Staying Away from Common Stock Trading Errors

Having a plan will help you to minimize or even eliminate any trading errors. Guesswork is where most trading errors come into play.

Successful stock trading requires discipline, dedication, adequate working capital, and a bulletproof stock trading plan. Most of the stock trading errors that are made by beginners are typically errors in preparation.

Here is a list of some other common stock trading errors:

By avoiding common errors and sidestepping pitfalls you can accelerate your growth as a stock trader. While some of these errors may seem still wise and ridiculously obvious to keep them in mind as you go about your day-to-day trading activities.

Inadequate working capital:

Trying to make $100,000 a year starting with $100 doesn’t require a great stock trading system, it requires a miracle! Just as an athlete’s body requires a proper fuel for peak performance so your account requires the fuel of trading capital.

Many people believe that because they have achieved a level of success in another area of endeavor or in another business that they will be successful in stock trading. Stock trading requires actions which may seem counterintuitive. The smartest thing to do is to learn the ins and outs of trading stock as the skills and techniques learned are very specific to the stock market.

Unrealistic hopes:

This is one of the most common stock trading errors that there is. Beginning traders often believe the hyped up advertising of many of the commercially available trading products in the market place today. The outlandish claims of thousands of percent return per month or zero drawdown are very tempting to those who don’t know any better.

Successful stock trading requires discipline, dedication, adequate working capital, and a bulletproof stock trading plan. Most of the stock trading errors that are made by beginners are typically errors in preparation. Unrealistic expectations– this is one of the most common stock trading errors that there is. The smartest thing to do is to learn the ins and outs of trading stock as the skills and techniques learned are very specific to the stock market.

Fear of losing:

The fear of taking a loss is very common amongst beginning traders. Where successful stock traders differ is that they know well in advance that some trades and some days and some months will simply be more profitable than others.

Inadequate working capital– trying to make $100,000 a year starting with $100 doesn’t require a great stock trading system, it requires a miracle!

Rules for Stock Trading

This piece seeks to discover five rules that successful stock traders have regularly used to improve their chances of being on the winning side of the market. I can not guarantee that following these rules will ensure 100% success when you trade stocks; however, these rules will make it easier for you to maximize profits when you are in the right trade and they’ll help you reduce your losses when you are in a wrong trade.

Stock trading is one of the few businesses in which you can multiply your money, lose money or run into immense debts with a trading decision. Every stock trader loses money on some trades, but the fact that sets successful stock traders apart is that they have more winning trades than losing trades.

1: Invest in Your Education

When investing in your education, you should strive to understand the major factors that move the markets because the stock market is more dynamic than static. You should understand different trading strategies and work with a strategy that fits your risk-taking quotient and your experience.

The first rule and perhaps the most important rule for profitable stock trading is that you MUST invest in your education. I’m not asking you to go back to college or get further qualifications, but nobody can regularly trade stocks profitably without a functional understanding of how the stock market works.

2: Develop an Exit, entry, and escape Strategy

You must be cold and calculating if you want to trade stocks profitably. You should decide on the price at which you’ll be interested in buying the stock and how much of the stock you’ll buy per time (Entry).

You should come with a trading strategy and you must be disciplined enough to stick to your plan. You should also avoid becoming an accidental investor. Accidental investors buy stocks with a trading goal in mind; however, they might fall in love with the stock if it has a winning streak or they might start feeling pity for the company if it has a losing streak; hence, they usually hold on to stocks longer than necessary.

3: Master the Two Sides of the Coin

About 90% of people who enter the stock market usually come with the mindset of buying stocks at low prices and selling them at high prices. You’ll most likely be chasing highs by purchasing stocks in the hopes that their share prices will increase.

The fact remains that the most bullish stock in the market can not consistently maintain a rising streak without the occasional dip, pullback or even a correction. Stocks that are rising might drop as much as 60% of recent gains before they start another ascent. You should not be afraid to short stocks when they are clearly entering a losing streak.

4: Trade Only when You Clear

All stocks provide useful information with the buy and sell signals in their technical indicators. The simplest and probably most important buy/sell signal is the key resistant/support level. You should know how to identify the key support and resistant levels in order to trade stocks for profits when they are going upwards, downwards, or even sideways.

