Posts Tagged ‘tip’

Ten Principles of Investing

I got this Ten (10) Principles of Investing from Freeinvestmentreport.com. I would like to share it. This is one way to condition our minds in terms of stock investing. Hope this helps!

1. 1. Start investing now. You could be getting better returns on your money today to prepare yourself financially for your future.
2. 2. Make a financial plan. You must know what your goals are to be a successful investor.
3. 3. Do not follow the crowd. When investing, do what the wealthy do and look for opportunities to get in before the masses.
4. 4. Don’t overpay for stocks simply because the companies behind them are large and well known. Too many large companies are overvalued, and their prices will eventually fall back to earth.
5. 5. Have patience when investing. Wait for the right time to enter and exit your trades.
6. 6. Research, research, research. And if you can’t do your own research, seek advice from experienced professionals who specialize in the markets.
7. 7.Remember that all big companies were once small companies. Look for high-potential opportunities in the micro cap and small cap sectors.
8. 8. Be cautious when investing borrowed money. Your investments can fluctuate in value, whereas the money you borrow must be paid back in full.
9. 9. Don’t put all your money in one place. To protect yourself, make certain your portfolio is diversified across a number of unrelated financial instruments.
10. 10. If necessary, close out losings investments to cut your losses. Stocks do not always bounce back.

Entry Credit: http://www.freeinvestmentreport.com

Safest Way To Invest

The featured article below would help those confuse people who got the money to invest but don’t know or have any idea on where to put it or perhaps just reluctant in finding the safest way to invest.
Take the query below as well as the answer to Edwin’s question.

Q: What’s the best way to save these days? I am expecting a big amount of money to come from the sale of a lot we’ve had in the family for a long time. With the global economic crisis affecting our economy, I want to play it safe yet grow my money. – Edwin

A: It’s good that you are thinking of protecting your money (your capital) by investing the proceeds from the sale of your lot. Investing your money may make it grow over time.

Understand, though, that with investing comes risks and rewards. If you want your investment to grow and yield higher possible returns on your investment, be prepared to meet setbacks and losses if they happen. Investments that yield higher returns come with higher risks such as heavy losses, as what stock market investors have realized last year at the height of the global financial crisis. Investments that have low risks may more or less safeguard your capital but give you low rewards as well (low interest income or minimal capital gains).

Bank deposits and government securities may offer you relatively safe investment options.

Bank deposits take the form of savings accounts, interest-bearing checking accounts, and time deposits. You deposit your cash in the bank and you get interest back after a month or so. While this may seem to be safe and will preserve your investment, this may not actually be the case as inflation may eat into your investment.

The current rate for savings accounts, for instance, is about 0.75 percent per annum. The inflation rate is way higher than that, which means that the growth to be yielded by your investment in a savings account will be overtaken by the rise in prices of commodities.

Time deposits may give better rates, but still may not be enough to match the cost of inflation. You may need to keep your money on deposit for a longer term to achieve a higher rate of return.

As “The Citibank Guide to Building Personal Wealth” (a book published by Citibank) says, “Inflation is a major risk if you hold large sums of cash permanently, because it reduces the buying power of cash.” Put simply, inflation may erode the value of your investments over time.

We mentioned government securities above. These come in the form of treasury bills, treasury notes, and treasury bonds. Bills have the shorter term (less than a year), and bonds have the longest term. Government securities are generally low risk since the government guarantees to meet its obligations and pay the published interest rate.

But since you mentioned that you want to grow your money, it may be wise to look into other forms of investment as well to achieve your goals:

1. Stocks or equities may give you high possible returns over the long term, but these come with high risk, which you don’t seem to want to assume at this time.
2. Bonds may also give you good rates of return, but these also come with some form of risk, although lower than that of stocks.
3. Pooled funds come in the form of mutual funds or unit investment trust funds (UITFs) and depending on their nature may be invested in stocks alone, bonds alone, money market funds (government securities and commercial papers), or a combination of these.

To keep your money safe and make it grow at the same time, we advise that you do what wise investors have been doing all along: Diversify! Keep some funds in bank deposits, some in government securities, and some in pooled funds. Since you may have other financial goals and may have a timetable in needing your funds later on (example, for retirement), we advise that you consult a financial professional who will assess your risk profile and suggest the best possible allocation of your investments.

You may also invest your money in tangible assets such as real estate property. However, market values fluctuate over time, so be prepared for any eventuality. Investing in a business also comes with a high risk as not all businesses realize income. Jewelry and art are also forms of investment, but bear in mind that it may take a while for their value to increase. Converting them to cash may also take a longer time should you find the need to do so.

