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If you are looking into making more money from the extra cash you have lying around, then you may be excited to know that there are several ways to increase your capital by doing basically nothing. Investing in stocks is one such lucrative option. Of course, there are risks involved in placing your money on the open market, but if you are able to find the right broker, then he/she can help you to make good choices regarding the most stable stocks that will earn you good money.

Once you have chosen to invest in stocks, you can also learn about how to do it yourself. Even though this will take some time, you can also find practice sessions on the internet so that you do not lose any real money. Once you understand all of the principles including spreads, pips and other lingo, you will soon be able to make money on your own.

The main part of investing in stocks is to understand the market trend, and to know when to sell your current stocks or to buy more. In fact, this is what the entire game is all about. If you choose to invest in secure, reliable stocks like mutual funds or in precious metals like gold, silver and platinum, you are guaranteed to make money. As metals are valuable all of the time, you will not lose all of your money; it will merely fluctuate a bit.

Depending on how soon you need your money, you should be careful of the types of funds you invest in. Stocks like mutual funds need to mature of a long period of time and you can lose out if you liquidate everything in a few years. You should also not invest in too many stocks at once. You will have to pay broker fees and other expenses on each stock, so it is better to choose three highly profitable stocks and spread your money over those three.

If you want to make even more money, then you can take a higher risk stock, which will ensure a large sum of money if the markets improve. However, these stocks can also fall drastically, in which case you will lose your money. It is a good idea to invest in risky stocks once you are totally comfortable and sure about what you are doing, or you trust your broker completely.

You can begin investing and trading in stocks by purchasing online tutorials that will teach you all you need to know about the stock market and the types of stocks to invest in. You can then look for a broker who you trust and who can assure you of a good income.

If you do not want too much hassle with your stock investing, then you can open an account at your bank that will invest in low risk stocks on your behalf. The money will keep rolling in, without you even realizing it. Accounts like money market fund accounts, and certificate of deposit accounts will do this for you.

Tags: Investment Strategy by Rick
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To trade in precious metals may seem like a daunting business to get involved in, but you will find that there are many online businesses that will offer their expertise and services to trade in these precious metals for you. You can choose to trade in gold, silver, and platinum mainly, and earn large amounts of money in the process.

To begin trading in anything including precious metals, you will need to have a good understanding of how it all works, and understand that the world in which we live is constantly changing. You must be able to look at the emerging trends and patterns, and act accordingly when you feel the time is right to buy or sell your stocks. This can make all the difference between losing money, and making a whole lot of it.

There are also many online websites where you can also look at live market trends to help you to decide whether or not to buy or sell. If you begin trading in precious metals you will have to know what is happening to the metals all the time in their different forms. Gold, silver and platinum can come in forms like bars or powder, and you get different grades of refinement. This is why you will need to have a good knowledge of the metals to know what prices are good and which are not, depending on the type of the metal.

Deciding to take this leap of faith is tough at first, but if you have that extra money put away that you would like to invest for your retirement or child’s education, there are ways to learn how to do it and make good profit. People choose to own precious metal stocks for a few very simple reasons:

· There is more stability in precious metals than in other stocks. Paper stocks fall suddenly and you can lose all of your money.
· They offer inflation protection against declining currencies which is perfect in case of a war breaking out or other instability in the country.
· Precious metals will always be valuable unlike paper stocks. Your investment is always safe and you will not lose all of your money. You might lose some, but you can make it back fairly easily.

Silver, it seems, is overtaking gold in the markets becoming a great metal to own. Prices are rising due to the increased need for its uses on high-tech equipments, and supplies are becoming extremely tight. Silver is worth investing in as its demand is likely to continue rising and offering huge profits. Gold and platinum are still highly valuable and will make you extra money or protect the money you have, even if the market prices fluctuate.

You just have to keep looking at current trends and what is making news regarding politics, society, and economics to gain some further insight. Do your research into the different metals and their types, keep your eyes and ears open, follow your informed instincts, and you will surely make profit in metals trading.

Tags: Precious Metals by Rick
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Investing in stocks is a lucrative business. It is risky as well. There are some risk factors that an investor can control by a bit of intelligent planning, and there are few others one can only attempt to prevent. Hence, in order to be in the game, a prospective investor must have an efficient management plan in place, alongside a pre-set risk levels, which one must expect in a fluctuating market to happen at any time and for which the investor has to remain prepared. The major risk factors that any investor could face in the stock market are inflation, economy changes, market value, and the risks of being too play-safe in the game. At times, one needs to be aggressive; being too defensive can sometimes actually spoil one’s chances.

Inflation, it could happen at any time and it could hit virtually any one, the person’s portfolio or savings not withstanding. Inflation erodes dollar values, and is the root cause of recessions in all forms. When it happens, it is the investors who depend on a fixed income that suffers the most. But, you could remain pretty immune to inflation by diversifying your investments by investing in stocks of those industries/sectors that has a better ability to adjust prices to the inflation rate. Investing in hard assets is also a good option to overcome the inflation wave.

The biggest of risks however is the changes that the economy is susceptible to. It can happen due to a variety of reasons, but for the investor, the results are the same – a drop in returns or crash in stock values. A recent example of this phenomenon is the 9/11 and the recession that followed soon. Again, what is required here, to overcome the downturns, is some intelligent planning. Investing for longer periods or buying stocks of good companies at reduced prices are few intelligent moves you could try out when the stakes are low. Every low in the stock market is followed by a high. So, the chances of you losing out are very less.

