Sunday, August 14, 2011

Correct approach yo investment


"Successful stock investing starts from stock analysis and continue from it." - Createwealth8888

Some DIY retail stock investors are still not very clear between Stock Analysis and Stock Investing. Many are still stuck in the stage of Stock Analysis and didn't really advance themselves into the stage of Stock Investing.

Knowledge, skills and mindset related to Stock Analysis and Stock Investing is different and require different approach.

Stock Analysis

Stock Analysis is about having a view on the market and/or a stock by either fundamental analysis or technical analysis or both.

Some may even throw in Hope Analysis in addition to FA and TA.

The end result of such analysis will be a trigger to buy or sell or hold decision on your stock or stocks in your portfolio.

Stock Investing

For retail stock investors, it is about using their limited investing capital to make net return to meet their investment goals over their investing life-cycle.

Stock Investing is different from Stock Analysis. Stock Investing is about making a net return on investing capital while focusing strongly on money, portfolio and risks management.

Successful stock investors will diligently measure and track their portfolio performance and are very concerns over the net returns over a period.

They may revise their methods or change strategies in their stock analysis when they discovered that their stock investing are not meeting their investment goals.

But there will be some retail stock "investors" who don't really care to measure or track their investing performance over a period and still thinking that they are investing?

Wake up, "investors" and stop getting stuck at Stock Analysis and start investing!

Correct approach yo investment


"Successful stock investing starts from stock analysis and continue from it." - Createwealth8888

Some DIY retail stock investors are still not very clear between Stock Analysis and Stock Investing. Many are still stuck in the stage of Stock Analysis and didn't really advance themselves into the stage of Stock Investing.

Knowledge, skills and mindset related to Stock Analysis and Stock Investing is different and require different approach.

Stock Analysis

Stock Analysis is about having a view on the market and/or a stock by either fundamental analysis or technical analysis or both.

Some may even throw in Hope Analysis in addition to FA and TA.

The end result of such analysis will be a trigger to buy or sell or hold decision on your stock or stocks in your portfolio.

Stock Investing

For retail stock investors, it is about using their limited investing capital to make net return to meet their investment goals over their investing life-cycle.

Stock Investing is different from Stock Analysis. Stock Investing is about making a net return on investing capital while focusing strongly on money, portfolio and risks management.

Successful stock investors will diligently measure and track their portfolio performance and are very concerns over the net returns over a period.

They may revise their methods or change strategies in their stock analysis when they discovered that their stock investing are not meeting their investment goals.

But there will be some retail stock "investors" who don't really care to measure or track their investing performance over a period and still thinking that they are investing?

Wake up, "investors" and stop getting stuck at Stock Analysis and start investing!

Friday, August 12, 2011

Issues
Share Email Print
Embracing the Volatility for Major Profits!
Mike Larson | Friday, August 12, 2011 at 7:30 am


These are some of the most volatile markets I’ve ever seen. Down 630 points on the Dow Jones one day. Up 430 points the next.

And that’s not all! We’ve seen $50-$70 daily moves in gold … 8-cent moves in the value of the Swiss franc … $25 collapses in the price of oil in just a few days. It’s enough to make your head spin!

Me? I’m not running and hiding! I’m EMBRACING the volatility! And I recommend you do too — because volatility like this presents some of the biggest profit opportunities of our lifetimes!

What’s Causing the Volatility Wave —
And How to Surf It!

By now, you should be wholeheartedly aware of my bearish, big-picture, fundamental outlook. I have repeatedly warned in the past several months to dump most stocks … dump all REITs … buy gold … and buy inverse ETFs that rally when stocks fall.

CAUTION: These 4 Things Happen
Just Before Major Stock Market Crashes

Bank stocks lead the entire market lower … the economy winds down … the Volatility Index sits at levels not seen in more than two years … and gold sets one new record after another.

These are precisely the things that happened just before America’s LAST great stock market crash in 2008 and they are happening again — only WORSE!

