By financen | August 5, 2018 - 3:44 pm - Posted in Investing, Investment, Warren Buffet

I would like to share a great video with my viewers about Warren Buffet and his advice on how average people can invest and become rich. Enjoy the video and learn as much as possible to become rich.

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By financen | December 19, 2017 - 6:34 pm - Posted in Investing, Penny Stock

Making money from penny stocks is possible and there are a number of ways to do it – here’s what you need to know.

  1. Know The Risks

Penny stock trading is a risky game. You first need to understand how to trade and the risks involved before diving into the market. One thing you need to know about penny stocks is that, they are neither backed by established companies nor do they have a set minimum standard. This means you may or may not find the stocks in pink sheets or Over-The-Counter Bulletin Board (OTCBB).

Just because penny stocks are cheap to buy doesn’t mean you cannot lose significant amounts of money trading in the same. Most penny stocks are either scams or have no value whatsoever, which again increases the risk factor. It takes lots of research and knowledge to identify genuine stocks from scams. Some of these stock companies build their profile and value to gain access to the securities market; many of them, however, crash before they can mature.

A Bad trade can make you lose some good money, or even drive you into debts or bankruptcy. Researching on a penny stock and only injecting amounts you can afford to lose is the only way you can mitigate risks here.

  1. Research On Penny Stock Companies

Just as it is with secure stocks, it is your responsibility to study and know about a commodity’s trend and potential for growth before investing in it. Penny stocks pose a significant risk as they are unregulated, meaning you could spend in an underperforming or a scam, losing your money. Researching on stocks you may be interested in is the only way to reduce the risk factor.

You could find loads of wealthy information from trading groups, forums, and reputable newsletter sources. Although most financial advisors advice against buying penny stocks, some will help you identify promising ones to trade on. It would also be best for you to look into a newsletter source or group before signing up with them. Here is a regularly updated list of stocks to buy. Although there are a couple of trustworthy penny-stock newsletter sources out there, the highest percentage is made of scams.  Penny stocks with too little or inadequate information about the company should be treated with suspicion. Most of these are scams.

  1. Look For An All-Inclusive Stock Filter

A stock filter is an essential tool for every trader. This tool helps filter stocks based on a set preferences such as trading lows and highs, price, and trading volume among other factors. A good stock screener should also help you identify promising and trustworthy stocks you can invest in. It takes the guesswork out of your trading quest.

  1. Sell Quickly

Penny stocks are meant for short-term investment only. Very few penny stocks last long or mature to make it in the securities market sector. Holding on to your penny stocks for too long only increases chances of losing it all altogether. It’s therefore advisable to buy and sell penny stocks fast enough for as long as there’s profit. Small profits of up to 20 or 30% can help you make good money as a stock trader. Take or withdraw your earnings as soon as they mature, and never wait for astronomical returns.

  1. Cut Down Losses

Unlike the stable stock market where most stocks bounce back after a losing streak, most penny stocks don’t. This is mainly because most of these companies are still new and facing financial struggles. Should a penny stock dip, sell it as quickly as possible to avoid losing more money. Playing the ‘patient’ trader with penny stocks will only leave you bankrupt.

  1. Disregard Hyped Up Newsletters

Although some newsletters may be genuine, most can be misleading. Be sure to confirm the reports by researching intensively about the stock before making a purchase. You will be surprised how some newsletters can be unreliable.

Stock trading is a risky game. The financial markets are quite unpredictable, which is why you need to take calculated trades and risks to avoid losing all your money. Nevertheless, information is the key to making good money with penny stocks. As long as you can research, interpret statistics, and even follow up the latest financial reports, you will do just OK investing in these stocks. Steering clear of unreliable news sources and scams is the first step to making it as a penny stock trader.

 

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There are best investment strategies available in today’s market. Contributing is an advanced investment strategies starting with one year then on to the next. Those days are gone when people used to put their resources in a term store for a certain period of time before it multiplied to a certain amount.

The premium rates are continuously falling in the recent times and due to this, the investment strategies have moved more advanced. These days there are three different forms of investment strategies that can be utilized to improve your portfolio’s returns over a certain period of time.

High risk investing: This is one of the best advanced strategies in today’s market. It is quite important to stretch your investment portfolio so that non-customary sort of investments can be incorporated. Because of low ensured rates, speculators are taking risks at high danger investments.

investment strategies

Looking into securities: After the business inconveniences of 2007, 2008 and early 2009, many speculators have come back to the essentials of value contributing.  There are not just such organizations that are better promoted and can create enduring measures of money to pay those profits, yet they come up short given their administration in a specific industry or division. Nowadays, speculators are putting their resources in more robust organizations that pay wages as a major aspect of the value offerings.

