Accurate data is very important to making good business plan. Therefore, the release of data from an institution so long awaited by businesses, including investors.
The emergence of the U.S. GDP data release on Friday may give directions guide the movement of financial markets, as investors seek guidance signals from the country that still gives a mixed signal. While the GDP data is considered as guidelines that likened see previous events, traders hope that this report can be a road map for the momentum that will emerge in the second quarter.
Jobs data itself is still a major concern after data showed the weakness in March that the non-farm payroll numbers that come up with half of number that appears in February. An increase in weekly unemployment claims provided by the weak increase of 120,000 jobs in March, has raised fears for the strengthening of the non-farm payrolls in April, which will be released next week. Jobless claims are at levels higher than Thursday, which appeared in number 388 000, beyond expectation of 375,000.
Meanwhile, from Europe, S & P cuts debt rating of Spanish
Standard & Poor's 500 cut its debt rating of Spain as much as one level of A to BBB +. S & P argued that Spain should continue to provide fiscal support to the banking sector as the contraction in their economy. In addition, S & P also lowered the short-term debt rating of Spain from A-1 to A-2. As for the outlook of this debt ratings is negative.
Just information, the burden of the cost of debt term of 10 years Spain has jumped about 70 basis points so far this year. This causes the Prime Minister Mariano Rajoy hard to convince investors about the Spanish economy, in the midst of high unemployment and a contraction in the economy.
S & P saw Spain's budget will continue to be eroded amid the economic contraction that occurs. At the same time, they also see that the Spanish government will be poured even more fiscal support to the banking sector. As a consequence, there will be an increased risk in Spain.
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Friday, April 27, 2012
Wednesday, April 18, 2012
Nokia Gets Junk
Earlier this week Nokia has received bad news. Monday (16/4) world class rating agency, Moody's Investor Services to downgraded the Finnish company. Moody's decision exactly the same as Standard & Poor's who downgraded Nokia in March.
Nokia was forced to slam its investment rating to below the level of junk. Details in the trim from Baa2 to Baa3. A fairly sharp decline is the reason for Moody's gave this rating. Nokia's stock performance listed the worst in 15 years.
Nokia's efforts to make the transition with Microsoft Corp. failed to embrace the view of Moody's ward. Reasonable this is happening, given that last year the former king of the mobile phone also did not release many products. Last year Nokia introduced its new smart phone product named Lumia. Nokia is difficulty competing with the iPhone and Android.
Nokia was forced to slam its investment rating to below the level of junk. Details in the trim from Baa2 to Baa3. A fairly sharp decline is the reason for Moody's gave this rating. Nokia's stock performance listed the worst in 15 years.
Nokia's efforts to make the transition with Microsoft Corp. failed to embrace the view of Moody's ward. Reasonable this is happening, given that last year the former king of the mobile phone also did not release many products. Last year Nokia introduced its new smart phone product named Lumia. Nokia is difficulty competing with the iPhone and Android.
Friday, February 10, 2012
the Benefits of Stock Index
After knowing what the index is, then we also need to know the benefits of the index, in particular stock index. Here are the stock index benefits.
Index as a benchmark of investment evaluation
the Capital and financial market index are indicators of changes that give you an idea of what is happening in the market. Thus we can answer the critical questions posed at the beginning of this post. Armed with the index, which is an objective measure as a reference or comparison of investment results have been obtained, then the success or failure of an investment strategy can be measured objectively.
We can see each issuer's stock price. From there it will look stock which has increased or decreased within a specified period. If we have stock that rose above the composite stock index, then we have a great success in our stock investment.
Index as a Tool for Investment Monitor
Investors should not wait until the end of the year to evaluate its investment activities. Because index is also an effective indicator to help investors in monitoring the investment. If an investor diligently observe the stock index every month and always compare the price of the shares was holding in the period, then he will know whether the growth of investment in shares which he held down continuously below the average stock price traded at the exchange or actually rose.
