Register Login
CARI Infonet Return home

Mark_Wong's space https://explorasa.cari.com.my/?2035707 [Favorites] [Copy] [Share] [RSS]

Blogs

12 things you must absolutely know about before investing again Part 2

Hot 14Viewed 1380 times19-5-2014 12:47 PM | investing, before, things, about

Tip #7: Engage In Insider Trading (Legally).
If you have a very important piece of information about the market or a company that no one else has, you should consider trading on that information. There’s nothing illegal about trading on secret information that you discovered through your own hard work or just dumb luck. In fact, this is one of the only ways anyone can ever beat the market.

Here’s the catch: Don’t do this if the information is about a company you work for or your spouse works for. And don’t even do this if you have an obligation to another third party, like if you work for a financial publication that’s about to write a favorable article about a company. If you got the information from someone related to you or who expects to gain from your trading, be aware that that also could violate SEC rules governing trading on non-public information. If you are uncertain, talk to a lawyer (who will probably tell you not to do it) or just don’t trade.

But don’t fall prey to the common misconception that you cannot trade on non-public information. You can and you should. Having knowledge that others lack is a very, very good investment strategy.

Tip #8. Don’t Buy The “Hot Stocks ”
It seems almost unavoidable. Every year business magazines run features on the hot stocks or hot sectors for the coming year. You shouldn’t even read these.

The only thing these will do is distract you. By the time the story is in the magazine, the knowledge is already widely disseminated. Markets are efficient enough to price this in as well.

The same goes for investing on the advice of a guy like Jim Cramer. By the time the market opens the next day, a hot stock from Cramer is already priced too high.

If you must invest in “hot stocks,” here’s how to do it: wait a month or two. If the stock drops back down and you are persuaded it’s a good investment, go ahead. But the key is to avoid the initial rush of dumb and manipulative trading that goes
on after the tip is first announced.

Tip #9: Read Your Quarterly Statement. Ignore Most Of It.

No one likes to read the statements from their financial statements when the market is down. They’re ugly. They make you feel ******. They make you feel poor.

But you need to read your statements. Just not for the reasons most people think. You shouldn’t read them for the returns from the last quarter. That’s just noise that may make you panic and sell at the wrong time.
You need to read them to keep track of the fees. Believe it or not, some funds and brokerages know that people don’t read statements during bear markets and they will raise fees during that time hoping investors won’t notice. So read the fees section and ignore the returns.

Tip #10: You Can Negotiate Anything.

If you are signing on to a big mutual fund, you will have to pay the fees they require. (Remember: most mutual funds are rip-offs, so only go with low fee funds.) But if you are opening a brokerage account, you will have room to negotiate your fees.

Financial advisers will tell you that the fees are fixed. They’ll say that they can’t change them. They’ll show you where this is all written down.

Don’t believe them.

There are many different fees brokerages offer, and they are not obligated to give you the cheapest one. The rules just say it must be appropriate to you. You should haggle with your broker to get the lowest fee you can.

When they give you a quote on the fees, start by telling them: “These aren’t the fees I’m looking for.”

Tip #11: Invest In Low Cost, Passively Managed Life Cycle Funds. Reinvest Your Dividends.

If all this seems like a lot of work—welcome to investing.

The single best thing you can do is probably invest in a low-cost, passively managed “life cycle” fund that adjusts your asset allocation as you age. This is really, really boring. But unless you are willing to do a lot of hard work, it is the absolute best thing you can do. Even if you are willing to do a lot of hard work, you should consider it. You might be over-estimating the value of your hard work.

If that’s too boring for you, find a brokerage that offers a low cost investment account offering a variety of services. Beware, however, that some of those with reputations for offering low cost accounts also offer high cost accounts. You need the lowest cost account at the low cost brokerage with a good reputation.

You should reinvest the dividend in your fund. Every year you should re-examine the fees and every five years ask them to help you analyze the asset allocation. If you get married, lose your job, buy a house, get divorced or have a child, you’ll want to re-examine the allocation.

Tip #12: You Can’t Beat The Market And You Don’t Want To

Now here are the three most important things you should know.

You can’t beat the market. If you were hoping that you’d learn how to “beat the market” by reading this investment advice, you’ll be sorely disappointed. Nothing here will help you beat the market. At best, if will help you not fall too behind the market. Very few people can actually beat the market–and most who do just got lucky.

You don’t really want to beat the market anyway. The good news is that you don’t have to beat the market. That’s actually a pretty arbitrary measure. What you really want to do is save some of your money for later, and not let it lose value thanks to the passage of time and the cummulative effect of inflation. That’s your real goal with investing. Not beating something or someone. Not getting rich quick. It’s investing prudently for the future.

Returns Might Be Worse Than You Expect. In the past, diversified investing strategies have paid off moderately well even after taxes and inflation. But in the future this might not hold true. In fact, because of demographic changes, changes in the spread of information, changes in the age of the average investor, and a decade of stagnant or declining stock markets, we may be in for a long bear market. Spikes will reward the lucky market timers, and you may occasionally get lucky. But don’t count on stocks or bonds to go up along historical trend lines forever.