These are EXACTLY the developments we’ve been trying to help you profit from! Click this link now to see our eye-opening video!

Internal Sponsorship
My view: This multi-pronged strategy would help prepare you for a double-dip recession, second “top” in real estate, and second phase in the great credit crunch. Sure enough, each and every one of those strategies is now paying off — in aces and spades!

Late last week and Monday, for instance, the market collapsed. We got the sixth-biggest, one-day point decline in Dow history. Fear gauges surged, banks collapsed, and everything from junk bonds to REITs imploded.

So what did I do?

I took profits on several positions that I put on BEFORE the crisis. And not tiny ones either — subscribers to my services enjoyed gains of as much as 100 percent in two months, and 31.1 percent in 10 days, depending on the investment vehicle and strategy.

Warning: Shocking Video

Many people say it’s shocking. Others say it’s more than shocking. But that’s not a bad thing, because they also say it’s motivating them to finally take protective action — or to help persuade their loved ones to do the same.

We’re talking about American Apocalypse, the video which has already been viewed by thousands of readers like you.

The timing could not be better — click here to watch it now.

Internal Sponsorship
Why take so much exposure and so many profits off the table? Because I knew we were finally seeing whiffs of real panic, and because my technical indicators suggested we were due for a short-term, potentially serious bounce.


Did I panic when the market slid 630 points one day then shot up 430 the next? Heck no! I snagged big profits.
Then what happened? On Tuesday, the Federal Reserve came out and pledged to keep interest rates low through mid-2013. That ignited a rally of several hundred Dow points from the intraday low.

Never mind that the Fed pledge was well telegraphed, and one of the least powerful of all the options policymakers had on the table. It still “worked” from Ben Bernanke’s perspective, which I’m sure was to goose the stock market after its epic collapse.

Because they took so many profits off when things looked much uglier, though, my subscribers weren’t really hurt. They sailed right through the volatility. Better yet, they now have fresh ammunition to use when the next oversold rally strikes.

Major Takeaways from
This Play-By-Play

Why am I walking you through this trading “play-by-play?” Because if you want to protect your wealth — and profit — in these kinds of markets, you have to understand how to surf major volatility waves! It is absolutely imperative NOT to just buy and hold, but rather to add inverse positions on rallies and take profits into declines.

Your freedoms …
Your savings and investments …
Your retirement …
Your personal safety …

WIPED OUT
By April 2012

Is this top analyst right AGAIN?
FREE video reveals what Washington
does NOT want you to know.

Click here for the uncensored story.

Internal Sponsorship

That was what worked in 2007-2009, and it’s what will work this time. I say that because conditions are very similar now to what we saw then. Only now the locus of the credit crisis is sovereign bonds, countries, and currencies, as opposed to private banks, brokers, home builders, and the like then.

Finally, for those of you who are not comfortable with a more rapid trading pace, let me just say this: You do NOT see these kinds of hugely volatile moves in a bull market. You see them in bear markets — like 2000-2002 and 2007-2009.

I believe that’s what we re-entered this summer, and that we won’t exit it again for a long, long time. So invest and plan accordingly!

Until next time,

Mike

P.S. Want to know why the markets are going crazy? Want to know what’s driving stocks, bonds, currencies, and commodities? Want to learn how to get YOUR taste of the kinds of profits I referred to above? Then click here to view my free American Apocalypse video for all those answers — and more!

Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money, Safe Money's Crisis Trader, and LEAPS Options Alert. He is often quoted by the New York Sun, Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.