On the other hand, if in one period of the composite stock price index continued to rise consistently seen, a rise in the index was show how many other stocks whose prices rose sharply and the number of gains. Armed with the information presented by the composite stock index so that investors may start looking for other stocks that caused the stock price index rises. The trick is to find a list of stocks that were included in the calculation of the composite stock index movements and observe stocks that have a big impact on the movement of the composite stock index.
From the analysis of stocks that are members of the calculation of composite stock price index, the investor will find other stocks that could potentially provide benefits. And it is not impossible that investors can make the decision to sell their shares and buy other more profitable shares. From the analysis, we can invest wisely.
Index as a benchmark of investment evaluation
the Capital and financial market index are indicators of changes that give you an idea of what is happening in the market. Thus we can answer the critical questions posed at the beginning of this post. Armed with the index, which is an objective measure as a reference or comparison of investment results have been obtained, then the success or failure of an investment strategy can be measured objectively.
We can see each issuer's stock price. From there it will look stock which has increased or decreased within a specified period. If we have stock that rose above the composite stock index, then we have a great success in our stock investment.
Index as a Tool for Investment Monitor
Investors should not wait until the end of the year to evaluate its investment activities. Because index is also an effective indicator to help investors in monitoring the investment. If an investor diligently observe the stock index every month and always compare the price of the shares was holding in the period, then he will know whether the growth of investment in shares which he held down continuously below the average stock price traded at the exchange or actually rose.
On the other hand, if in one period of the composite stock price index continued to rise consistently seen, a rise in the index was show how many other stocks whose prices rose sharply and the number of gains. Armed with the information presented by the composite stock index so that investors may start looking for other stocks that caused the stock price index rises. The trick is to find a list of stocks that were included in the calculation of the composite stock index movements and observe stocks that have a big impact on the movement of the composite stock index.
From the analysis of stocks that are members of the calculation of composite stock price index, the investor will find other stocks that could potentially provide benefits. And it is not impossible that investors can make the decision to sell their shares and buy other more profitable shares. From the analysis, we can invest wisely.
Know the Index
In a certain period of time we should review and evaluate investments that we have. Various events - both positive and negative - will ultimately affect the level of investment returns earned by investors.
A variety of critical questions to be answered so that investors really know whether the investment has been effective or not. Some questions to ask include: What is my return on investment is sufficient? How effective investment strategies that have been executed? From the answers obtained, investor will know that their investment strategy still on the right track or not. Thus investor will have a solid basis for better investment decisions in the future.
To answer these questions it would need a benchmark or reference to the objective as a comparison of the returns from investing activities was run. One of the measurement tools of objective comparison is already available in the market and can be accessed by investors : index. Yes index, let us discuss more about the index in terms of investment.
Know the Index
In capital markets and finance, we know the term stock index, although index is not monopolized by stock market, but also used in many other markets such as index funds at the bond market and the forex market. It is actually not surprising because the first index is used in finance and capital markets namely the stock index.
Charles H. Dow - a financial pages journalist - is the first person to introduce the use of index to monitor the prices of American stocks in 1896. The introduction of the index was the forerunner of the Dow Jones Industrial Average (DJIA) aka dow jones index, a stock price index is referred to by many of the world's financial players to date. Other popular index is nikkei index .
The index itself is a statistical indicator that shows the size change of a particular object. Stock index will give an overview of the size of price changes in the stock market in a given period. An overview of how large the bond market moves up or down can also be obtained by observing the size of the change in bond price index figures. An index number is generated from a series of calculations to link today's prices with prices in the days before, so it indicated that the price today is higher or lower than the previous day.
By combining the methodology of calculation of index with a choice of capital markets and financial instruments are included in the calculation, then the index is expected to provide an accurate picture of market conditions and direction of movement of the cutting edge of an investment instrument.
A variety of critical questions to be answered so that investors really know whether the investment has been effective or not. Some questions to ask include: What is my return on investment is sufficient? How effective investment strategies that have been executed? From the answers obtained, investor will know that their investment strategy still on the right track or not. Thus investor will have a solid basis for better investment decisions in the future.
