Smart Investments

First of all, why do we choose to invest? We invest because we want a better financial future for ourselves, our kids, our families, we want a better lifestyle and so many more reasons.

So let’s take a look at some smart investments we can put our money into so that we can insure this lifestyle.

Let us take a look at property first. We invest in a property to make money from positive cashflow, capital gains, and renovating to build more equity in our house. Positive cashflow is basically when the tenant pays us weekly rent, and after all payments from that money we still have maybe 50 dollars left. So after 1 month we have a positive cashflow of $200. 4 weeks x $50.

Capital gains from a property is when we buy a property for a certain amount and it goes up in value over time. For example if we purchased a property for 100k, and 5 years time it went up to 200k, it means we have just made 100k from capital gains. But to do this strategy you have to educate yourself a bit, doing this will help you identify where the potential cities and suburbs to buy to gain the most capital for your property.

So how can we make money from renovating a property. Let’s say we bought a property for 200k, and we outlay 20k for the deposit, and we still had 20k left in our savings. Now if we took that 20k and used it for renovation. We then get the house reevaluated, if it goes up to 250k, we have just made 30k from the renovation. So we spent 20k to make 30k, which is pretty cool. It can be a process but depending on what renovation you do to your house.

Incorporating Diversification Into Your Investment Strategies

The economy in general stinks and no matter what the news channels say people are still worried about whether they will have a job in the next six months. Some people have some funds saved up and want to create some more income but how do you wade through all of the get rich while sitting in your underwear job scams on the internet? All of them require some sort of up front fee to get the “exclusive” information and usually have some sort of monthly fee to keep getting the necessary info to keep making any kind of money.

Smart investment advice has always been to put some money into the stock market and let it grow. Most people are now afraid of what they stock market can do to your retirement, but if you did not have money invested in those companies that collapsed you should see your accounts getting back to where they were a couple of years ago. You can find any number of systems available online that will enable you to make successful trades without a huger investment so that even the beginning investor can try the market without risking his entire investment.

Most stock trading systems will tell you that anyone can use their system with ease. You should always educate yourself on the workings of the stock market before making any kind of investment in a fund or particular stock. At one of the stock trading systems I reviewed they let you know that they have a timing system that analyzes the trend of the market and lets you know when to get in and when to get out. They say that if you miss a trend by more than a day it is best to wait until the next cycle.

They have a stock chart that is updated daily that gives you the top 100 performing stocks from which you should pick the top 5 or 10 that have activity over 100,000 shares to work with. Their best recommendation is to not diversify your self to oblivion. Many “stock experts” recommend you invest in as many as forty stocks. What will happen is that your portfolio will resemble an index fund and you will have too much to keep track of on a daily basis. Pick no more than eight stocks and follow the charts to determine when to get in and out of a particular stock.

Ideally you only want to concentrate on the three or four stocks that are poised to make big gains in the next cycle. If you have more than eight stay out of individual investing and go to any sort of stock fund in the stocks you like to follow. One system, Ultimate Trading System, warns that it is only for experienced investors. They offer daily updates before the market opens of stocks that are poised to make one to five day moves. They will give you the sell signal so that you will get out with the optimal profit.

Stock Investment Strategy – Are Penny Stocks Right For You?

Penny stocks are named based on literal as well as perceived value. Penny stocks aren’t always valued at a penny per share. Some may be as high as a dollar. Many people shy away from them because they appear to offer the lure of getting something for nothing. If the amount of money that you have available for stock trading is limited investing in penny stocks could be a smart stock investment strategy for you.

For example, the recent closing price for Google was $438.77 per share. To purchase 100 shares you would need over $43,000 available. If Google went to $440.77 per share your total earnings on your $43,877 investment would be a mere $200 or a 0.4% return on investment.

On the other hand if you purchased 1000 shares of a stock at 10¢ per share, and that stock went to 15¢ per share, your $100 becomes $150 or a cool 50% profit. If that 10¢ stock instead went to a dollar or even $10.00 per share, your earnings would look awesome indeed. You do the math.

Penny stocks often have extremely high trading volumes. When an investor can buy such a huge number of shares with $1,000 or $10,000, it can leave the volume patterns for a penny stock looking similar to one of the S&P 500. This high trading volume can also lead to very high volatility. A stock may reach an all time high and stay there for only minutes.

As with any stock, you should always do your own homework and trading experts seem to agree that if you do trade penny stocks you should probably do that homework twice. Know the profitability of the company. Be very aware of the trends associated with this stock and its industry. Make a game plan and stick to it. Buy a stock only at the price you intended to buy it and sell it at the price you intended to sell it, always protecting yourself with a stop loss order to prevent you from losing everything if the price happens to crash.

As always, never ever let emotion enter into your trade. For some people, penny stocks offer the same excitement as of nickel slot machine. And many of these people walk away from penny stocks as broke as when they leave those nickel slot machines.

I tend to receive a lot of e-mail stock tips about penny stocks. I have never purchased a stock based on one of these tips alone. There were a couple of times when I looked into the company and it appeared that I could make a solid trade. However, my buy price never came around so I didn’t buy the stock.

As part of your all overall stock investment strategy you may want to consider putting some of your investment money into penny stocks. Keep the amount of money limited-not more than 10% of your total trading cash-and look over every stock trading opportunity with a fine toothed comb. As you develop skill and experience as a stock trader you will come to know the fact that the deal of the century tends to come up several times a day. You just have to know how to find it.

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