Successful traders go long when a stock triggers a breakout above a key resistance point, they short stocks on a breakdown below a key support level, and they trade stock options when stocks are going sideways. It doesn’t hurt to sit on the cash for a day or two while the choppiness in the stock clears away if you can not read the buy/sell signal clearly.

5: Don’t Buy/Sell Based on Hype

A virtual stock exchange invites traders from all different level of expertise to experiment with stock market using our advance tools including stock alerts, portfolio management.

You should know how to identify the key support and resistant levels in order to trade stocks for profits when they are going upwards, downwards, or even sideways.

Nothing beats doing your due diligence as explained in rule number 1 and entering the trade only after a careful consideration of rule number 2.

As much as I hate to be the proverbial wet blanket, I must tell you that more than half of the tips, info, and expert advice that you’ll read on the Internet or see on the TV about that one stock you must buy today are nothing more than hype.

You must be cold and calculating if you want to trade stocks profitably. You should decide on the price at which you’ll be interested in buying the stock and how much of the stock you’ll buy per time (Entry). Accidental investors buy stocks with a trading goal in mind; however, they might fall in love with the stock if it has a winning streak or they might start feeling pity for the company if it has a losing streak; hence, they usually hold on to stocks longer than necessary.

Investfly|A virtual stock exchange invites traders from all different level of expertise to experiment with stock market using our advance tools including stock alerts, portfolio management, advanced stock screener, automated trading and stock market game.

Explore our virtual stock exchange to enhance your profitable stock trading strategies.

Profitable Stock Trading Rules to Trade

If we get stopped out of a stock, we should not repurchase it for some number of trading days. Jumping back into a stock we were just stopped out of does work once in a while, but probably 90% of the time we get stopped out, the price decline is not over.

1: always use sell stop orders to protect yourself from devastating price declines.

 

2: you can not buy a stock you were stopped out of for 10 trading days.

3: use trailing sell stop orders to secure profits.

In “Profitable Stock Trading – 5 Rules to Trade By” we discussed the first five rules that will help you gain stock market trading success. Here we finish up with the final five rules.

4: when your profit goals for a given trade are met, sell the stock, despite of its presumed long-term prospects.

5: the average daily trading volume for the 10 trading days prior to our buy date should be at least 100,000 shares.

Stock prices fall and rise for one reason only, supply and demand. If too many people want to sell a stock (more sellers than buyers – a large supply), the price goes down. That requires that the stock trades sufficient volume to allow us to execute our transaction without our order causing a major price move against us.

When we examine our stock charts (a stock trading technique, not a rule, thus a discussion for future articles), we’ll pick a price at which we will place a sell stop order as soon as our buy order is executed. Jumping back into a stock we were just stopped out of does work once in a while, but probably 90% of the time we get stopped out, the price decline is not over. If a stock has gone up in price more than expected or is in a parabolic rise, we should cancel our static sell stop order and place trailing sell stop orders to protect from price reversals. Trailing stop orders set a price a certain dollar or percentage amount under the current stock price. The sell stop trigger price increases as the stock price goes up.

If a stock has gone up in price more than expected or is in a parabolic rise, we should cancel our static sell stop order and place trailing sell stop orders to protect from price reversals. The sell stop trigger price increases as the stock price goes up.

Remember, we are trading stocks, not buying and holding them for years. This means we will sell some very good stocks once our profit goals are met, then possibly watch them go higher, maybe even much higher. If we absolutely love a stock and can not stand the thought of not owning it, we can establish a core long-term position then trade an additional amount of shares (our “trading” position), giving us the best of both worlds.

They are not trading techniques, which are in a whole different category and require skill and judgement to effectively buy and sell stocks at the optimal time and price. Stock trading techniques will be discussed in future articles.

Types of Stock Trading

There are three ways you can invest for short terms. You can trade in stocks as position traders, swing traders and day traders.

You can trade in stocks for as fast as a few seconds. You can finish off your trade by the end of the day, or, you can invest for months, years and all through your life. There is no need to ‘wind up’ your business.

Stock trading provides a wide range of opportunities to stock investors to make money. The beauty of stock trading lies in its huge flexibility. You can invest in stock trading as a hobby, a part time business or as a full time source of income.