Share Email

Related posts:
Financial Stocks Tanking! Ignore at Your Own Peril!
How to play this pullback in energy prices

4 rules for the sea-saw market




4 Rules for the Seesaw Market
By Aaron Task | Daily Ticker – Wed, Aug 10, 2011 1:36 PM EDT
tweet61Share19
Email
Print
The market roller coaster took another big dip down Wednesday, with the Dow tumbling more than 400 points midday before stabilizing a bit.
If you're like most non-professional traders, these kinds of wild market swings — down 635 Monday, up 430 Tuesday, down 400 Wednesday -- can be gut-wrenching, confusing and downright scary. (Rest assured, many professionals feel the same way - they just don't admit it.)
For those of you feeling paralyzed by the panic, here are some time-honored rules for a seesaw market:
If You Can't Take the Heat, Get Out: As my Breakout colleague Jeff Macke likes to say, if the market is keeping you up at night, you shouldn't be in it. This is particularly true for people at or near retirement age; you simply don't have the time (or income stream) to make up for big losses, a hard lesson many aging Baby Boomers learned in 2008. The same rule applies if you have funds in the stock market earmarked for a specific event in 5 years or less, like a house purchase, wedding or college tuition.
Contrary to what financial advisers tell you, there's no law stating your money has to be in the stock market, just as, contrary to what financial advisers tell you, there's no guarantee stocks will perform well "in the long run."
Don't Panic: If you don't need the money in your retirement account in 5 years or less, you're better off sitting tight vs. cutting and running. Unfortunately, many investors simply can't take the pain and are doing just that.
Transfers in the 4.7 million 401(k) accounts monitored by consultant Aon Hewitt exceeded $1.6 billion on Monday, more than three times the normal level, ABC News reports. "All of the assets moved Monday were taken out of stock funds and invested primarily in bond funds."
Historically speaking, retail investors get scared and sell out of stocks at important market bottoms. Pulling out after a big decline means locking in those losses, a mistake many investors compound by turning around and buying assets that may already be at inflated prices, such as gold and Treasuries in the current environment. That's why Wall Street pros refer to us as "the dumb money."
Have a Plan: Sometimes the most boring advice is the best advice.
Investors who have previously established set patterns of portfolio rebalancing, diversification of investments and long-term goals for their money tend to do better -- both emotionally and financially -- during periods of dramatic market upheaval, says Liz Ann Sonders, Charles Schwab's chief investment strategist.
Learn from Your Mistakes: As of July 1, 80% of workers in their 40s and 50s had more money in their 401(k) than they did in 2007, meaning they'd recouped the losses from 2008, according to data compiled for AP by the Employee Benefits Research Institute. After Monday's 6.66% decline, that figured had dropped to 64%, suggesting a lot of investors were just waiting to get back to even after 2008 but hadn't changed their behavior.
Just as refusing to open statements from your broker or 401(k) administrator doesn't count as "financial planning," neither does "hoping and praying" the market will come back.
Nobody knows how much longer the current market squall will last or how much lower stocks will go before it ends. Then again it's quite possible the selloff ends today (or tomorrow) and stocks will return to their rallying ways. What can be said with near-100% certainty is this won't be the last time the stock market embarks on a heart-stopping decline.
So sometime when the market's closed or (ha-ha) quiet in the next few days, take a minute to ask yourself a few questions:
Am I doing anything different today then I was doing before the market crashed in 2008…or 2000?
How much volatility can I really stomach and how much money can I really afford to lose, even if just on paper, even if just temporarily? In other words, what is your risk tolerance?
Can I really do this myself? If the answer is "no," then you're much better off finding a financial adviser. A good one can help you navigate the stock market's highs and lows; he or she won't promise you the moon, and the fees paid will be well worth your piece of mind and your bottom line.
In the end, the best advice anyone can give you is this: Investor, know thyself…and proceed accordingly.
Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at altask@yahoo.com

Tuesday, August 9, 2011

What is the market direction?

The global equity markets have major correction in this week. This was due to the US loss the triple A rating to AA+.

Why i sold my penny stocks?
I'm not comfortable with the current market. Many good blue chips price also corrected a lot. I plan to use the same fund to buy these blue chips.

Let the market settle down and take my time to buy up the stocks.

Friday, October 24, 2008