There are a few very essential ideas that you must understand before you consider investing in the stock market. If you do not understand these ideas or do not know of their existence, then you are already at a disadvantage. The following list is what you must always keep in mind when trading/ investing/ whatever you call it.

1. The stock market is controlled by two emotions: Greed and Fear (If it feels like you have heard this before, it’s because it is true and not because people keep copying what others say.) Greed can cause you to wipe away any chance at profit or simply reduce the possible profits you had at one point. The same can be said with fear. It will cause you to sell for a loss, sell too early, and stay on the sidelines for too long. I’ve fallen victim to both of these multiple times. I hope I have learned my lesson by now, but hope is not something you should use when investing. Read the rest of this entry »

Stock/Share is the money invested in the company/industry for business purposes. Even if you invest a small amount of money in a company’s stock, you partly become the owner of that company. Consequently the loss or gain of the company is yours.
For the investment in stock it is necessary to study a lot about the company and the economy of the country. The advice by the broker or the investment company must be given due consideration. However the final decision to invest money in the particular company should be yours. Read the rest of this entry »

Have you ever wondered why some individuals are able to trade stock options so confidently and effectively? Besides having the basic knowledge of how the stock market works, identifying the trend direction, possessing the right attitude and knowledge of what are the “Greeks” and understanding how they work, will reduce the risk in trading stock options tremendously. To become a successful stock option trader or investor, we all have to start from the bottom and work our way up by learning the basics of stock options.

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Here are 10 pain free ways to add a little “umph” to your lifetime net worth:

#1 Automate!
You can save a lot more than you think when you’re not thinking about it. Stowing away a few dollars every pay check can add up to ton over time, especially if this money goes into an interest bearing account, an investment account or an employer-matched retirement plan. Set up automatic deductions and transfers to painlessly and unconsciously pay yourself first.

#2 Stop the Bleeding.
Let’s face it. Nobody wants to pay fees and interest. They honestly do no one any good but your mean, evil debtor. Late fees, especially, make the angels cry. So put your bills on an automatic monthly payment system. Take cash back options at the grocery store instead of using ATMs. Have your bank email you overdraft warnings if you need them and use a snowball method to pay off high interest debt. Don’t fall for usurious scams like payday lending or tax refund advances. If you are extra ambitious and have the cash to spare, find out if your mortgage lender accepts pre-payments penalty free and consider making at least one extra payment a year. You may end up saving hundreds of thousands of dollars in the long run.
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The only way to truly save money painlessly is to not have to give anything up to do so. So how exactly do you go about doing that? Well it might sound all but impossible, but it’s actually quite easy, you just have to put your thinking cap on and be willing to think a little outside the box. The following are some great ideas, hopefully they will get you brainstorming and you’ll come up with even more ways to save money without making huge sacrifices.

Slash utility bills-you might not want to go without air conditioning, heating or the myriad of appliances your use on a daily basis and you don’t necessarily have to in trying to save money. One of the best ways to save money on utilities is to harness the power of nature. You could collect rainwater in a tank to slash water bills, or install solar panels for free electricity. Although these installations will involve an initial outlay they will enable you to save money in the long run painlessly.
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A portfolio is a group of financial assets such as stocks and bonds, held by an investor. In today’s financial marketplace, investors need to create well-structured portfolios that suit to their investment goals and strategies. There are investors who are risk-takers and investors who are risk-averse. Constructing a portfolio that reflects the investor’s risk profile and tolerance is a key factor for effective investment decision making.

Clarifying current situation and future needs for capital, along with risk tolerance determines the asset allocation among different asset classes. Optimal asset allocation is an effective method of diversification. Investors should diversify between different classes of assets but also, within each class. This allows them to incur long-term investment growth, while their assets are protected from the risks of large declines and structural changes in the economy over time.
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