The time span and the amount of money you invest rely on your personal needs, predilections and financial goals.

You can invest as little an amount as you spend on your lunch in a restaurant, or, you can invest hundreds and thousands of dollars.

1. Position Trading

In position trading, you keep waiting for the fundamental changes to come about that affect the value of your stock. A combination of fundamental and technical analysis can go a long way to help you to evaluate the trading opportunity.

Even if you do not use an analysis tool, you may collect a lot of fundamental information from financial magazines and newspapers about the value of your stock.

Position trading is especially useful for those who want to supplement their income without devoting lots of time in front of the computers. When you feel free, you can study the stock market any time you.

Of all the three trade types, position trading is the longest term trading style. As a position trader, you do not have to sit glued to your monitor like a day trader and keep waiting anxiously what will happen the next moment.

Position trading can be described as a trading style or strategy where you hold an investment position for an extended period of time which may range from days, weeks or months at a time.

2. Swing Trading

Swing traders try to ride the swings in the market. They usually buy fewer stocks and aim at making big profits. Since they buy fewer stocks, they obviously pay less brokerage.

The secret of success in swing trading lies in looking for the changes in the market that are driven more by the sentiments than by some fundamental reasons.

Swing traders normally spend two hours daily in their research. They usually rely on the intraday and daily charts to understand the stock movements.

The basic strategy in swing trading is to buy a strongly trending stock after it has completed its period of consolidation and correction. The strongly trended stocks make fast moves after their correction period is over. The alert swing traders hold the stock for a period of 2 to 7 days and sell it off making a profit of 5 to 25%.

Generally speaking swing trading involves trades that are normally held for a couple of days to a few weeks. Swing traders hold the stocks for shorter periods than the position traders. Swing traders try to earn profits by trading the stock “on the basis of its intra-month or intra-week oscillations between optimism and pessimism.”

They repeat this process over and over again. Swing traders basically try to capture the quick stock moves. When it is in correction mode and sell it as soon as it reaches certain profit level after the correction, you buy a stock.

3. Day Trading

Stock trading offers a variety of opportunities to stock investors to make money. The beauty of stock trading lies in its immense flexibility. You can invest in stock trading as a hobby, a part time business or as a full time source of income.

Day trading is often considered risky. It can become profitable for the serious investors who have learned the tricks of day trading through study and experience.

Day traders buy and sell their stocks from the time the market opens in the morning and sell them away before it closes. They can hold their stock for the next day or even longer if its price is falling.

In position trading, you keep waiting for the fundamental changes to come about that affect the value of your stock. The basic strategy in swing trading is to buy a strongly trending stock after it has completed its period of consolidation and correction.

Fundamentals of Stock Trading

A stock trader has the same objective as a stock investor: to profit from buying and selling stocks or stock-related derivatives like stock options. I include equity mutual funds, ETFs and stock indexes in the stock category.

Most stock traders use technical indicators to guide their timing, or events such as earnings announcements and stock splits. One way stock traders are different is in how long the trader plans to hold their positions: their time horizon.

Day Trading

This demands paying close attention and management of their positions, so usually day trading is a full-time profession. Day trading is often seen as the most risky trading style, and emotional day traders can lose their money quickly. Day trading resources are available in our trader directory.

Swing Trading

Swing trading holds positions from a few days to a few weeks. Swing trading can be done by beginner traders all the way to advanced. Some examples from my past swing trading is playing earnings announcements and stock splits.

Position Trading

Swing and position trading is ideal for people who trade part time. That is why my trading focuses on swing and position trading. We make it even easier by offering trading systems for part-time traders, so you do very little to trade stocks.

Buying undervalued beaten down stocks is a position trading strategy; one we use in the trading systems featured on this site. Position trading systems are usually simpler than day and swing trading systems, and take about 30 minutes a day to implement. My first trading experiences was as a position trader, trading stocks and mutual funds.

I thought my first article here should describe what stock trading is, how it is different than stock investing, and what part of stock trading this blog is focused on. Buying undervalued beaten down stocks is a position trading strategy; one we use in the trading systems featured on this site. Position trading systems are usually simpler than day and swing trading systems, and take about 30 minutes a day to implement. My first trading experiences was as a position trader, trading stocks and mutual funds. That is why my trading focuses on swing and position trading.

