Monday, 4 April 2011

5 Facts New Online Investor should Know

Fact 1
Online trading provides traders a convenient way to investing in financial markets.

Fact 2
A knowledge of financial matters is necessary for online investing.

Fact 3
Every buy and sale incurs an online brokerage cost.

Fact 4
Online traders sometimes experience system outages during which there is no access to accounts.

Fact 5
Online investing is not for everyone.

Online Investment will Give financial freedom once Investor do Diligent Search.

Sunday, 27 March 2011

How to Invest Online

Investing online can be an easy way to trade stocks, mutual funds and other items once you learn how to get started. How to invest online will help you decide if it is right for you and choose the right company.

Investing online allows an individual to trade stocks without going through a traditional broker. Trades are placed with an online site that executes the trades directly. While commissions are low, the investor is not provided with the personalized investment advice that a broker can usually provide. As a result, an online investor needs to be informed enough to make educated decisions about which investments to buy and sell.

Mutual Funds are professionally managed investment funds, which invest in stocks, bonds, and other financial instruments. Mutual funds are considered "investment companies," and can take the form of a corporation, business trust, partnership, or limited liability company that issues securities. The funds are primarily engaged in the business of investing in securities.
The mutual funds have a stated objective with managers who are suppose to meet those objectives. The cost of trading and payment for managing the fund is taken out before the shareholders see their profit. Mutual funds are different from hedge funds as the SEC regulates the mutual funds with specific rules that they are required to follow.

Saturday, 26 March 2011

When is it the right time to invest in the stock market?

When is it the right time to invest in the stock market?

Investors are scared. There’s so much crisis happening in the world!”
I understand why people are scared.
First, there was chaos in Egypt. And then Libya. Some say the Middle East is like a bomb waiting to explode. Because of the turmoil there, oil prices have gone up.
And if that wasn’t bad enough, the earthquake and tsunami crushed a part of Japan two weeks ago. And the radioactive scare continues.
No doubt about it. 

People are scaredInvestors are scared

So, should you wait for things to settle down before you get into the Stock Market?

Let us Go Back 20+ years in the Philippines...
When Ninoy Aquino was shot in 1983 in the tarmac, chaos ruled the day. Demonstrations burst into the streets. The country was going to the dogs. Wealthy Filipinos fled to other countries. Our stock market crashed. But what was Smart Investor doing? As everyone was selling, he was buying shares in the Stock Market.
Every month, things got worse, and the stock market dove even lower, and everyone was ten times scared. But This Smart Investor was still buying!
But in 1986, when Cory Aquino was proclaimed President in 1986, lovely hope returned to the Philippines. And the stock market rose like a rocket to the sky. Everyone started buying.
What was the Smart Investor doing? He was doing the exact opposite: Selling and making a huge profit.
In Cory’s Presidency, there were six coup d’etat. Six rebellions! And everytime there was a rebellion, people sold their stocks. In every dip, a Smart Investor dove in and bought shares.
The worst coup d’etat was in 1989 led by RAM’s Gringo Honasan. The Stock Market collapsed again as foreigners and locals sold like crazy. And the Smart Investor was so happy. So many cheap companies to buy! And that’s what he did.
That rebellion was squashed, and people went back to the stock market. As it went up, the Smart Investor  was selling again.
He said, “You can be sure that whenever there was a crisis, I was there buying. I bought only giant companies that were earning a lot of money. Nothing was wrong with them. The only reason why their prices were going down was because everyone is scared.”

The Smart Investor wealth today was built in crisis. Not in good times. Not when everything was smooth and happy. He built His wealth when everyone was afraid.”
Don’t Let Fear Stop You
It's a wonderful time to invest in Stock Market Now. There is a crisis in the world today. 

Thursday, 24 March 2011

Truly Rich Club

I recently subscribed to the Truly Rich Club of Bo Sanchez, and the things he taught me in the first month’s batch of lessons has gotten me interested in investing in the stock market on a long-term basis.
Imagine, even Bo’s kasambahays ( House helpers) are investing P2,000 monthly in the stock market! :-)
If they keep up that monthly saving/investing for 20 years, and assuming the stock market grows at around 20%, their funds will be somewhere around P5 million.
The secret? Time value of money.
When you invest in the stock market on a long-term basis, the stock price movements will feel like little bumps on the road twenty years from now.
Although not guaranteed, if you put P2,000 in the bank each month for 20 years and you do the same in the stock market, the funds you invested in the stock market will usually be much higher than your bank account.
What does Bo Sanchez teach about investing in the stock market?
Inside the Truly Rich Club, you will have access to ebooks and audio MP3 recordings. I joined it because the long-term stock market investment approach is quite easy to understand.
Also, I’m curious about which stocks Bro. Bo buys or sells, and when does he buy or sell.
In other words, wouldn’t you want to duplicate Bro. Bo’s stock market experience?
The question is: Where do you find P2,000 to invest monthly?
First of all, you’re not limited to investing only P2,000 a month. If you’re earning more than the kasambahays of Bo Sanchez, and if you’re able to save more than they each month, then definitely you can invest more than P2,000 monthly.
Still, you might want to maintain a certain lifestyle, or you might be wondering how you can set aside at least P2,000 a month for your Retirement Fund…

