Posts Tagged ‘Stock Market’

Developing The Success Mentality For Investing - Pt 2

Tuesday, January 12th, 2010

In part 1 of success mentality for investing, we covered the basic idea that a good state of mind is perhaps the most important asset you can possess. We will now move forward with this subject and address the ways in which you can improve your thinking and adopt the psychology of investment pros.

The first thing we’ll go over is probably the most obvious mode of behavior you can keep in mind when looking to make solid investment choices. Nonetheless, it’s also the one that’s hardest to master, especially in a field where stock values can suddenly surge or vanish overnight.

Success Mentality For Investing - Avoid PanicAvoid Panic With Your Investments

Basically, when facing the volatility of the stock market, avoid panic. This can’t be stressed enough. Panic is an emotion that destroys your ability to make sound choices and maintain sensible perspective on things. If you allow yourself to be overruled by this dangerous feeling, you’ll end up only making irrational choices that you’ll soon regret.

The stock market is a dangerous place for newcomers, and it’s still something that even the best investors will say that you can never stay comfortable with, because the future is always changing, and what’s valuable today could be gone in an instant tomorrow, and a single wrong choice may very well ruin all your assets.

Because of this, panic is exactly what happens most often to investors when they see the crazy changes of Wall Street (or their stock market of choice). They up liquidating their stocks or rushing to what they see as safe purchases - all without a clear head.

Alright, so we know that panic is a terrible thing. Still, it happens often. That’s natural. What do you do? The solution for panic is to keep it minimal and employ it as a positive factor to motivate you to succeed even harder with investments. In a market where nothing is guaranteed, you never want to rest. Instead, look to make your fear of unemployment or bankruptcy a matter that drives you to achieve your best under any circumstances.

That about covers it for now. We have a lot more to factor into this series, and plenty of ground to cover still. Hopefully you’ve learned a few things with this entry. Stick around and anticipate the next entry of developing the success mentality for investing!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

Developing The Success Mentality For Investing - Part One

Tuesday, January 5th, 2010

Greetings! Today, we’re starting a new series on developing your success mentality for investing. It’s always smart to pay attention to the solid tips and strategies that help you make good investment choices. They’re practical tidbits of financial exercise which you can incorporate into your own stock market investing philosophy.

The Mentality Of Successful Investing

Success MentalityThat leads exactly to where we’re going to start things off. Even though good tips represent solid ideas to pursue, any choice made begins with your own understanding of investing and the mentality that goes behind it.

Success is far more achievable if you can adjust your trading psychology for success and allow your behavior to work for you, instead of against you.

In the following entries of this series, we’re going to cover some basic concepts of  having the success mentality of a high-roller.

Whether you’re starting off with investing and have no history, or you have plenty of experience and a rock-solid portfolio of dependable shares, you’ll find something to learn with the advice you’ll find in the articles that are to come.

Basically, we’re going to discuss how those investors who adapt a sense of courage, a flexible attitude, and allow their natural skills of foresight to develop into a useful tool for analysis are often the leaders of stock market success.

Focusing On The Big Picture

It definitely has been proven that concrete efforts such as crunching numbers and engaging in quantitative analysis pay off, but having the mindset to deal with investing from all perspectives gives you the ability to see complex systems and basic common sense side by side.

When you focus on only one or the other, you can lose out due either to obvious oversights or being oblivious to hidden methods with extreme profit potential.

Now that you got an idea of what we’re talking about, we’re going to get into the specifics and address several key aspects of developing your success mentality so you can make the most out of your money and know how to truly work the market for what its worth. Stay sharp and keep checking back for the next chapter in this ongoing series!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

Investing In Gold - Part One

Tuesday, November 10th, 2009

Welcome back! If you are new here, or haven’t been here for a while, you might like to catch up on our last 7 part series on asset allocation, where we touched on quite a few points about establishing a functional, diversified and profitable investment portfolio.

Today we are venturing into a new 7 part series on all facets of Investing In Gold, so let’s get on with it…

Investing In Gold - A Brief History

Investing In GoldInvesting In Gold has always been a reasonably popular option when it comes to the global stock market. A precious metal, it has been seen as a rock-solid bastion of investment potential since the beginning days of stock trading.

However, these days the value of gold has been brought to question, and some are wondering if it is just a meaningless relic of the past, a treasure of barbarians no longer valuable in the context of modern civilization. Where paper money and credit rules, these people believe that a material like gold has limited application in the economy of today’s brave new world.