The Web Makes Stock Trading Easier

Stock Market Made BetterThe stock market can be very intimidating and it’s complexity frightens many people from even entering the stock exchange. Do not be frightened and let your fears avoid you from taking part in the stock exchange and getting your share of the pie.

Today, thanks to the internet, it is so much simpler to learn about the stock market, get into the stock exchange, and profit from the stock market. On that point is a great deal of data, guides, and software application offered 24 hours a day, 7 days a week. You do not accept to be a monetary wiz or accept special qualifications to obtain a stock market trader. In fact all you have to do is inform yourself. Find an actually good guide and learn all you can. On that point are excellent tools out on that indicate make the most of.

The stock exchange has actually been around for a very long time.

In the late 1700’s, what is known as the New York Stock Exchange (NYSE) was developed which today facilitates billions of dollars worth of trades each company day.

How many years accept passed where people had no web to read short articles and e-books and utilize software application to assist them out? Today you accept access to terrific tools and resources that the old time stock traders could not accept even thought of.

You can get your hands on instructional e-books composed by professionals, great deals of posts, and utilize special software application that takes the trouble and complexity out of trading stocks and rather obtains it simple. As long as you accept an e-mail address, you can get updated stock suggestions, hot stock choices, and more stock information in a stock trading newsletter. These tools would be to die for 50 years earlier.

Numerous people are interested with the stock market, and would like to put profits simply sitting around doing nothing in their cost savings account to work for them in the stock market to make a good revenue. How is an ordinary person not familiar with the stock market expected to choose the right stocks? Middle school students in some classes accept been utilizing stock trading software application as class projects to experiment with stock trading.

With all the resources available on the web at anytime of the day or night, anyone who wants to enter stock exchange trading need to stop putting it off, benefit from the tools out on that point and get began. On that point is always risk included, however thankfully on that point are tools to help you decrease your dangers. Any average person can get a stock trader with no special training. With great stock trading guides, let the experts tell you exactly what you need to know about stock exchange trading. And forget going to the library and examining out outdated books on stocks. With the web, you can always get fresh, upgraded data, not to mention a huge choice of resources to pick from.

All you need to get began participating in the stock exchange is excellent guides, the time to read and find out what the guides tell you, the desire, and the profits to invest. Investing your earnings to put it to work making more revenue sounds a lot much better than simply letting it rest on that point.

Today, thanks to the internet, it is so much simpler to find out about the stock market, get into the stock market, and profit from the stock market. As long as you accept an email address, you can get upgraded stock tips, hot stock picks, and more stock information in a stock trading newsletter. Many individuals are captivated with the stock market, and would like to put revenue simply sitting around doing absolutely nothing in their savings account to work for them in the stock market to make a good revenue. How is a normal individual not familiar with the stock market supposed to pick the ideal stocks? With great stock trading guides, let the specialists inform you exactly what you require to understand about stock market trading.

Stock Investing

Stock investing is the growth engine of your investment portfolio

Stock investing is the growth engine of your investment portfolio, but in 2014 and beyond your best investment strategy could be to cut your investment exposure in stocks (also called equities) and stock funds (also called equity funds). Face it: equities and some stock funds have run up 150% in the past four to five years and this run could be about over. Why invest money here (more money) now?

Stock investing is the growth engine of your investment portfolio, but in 2014 and beyond your best investment strategy could be to cut your investment exposure in stocks (also called equities) and stock funds (also called equity funds). The truth of the matter is that stocks and stock funds have been the best investment for the average investor for questionable reasons. Invest money in stocks or stock funds if you believe that our government’s efforts will create a new wave of growth in the economy, in jobs, and in corporate sales. That’s one view of stocks for 2014 and beyond, based on a fundamental view of stock investing. If you invest money in stocks or stock funds now, you could be arriving at the party late.

Invest money in stocks or stock funds if you believe that our government’s efforts will create a new wave of growth in the economy, in jobs, and in corporate sales. Do not rush out to invest money (more money) if you think higher interest rates will follow and choke economic growth.

