000, which means you will only sell if the price falls to approximately $2.86. Sometimes, others are unable to take the emotional stress and thus sell the shares prematurely at a loss. Therefore, you need to set your own price level guides for buying and selling.

Similarly, if the share price rises to $4.50, do not be rash and sell it away because of a little greed. Remember your plan and stick to it. Of course there will be so many other possibilities apart from your own decision. The price may fall back to $3.86, which will mean you could have locked in a profit earlier. The price could shoot up all the way to $5.00 and hit your target, of which you should sell according to your plan and congratulate yourself for being disciplined.

Cut Your Losses and Let Your Winners Run

The point here is that you will not know how to the price levels will be going to move. Markets can take you by surprise (positively or negatively) so it’s wise to follow the advice of cutting your losses and letting your winners run.

If you think you need some help in being disciplined with your own plan, I strongly suggest you learning about the Trailing Stop Loss. It’s my best tool for managing my losses and allowing my profits to go as high as they can. I’ll write more about it in another post but do read about it first if you can.


10 Top Property Investment Tips

wfAre you thinking about entering the buy-to-let market?

Well, it may be a great idea if you read our property investment tips first! This market can be confusing, but I’m going to help you by providing you with some valuable advice.

Tip #1: One of the most important things is to find the right property. That’s right. It may sound obvious, but you would be surprised at how many people don’t take the time to do this…and then suffer the consequences later when you can’t rent it out!

Two-bedroom flats in the city are a good buy-to-let choice because they can be shared by more than one person. However, a three-bedroom terraced house is a great buy-to-let choice because it will often bring you the highest return on your investment in an area filled with students!

Tip #2: Always remember that you are buying buy-to-let property as an investment, NOT as your personal home. This means you shouldn’t look for a home just because you would like to own it yourself or start decorating it in your own personal style. Make your decision a business, rather than personal one so you can maximise your investment returns!

Tip #3: Make sure yourbuy-to-let property is located near a good transportation system! Renters usually place high importance on being able to access motorways or public transportation.

Are you ready for the next of my property investment tips?

Tip #4: Hire a mortgage broker who can help you find the right mortgage. I know how hard it can be to find the best investment option out of all the available buy-to-let mortgage deals so find a professional to help!

Tip #5: Remember to factor in costs such as legal fees, stamp duty, ongoing mortgage costs and decorating expenses. This will help you to establish a realistic budget. Too many investors forget about these expenses, and they don’t put money aside to pay for ongoing repairs and maintenance.

Are you getting the hang of this yet? The buy-to-let market isn’t as hard as it looks…

Tip #6: Hire a professional letting agent who can help you take care of all the important details. This individual can manage the property, collect the rent and vet and select suitable tenants. Just remember that a full management service may eat up as much as 17.5% of your annual rent!

Tip #7: Don’t forget to purchase proper insurance for your buy-to-let property. If you decide to rent out your previous residence, you’ll have to buy new insurance because your existing ones won’t be valid.

Here are a few more of my property investment tips…

Tip #8: Find out your legal obligations. For example, landlords must consider fire, safety and health issues and hire authorised professionals to perform annual gas checks.

Tip #9: Consult with a tax expert or accountant to determine what taxes you must pay. You will have to pay tax on any rental income received from your investment property, but you may also have to pay Capital Gains Tax. This depends on the length of time you have owned the property and your current tax status.

Just one more of my property investment tips to go…

Tip #10: Last but not least, don’t enter the buy-to-let investment market planning on making a ton of money quickly. There are many upfront costs and property values tend to rise over time. If you plan on remaining in the market for 5 to 10 years, you’ll usually make a lot more money!

Now that I have shown you some important property investment tips, be sure to read my property Development Secrets

Surrinder Ahitan offers free property investment advice and tips on how to invest in residential and commercial property for maximum returns. He works for one of the top real estate companies in the world as an investment property Surveyor advising large blue chip companies and private investors.

Surrinder Ahitan offers free property investment advice and tips on how to invest in residential and commercial property for maximum returns.


Market Investment Tips

Thinking of making a killing in the stock market? Sure, you can make a fortune by investing in stocks, but bear in mind that you also undertake the risks that come with all investments. Here are some useful and practical investment tips if you are just starting out.

Tip 1: Do your due diligence. Due diligence is a phrase that is often used by investors. It means doing proper research. In other words, do not plunge into any risky investments before doing your homework. Read up about the stocks and take the time to understand the businesses that you are going to invest in. That will help minimize your risks.

Tip 2: Don’t just listen to news and rumors. It’s important to know what you are doing so that you won’t be wavered by groundless rumors. There are always news and rumors flying all over the place. If you are easily swayed, you may make a rash investment decision and that may cost you a fortune. This is also related to the first tip. If you can understand the businesses well, you know what to believe, and what not to believe. Trusting your gut alone is not enough. You must also be smart about your investment decisions.

Tip 3: Avoid speculative investments. Usually, new investors make the mistake of making risky speculative investments. They are out to make a quick buck and don’t have the patience to conduct proper research. In such cases, they are at risks of losing huge sums of money should the stocks take a bad turn.

Tip 4: Spread the risks. Don’t put all your eggs in one basket, especially if you know the stock you are investing in can be quite risky. It’s true that some stocks with higher risks may return higher profits. But what if the stock plummets? If your investment is spread out over a wide variety of stocks, you won’t be so badly affected.

Tip 5: Think of both short, mid and long term investments. Don’t just think of making quick money. Place some money in long term investments as well to spread out the risks. Wise investors usually invest only in businesses with sound fundamentals. They invest because they see real value in a Company’s products and services.

Tip 6: Don’t be blinded by greed. Avoid being emotional about investment decisions. If you find that you can’t think with a cool head, put off the investment. There will always be other opportunities arising at a later date.

Tip 7: Know when to cut loss. Sometimes, cutting loss may be your best decision. Don’t hold on to a stock that you know is going nowhere. Know when to cut loss when you invest in a stock. That way, you won’t be caught holding on to a stock when it hits rock bottom.

Investors who are planning to invest in the stock market are very lucky since there are a lot of stock tips which are actually free tips on the stock market that they can get online.