Articles Investing Themes


A Hotel Investment Opportunity

When you have a fairly decent sum of money saved for a rainy day, why not make the most of it and actually earn money from your money. This sounds like a strange concept, but investment opportunities are a perfect way to make a profit by doing absolutely nothing. You will spend your money on something worthwhile and after a specified time you will begin to see your money return to you sometimes doubled or even tripled.

Of course there are some things that are risky to invest in and there is always a slight chance your investment opportunity will backfire, but if you have a trusty broker or investment expert at your side, you can rest easier and plan for the future. Investments can help to save up for college funds for the kids, plan your retirement, travel overseas and much more. So where do you find all these investment opportunities.

Well, one of the first places to look would be on the internet. You can type in a number of keywords that will bring up the best investment opportunities and secure offers, although these will all have to be checked thoroughly, because anyone can say that their product or service is an investment. Your investor expert will be the best person to look over any investment portfolios you give him and he will also be able to help you find lucrative ones. Investments can be in the form of property, businesses like restaurants and franchises, hotels, stocks on the stock exchange, FOREX, and much more. Think of anything that will bring in a lot of money and figure out how you can be part of that. Taking out a partnership in a bank for instance could be a great way to earn an income and property is the latest investment craze with vacation rentals and apartments being rented out quickly to make a profit for the owner.

Another way to find investment opportunities is to keep a look out in the local newspapers. Sometimes people will advertise the selling of their business in tact and you can sometimes get these for a good price and they have the bonus of being all set up and complete already. You don’t have to lift a finger and just keep earning the money that rolls in. First make sure that there is no ulterior motive for the previous owner to have sold the business, such as he is in debt and you are now left to deal with it. Do a full background check and analysis before buying any company.

Looking for investment opportunities can be fun and exciting as you start a new chapter in your life and put your savings to good use. Once you have exhausted all the possibilities of finding investment, you will have to choose the one that works best for you and that offers you the most appropriate cash back and required work time to suit your needs.

What Are The Risks Involved In Flipping?

The business of real estate could either make or break its investor. The idea of real estate investment as an easy and fast way of generating big money is just a notion. A lot of people instantly jump into the business once they hear any success story of an investor. The overrated story of success will make people think that she or he can also do it. They would overlook the factors and qualities that a successful investor should possess.

The new investors with the specific goal of reaching the top would greatly be attracted to the real estate boom. It is very possible to earn millions of money in a short time in this type of business. As a matter of fact, a single deal would allow an investor to earn as much as the annual income of an ordinary employee that works fulltime.

The Pitfalls

Success in flipping, just like other business, will always come with great risks. The greater the investment and potential profit, the bigger is the risk involved. A lot of people will be surprised to know that it would be much safer to invest in stock market than in the real estate business. Even though in reality, flipping would let an investor earn about 15-20% of the investment while investing in stock market would only provide a return of about 9-13% of the capital. But in stock market, it is very rare to have a loss of 10% in a year. However, in flipping, there is a big chance that the investor would lose all of his investment in a single deal.

The Factors

In effective flipping, always consider the time factor. A flipper could not handle the repair and renovation alone. He would have to hire a team of experienced contractors to make repairs and renovations on the property. However, it would require a lot of time to manage the renovations. These experienced and very skilled workers are necessary of you want to sell the property in short time possible.

Exercise Caution

It would be a huge risk if a flipper immediately jumps on an opportunity of buying a property at half price than its market value. A very expensive renovation costs will always eat a big chunk of the potential profit.
Like any other business venture, flipping needs a big amount of determination for you to succeed in this promising business.

Simple Trading System

Many traders are looking for a simple trading system. Simple trading system in the meaning that it is simple to use in order to make a trading decision, but it does not imply that this system would not require investing a lot of time into learning and developing. If there was a simple trading system in the meaning of developing, then everyone would start making money on the market. If this would be easy then everyone would be a winner and this is impossible.
The simple trading system could be developed, however the process of the building could be very complex, time consuming and may require even some investments. As a rule, the simpler the trading system looks at the end, the more complex and more difficult could be the process of developing this system.
There are a lot of simple trading indicators and many of them work. At first sight, the offered trading system for using these indicators may look simple and attractive. However, a trader who starts to apply them for personal investing may discover that most likely there is research, testing and adjusting before any system starts making real money.
By taking a look at a trading system based on the popular technical indicators you may find out that they really look simple. For instance:
  - Buy when RSI is below 30 (indication of an oversold market) and sell when RSI is above 70 (indication of overbought market).
  - Buy when Stochastics is below 20 (indication of an oversold market) and sell when Stochastics is above 80 (indication of overbought market).
  - A big number of others…
Despite the fact that the systems above look very simple, when it come to the part of applying these systems to the real market, many traders would find out that this is a much more complex process. There are a lot of questions that need to be answered and some of them are very important: what chart setting should be used, what stock to select, what timeframe to trade, how much money to invest, what stop-loss strategy to use…One of the most important question could be how to define the market stage when the selected technical indicator generates fake signals and how to control losses.
As a rule, building a trading system could be split into several stages:
  1. Stock Market Research – selecting the market for trading (stock market, options, futures, Forex…), defining the type of trading (intraday scalping, one trade a month or long-term trading), looking for technical indicators that work in the selected market and for selected type of trading;
  2. Learning – a trader must learn the selected indicators, markets, selected securities. Find out the best chart settings, define the moments when indicators do not work, find out what is profit could be achieved and what losses could be expected... A trader has to return back to stage #1, if at the end of studying he/she sees that it simply does not work (it could happened).
  3. System Developing – based on the knowledge and experience gained in the second stage a trade develops the trading system, which then is monitored and adjusted. On this stage additional rules could be added to the trading system, stop-loss strategy could be set as well as money management strategy could be defined. Many traders create several modifications to the system for Bull and Bear markets.
  4. System Testing – one of the most important stages where a trader may see how the developed system works in the real market situation. Very often this stage is used to spot the mistakes and make system adjustments. It may save time in developing trading system if the stage of the development is tied with testing stage (stage #3) that a trader develops, tests and adjusts a system at the same time.
The building of a simple trading system is not an as easy as many of traders would like to see it, and there is no 100% guarantee that the created simple trading system will be successful. After all efforts, a trader may find out that the created simple trading system is a failure.