To answer these questions it would need a benchmark or reference to the objective as a comparison of the returns from investing activities was run. One of the measurement tools of objective comparison is already available in the market and can be accessed by investors : index. Yes index, let us discuss more about the index in terms of investment.
Know the Index
In capital markets and finance, we know the term stock index, although index is not monopolized by stock market, but also used in many other markets such as index funds at the bond market and the forex market. It is actually not surprising because the first index is used in finance and capital markets namely the stock index.
Charles H. Dow - a financial pages journalist - is the first person to introduce the use of index to monitor the prices of American stocks in 1896. The introduction of the index was the forerunner of the Dow Jones Industrial Average (DJIA) aka dow jones index, a stock price index is referred to by many of the world's financial players to date. Other popular index is nikkei index .
The index itself is a statistical indicator that shows the size change of a particular object. Stock index will give an overview of the size of price changes in the stock market in a given period. An overview of how large the bond market moves up or down can also be obtained by observing the size of the change in bond price index figures. An index number is generated from a series of calculations to link today's prices with prices in the days before, so it indicated that the price today is higher or lower than the previous day.
By combining the methodology of calculation of index with a choice of capital markets and financial instruments are included in the calculation, then the index is expected to provide an accurate picture of market conditions and direction of movement of the cutting edge of an investment instrument.
Monday, January 30, 2012
Tips to Diversify Portfolio to Get Higher Yields
If you want to avoid potential losses that occur in your stock portfolio, then you must adhere to the principle of property investors, namely 'location, location, location'.
Mean, do not spend your money in one location that is stock, but do diversify by placing funds in the various layers of the stock. Diversification is the ammunition for financial planners, financial managers and the individual investors.
Since we do not know exactly when the market goes up or when to fall, then diversification is very important to do. Diversification is not a new concept, this practice has been done since long time ago.
If you have a well diversified portfolio, then no need to worry anymore whether the market trend is up or down. Here are five things that might help you in the process of diversifying your portfolio. Investment tips to get higher result
1. Consider mutual funds and bonds
Consider investing in mutual funds and bonds, in addition to diversification, you also widen the investment portfolio. Or it could also look for investments with a fixed income, so you can protect a portfolio from stock market pressures that often up and down.
2. Spread your money
Capital markets is the perfect place for growing stock, but do not place your money in one sector or stock. Design your own portfolio containing a variety of companies that you know well can be trusted and likely last a long time.
By knowing the company whose stock would you buy then the risk of investment is getting smaller. Even if there are losses, usually can be predicted in advance.
3. Keep Add your portfolio
Enlarge your investment portfolio regularly. Although the value added is not too big, no problem because little by little for long become the hill. It also can be done to fight market conditions that is very volatile. If you are accustomed add value to a portfolio, you will no longer care whether the market is bearish or bullish.
4. Notice the Broker Commission
If you are not the type who frequent trading, you need to know how much it costs to be paid for brokerage commissions. Some securities are requesting the commission monthly, while others are paid per transaction. Note the amount you should spend on this, what expenses and how income from the yield. Remember, the cheapest is not necessarily the best.
5. Know the time to get out
Buying and holding shares to some extent it seems a good strategy, but not necessarily with that automated system like this, you just stay quiet. Keep monitor market movements and the situation of the sector and shares that you hold. That way, you'll know when it's time to get out for a while.
Conclusion:
Do not put all your eggs in one basket. Investing can even become a fun thing. In addition, investing also provides experience, information and results are worth it. By learning the discipline to diversify your investment portfolio, you will get higher yields.
Mean, do not spend your money in one location that is stock, but do diversify by placing funds in the various layers of the stock. Diversification is the ammunition for financial planners, financial managers and the individual investors.
Since we do not know exactly when the market goes up or when to fall, then diversification is very important to do. Diversification is not a new concept, this practice has been done since long time ago.
If you have a well diversified portfolio, then no need to worry anymore whether the market trend is up or down. Here are five things that might help you in the process of diversifying your portfolio. Investment tips to get higher result
1. Consider mutual funds and bonds
Consider investing in mutual funds and bonds, in addition to diversification, you also widen the investment portfolio. Or it could also look for investments with a fixed income, so you can protect a portfolio from stock market pressures that often up and down.