When investors look at the apparent lack of investment opportunities out there and see equities going up they tend to want to jump on the band wagon and invest money in stocks and equity funds. In 2014 your best investment strategy may be to cut back on stock investing and opt for more safety.

Stock investing has been very profitable in the past few years. The truth of the matter is that stocks and stock funds have been the best investment for the average investor for questionable reasons. In the world of stock investing, investors want to see a growing economy, rising corporate profits and growth in corporate sales.

That’s one view of stocks for 2014 and beyond, based on a fundamental view of stock investing. If you invest money in stocks or stock funds now, you could be arriving at the party late. Only after these bear markets ended were stock funds the best investment for the average investor (for about 5 years).

This made stock investing the best investment game in town, and kept interest rates low. At that point stock investing could be a whole new ball game. Equities might not be your best investment.

Well, it’s been about 5 years now since the recession (financial crisis) was officially put to bed. The real dilemma for investors in 2014 and beyond is that there appears to be few (if any) good or best investment prospects on the horizon. Why invest money in a money market fund when they pay virtually nothing in return?

Planning To Make Your Investments

How To Make Your Investments

One:   Meeting Investment Prerequisites-Before one even thinks of investing, they should make sure they have adequately provided for the necessities, like housing, food, transportation, clothing, etc. There should be an additional amount of money that could be used as emergency cash, and protection against other various risks. This protection could be through life, property, liability, and health insurance.

Two: Selecting Suitable Investments-With all the information gathered so far, a person will use it to select the investment vehicles that will compliment their goals the most. One should take into consideration expected tax, return, and risk considerations. Careful selection is important.

Three: Evaluating Investment Vehicles-Next up is evaluating investment vehicles by looking at each vehicle’s potential return and risk.

Four: Establishing Investing Goals-Once the prerequisites are taken care of, an investor will then want to establish their investing goals, which is laying out financial objectives they wish to achieve. The goals chosen will determine what types of investments they will make. The most common investing goals are accumulating retirement funds, increasing current income, saving for major expenditures, and sheltering income from taxes.

Five: Adopting an Investment Plan-Once someone has their general goals, they will need to adopt an investment plan. This will include specifying a target date for achieving a goal and the amount of tolerable risk involved.

Six: Managing the Portfolio-Once a portfolio is put together, an investor should measure the behavior in relation to expected performance, and make adjustments as needed.

Seven: Constructing a Diversified Portfolio-In order to achieve their investment goals, investors will need to pull together an investment portfolio of suitable investments. Investors should diversify their portfolio by including a number of different investment vehicles to earn higher returns and/or to be exposed to less risk as opposed to just limiting themselves to one or two investments. Investing in mutual funds can help achieve diversification and also have the benefit of it being professionally managed.

Considering Personal Taxes

Knowing current tax laws can help an investor reduce the taxes and increase the amount of after-tax dollars available for investing.

These income taxes have the greatest impact on security investments, which the returns are in the form of dividends, interest, and increases in value. Property taxes can also have a significant impact on real estate and other forms of property investment.

Types of Income-Income for individuals can be classified into three basic categories:

1. Active Income-This can be made up of wages, salaries, bonuses, tips, pension, and alimony. It is made up of income earned on the job as well as through other forms of noninvestment income.

2. Portfolio Income-This income is from earnings produced from various investments which could be made up of savings accounts, stocks, bonds, mutual funds, options, and futures, and consists of interest, dividends, and capital gains.

3. Passive Income-Income gained through real estate, limited partnerships, and other forms of tax-advantaged investments.

Investments and Taxes-Taking into tax laws is an important part of the investment process. Tax planning involves examining both current and projected earnings, and developing strategies to help minimize the level and defer of taxes. Planning for these taxes will help assist investment activities over time so that an investor can achieve maximum after-tax returns.

Employer-sponsored plans can include 401( k) plans, savings plans, and profit-sharing plans. These plans are usually voluntary and allow employees to increase the amount of money for retirement and tax advantage of tax-deferral benefits. These plans generally allow people to defer taxes on both the contributions and earnings until retirement.