Apa Reaksi Anda...

Leave a comment Comments (279 Comment)

Reply aliana123 20-10-2020 01:08 AM
Mammaprada is a bilingual parenting blog that offers language learning resources for bilingual children        https://www.mammaprada.com/bilingualresources and mixed culture families
Reply aliana123 20-10-2020 01:58 AM
Click anchor text for sarkari result        https://sarkarialert.net/, Latest Jobs, Results 2020
Reply aliana123 20-10-2020 07:49 PM
Many homework on the continual hunt along with offstage on the road to winning. Definitely not attached, simple to-fall as a result of wayside; And not investigation, afterward into a path travel toward the black. NaijaVibes https://naijamp3s.com/profile/naijavibe
Reply aliana123 21-10-2020 01:00 AM
I think this is one of the most significant information for me. And i’m glad reading your article. But should remark on some general things, đề 3 càng https://nhacai888bvietnam.com/3-cang-la-gi-cach-soi-cau-3-cang-chuan-nhat/
Reply aliana123 21-10-2020 05:20 AM
Here you can find cat hoodie And you will find the most special things for your cat and also for yourself. We set up this store with love and thought especially for you so go ahead enjoy and do not forget to share. https://catsinheart.store/
Reply aliana123 21-10-2020 05:59 AM
On the Best10 website, you can replenish your game account in the following ways: Best10        https://www.sanalyer.com/haber/warriors-sonunda-galip-geldi
Reply aliana123 21-10-2020 02:27 PM
Extremely pleasant article, I appreciated perusing your post, exceptionally decent share, I need to twit this to my adherents. Much appreciated!.  tattoo designs https://tattoos-ideas.online/
Reply aliana123 21-10-2020 10:32 PM
LigaCiputra Situs Judi Slot Online terpercaya dan terbesar di indonesia memiliki jenis permainan seperti Judi Bola        https://slotciputra.com/
Reply aliana123 22-10-2020 12:48 AM
At Bachaa Party, you can get the best kids products including Baby Care, Baby Clothes and Accessories, boys apparel, girls apparel, Kids Shoes,Toys, and ... https://prtya.com/
Reply aliana123 22-10-2020 11:31 PM
residual income Discover how one 68 year old Grandmother from the UK with no experience is now making 20K per month from this system!  https://onlineincomeblitz.cashfxgroup.com/?SOURCE=sam
Reply lipek 23-10-2020 03:25 AM
The Market Leader In Wheat Straw Production Globally plastic drinking straws http://americanstraws.com
Reply aliana123 23-10-2020 06:23 PM
Private investigator in israel        https://israelinvestigators.com/ is a leading private investigations agency with highly professional investigators who can handle all types of investigations
Reply aliana123 23-10-2020 10:52 PM
Dennykins Associates – Best Tax Consultants in Kenya        https://dennykinsassociates.com/ We take care of your business by providing top quality consultants and managing of your buisness taxes.
Reply aliana123 25-10-2020 05:41 AM
70 Trades India offers services to fit any level of expertise. Their plans are tailored for beginners, advanced traders, and professional traders. I will mention what each of them includes later on. 70trades        https://homebusinessmag.com/money/70-trades-india-scam-full-review/
Reply aliana123 25-10-2020 08:00 AM
A betting site list to play online sports betting in Turkey here, visit immediately. bahis siteleri listesi        http://openhmpp.org/top-200-bahis-siteleri/
Reply Saint6 26-10-2020 03:04 PM
مرحبا بكم فى موقع قصة عشق لأحدث المسلسلات التركية والدراما ، يمكنك من خلال قصة عشق متابعة كل جديد فى عالم الدراما التركية
قصة عشق        https://esheeq.net/
Reply Saint6 26-10-2020 04:48 PM
The story of Esheeq's original love for watching and downloading Turkish series and movies with Arabic subtitles for free
قصه عشق        https://esheeq.net/
Reply aliana123 26-10-2020 11:28 PM
I truly value this superb post that you have accommodated us. I guarantee this would be helpful for a large portion of the general population. girly quotes https://lwsquotes.com/563-girly-quotes
Reply Saint6 27-10-2020 03:14 PM
Hello, this weekend is good for me, since this time i am reading this enormous informative article here at my home.
cách tính lô xiên        https://nhacai888bvietnam.com/lo-xien-2-3-4-dep-nhat-trong-ngay-cach-danh-lo-xien-luon-thang/
Reply aliana123 27-10-2020 06:00 PM
I truly value this superb post that you have accommodated us. I guarantee this would be helpful for a large portion of the general population. Bet365 kokemuksia  https://www.bonusvedot.com/arvostelut/bet365-vedonlyonti/

facelist

You have to be logged to leave a comment Login | Register

 CARI App
Get it FREE Google play
 Twitter
 Instagram
cari_infonet
FOLLOW
Copyright © 1996-2021 Cari Internet Sdn Bhd All Rights Reserved(483575-W)
Private Cloud provided by IPSERVERONE
Advertise with us
To Top