Online Investment - Everyday Heroes
Ever since stock investment was introduced, traders used to visit clumsy and ‘fish market’ like stock market, where they needed a broker to accompany them for trading in stocks. But, as time goes by, a technology has proved to be a turning point in the stock trading and so does it has affected the perception about the stock market. The introduction of online investment has aroused just like a hero that is going to stay for long. Rather saying that online trading has totally transformed the world of stock trading would not be an understatement.
Talking so much about online trading, undoubtedly the advantages take the lead.
Speedy transactions: major advantage of online investments is their speed at which the transactions can be executed. Just a click and trader end up buying as many shares as he wants. Another click may let him make transaction with other traders.
Easy execution and meagre formalities: for executing any business, trading online is the easiest way. No more tedious paper works and no more cash payments. There are not many formalities to be followed to register for online trading. Because of less paper work and online bank transfers the trading gets really easy. However, it posses easy accessibility due to the growth of Internet even for the people who live in the small towns.
Easy accessibility and comfort: it provides the benefit of sitting at home transaction. Traders need not to travel to stock exchange for their trading. All they need is the computer and their registration with online trading firms by paying meager amounts.
Secured trading: the sites providing the facilities of online trading are totally secured and do not let any illegal passage of account information. The security with passwords and other software provide a sense of relaxation and reliability among the (more…)
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How to Create a Passive Income
Imagine having a life where we have to work only once and the money keepcoming inagain and again, weeks after weeks, months after months. This, in a nutshell, is what the concept of Passive income is all about.
It is thebest income in the world because it comes in automatically, without any major involvement on our part.(Although we have to do the initial hard work for generating it).
Here we discuss some of the ways of generating Passive income.
1)Real Estate
When one has a piece of Income producing Real Estate (One which you own and have given out on rent), then it can be considereda superbsource of income. This is becausethe tenant would be working to run his business and he would be payingthe landlorda fixed rent on a monthly basis just for usingthe property. Initial Work Required: -Investment in property andfurther modifications, if required, based upon which it can be leased out to prospective tenants.
2)Fixed Deposits in Banks
Just imagine having a million USD inafixed deposit in your bank, from where you earn a minimumof 10% per annum. That makes it USD 1, 00,000 peryear or close to USD 8000/- per month,And the best part is that youare not even working to earn that USD 8000/-You are free to do other things while the money comes in. (Though in the above point, we have taken a million dollars just as an example, but it applies to small sums of money as well). Initial Work Required: - One needs to work and generate sizable savings in his bank prior to investing in a bank deposit.
3) Network Marketing
This is based upon the fact that, more the number of business associatesone has, more is the business volume generated and more is the possibility of generating royalty income / passive income. Oncea person isable to build a str (more…)
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US Companies Continue to Cut Their Profit Estimates
The latest Bloomberg poll shows that Wall Street expects negative earnings growth in the forth quarter of this year and the first quarter of the next year.
Several fresh examples of weakened profit pictures:
FedEx lowers its 2008 earnings forecast to $4.75 per share per share for the fiscal year ending in May.
Texas Instruments and Danaher also said that their profits will be lower than previously thought.
Texas Instruments, the second largest US chipmaker, says the fourth quarter revenue is expected between $2.3 billion and $2.5 billion (previous range was of $2.87 billion and $3.07 billion). Company said it expects fourth quarter EPS of $0.1-$0.16, compared with previous range of $0.30-$0.36 (analysts were looking for $0.31 figure). If the revenue drops below the lower end of the forecast, it would be the lowest 4th quarter revenue since 2002. Ron Slaymaker, a company vice president said that revenue will also fall “significantly” in the first quarter, although not as steeply as in the fourth quarter.
With companies cutting estimates analysts are doing the same. Last month Goldman Sachs said it expects S&P companies to earn $53 per share next year, that’s down from $78 estimate in April. It’s much lower than industry analysts expect (average estimates are $74 for the current year and $83 for the next year).
If we continue to see profit estimates to come down, it’s a big question what it’s going to be in future with the stock market. If S&P stays around 900, that would suggest 2009 P/E ratio of 17, Goldman Sachs estimates suggest P/E of more than 20. It’s, actually, usual for US stock market level of P/E ratio when the crisis is not around. But is it ok for crisis time? We will investigate the situation further in our articles, so stay tuned.
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Common Investing MistakesInvestment mistakes are costly. If you are able to avoid the investment mistakes listed below, you would already find yourself in the top one percent of all investors. Investment Mistake: Buy and Pray Most investors have an inverted investment mentality. They cut their gains short and run their losses long. This mentality derives from the basic tendency to avoid losses. Whenever a stock moves against them, investors tend to want to avoid realizing their mistakes, and resort to the ‘buy and pray’ approach to investments. They pray and hope that the stock will soon rise in value again so they can recoup their losses. On the other hand, many investors do not hesitate to cut their gains short, as even a small gain would make them ‘right’. They would have made the right decision since they would make a profit, no better how small. You need to reverse this natural tendency to succeed as an investor: instead seek to cut losses once they have reached a certain point, and let your profits go long as far as possible. Investment Mistake: The Herd Mentality The crowd doesn’t know best - you do! Unfortunately, most people are stuck to the herd mentality: if everyone is buying, buy; if everyone is selling, sell. This is especially true in the midst of a speculative bubble. Especially when everyone seems to be boasting about the profits he is making, it is difficult for you to discipline yourself and believe in looking at the intrinsic value of the stock. Yet, the contrarian view often works better. When even your waiter is offering stock tips, that’s the time when you should be careful and look towards starting to sell. When everyone is complaining about being burned by the market, that’s when the true bargains are starting to emerge. Investment Mistake: Forgetting costs Do note that the higher t (more…) This Article was brought to you by: |