Make constant contributions: Experiences and knowledge from the past has taught us that we would be better off today on the off chance that we had contributed all that we claimed at the utter bottom of the business amendment. The problem is that we are not that much prepared to focus when that bottom will happen.

InvestingTo avert from this situation, standard investment commitments, whether it is part a protuberance whole throughout the span of a 12 month period or to contribute a preset sum with each paycheck. By contributing cash all the time, even the traditional financial specialists are able to pay a normal cost for their investments. In the long run, they will have paid considerable short of what on the off chance that they had attempted to time the business sector with less incessant investment commitments.

When the time comes when you have to contribute on your own, you can utilize a rebate online intermediary. Most expenses will go down with any firm when you do the research on your own, even with the reduced representatives. When you have just started, you will want to put your money in stocks instead of the contributing procedure itself. In general, choosing the best investment strategies as per your requirements will help in building up your wealth.

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As the New Year begins, expectations in the M&A are high. There was an overall decline in activity in 2016 as compared to 2015. To most of the deal makers, it is due to the uncertainties that come with political environment. However, as the year unveils, stabilization in the new administration will dictate the market, with predictions of favors in the Mergers and Acquisition markets.

2017 Expectations in the Merger market.

2016 showed a drop in activity by a 25% decline in activity and reduction in deals. According to M. Bolsinger from Dechert; there are a lot of expectations from the new administration; running from changes in tax policies, interest rates, to other macroeconomic drivers. It is until the changes stabilize that great deals in M&A will crop. Bolsinger is also optimistic on the available opportunities in the financial sector based on the president’s elect promise to replace Dodd-Frank. From his perspective, there is uncertainty of performance in the environment and healthcare sectors.

It is also expected that M&A importance will be of significance in 2017. The US$1.7tn is the amount of money reported to be lying idle in the financial sectors, which is expected to be put in the M&A market for a significant whopping change. Also, there is the need to invest in the organic growth around the world. According to J, Packee, Baird, most investors concentrate on the inorganic investment. It is reported that dry powder stood at US$800bn in Q3 which would have been invested in the sector.

Stock Market

The first quarter of 2017 is expected to show an increasing trend in the deal activity due to the sudden drop of uncertainties from the pre-election period. According to Eurazzo, who works for an international investment company in Paris, the drop in uncertainties can be seen from the trends in the US stock market.

In addition, higher expectations in the M&A deal sector is linked to the emphasis on quality of deals in 2016 which slowed down activities. It is however expected to be different in the first and second quarters of 2017, since there is more confidence in the inventory deal as high quality deals venture the market.

Expectations in the private equity activity in 2017

It is reported that private equity activity in 2016 in North America remained strong, which is in contrast with the drop in the corporate M&A. In the first, second and third quarters of 2016, there were 781 private equity deals valued at US1bn, which is just five fewer from 786 deals in 2015. The technology, industrial and chemicals, and the business services sectors are the top three sectors that largely contributed to the private equity deals in 2016.

According to West Monroe, the last seven years have recorded such a high competition in the private equity deals. This is due to the emphasis in quality deals, speed and valuation, and availability of active strategic buyers. Also, the financial sponsors have made the private equity business easy and convenient. This is because, private equity firms assemble portfolio companies and then roll up add-ons to those companies.

However, according to Bolsinger, the high competition is due to: fewer and fewer large-cap deals; and availability of very acquisitive strategies that sit on a lot of cash while still fostering big threats to the private equities.

Eurazzo sees the long term deals between a business owner and a private equity firm much more sufficient than the short term deals. This is due to the fact that businesses take long to be more productive.

The driving force of the increase in the inbound deal value by 21% in mid-market M&A.

The inbound deal value went up by 21% to US$22.9bn in Q1-Q3 in 2016 especially from the Asia based acquirers. The Asian countries engage in M&A for various reasons such as acquiring better technology or to expand their market share.

The success of great deals in M&A is the buying of beneficial brands and investing back to the countries’ businesses to enhance them. Also, a strict state control helps in improving M&A deals as evident from the China State Council.

The challenges facing the M&A deals.

Cultural differences makes it difficult for some investors to invest and succeed in foreign areas. This is due to political and cultural differences, as well as communication barriers. However, buying a well-established business can conquer the challenges.

The expansion of private debt for M&A activity.

In 2016, the closed end private debt fund had more than US$131bn, which is the highest amount recorded ever. The increased debts according to Monroe is due to the low interest rates. Also, investors have turned up in large numbers to seek for direct lending, which proves to be more convenient rather than the traditional way of banking market.