Market value refers to the market’s overall perception about a sector or stock. It is the market’s tendency to go after the next hot stock and if your investments do not fall in the elite few, the chances of your investment gets ignored in the race is quite high. This is a standard trend witnessed in the stock market economics and the best possible way out of this inevitability is to diversify your investments into multiple stocks, of different companies, that have a higher chance of anticipated growth in the near future. In short, it is all about predictions and calculations.

Finally, the importance of being aggressive and proactive in the game! Stock investments is all about taking calculated risks, and if an investor plays it too conservative, shying away from taking risks, he/she is not going to make any worthy money out of whatever investments he/she had made. You need to be enterprising and vigilant to make a kill in the stock investment arena. This involves constantly studying the market and quickly responding to market trends by pulling out and reinvesting in the currently happening stocks. The game is definitely not for the laidback and not-so-serious souls for no stocks fetch any returns by default. It needs to be manipulated according to the market trends.

Tags: OTC & Small Cap Info by Rick
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I ran across this excellent piece of information and advise at Bankrate for anyone considering real estate investing, or ‘house flipping’ as an investment avenue. It has some very important caveats and pitfalls that you need to watch for if you embark on this road.

Q- “Why is it called “flipping” when an investor buys a house under value and sells it for what it’s worth? Whenever I hear the word, it seems to have a negative connotation. ”

A- “You’ve really hit on something here, especially with your “sell it for what it’s worth” comment. But let’s back up for a second. Some honest and handy rehabbers who buy properties that are physically and (or) financially distressed, then promptly fix them up and turn them over — or “flip” them — to a new owner are being punished because of rising mortgage fraud over the past decade.

Sadly, it was the old “one-bad-apple” syndrome that caused most of the acrimony. During the overheated housing market of the late 1990s and early 2000s the distinct odor of greed wafted over the industry. Not satisfied with healthy profits, a number of participants sought excessive profits and didn’t let things such as ethics and the laws get in the way.

 

The results: The buyer gets a house he’s not qualified for. The investor gets an obscene profit. The real estate agent gets a commission. The fraudulent deal elevates all other properties in the neighborhood by elevating “comps,” or comparable house prices in the area. The buyers have difficulty making payments they were never qualified to make and eventually default. The lender gets stuck holding the bag.

That gave “house flipping” a negative connotation, even though the majority of flippers are earnestly investing significant cash and sweat equity trying to add bankable value to a home before releasing it back into their market’s for-sale inventory. But in 2003, the Federal Housing Administration imposed restrictions on the resale of homes that happen within 180 days of an initial sale and stopped insuring mortgages on all properties that sold more than once in a 90-day span. Many private lenders joined in with similar policies to tighten underwriting standards for “flips.”

Those actions, not surprisingly, slowed down the rehab pipeline a bit. No longer could many honest investors quickly dig into fixer-uppers they bought legally from distressed sellers or foreclosures and then expect to recoup their investments in an equally expedient manner. There are many credible arguments both pro and con as to whether this is good.

But this gets back to your “worth” statement. So much of our country’s economic engine is driven by investing in something of substance, adding value to it, and “flipping” it to people who desire the polished end product — and are quite happy to pay what it’s worth, whether it’s a reconditioned house, car, boat, antique or power generator.

So, no, house “flipping” is not inherently bad. In fact, semantics may partially be to blame for its bad rap. What “flipping” is to the housing game, “wholesaling” is to most other businesses. “

Tags: Real Estate by Rick
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Over the long term stocks have provided us with great average return results. But this average return masks a great deal of volatility, because returns have fluctuated within a very wide band. This extreme volatility is the chief risk of investing in stocks, but it is a risk that tends to recede from investors’ memories after a lengthy period of generally rising stock prices. Those investors new to investing in stocks may underestimate the volatility of stocks because volatility has been muted in recent years. Time greatly reduces, but certainly does not eliminate the volatility in returns from stocks. On the other hand, there is no guarantee that you will earn above average returns even if you hold stocks for two decades or more. Investors who are relatively new to investing in stocks may benefit from some perspective about bear markets. During the bear markets, Indexes declined an average of 25-35%. Although the average bear market lasted a little longer than 12 months, it took an average of almost 20 months for the Indexes to return to the levels achieved before the market downturns. Although no one can reliably predict the timing of bear markets (or bull markets, for that matter), a prudent investor should understand the extent to which stock prices can decline and should be prepared to “ride out” these periods when they occur. The big danger from bear markets is that investors will sell at or near the bottom of the downturn. Those who got out of stocks missed an extraordinary rebound in stock market performance.  Since risk is inescapable when investing in stocks, perhaps the greatest risk is that you will never invest in stocks because you can never be sure when is “the right time” to invest. Uncertainty is a permanent feature of the investing landscape, and trying to discern the ideal time to invest is almost always a futile exercise. Don’t be swayed by market fluctuations or the opinions and predictions from market analysts and forecasters! Your investment strategy and expectations should all be based on your personal objectives, time horizon, risk tolerance and financial situation. It should not be determined by the direction of the financial markets or the opinions of “The Experts!”

Copyright © 2005 I.E.C. Haramis

Tags: Investment Strategy by Rick
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