2. Spread your money
Capital markets is the perfect place for growing stock, but do not place your money in one sector or stock. Design your own portfolio containing a variety of companies that you know well can be trusted and likely last a long time.
By knowing the company whose stock would you buy then the risk of investment is getting smaller. Even if there are losses, usually can be predicted in advance.
3. Keep Add your portfolio
Enlarge your investment portfolio regularly. Although the value added is not too big, no problem because little by little for long become the hill. It also can be done to fight market conditions that is very volatile. If you are accustomed add value to a portfolio, you will no longer care whether the market is bearish or bullish.
4. Notice the Broker Commission
If you are not the type who frequent trading, you need to know how much it costs to be paid for brokerage commissions. Some securities are requesting the commission monthly, while others are paid per transaction. Note the amount you should spend on this, what expenses and how income from the yield. Remember, the cheapest is not necessarily the best.
5. Know the time to get out
Buying and holding shares to some extent it seems a good strategy, but not necessarily with that automated system like this, you just stay quiet. Keep monitor market movements and the situation of the sector and shares that you hold. That way, you'll know when it's time to get out for a while.
Conclusion:
Do not put all your eggs in one basket. Investing can even become a fun thing. In addition, investing also provides experience, information and results are worth it. By learning the discipline to diversify your investment portfolio, you will get higher yields.
Wednesday, December 14, 2011
What is investment strategy can do in 2012 ?
The main purpose of investment is to maintain and possibly increase a person's level of wealth.
In addition to avoiding loss of capital preservation, the main consideration is to beat inflation investing. Because inflation eroded the purchasing power that effectively reduces prosperity. Based on these two considerations, both gold and stocks proven to beat inflation.
The price of gold is very volatile at this time. The rise in gold prices expected as a result of central bank actions of developing countries to diversify their foreign exchange reserves by reducing the dollar. With the gold price volatility is high enough, the prospect of the gold price will very depending on whether there is excess liquidity or not.
with current conditions, it is likely the Fed will be more careful poured liquidity due to already high growth of money supply. Meanwhile, liquidity needs for re-financing the debt would create an international interest rates move up.
With these considerations in mind, gold has more competitors. However, based on consideration of capital preservation and inflation protection, the issue is not gold OR stocks but gold AND stocks. Diversification is necessary for the moment, besides of course prudence in investing.
In addition to avoiding loss of capital preservation, the main consideration is to beat inflation investing. Because inflation eroded the purchasing power that effectively reduces prosperity. Based on these two considerations, both gold and stocks proven to beat inflation.
The price of gold is very volatile at this time. The rise in gold prices expected as a result of central bank actions of developing countries to diversify their foreign exchange reserves by reducing the dollar. With the gold price volatility is high enough, the prospect of the gold price will very depending on whether there is excess liquidity or not.
with current conditions, it is likely the Fed will be more careful poured liquidity due to already high growth of money supply. Meanwhile, liquidity needs for re-financing the debt would create an international interest rates move up.
With these considerations in mind, gold has more competitors. However, based on consideration of capital preservation and inflation protection, the issue is not gold OR stocks but gold AND stocks. Diversification is necessary for the moment, besides of course prudence in investing.
Friday, December 2, 2011
How to Invest at the Deficit Condition
Under any circumstances we should always try to keep investing in order that we can maintain and even enhance the lifestyle of today and tomorrow, also in order to achieve future financial goals.
In other words, investment is mandatory for those who do not want their purchasing power to be reduced in the future.
The problem that may occur are:
1. Do we have a sufficient portion of the money to invest? or,
2. What if in fact we do not have a portion of investment?, or the worst conditions,
3. We tend to run into deficit (lack of money)?
For the first and second problems, the wise solution is to perform the efficiency of expenditure. Do it with a minimum target of 10 percent of expenditures. Efficiency in question is rescheduling expenditure which is 'convenience'. Efficiency is done as much as possible for example of the use of cars every day changed to once a week. Use mass public transport or using a bicycle to work. Remember the investment objective is to delay the pleasure and comfort at this time (not eliminate it) but get a much bigger in the future.