How To Make Money From The Internet

Would you like to discover how to make semi-passive income from the internet? Would you like to also know how Pinoy bloggers sow webpages online, and the harvest and reap the benefits while they sleep?
Here’s the deal:

click here on How to Join and Learn more about Stock Investments

Saturday, 19 March 2011

Online Investment Broker

Considerations before starting online investments

Comprehensive and up to date Research

Constant Innovation

                                                            Low commision rate

Providing the highest possible standards of customer service

Website is easy to use, quick and reliable

  1. Comprehensive and up to date Research
  2. Constant Innovation
  3. Low commision rate
  4. Providing the highest possible standards of customer service 
  5. Website is easy to use, quick and reliable.  

Investment Tools

Linking your account(s) to your goals allows you to create a savings plan towards your long-term and short-term goals. It will then track and chart your progress so that you can make sure your investments are on track with meeting your goals.

Review your current portfolio to see how your portfolios are diversified by asset class (cash, equities, etc.), geographic region, sector (such as energy or telecom) and holdings concentration. You can also view the risk vs. return qualities of your portfolios.

Compare a portfolio that you have linked to your goal against a standard investor profile or index to see if your asset allocation and risk vs. return are in line with your investment objectives.

See how changing your holdings using your own sample transactions affects your portfolio before you decide to buy or sell in the market. You can act on the ideas you generate, test them out in your Practice Account or save them for future reference.

Review your investment plan’s rate of return under various market conditions to ensure that you're on track to reaching your investment goals. Using the Performance Tool, you can evaluate your portfolio's rate of return and compare your portfolio's performance against various benchmarks—including indices or a chosen rate of return.

Investing Online

Investing online

Investing online, or self-directed investing, has become the norm for individual investors and traders over the past decade with many, if not all brokers now offering online services with unique trading platforms.

In the past, investors had to call up their brokers and place an order on the telephone. The broker would then enter the order in their system which was linked to trading floors and exchanges.

With the advent of the internet, investors can now enter orders directly online, or even trade with other investors via electronic communication networks (ECN). Some orders entered online are stillrouted through the broker allowing agents to approve or monitor the trades. This step assists in the protection of both the client and brokerage firm from unlawful or incorrect trades which could affect the client’s portfolio or the broker’s license.

Online brokers are most often referred to as discount brokers, due to their lower fees as opposed to full service brokers who also give advice to clients.

Before choosing to invest or trade online it is important for investors to research the online brokers that they plan to employ, assuring that they are licensed within their state or provincial jurisdiction. This step will help to protect investors from falling victim to unlawful or illegal securities schemes (e.g. Boiler Room scams). The USA Federal Government provides practical tips to avoid investment scams via their OnGuard Online website. One tip is "Don't believe everything you read in online newsletters, investing blogs, or bulletin boards. Fraud artists often float false information and "hot tips" as part of their efforts to rip-off investors or manipulate the market for a particular security." They also advise that one "Turn to unbiased sources when researching investments, such as the U.S. Securities and Exchange Commission (via their EDGAR database), your state securities regulator, and securities industry self-regulatory organizations (including the Financial Industry Regulatory Authority (FINRA), Amex, and Nasdaq)." [1]

Investors must also fully understand the potential risks of investing without the help of a trained Stock Broker or Investment Advisor. These professionals are experienced both in trade and education and forgoing their advice could be costly. For this reason, most online brokers offer a number of investment tools.

Once the above two steps are complete it is dually important to research the sector, business and financial statements of each company whose stock they plan to purchase. This, along withdiversification and basic portfolio theory, will assist to mitigate some of the risks associated with the volatility in both the stocks and the stock markets.

Once investors have chosen an online brokerage that best suits their needs, they will be provided a trading platform. This platform acts as the hub, allowing investors to purchase and sell securities(fixed income and equities), options, mutual funds, and foreign exchange. Included with the platform are tools to track and monitor securities, portfolios and indices, as well as research tools, real-time streaming quotes and up-to-date news releases; all of which are necessary to trade profitably. Often, more robust research tools are available such as full, in-depth analyst reports and analysis, and customized backtesting and screeners to see how particular investment strategies would have been realized during different historical periods.

Some of the popular online brokers include: E*Trade, Scottrade, TD Ameritrade, and Fidelity. Schwab is an example of a hybrid broker combining a traditional, brick-and-mortar brokerage house with discounted trading online, with the usual benefits of both available to customers. Commissions vary from broker to broker, depending on the services included with the account. Some lesser known online brokers are Forex, Interactive Brokers, Lightspeed, Marsco, optionsXpress and Zecco.

This article does not cite any references or sources.

Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2010)

^ OnGuard Online - Online Investing
[edit]External links
Addressing the risks in online stockbroking - UK FSA (Financial Services Authority)
EDGAR database - U.S Securities and Exchange Commission

Categories: Investment