Investing Over the Life Cycle

As the investors get closer to retirement, their focus is usually on the preservation of capital and income. Their investment portfolio is now usually very conservative at this point. It would typically consist of low-risk income stocks and mutual funds, high-yield government bonds, quality corporate bonds, CDs, and other short-term investment vehicles.

As investors age, their investment strategies tend to change. Younger investors usually go for growth-oriented investments that focus on capital gains as opposed to current income.

As the investors become more middle-aged, other things like educational expenses and retirement become more important. As this happens, the typical investor moves towards more higher quality securities which are low-risk growth and income stocks, high-grade bonds, preferred stocks, and mutual funds.

Investing In Different Economic Conditions

This involves matching the risk and return objectives of an investor’s plan with the investment vehicles. If there is an experienced investor that can tolerate more risk, then speculative stocks may be right for them. A novice investor that wants a decent return on their capital may decide to invest in a growth-oriented mutual fund.

How an investor responds to these market conditions will depend on the types of investment vehicles they hold. No matter what the state of the economy is, an investor’s willingness to enter the capital market depends on a basic trust in accurate and fair financial reporting.

Even though the government has different tools or strategies for moderating economic swings, investors will still endure numerous changes in the economy while investing. An investment program must allow the investor to react and recognize to changing conditions in the economy. When to make your moves, it is important to know where to put your money and.

Knowing when to invest is difficult because it deals with market timing. Even most professional money investors, managers, and economists can’t consistently predict the market and economic movements.

Stocks and the Business Cycle

When business is thriving and profits are up, stock prices react by increasing in value and returns. On the flip side, when economic activity is diminishing, the values and returns on common stocks tend to follow the same pattern.

Conditions in the economy are highly influential on common stocks and other equity-related securities. Economic conditions is also referred to as the business cycle. The business cycle mirrors the current status of a variety of economic variables which includes GDP, industrial production, personal disposable income, the unemployment rate, and more.

Bonds and Interest Rates

Step 6: Constructing a Diversified Portfolio-In order to achieve their investment goals, investors will need to pull together an investment portfolio of suitable investments. Investors should diversify their portfolio by including a number of different investment vehicles to earn higher returns and/or to be exposed to less risk as opposed to just limiting themselves to one or two investments. Planning for these taxes will help assist investment activities over time so that an investor can achieve maximum after-tax returns.

Lower interest rates are favorable for bonds for an investor. High interest rates increase the attractiveness of new bonds because they must offer high returns to attract investors.

Younger investors usually go for growth-oriented investments that focus on capital gains as opposed to current income. An investment program must allow the investor to react and recognize to changing conditions in the economy.

Asian Offshore Banking

A Lesson About Offshore Banking

As with most things, your knowledge about Offshore Banking is what you hear about, not what you actually learn in practice.

Most of the investors who create offshore bank accounts do so for privacy and reduced regulation and lower taxes or to protect their assets from lawsuits or from local political or financial instability in their home country.

An offshore bank is typically a bank located outside the home country of the depositor. Offshore bank accounts are usually located in a low tax jurisdiction providing privacy, legal and financial advantages to the depositor.

The simplest way for a non-Singapore resident to open an offshore bank account in Singapore is to use one of the banks in Singapore that has offices in your home country. If you are from the United States for example you might consider opening your offshore bank account through Citibank. The drawback to using any US or European based bank is the loss of the privacy that many considering offshore bank accounts are seeking.

US citizens considering opening an offshore account should be aware of and seek professional advice on the impact of the recently enacted HIRE Act. Set to become effective in 2012, the HIRE Act requires all foreign financial institutions (ffi’s) to report information about US accountholders and in many cases withhold 30% of accountholder’s US generated income including US source dividends, interest, salaries, rent, annuities or other fixed or determinable annual or periodic gains, profits, or income and 30% of the gross receipts from the sale of property that could produce US source interest or dividends, regardless of cost basis.

If privacy is not a primary concern, you can open an offshore account in Singapore through one of the US or European banks with offices in Singapore simply by contacting a local branch near you and having the local bank certify the necessary documents to the Singapore office.