We may still need to sacrifice more to cut the amount of expenditure to be cut more significantly, its implementation should be done with extra hard, and certainly with a sacrifice. Saving electricity consumption, air conditioner and/or heater, watch tv shows only at certain hours, etc..
We must change our mindset with only considers that our income by 90 per cent of the total funds received each month. Target expenditure amounted to a maximum of 90 percent so the remaining 10 percent is the value we have to pay as an appreciation for the benefit of our future and beloved family.
The third problem is the heaviest of the two previous cases, the answer is the same as in the case above, but also must be added to see the whether there is productive assets that can be optimized (viewed from the economical). In terms of seeing whether there is an asset that can be optimized financially then we must think clearly so that the action taken can truly meet our needs for investment.
Next after you make an evaluation and it still has assets that can be 'economically empowered' then do not waste too much time to do it, act immediately. If you have a room that is empty (or emptied) in your home, you can start a business. There are many options to create a home industry. There are many people who started the success from the kitchen or even the garage of their home!
In this case you start to do business in the real sector, the ability of management or business management is a primary key. So consider this issue carefully. This business goal is to not add to the deficit but reduce it so that the deficit eroded until exhausted.
The next question is from where the money I spend on capital, my condition is deficit. How is it possible? The first answer is Change your mindset! You are not alone. There are many people whose condition is far worse than you but still successful. Use of bank lending facilities, guaranteed your property, take a business loan with minimum interest count. The move will leverage your personal assets growth.
Once the business starts rolling then use the results of your business optimally by dividing some of the results to do business in the financial sector, for example buy stock, bond, mutual funds, or purchase of gold. Up to this point you've started to build an investment portfolio that is accumulated from your investments real and the financial sector. This means that you have started to diversify the business. Thus your business failure risk factor becomes less and this means the potential addition of your assets to grow.
In other words, investment is mandatory for those who do not want their purchasing power to be reduced in the future.
The problem that may occur are:
1. Do we have a sufficient portion of the money to invest? or,
2. What if in fact we do not have a portion of investment?, or the worst conditions,
3. We tend to run into deficit (lack of money)?
For the first and second problems, the wise solution is to perform the efficiency of expenditure. Do it with a minimum target of 10 percent of expenditures. Efficiency in question is rescheduling expenditure which is 'convenience'. Efficiency is done as much as possible for example of the use of cars every day changed to once a week. Use mass public transport or using a bicycle to work. Remember the investment objective is to delay the pleasure and comfort at this time (not eliminate it) but get a much bigger in the future.
We may still need to sacrifice more to cut the amount of expenditure to be cut more significantly, its implementation should be done with extra hard, and certainly with a sacrifice. Saving electricity consumption, air conditioner and/or heater, watch tv shows only at certain hours, etc..
We must change our mindset with only considers that our income by 90 per cent of the total funds received each month. Target expenditure amounted to a maximum of 90 percent so the remaining 10 percent is the value we have to pay as an appreciation for the benefit of our future and beloved family.
The third problem is the heaviest of the two previous cases, the answer is the same as in the case above, but also must be added to see the whether there is productive assets that can be optimized (viewed from the economical). In terms of seeing whether there is an asset that can be optimized financially then we must think clearly so that the action taken can truly meet our needs for investment.
Next after you make an evaluation and it still has assets that can be 'economically empowered' then do not waste too much time to do it, act immediately. If you have a room that is empty (or emptied) in your home, you can start a business. There are many options to create a home industry. There are many people who started the success from the kitchen or even the garage of their home!
In this case you start to do business in the real sector, the ability of management or business management is a primary key. So consider this issue carefully. This business goal is to not add to the deficit but reduce it so that the deficit eroded until exhausted.