Dow Jones Industrials

The Dow Jones Industrial Average Index is tracked at the New York Stock Exchange under the ticker DJI (NYSE: DJI) and is maintained and reviewed by editors of The Wall Street Journal. The Dow Jones Industrial Average Index is also called the DJIA or informally the Dow Jones or the Dow 30 or simply the Dow. The Dow index is one of the most watched indexes over the world, which was created together with several other stock market indices in the nineteenth century by Charles Dow (Wall Street Journal editor and Dow Jones & Company co-founder). It is the oldest U.S. stock market index, after the Dow Jones Transportation Average and one of the most used indexes in the technical analysis.
The first time the DJIA index was published in Customer's Afternoon Letter on May 26, 1896, and at that time the Dow represented the average of twelve stocks from various important American industries. The number of stocks included into the index was increased to 20 in 1916 and in 1928 this number was increased to 30 stocks.
Now, the Dow Jones Industrial Average consists of 30 of the biggest public companies in the United States. Majority of these companies have nothing to do with the heavy industry; furthermore the “industrial” part of the DJIA name is just historically inherited. The Dow index is a price-weighted index and it is a compiled index as a way to gauge the performance of the of America's stock markets.
As of March 2008 al companies included in the DJI index are traded on the New York Exchange (NYSE) with exception of the Microsoft (MSFT) which was added to DJI in 1999 and is traded on the NASDAQ.
As of March 2008 the Dow Jones Industrials Average consists of the following 30 companies. This is outdated list and not a current list of the companies from the DJI index. Yet, it may give you the approximate picture of what kind of public companies are selected to be included into DJI index. For most current correct listing I would recommend visiting Dow Jones official web site.
1. 3M
2. Alcoa
3. American Express
4. American International Group
5. AT&T
6. Bank of America
7. Boeing
8. Caterpillar
9. Chevron Corporation
10. Citigroup
11. Coca-Cola
12. DuPont
13. ExxonMobil
14. General Electric
15. General Motors
16. Hewlett-Packard
17. Home Depot
18. Intel
19. IBM
20. Johnson & Johnson
21. JPMorgan Chase
22. McDonald's
23. Merck
24. Microsoft
25. Pfizer
26. Procter & Gamble
27. United Technologies Corporation
28. Verizon Communications
29. Wal-Mart
30. Walt Disney

Best Trading Strategy

The search for the "Best Trading Strategy" has become the most challenging question. Many investors are looking for some unreal strategy of the investing that would deliver huge profits, without any trading risk and worries and without dedicating a lot of work into it. The right way is to build the trading strategy or trading system by yourself or at least to find a working strategy and then adjust it to the personal trading style and risk tolerance.
Basically, for each individual investor the best trading strategy would be unique and it completely depends on the selected market (equates, options, currencies...), personal trading style and the risk an investor is ready to take.
It's totally logical that various markets would require utilizing various trading strategies. The trading strategy that delivers good profit in the equity market could be a financial suicide in futures or options markets because of the expiration. The trading strategy that works well in the currency market could not always be applied in mutual funds investing, simply because mutual funds could be traded once a day while currency almost 24/7.
There are number of factors that would influence a trading strategy in different markets. Example could be the fact that holding an option trade opened for more than a month could result in the negative trade even if the underlying security moves in the favor of the position. At the same time you may keep uncovered options position much longer. It would be incorrect to state that the "Best Trading Strategy" should perform well in any trading market. If you made a decision to become an options investor, it would be logical to search for a trading strategy that performs well in options market instead of applying the trading strategy that was used for equities without any changes. Different markets require implementing different trading strategies.
Each investor has a personal style and each investor has a different portfolio size. An investor with a big portfolio size has the ability to diversify, use dollar cost averaging. This investor can play on less than 1% trades without worrying about commissions. At the same time an investor with small portfolio size would be able to invest in one stock only, could be willing to use margin trading and very often has to spend up to several percents from the profit for commissions and other fees. Each investor manages the personal investments in unique way and there is no doubt that the trading strategy has to fit the personal trading style. The trading Strategy that works well for $100,000 portfolio could be a complete failure for an investor with $5,000 in the pocket.
Each investor would define and build the "Best Trading Strategy" in a personal and a unique way, simply because a lot of personal factors affect it. The "Best Trading Strategy" is the Strategy that best fits to the selected trading vehicle, personal trading style and risk tolerance. Every investor should build his own "Best Trading Strategy" or at least find the one that works well in the chosen market and adjust it to the personal trading style, portfolio size and risk tolerance.

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