Source: Firmex.com

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By financen | January 6, 2015 - 3:08 pm - Posted in Investing, Investment

Many people feel confused about how to invest their money efficiently? This is completely based on the individual characteristics. There are several factors to consider. For example, how much amount the investor can invest, and the time and the risk/reward assessment. An investor will certainly get more benefits if he is willing to invest a large amount. It will be easy to bear the initial losses if the invested capital is a large amount. If the invested amount is small, put it in a safer environment to gain profits, and then build the money through prudent decisions.


Investing

Time factor is another aspect of investing money efficiently. If the money is invested for a longer period of time, it will give him more profits, whereas the short term investments target on higher returns over a short period of time.

Risk is always involved whenever you invest your money. There is no place where you will get 100% security. Sometimes the profits are awesome, and at times, it can make you go bankrupt. So every area has a certain level of risk factor. An investor should choose the lower risk area if he is very much concerned about his investments. The profit margin will be less but your money will remain in safe place. And if you want to make overwhelming profits, you have to take bigger risks.

InvestmentBefore you invest your money, make sure that you have done a thorough research on the market. Do not depend on others research because at times, it can be inaccurate and you will end up going in the wrong direction. Whenever you are calculating the risks and rewards before investing your money, analyze the advantages and disadvantages of doing that investment. Do not be in a rush while investing because whatever decision you will take today will highly influence your tomorrow. You can set up a brokerage account which includes sending a check and proving your identity. Once you are signed up, you can track your investments in one place and also use their research tools.

While investing, seek in company buybacks. If the company is buying back its own shares, it means they have fewer stocks in circulation. It will give you higher earning per share if the company’s earnings increase or remain consistent.

  • Helpful article:

http://en.wikipedia.org/wiki/Investment

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By financen | August 1, 2014 - 5:46 pm - Posted in Investing, Investment

Earning money is not an easy job, so you want to make sure that wherever you are investing your money, it will be there when needed. Many people get confused in how to invest their savings in the right place. At times, it can be a complicated and time consuming task. Hiring an investment advisor will be the right choice in such cases.

InvestmentThe job of an investment adviser is to do a market analysis for you, understand your financial goals, and consider the amount of money that you are willing to afford. With the help of these details, he will advise you on how to invest your money in the right place and earn maximum return.

When you work with an investment adviser who is supposed to take important decisions about your finance, make sure that you are working with the best in the market. In the initial stage, you can do short meetings with the advisor with the same kind of approach as you will do with your employer conducting a job interview. Make sure that you have the list of all your questions that you will like to discuss with the consultant before hiring him.

When you talk with the investment adviser, be very blunt in asking who is going to oversee your account. There have been instances where some people thought that only one person is going to look into the account, but later it was found out that his accounts were handled by several different people and that created a lot of communication gap between all the people involved. You must clarify all these points with your investment advisor and that proper communication is done all the time with people whoever has the access to your account and is making investment decisions.

 Investment-advisorYou should know from your investment advisor how he will take the time to review your current portfolio. This is something they plan on doing regularly. Apart from checking your portfolio and gauging the status of your current investments, they must keep in touch with you regularly to discuss about any changes that may come up. A good investment firm will be diligent about communication and they want to ensure that you stay updated on how your investments performed in the market.

Before hiring any investment advisor, you must clarify his roles and responsibilities. Every firm has its own policies regarding how their investors are going to work with the clients. You must make sure that your investment advisor will be making changes to your portfolio and overseeing all the investments, or if they are acting in a purely advisory role. Once you get the answer to this question, you need to make your decision about hiring the consultant.

You should also inquire about the cost of the services of the investment advisor. The fees will vary from one firm to another. Shop with different companies before you finalize the one who is going to take care of your investments and make your money grow.

Helpful Resources:

http://www.sec.gov/investor/pubs/invadvisers.htm

http://en.wikipedia.org/wiki/Financial_adviser

http://investor.gov/researching-managing-investments/working-investment-professionals/brokers-advisors/research-advisor#.U9vFf6NRG4Z

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By financen | May 24, 2014 - 5:14 am - Posted in Investing, Money and Banking

MoneyEven if you only have a few dollars to start with, you should do your best to invest your money. Investing your money allows it to grow much faster than it would by putting it in the bank. The best part is that you can invest your money wherever you want to and take it out whenever you want to.

This means that you have total control over your funds and what happens to the money that you have in the market. If you want to put your money into an index fund, you can do so and diversify your money with ease. If you want to put your money into a single stock, you can do that as well.

Investing

When you invest your money, make sure that you do so with an eye toward the long-term. Although the market will go up or down drastically each day, it will generally trend higher over a period of months or years. Therefore, you should only sell an investment if it goes below a certain price point and stays there for a certain period of time.

Flipping your money allows you to create wealth and stabilize your financial future. For those who plan on retiring someday or want an emergency fund to protect them in the event of a job loss or something else that comes up unexpectedly, having money in the market can help.

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