• Tips on Investing

  • How can you become excellent at stock trading? This is a question that was inspired by an article entitled Six Keys to Being Excellent at Anything by Tony Swartz. How do these six keys apply to stock trading? 1. Pursue Your Passion. According to

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    Go back nine years to a time when the stock market bubble was at its height. A few cautious advisors warned of “overvalued, unprecedented returns” and cautioned “value does matter.” Allan Greenspan, then head of the Fed, muttered something

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    Mutual funds offer diversity and are available to suit almost any investment style. You can invest passively or actively, invest in any country or countries, and invest in one sector or the whole market. Why, then, would anyone bother with individual

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    One of the most enduring sayings on Wall Street is "Cut your losses short and let your winners run." Many investors still appear to do the opposite, selling stocks after a small gain only to watch them head higher, or holding a stock with a small

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    There are many reasons that one feels isolated and at times lonely when they have reached the pinnacle of success.   For one thing, everyone wants to be your friend; but since you can’t make time for everyone – only a select few get invited

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    A Team of Market Experts Since 2004 a team of market experts has been delivering solid trading returns to clients. Ongoing refinements to a proprietary filter system are continuing to outpace the markets and provide clients with above average

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    Here are ten simple rules for online trading success 1. Choose Your Trading Style Carefully. Give plenty of thought to what kind of online stock trading you want to do. Would you prefer day trading, where you close out every trade at the end of

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    The aspect of evolving into an elite stock trader is not accidental. It takes drive, determination and perseverance. Here are some of the most practical steps to achieving this goal. One of the best ways to initiate a new habit is with a routine.

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    When selecting for the right business most will look to how liquidity is there in this venture. In all businesses the question is how to manage within the confines of the available cash flow to meet demands. Whether it be a business, real estate

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    Studies show you can dramatically boost your performance and potentially beat the stock market by following five simple rules. Those five rules are: Set goals and monitor your progress. Concentrate your assets. Structure your portfolio and

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  • Investing is both an intellectual exercise and an emotional one and it takes time to build capabilities at both levels.

    It also takes experience of different market conditions to be convinced of the benefit of that experience.

    The underlying key to success in investing is not just to grow your portfolio, but to avoid mistakes learning from those have gained experience.

    By steering clear of pitfalls you can preserve your capital in the bad times and work your gains in the good times. Here are five tips that I have gained over several market cycles.

     

    1. Diversify

    You have heard it before but a diversified investment portfolio is still the best way to avoid a catastrophe when markets don’t perform as you expect. If you invest in a concentrated area and it performs poorly, your portfolio will take a severe hit. It is important to diversify at both the asset class level and within the asset class. What does that mean in practice? Don’t hold your entire portfolio in one asset class, for example, just energy equities. If there is a rout in these equities, you will suffer acutely.

     

    1. Don’t be scared

    Investing is emotional. When the markets are bad and the media is in frenzy it is easy to become scared and make rash decisions. You need to make your best decisions when times are toughest. Slow down and analyze things rationally. Often times when you are thinking of selling because markets look weak, it could be a good time to buy because they are at their cheapest. Likewise, investors often look to take profits after a strong rally because they are scared to lose their paper profit. Be careful not to cut off a well performing portfolio, it might continue to perform well for many years to come.

     

    1. Don’t confuse structure with investment

    Remember that structure of investment is different to the actual investment. People say things like; I think I should just put my money in the bank at the moment given that markets are volatile. Stock market is a structure, whereas a bank deposit is an investment. You can invest money into different structures (your personal name, your family trust, your super fund) and then decide what investment to make (into a bank deposit, into shares, into a managed fund, into property). The two decisions shouldn’t be confused and can usually be made with relative independence.

     

    1. Consider the tax performance

    The topic of tax is related to point three, structure and investment. It is important to consider the after tax performance of your investment. Be careful here too. This doesn’t mean that a fund or stock that pays high credits is great. A high growth stock that benefits from a 50% discount on capital gains can be a better option. A fund with a proportion of its distribution paid in tax-deferred distributions might work for you. The message is – consider the whole of the return profile of your investment including the tax components and seek advice if needed to understand this area better.

     

    1. Get rich slowly

    Urban legend always offers the story of the lucky investor who bought the penny stock and made a fortune. The crafty investor craves the satisfaction of starring in that role, but the reality is very different. More investors, many more, who have lost significant money investing too much in a stock based on a friends hot tip or a whim and gone on to regret it. Accumulate wealth slowly by well thought out, considered investment decisions into a diversified portfolio that is well constructed. If you plan well you can build a successful portfolio over time that will hopefully meet your goals and avoid the pitfalls that drag you down on the way and that could set you back a number of years.
    The bottom line is, follow these guidance steps but always seek advice if you need further help and always look to learning from others that are experienced and really can show a strong profitable track record.