Jun 14

Posted by: Janet Schlarbaum
Author: James Mcinnes

Investments these days can be made all over the world. Through the use of computers and the internet, the investor can buy property in any country in the world (subject to local laws) and they can buy shares and stocks in any country in the world.

The main considerations are the return on their investment and the relative risk associated with currency markets and the economic conditions within the country of choice.

For the investor that is starting out in their investment life, it would be wise to keep their investment in the home country of choice. There are lots of facilities that allow investors to invest overseas using home grown investment vehicles.

Professional investors prefer a mix of local shares and property as well as a good mix of overseas shares and property investments. This can be achieved through the use of an investment advisor who has access to information on companies that have the structure in place. Units or investment shares can be bought in these companies to give exposure to all aspects of internal and external investment portfolios.

Companies that specialize in a mix of investments are well informed on potential returns and offer information for the investor to assist in decisions that will determine their choices.

The investor should evaluate several of these investment companies and the products they offer. Look at historical data and returns to judge the potential outcome.

If the investor is looking to invest in one particular growth area such as mining or the finance sector, tailor made portfolios can be put together to match the investor profile for risk and expected returns.

Jun 14

Posted by: Janet Schlarbaum
Author: Clive Chung

What is your strategy of stock trading? How do you pick stocks in which to invest? Do you take tips from the brokers on TV or do you listen to your friends? When you find an option you like, how do you decide when to buy it? More importantly, how do you determine when to sell? Do you feel enough if it makes a fast 10 percent gain? Do you buy more if it drops 50 percent? How many securities do you hold at a time? What percentage of your portfolio do you keep in cash? When does that change?

These decisions are what makes up your investing strategy.

A trading strategy is simply a plan for attaining a goal. A basketball coach would not think of starting the next game without a strategy. A general makes a strategy for winning a war. And who in this world would start a business without having several strategies at hand? At a minimum, you would need a strategy for developing your products, and a strategy for marketing them.

Stock trading is one of the most important action of many people’s lives, investing definitely needs a plan. First, we must have a plan for selecting our investments. Second, we must have an a strategy for managing our portfolio, a strategy that tells us how much of our portfolio should be in cash and how much in securities, how many stocks or funds it should hold, and how much diversification it should have with regard to industries and sectors.

Why do we need all these strategies? It is because investing is not intuitive. In fact, it is counterintuitive. For example, our intuition tells us to stay out of a bear market. But if everyone is bearish, that’s the time to buy. Why? Because when the market is at an extreme low, everyone who is going to bail has already done so. Therefore, the market is most likely to rebound. But that’s counterintuitive. And so is a raging bull market that’s at an extreme high.

When the kid who washes your car talks about day trading on the side, as we personally witnessed at the height of the dot-com craze, it’s time to sell. When everyone around you seems to be getting rich in the market, it is a natural impulse to want to get in on the action. But with everyone already in the market, there is no one left to drive it higher.