Whatever investments you go into, study all aspects thoroughly. Look into the pros and cons before deciding. We wish you the best.
Entry Credit: http://business.inquirer.net/

*Disclaimer: Those who happened to read the article above are solely responsible for their own investment decisions and should consult professional advice from financial experts or analysts.Thegetwealthy.com will not be liable for any loss or damage caused by a reader’s reliance on information obtained from our web site. Thegetwealthy.com receives no compensation of any kind from companies or industries or funds that are mentioned above.

Stock Picks: Time to buy LC stocks!

August 27, 2009-We are looking forward in buying some shares of Lepanto Consolidated Mining Co. (LC) as the price is ranging from  0.27 to  0 .29 this week! It will be a buy signal if it’ll go down to .26 or even at .27. The highest price LC has reached in a 30-day period is 0.32 and it’s lowest is at 0.175.

Buy LC shares now! Board lot is 10,000 shares. Target to sell LC shares at 0.40!

BUSINESS PROFILE

Lepanto Consolidated Mining Company (LC) was incorporated in 1936 and operated an enargite copper mine until 1997, after which, LC shifted to gold bullion production through its Victoria Project. LC also operated a copper flotation plant from August 2000 to December 2001, and restarted it in late 2006. LC sells its gold and silver bullion production to Heraeus Ltd. (Hong Kong) while its copper concentrate production are sold through Trafigura Beheer B.V. Amsterdam and Shanghang County Jinshen Trading Co., which are metals traders based in New Jersey, USA, and Fujian, China, respectively.

LC and its subsidiaries are involved in other businesses such as hauling, diamond drilling services, insurance, and manufacture of diamond tools. LC has two Mineral Production and Sharing Agreements for areas located in Mankayan, Benguet. The company’s subsidiaries are Shipside, Inc., Diamond Drilling Corporation of the Philippines, Lepanto Investment and Development Corporation, Diamant Boart Philippines, Inc., and Far Southeast Gold Resources, Inc.

Source: SEC Form 17-A (2008)

Happy Trading!

-Bullish Trader

Stock Picks: PERC is hot today!

August 26, 2009- I was able to materialize profit today when I sold all my shares of PETROENERGY RES. CORP. (PERC) at P7.50 when I bought it a few weeks ago at P5.60. That’s 32% rate of interest in almost 3 weeks!

It rallied today! The lowest trade is at P6.20 and the highest is at P7.60. The price of P7.60 is the highest it reached within the 30 day period. Well, not bad for moi when I traded my PERC shares at P7.50. It’s profit-taking day for moi!

Its closing price is at P6.80! I will be waiting for it to go down in the next days to come so I could buy it again at a lower price. The news is still helpful. PERC will be a good one to start with!

BUSINESS PROFILE

PetroEnergy Resources Corporation (PERC), formerly Petrotech Consultants, Inc., was organized on September 29, 1994 to provide specialized technical services to companies exploring for oil in the Philippines. On June 25, 1999, the Department of Energy authorized the assumption by PERC of Philippine oil exploration contracts. The Ministry of Energy of Gabon, Africa had also been duly notified of the transfer to PERC of a Production Sharing Contract covering the Etame discovery block in the Atlantic shelf.

The principal properties of PERC consist of various oil areas located in the Philippines and in Gabon, Africa. PERC’s local Service Contracts are located in Northwest Palawan, Offshore Mindoro and East Visayan Sea. PERC derives its revenues from its Gabon operations. The Philippine contracts are in the exploration stage and some contracts are being farmed out to reduce risk inherent to the business.

Source: SEC Form 17-A (2008)

Stock Trading Tips

Once you already got familiarized with the stock market and started doing stock trading, here are some of the useful tips that I learned from my stock trading experience:

Stock Trading Tip No. 1: First of all, I’ve seen a study conducted by ATR-Kim Eng Securities comparing the monthly stock returns on election years as against any other “normal” year. As seen from the graph, the month of August, historically is considered as the “ghost month” in stock trading since it is in this month that registered the lowest yield as against other months whether election year or not. You can also see from the graph that historically, the month of December gives the most yield and so it “may” be good to buy stocks on the month of August when stocks are low and later sell it on December when stocks prices are picking up.

Stock Trading Tip No. 2: Don’t buy in smaller volumes. If you have enough capital to spend in stocks, then try to buy huge volumes of your favorite stocks because if you buy in smaller volumes, then chances are you will incur higher stock trading fees such as broker’s commission, VAT, etc.

Stock Trading Tip No. 3: Transaction costs in buying vs. selling stocks. Each time you make a transaction, whether buying or selling stocks, you will incur transaction fees. Based on the transaction costs that I learned, it is “more expensive” for you to sell stocks than to buying it because selling stocks incurs a much higher transaction costs.

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