The next question is from where the money I spend on capital, my condition is deficit. How is it possible? The first answer is Change your mindset! You are not alone. There are many people whose condition is far worse than you but still successful. Use of bank lending facilities, guaranteed your property, take a business loan with minimum interest count. The move will leverage your personal assets growth.
Once the business starts rolling then use the results of your business optimally by dividing some of the results to do business in the financial sector, for example buy stock, bond, mutual funds, or purchase of gold. Up to this point you've started to build an investment portfolio that is accumulated from your investments real and the financial sector. This means that you have started to diversify the business. Thus your business failure risk factor becomes less and this means the potential addition of your assets to grow.
Monday, October 17, 2011
How to invest wisely: investing tips for beginners
Preaching about the loss of customer funds, bulging investment and accounts burglary in some of the media make us afraid to invest. And also many clients who suffered investment losses as a result of improper practices of unscrupulous financial practitioners. Is it necessarily make us decide not to invest? Fear of investing! Why?
Nothing in this world that is free of risk. There are no conditions that will always be in line with expectations and desires. You may say, then what? what should we do? The answer is: Stay invested (Keep Investing)
Investment planning
Investment can be planned, even had to be planned. Investment planning process is the one that became the starting point where your investment will lead to success or failure. what is investment planning? Investment Planning is a process of how you accumulate assets and regular income that you have today to prepare for funding requirements that will happen in the future.
What are the funding needs in the future? Education your child's school, where they will continue to university, the preparation of your pension, your sons and daughters weddings and other financial obligations that will arise in the future, that things become a necessity in your future. Financial obligations in the future are certain to happen, you can not resist and escape.
The next question, Does Investing Is the Best Choice? Yes, as long as you do proper planning then the investment is the best option.
Here are some steps you can take when planning to Invest:
1. Determine goal / purposes of your Investment
You must determine what your investing goals is. Does the funds you invest only for safety (hedging), to get a regular income (cash flow routines) or you expect a development fund (growth). Once you have established which you choose your investment will be run according to your choice. Many people when investing, do not know their goal. Generally they invest because they see or hear their friend make a profit and then tried to snap out of it.
2. Know your investment risks
Each investment must contain risk. No investment is risk free. But you must remember behind every risk there must be a profit. Risk and profit go hand in hand.
High risk must have high gain and vice versa. If you've been offered an investment product that there is no risk but has a higher profit -That's too good to be true- then there are two things we can conclude: The seller is a fraud, or the seller is stupid.
3. Determine when your investment funds will be used
You should already know exactly when your funds are needed, what is it worth and for any purposes. If you already know the details when it's needed, then the process of selecting an appropriate investment instruments for the purpose will be easier. Generally, investment products are divided by time period: Short-term (1-2 years), Medium Term (2-5 Years) and Long-Term (> 5 years).
4. Make a list of options of investment instruments
where to invest your money? There are many investment instruments in the market. Starting from investing in stocks, investing in bonds, investing in gold, Mutual Funds, ETF (Exchange Traded Fund), commodities and options. Many people began to invest in the first time because they are offered by the nearest person or did not know any other investment types. It is appropriate that you do research on products in the market, then learned the character of each product. Decide which ones you think are most suitable and appropriate to your character and your investment goal that's best investments for you.
5. Determine how much funding will be invested and how often you will place the funds
Why is this important? because some investment options typically have a minimum requirement of investment placement. Therefore you need to know how much money you will invest. The benefit is that you can instantly determine if you will invest at once (lump sum) or will regularly every month. It has something to do with the method of investment. Both methods are equally good, but from some investment literature found that the more often you invest more and more efficiently the results of your investment.
6. Implementation
You've planned, already knows which investment will you choose, and your funds has been prepared. Now, It is time to turn the plan into action / implementation. Many people are good at making plans but never implement the plans. How will you get to the destination if you do not start running. As long as you have planned well, then do not be afraid to start moving. If the plan has been prepared as possible then the implementation will run in line with expectations as well.
