Stock Market In Todays Economy-Search Engines For Advice

Monday, December 3rd, 2012

When you go to the search engines to do research on the term “stock market in todays economy” you will get a lot of advice about what you should invest your money in and what stocks you should avoid.

Much of this is traditional type advice, it’s the same thing you have been hearing for years from the self proclaimed “experts” of the day. The problem is that much of that information is wrong.

Recently I have started to educate myself about investing. I knew absolutely nothing about investing while I was married. We went to an adviser and we were told the same thing everyone else is told: to stay in for the long haul, that the market always tends to gain back any losses over time, etc.

After some painful, both financially and emotionally, losses I decided that maybe the information that most of us get isn’t complete or even accurate.

That is why I decided to look a little more closely. I started reading books about two of today’s top investors both of whom seem to have become extremely wealthy only on their own investments.

I like that idea. The guy we used to go to only made money when he got us, or any of his other clients, to invest in a certain stock or bond. He didn’t just live off the income he made with his own investments.

This is one of the first points I remember learning when I started doing my own research – why take advice about how best to invest my money from someone who isn’t “good” enough to live off their own investment?

I think that is a valid point and one you should carefully consider. Both of the investors I studied had similar outlooks on their money and how they invest. They have their own criteria that they use to decide what to invest in and what to steer clear of.

It is based on their own research and not what some talking head says. If the investment doesn’t meet their criteria they don’t invest in it… period.

When the market is too hot and all the stocks are overpriced, they don’t invest in it. Instead they will pull their money out and put it someplace safe. Perhaps they buy gold or perhaps they invest in Treasury bonds but they don’t leave it in the market.

They will stay out of the market as long as it takes to rebound. When a good stock, one that is undervalued and meets their criteria, becomes available they will buy it.

All of these things can be learned by any of us if we are willing to take the time. Here are a few things you need to take away from this article:

1. Knowledgeable investors don’t just “ride out” a bad economy. They get out early so they don’t lose any, or as much, and put their money elsewhere until the market provides more opportunities.

2. They don’t take advice from people who are paid only to give advice. Instead, they do their own research and make their own decisions.

3. They don’t follow the herds or the trends. They have learned from experience that most people get into the market right as it is heating up, which is the time these successful investors tend to get out.

Follow the winners, continue to educate yourself, learn from your experience and create your own criteria for when to buy and you can’t go wrong. If you build a solid foundation you will never have to ask yourself what to do with the stock market in todays economy, you will already know.

Safe Investing On The Stock Market

Saturday, December 1st, 2012

Many people would look at the title, safe investing on the stock market, and think that is impossible. There is no such thing as safe investing when it comes to the stock market.

I mean, come on, you can’t open a paper, watch the news or talk about stock market investing without someone telling you how dangerous it can be. Even the fine print says so on the t.v. commercials.

Recently, I have decided I wanted to find out for myself and start investing in the stock market so I started to do some research. I wanted to know if safe investing on the stock market was really possible. If it isn’t how come so many people make so much money?

True, there are a lot more that don’t make money and actually lose money, but there are those that make huge amounts of money over and over again. And, since I don’t believe in luck, I figured those people must know something the rest of us don’t.

So, I set out to find out what those successful investors did that so few other people did.

In this article I will give you a brief overview of what sets some of the top investors apart from the majority. What traits allow them to make money consistently and what you can change so you make money too.

Here are just a few things to ponder:

1. A few of the top investors that I have studied don’t rely on the information that the “talking heads” provide them.

Instead they tend to swim against the current and do things contrary to what the so called experts are advising the masses to do.

They have developed their own criteria of factors they look for before they invest in a certain stock and they don’t deviate from that criteria… ever.

2. They are extremely risk adverse. They will not deviate from the criteria they have established no matter how “great” an investment appears to be.

3. They are in it for the long term but they don’t keep putting good money after bad. If they find that there aren’t any good investments that meet their criteria at a certain time, they will move their assets out of the market until there are more buying opportunities.

In short, they are getting out of the market right as the majority of people are getting in. They tend to “bargain hunt” but if they can’t find a bargain, they just wait until they do.

There are many successful investors around today. Each of them has their own unique criteria that they are looking for when they consider buying a stock.

Find one of these investors and than learn as much as you can about the things they look for in a given company before they will actually buy that stock.

Then emulate them. Why not “copy” someone who has a track record of winning? Why take advice from someone who works for a company and only gets paid on commission when they convince one of their customers to buy or sell a certain stock?

If someone isn’t good enough to live off their own investments, why would you trust them to guide you with yours? Following these tips can make safe investing on the stock market a reality for you too.

Wealth Creation Strategies

Thursday, November 8th, 2012

Saving is starting to become something many more of us think about. To make sure you are financially secure for your future, there are many wealth creation strategies you can use.

Ideally, combining several wealth creation strategies will offer you the best opportunity to putting your money to work for you. If you combine several strategies you can maximize your return while minimizing your risk.

Here is a list of some of the most commonly used methods to save for retirement and for overall wealth building:

1. IRA’s and 401k’s are two very common ways to put money away for retirement. When you put money into these two vehicles it is put away pre -tax. You don’t have to include the money you put into these accounts when figuring out your taxable income.

The money you place in these funds will then be invested in stocks and mutual fund. Hopefully, by investing in these underlying investments your retirement account will continue to grow tax free.

You will have to pay taxes on the money when you use it during retirement. For a full description of how this works, talk with your accountant or investment professional.

2. Investing directly in stocks and mutual funds. This is one of the most common ways of getting more savings for your retirement. Many people think that investing in the stock market is like gambling and that it is very risky.

The truth is, if you are willing to take some time to learn a little bit about the process (no one is expecting you to become an expert, just know enough to ask questions and be informed) you will greatly eliminate much of the risk.

Risk comes from making poor choices and making poor choices usually comes from lack of knowledge and just following along and taking advice from someone who often knows little more than you do.

Mutual funds are professionally manged and you can find various funds to invest in. Again, knowledge is power. Even if you work with a financial consultant, having some knowledge of how your money is being invested is just a smart thing to do… after all, it is your money.

No one is going to care about your money as much as you do!

3. Real estate. Again, many people will think investing in real estate is risky, but if you know what you are doing you will greatly reduce the risk.

There are a few ways to invest in real estate one of the most common is to buy rental properties and rent them out. This provides you with an ongoing cash flow. That cash flow than can be invested in still other ways to ensure it’s continual growth.

I personally feel it is a mistake to just turn your money over to some “professional” and hope for the best. I think it makes more sense to learn a few basic skills so you can be a partner in all wealth creation strategies. This is the best way to ensure your money grows the way you want it to.