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Investing Strategy – What You Actually Need to Know About the Market

Do we really need a comprehensive knowledge of the stock market for online investment? The answer is yes – in any kind of investment, it is always good to have a sound knowledge of the plan. And, as far as investing in stocks is concerned, your market knowledge not only brings profits, but also avoid subtle risks that are associated with this volatile market. So, make a proper planning before investment and keep you well informed.

Investment plan includes things like whether you want to invest on a long-term basis or a short-term basis, where do you need to open an online account, what company shares you want to buy, etc. There are several important points that need to be considered before you actually invest your hard earned money. Though long-term investment is considered beneficial, but if you are a new investor, it is always better to go for a short-term plan. Once you reap the benefit, you can further expand your portfolio.

However, there are several essential points that have to be taken into account for a successful investment plan. Follow some basic strategies, for example, when share prices go up, it shows a good sign of the market condition. In such a situation, you can sell those company shares and gain profits instantly. And, if your market analysis predicts that the share prices will further rise – you can retain those company shares. However, you should also keep in mind that a particular company share prices may fall suddenly. Thus, you need to be more aware of the market trends and handle them accordingly.

Every shares of the company have got their own characteristics – one company share price may experience a sudden hike while others may fall. And, other factors can also affect such trends. Therefore, once you feel that you can get substantial benefit – sell those shares immediately.

In addition to these basic market strategies, there are several other techniques that may help you in gaining profits from your investment:

Set an objective: To gain maximum profit, you need to set a goal and work in that direction. Set new strategies and achieve that goal in a specified period of time. If you have made up your mind that you want to go for a short-term investment plan, then go accordingly. Target those company shares that can fetch good benefits in a short time period and vice-versa.

Calculate risks: Your main aim is to gain benefits from your investment. On the other hand, you also need to avoid risks that are associated with stock market. List out those risks and work on them. Try to avoid such pitfalls and invest intelligently. Your right approach and positive attitude will definitely help you reap the benefits in the long run.

Market strategy: Once you understand the market moods, you can always get the benefits. Gain maximum knowledge about the market – read news, forums, blogs and discuss with financial experts. Always keep an eye on stock quotes and other valuable market information. Always buy major company stocks and hire an expert broker for trading.

If you follow these steps, you are bound to gain profits. There are many investors who are making good money from online investment. The secret of their success is that they have set a proper goal and work in that direction judiciously. So, you can also follow the same strategy and become a successful trader.

The Current Environment for Investing in Real Estate

Present conditions involving the country’s political and economic stability have prompted most potential investors to review the viability of investing in real estate. As the world political arena continues to be a volatile environment, it is not surprising that people no longer feel confident in acquiring investment properties. However, with all the variables in place, it is still a reasonable to assume that in the decades to come, real estate owners will continue to build their wealth and enjoy the appreciation of their investments despite the fluctuations in other markets.

While it is true that analysts have noted a decline in the real estate market, this is not predictive of future performance. Several factors remain in effect, supporting the steady rise in investment property prices. A careful study of these environmental factors will prove essential in accurately assessing the potential of investment properties.

First and foremost is the yearly population increase in the country. Every year, as the number of people who need shelter grows, so will the demand for quality homes and real estate. In addition to these, the portion of the population that left home to begin their own families will put an added pressure for property owners to supply them with more options for accommodation.

Another factor affecting the environment for investment properties is urbanization. The country’s metropolis areas are growing at an exponential rate, with more and more people competing for a space in the increasingly crowded cities. As such, owners of investment properties stand to gain the most from the high and continuous demand.

Globalization is also another factor affecting the environment of investment property buyers. With people increasingly capable of moving to another country to pursue their dreams, they bring with them the increase in demand for space and shelter. It is curious to note that countries can no longer consider their populations as based on their indigenous people but in combination with the other ethnic groups that have travelled from other countries.

Development in urban areas has steadily increased over the past few years. Although the majority of potential buyers remain fearful of the overlying economic state, a select few have recognized a rare opportunity for buyers of investment properties. There is still the rise of demand for properties for rent or lease. Also, developers are consistently offering better and better packages to inject enthusiasm in the market. In the middle, the buyers will ultimately benefit the most, enjoying attractive incentives from the developers as well as a constant stream of renters for their investment properties.

Considering all these factors, it can be said that the current environment for investment properties acquisition remains positive and optimistic. In the face of political and economic uncertainty, it is reassuring to see that sound investment judgment can still lead to profitability and success. The basic demand still exists and opportunities should not be missed. And despite some investments being highly affected by temporary trends, buying investment properties remains a sound financial strategy for prosperity.