There are those who are staunch opposites to this school of thought. They believe that gold is a material with intrinsic value due to the properties it maintains as a resource. This population of conservative thinkers believe that gold is a highly unique and very necessary element regardless of the changes that the global market deals with on a day-to-day basis.

Whatever the case may be, gold has maintained a strong presence throughout the history of civilization and can be traced back to the roots of the earliest economies. As a material that has long since existed prior to modern currencies, it helped to establish the first forms of a standardised basis for transaction representing goods and services. The prices of goods and economic systems have radically changed throughout recorded history, but gold has been at the center of almost every civilization for the past two millenniums.

Having said this, why aren’t all investors convinced of gold’s value? Why do some flock to it, while others totally avoid it at all costs? Some love it, others refuse to deal with it. What does gold mean to you and your hard-earned money, and what happens when a country decides to abandon gold as a standard backing monetary value?

Well, that’s pretty much it for now. Stay tuned for more information as we discuss the history of gold, how it has defined the principle of exchange, and what you can do about this incredibly historic and famous asset!

See you next week for part 2 of Investing In Gold.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Asset Allocation - Part One

Tuesday, September 22nd, 2009

Greetings and welcome back to our ongoing blog on the stock market and all related topics. In the course of reading this blog, you’ve learned quite a bit about how investments work, but over the next few installments we’re going to look at something we haven’t really touched on yet.

What we’re going to be discussing is called Asset Allocation and it refers to the technique by which one builds a full portfolio of investments. You have probably heard that term before, but have you ever stopped to think about what it really means?

What Is Asset Allocation

Asset AllocationSimply put, your portfolio will represent the sum total of your investing career, the big picture of everything you’ve accomplished by investing… or lost. What kind of picture will it paint for you?

In order to ensure that you have the healthiest portfolio possible, we’re going to discuss this technique known as Asset Allocation. The whole purpose of it is to balance out the risk that one takes with certain high risk investments against the other “sure thing” types of investments such as bonds.

Diversification Is The Key

You’ve probably caught on by now that each type of investment carries with it a certain level of risk, as well as a certain potential for return.

Therefore, the idea behind asset allocation is to not put all your eggs into one basket. Because you have a solid foundation of long term low risk investments such as bonds and derivatives, you can afford to take the occasional gamble on a high risk stock. Conversely, those high risk ventures will help to diversify your investments so that you’re not totally dependant upon any one class of investment.

There are five major tips to proper Asset Allocation, and it’s those tips that we’re going to be discussing as we follow along in this blog.

See you next week, where we get stuck into part 2 of Asset Allocation.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009

Stock Market Investing Mistakes Part 7

Tuesday, September 15th, 2009

If you missed last weeks post, be sure to check out stock market investing mistakes part 6. This is our last entry in the series on the seven worst mistakes that people tend to commonly commit when investing in the stock market.

These are the kinds of mistakes that you should have seen coming, but most never do. You can avoid the embarrassment and regret that accompany these kinds of mistakes if you just take the time to learn about them and prepare yourself. That’s exactly what this series of entries was designed to do.

Don’t Forget Technical Analysis

Stock Market InvestingThe last mistake we’re going to talk about is the ignoring of technical analysis. When most amateurs “analyze” the stock market, they make use of qualitative or quantitative analysis.

They might be dimly aware of the school known as technical analysis, but usually they consider it far too… well, technical, to be of any use or interest to them. Chances are they just take a look at the charts and graphs that are normally associated with this method of prediction and their minds go blank.

In reality, as complex as technical analysis can be, there are some basic and fundamental techniques that are really quite simple to grasp and which can be quite helpful when the time comes to decide upon your next investment.

Technical Analysis Techniques

For example, buried amongst all those charts and graphs, you can find things like the “moving averages”, which show the overall performance and closing prices for stocks over a span of time, such as the last 100 days. With this information in hand, you can see at a glance whether the overall movement of a company has been up or down.

Furthermore, you can easily take in other important statistics like volume of purchase, which, when coupled with just a little common sense (and the type of knowledge you gain from this blog), are powerful tools for predicting the future movements of the market.

Well, that’s it for this series. Join us next time when we start looking at a new aspect of the market that’s sure to excite and educate. Until then, happy trading!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2009