7. Monitoring and Evaluate Your Investment funds
Monitoring of investment useful to know what actions must be done if the plan and the implementation that you've done, it strayed far. You will be the primary decision maker on what actions should be done. Do not just rely on information from others or your investment advisor. Heartbreaking events that just happened on the loss of billions of dollars of customer funds is due to investors believe too full and not routinely monitoring the funds.
The reality is, investing is not easy. Need to continue to learn and not give up when tripped. World Investment continues to grow and very dynamic, where investment opportunities continue to come to you. The steps above can be used as the first reference when you want to invest.
Nothing in this world that is free of risk. There are no conditions that will always be in line with expectations and desires. You may say, then what? what should we do? The answer is: Stay invested (Keep Investing)
Investment planning
Investment can be planned, even had to be planned. Investment planning process is the one that became the starting point where your investment will lead to success or failure. what is investment planning? Investment Planning is a process of how you accumulate assets and regular income that you have today to prepare for funding requirements that will happen in the future.
What are the funding needs in the future? Education your child's school, where they will continue to university, the preparation of your pension, your sons and daughters weddings and other financial obligations that will arise in the future, that things become a necessity in your future. Financial obligations in the future are certain to happen, you can not resist and escape.
The next question, Does Investing Is the Best Choice? Yes, as long as you do proper planning then the investment is the best option.
Here are some steps you can take when planning to Invest:
1. Determine goal / purposes of your Investment
You must determine what your investing goals is. Does the funds you invest only for safety (hedging), to get a regular income (cash flow routines) or you expect a development fund (growth). Once you have established which you choose your investment will be run according to your choice. Many people when investing, do not know their goal. Generally they invest because they see or hear their friend make a profit and then tried to snap out of it.
2. Know your investment risks
Each investment must contain risk. No investment is risk free. But you must remember behind every risk there must be a profit. Risk and profit go hand in hand.
High risk must have high gain and vice versa. If you've been offered an investment product that there is no risk but has a higher profit -That's too good to be true- then there are two things we can conclude: The seller is a fraud, or the seller is stupid.
3. Determine when your investment funds will be used
You should already know exactly when your funds are needed, what is it worth and for any purposes. If you already know the details when it's needed, then the process of selecting an appropriate investment instruments for the purpose will be easier. Generally, investment products are divided by time period: Short-term (1-2 years), Medium Term (2-5 Years) and Long-Term (> 5 years).
4. Make a list of options of investment instruments
where to invest your money? There are many investment instruments in the market. Starting from investing in stocks, investing in bonds, investing in gold, Mutual Funds, ETF (Exchange Traded Fund), commodities and options. Many people began to invest in the first time because they are offered by the nearest person or did not know any other investment types. It is appropriate that you do research on products in the market, then learned the character of each product. Decide which ones you think are most suitable and appropriate to your character and your investment goal that's best investments for you.
5. Determine how much funding will be invested and how often you will place the funds
Why is this important? because some investment options typically have a minimum requirement of investment placement. Therefore you need to know how much money you will invest. The benefit is that you can instantly determine if you will invest at once (lump sum) or will regularly every month. It has something to do with the method of investment. Both methods are equally good, but from some investment literature found that the more often you invest more and more efficiently the results of your investment.
6. Implementation
You've planned, already knows which investment will you choose, and your funds has been prepared. Now, It is time to turn the plan into action / implementation. Many people are good at making plans but never implement the plans. How will you get to the destination if you do not start running. As long as you have planned well, then do not be afraid to start moving. If the plan has been prepared as possible then the implementation will run in line with expectations as well.
7. Monitoring and Evaluate Your Investment funds
Monitoring of investment useful to know what actions must be done if the plan and the implementation that you've done, it strayed far. You will be the primary decision maker on what actions should be done. Do not just rely on information from others or your investment advisor. Heartbreaking events that just happened on the loss of billions of dollars of customer funds is due to investors believe too full and not routinely monitoring the funds.
The reality is, investing is not easy. Need to continue to learn and not give up when tripped. World Investment continues to grow and very dynamic, where investment opportunities continue to come to you. The steps above can be used as the first reference when you want to invest.
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