The simplest way for a non-Singapore resident to open an offshore bank account in Singapore is to use one of the banks in Singapore that has offices in your home country. If you are from the United States for example you might consider opening your offshore bank account through Citibank. The drawback to using any US or European based bank is the loss of the privacy that many considering offshore bank accounts are seeking. Citibank or any other US or European bank will likely require the investor to provide a social security or other national identification number and sign a waiver of the Singapore privacy laws.

Singapore is one of the most desirable private banking jurisdictions in the world. Singapore’s stable and sophisticated business environment and the fact that business is conducted in English language makes offshore banking in Singapore easier than in many other locales.

To take advantage of Singapore’s strong privacy protections it is best to establish your offshore bank account with one of the asian or local banks. To do this you may have to visit Singapore or if your investment is significant you may be able to arrange for the bank to send staff to your home country to open your account or you may be able to create a legal representative for your account who will be able to manage an account and open on your behalf.

The biggest obstacle to opening an offshore bank account in Singapore has been the requirement that you physically be in Singapore or be a current customer of the bank to open an offshore account there. Today opening an offshore account in Singapore is becoming less complicated.

What Do You Know About Investing?

What Do You REALLY Know About Investing?

Most people think they know about investing, but most of what they think they know is misinformation spread around, and is not REALLY true.

Stocks
The most popular of all investing opportunities, are stocks. You can make a lot of money investing in stocks, which means you can also lose a lot of money. You want to keep in mind that most investments in stocks are long term investments.

By making each individual dollar work for you, this in return makes you wealthy over time. There are a plethora of investing opportunities out there.

Investing Tips

1.) Have the Right Expectations
When you are investing in stocks, you want to make sure you aren’t expecting to become Warren Buffet over night. You want to make sure you do the proper amount of research, and make sure you know the history of the market as well as the company you are investing in. Make sure you know how long you are keeping an investment, and then make a commitment.

2.) Don’t Listen to the Media
It will take your decision from being based on research and history, to just “hear-say”. This will hurt your investments immensely.

3.) Stay Focused
You want to make sure you are putting all your effort and focus into your investments. Make sure you treat it the way it is and make sure you do the proper research of all aspects of what you’re investing in.

Mutual Funds
You are pooling your money with a number of other investors when you invest in Mutual Funds. You then pay someone to professionally manage and choose each individual security for you. There are a variety of different mutual funds you can choose to invest in, which range to fit your investment strategy.
3 Types of Mutual Funds
1.) Open-Ended
2.) Unit Investment Trust
3.) Close-Ended

Mutual Fund Investing Tips

1.) Look at the Fees
Always look at the fees involved when investing in Mutual Funds. Makes sure you find the best deal, but make sure you are investing the right amount of money in the right places.

2.) Research the History
One thing you can do to prepare an investment is to check out the history of the Mutual Fund. If it’s doing good, and there is a community of people investing in it, it can tell you if its a smart idea to invest yourself. Always check the history of any investment before you decide to purchase.

3.) Look at the Contract
You want to make sure you don’t just know bits and pieces of what’s involved, but everything there is to know, and then some. Make sure you know all the fees involved with buying and selling funds, and if there are international fees required.

Alternative Investments
Apart from the basic investments, there are other special securities. These investments include gold/silver, real estate, etc. These investments are speculative and can be very high profit, however; you need to have the knowledge.

Bank Investments
Bank accounts are one of the simplest form of investment. This percentage barely beats the rise of inflation, so unless you are keeping hundreds of thousands of dollars in the bank, you won’t be creating any wealth from this form of investment. Another way to invest in your bank is a CD, or Certificate of Deposit.

1.) Gold & Silver
The first thing you want to do before you invest in gold or silver, is to look at the market and decide if now is the best time to invest in precious metals. You want to make sure you are familiar with the variety of ways to invest in silver. You can invest in silver mining companies, silver ETF’s, silver futures, silver bullion, and also silver coins.

You want to make sure you do the proper amount of research, and make sure you know the history of the market as well as the company you are investing in. Make sure you treat it the way it is and make sure you do the proper research of all aspects of what you’re investing in. Makes sure you find the best deal, but make sure you are investing the right amount of money in the right places. If it’s doing good, and there is a community of people investing in it, it can tell you if its a smart idea to invest yourself. The first thing you want to do before you invest in gold or silver, is to look at the market and decide if now is the best time to invest in precious metals.