Ideas
That Help You Achieve Your Investment Objectives
Step1
- The road to financial freedom is to
have great health so that you are in good shape
to learn.
Step
2 - An open mindset to start learning
and practicing what you have learned.
Step
3 - Investing your time in your
financial & health education so that you
are in control of your life to create wealth to
enjoy a better life.
Step
4 - Enjoy the wealth that you have
created because you have been taking care of
your health.
Life Life Success
Listen
to your inner guidance and live your life
purpose. Your mind works just like a muscle.
Just as you exercise your body, your mind
requires exercise in order to function
optimally. You were born with the infinite
ability to create and by nature you are
creative. You will learn to trust your
subconscious mind to help you to become
inspired by letting go and by doing that
which comes natural to you.
The
Investing and Stock Market Guide to
Profitable Investments.
Ideas To Help
You Build Your Fortune
How would you like to build up a pile of money for
yourself? You may be able to improve your chances of
doing this if your investment plan sticks to three
basic ideas:
1. Invest regularly.
2. Don't try to "time" the market.
3. Think long term.
Invest Regularly
By investing the same amount each month, you can build
up a solid portfolio over time. One option for mutual
fund shareholders is to enroll in an automatic
investment plan (AIP) that electronically transfers
money from a checking or savings account to a mutual
fund account.
Investing the same amount on a regular basis -
regardless of market conditions - is a strategy known
as dollar cost averaging. When prices are low, the
fixed amount you invest buys more shares of your
mutual fund. When prices are high, it buys fewer
shares. Over time, this strategy tends to reduce your
average purchase price per share.
Automatic investing allows you to invest across all
market cycles. This helps you stick to a long-term
plan, riding out the short-term market swings.
You should understand that automatic investing
requires a long-term outlook, and not everyone can
invest regularly. Automatic investing doesn't ensure a
profit or protect you against a loss in a declining
market. And it won't keep you from losing money if you
sell shares when the market is down. But investing a
fixed amount on a regular basis can help you make
steady progress toward your investment goals.
Don't Try To "Time" The Market
Trying to sell stock when you think the stock market
is at a high point and then trying to buy stock when
you think the market is at a low point is called
market timing. Realistically, there are very few
people who can time the market successfully on a
regular basis. This is why many financial experts
believe that the smartest thing the average investor
can do is invest regularly and think long term.
Think Long Term
The stock market historically has gone up, but not
straight up. Investors are reminded of this fact when
stocks go through a period of falling prices called a
correction.
Analysts measure corrections by the percentage change
in prices from their highs to their lows. Decreases of
five percent to 10 percent are called routine
declines. Historically, these may happen several times
a year. Decreases of 10 percent to 20 percent are
called corrections. These have historically occurred
about every two years. A decrease of 20 percent or
more is called a bear market. Bear markets have
happened about every three years, on average.
Investors with long-term outlooks won't be alarmed by
a routine decline or correction. In fact, a correction
is a normal part of the investing cycle. Often times,
a correction helps to remind people that the markets
go down and involve risk. However, long-term growth
investors may use it as an opportunity to buy some of
their favorite stocks at lower prices.
The advice sometimes offered to investors is
"don't get too caught up in watching the stock
market's changes from day to day." It's fun to
keep track of the stock market, but it makes more
sense to watch its returns over longer periods of
time.
The stock market has gone through many ups and downs.
In 1987, the stock market crashed, and many analysts
predicted years of poor returns. Instead, the markets
recovered and hit new highs within the next 13 months.
Of course, past performance doesn't guarantee future
results, but investors who maintained a long-term
focus have been generally rewarded by market returns.
While nobody knows where the stock market is headed,
most experts agree that stocks are one of your best
bets for reaching long-term investment goals.
By younginvestor.com
2006 (c) creditplushealth.com
Credit Plus Health By Sean Toh All rights reserved.