Why Small Businesses Don’t Survive

There are more than 30 million small businesses nationwide. Approximately 65 percent of small businesses are grass-root small businesses, and unfortunately don’t survive because they are not fully equipped or prepared to do business and compete in the marketplace efficiently. They have great intentions, a vision, and a big dream. Many start their business with true purpose-to help others through the use of their products or services. However, most often a new business owner believe they can run a business without a plan or strategy, not considering the unforeseen and possibilities which could influence the outcome of the business.

What Attributes to Failure?

#1. The business lacks planning. The business is formed because an eager, ambitious, and willing entrepreneur wants to make money and get rich. Great intentions go into developing the business, however, not much planning or research is done. Being in the consulting business for more than nine years, I discovered more than 80 percent of business owners don’t have a business plan or a strategy for their business. Additionally, more than 75 percent of my Business Plan Writing and How to Start a Business workshop attendees were business owners with established businesses that were struggling and not able to grow. And, years later realized they skipped steps B through Y to get to Z. Fortunately for them, they did realize this mistake and decided to start over, getting all the in between knowledge needed to get to Z successfully.

Conversely, it is important for any business owner to know and understand their business. The mistake many of them make is hiring a consultant, friend, or family member to write their business plan. The purpose of writing a business plan is to get to know the business, product, industry, competitors, and customers. If someone else prepares your road map, how are you to know which way to go and how you’re going to get there. Their concept or vision is totally different from the business owner, so typically what happens, the plan ends up tucked away in a drawer, file cabinet, or underneath the unimportant papers in a box.

And, for those with a strategy really don’t ask themselves questions like what if the company don’t meet its sales goals; what if the product trend change how will I adapt; or what if the economy takes a turn? These are very important and real scenarios to consider. Unfortunately, they are commonly over looked and not addressed until that bridge is crossed. By that time it’s too late.

Then there are those, who, instead of seeking consultation or investing in workshops to educate themselves, they spend much time wishing and hoping for a miracle.

Often times business owners do not visualize the big picture, the scheme of things or don’t know how to execute the big picture. The big picture should include long-term financial growth planning for financial solvency, expansion, alternative solutions and strategies if plan “A” doesn’t work. A business can’t survive on hopes and dreams. It requires great leadership, management, and capital and good decision-making skills. Businesses don’t fail because they don’t work, they fail because of poor decisions.

#2. Business owners don’t have a lucrative financial portfolio in place. I’ve yet to find a small business owner with a financial portfolio or reserves in case of an emergency such as economic downturns or slow cycles. A business owner’s failure to invest in the independence of its business and rely on capital infusion from the government or other financial institutions is by far the biggest mistake. The reality of financial assistance from SBA or conventional lenders is a blurred reality (for grass-root business and most small businesses). A large number of small business owners especially the grass-root businesses do not qualify for a business loan for one reason or another. That’s reality. A business owner without a financial portfolio is more than likely to set him or herself up for trouble in the marketplace, and will not survive a healthy existence.

#3. Commitment and drive. There has to be a continuum level of commitment when owning a business. The business owner must be willing to do whatever it takes to make the business run properly and be profitable. There has to be a strong desire for success and willingness to learn how and when to change with trends, its industry, and consumer needs. From my observation, after the first or second year in business the honeymoon is over and reality kicks in. Some are willing to stay on path and fight it out, and then there are those who lose interest and stop fighting.

Now let’s talk about external reasons why small businesses don’t survive. The government, environment, and sometimes the industry are responsible for small businesses dissolving. Our government has one classification for small businesses, so when instituting a new service or program, yes it may benefit some of its targeted interest, however, on the other hand others will suffer.

In reality there are two classes of small businesses. As mentioned previously- small businesses and grass-root businesses. What constitutes a grass-root business, the mom and pop stores, the businesses that rely on community support, and home-base operators. Tax cuts, stimulus packages, credits, and lending programs do not make its way down to these businesses. Therefore, they are left unforgotten with no support other than that of local community agencies like the SBD centers, which can only do so much.

When our government change laws and policies as it relates to the business community such as union participation and NAFTA, grass-root businesses suffers most. I would like to see SBA change its classification standards and begin devising some sort of system, which would allow the needs and challenges of grass-root businesses to be addressed in a way, which they can see some benefit for their efforts of participating in the marketplace by providing goods and services to consumers.

Other Reasons Small Businesses Don’t Survive:

1. fail to revisit the business plan.
2. do not modify the business plan accordingly.
3. do not monitor and adjust financial goals quarterly.
4. have no alternative strategies.
5. fail to build significant relationships.
6. have no social responsibility.
7. don’t market.
8. failure to continue educating themselves.
9. do not know their industry, product, or customers.
10. rely on the knowledge and experience of others to run the business.
11. don’t plan for worst case scenarios.
12. don’t stick to planned budgets.
13. take success for granted.

Small businesses must learn to become more self-reliant and independent in their thinking and planning. Success is heavily depended upon the knowledge and skill-sets of the principals running the business.