5 investment question that suitable for your self
March 23, 2009
To adjust the investment that suitable with your self, there is 5 questions you need to ask on yourself:
1. What you need: income or capital growth?
There are investments that provide income and don’t increase in capital (such as deposits) while it is providing growth capital and only give small income (such as shares, property). Usually both of them proportionate reversed. Read more
investment psychology
March 23, 2009
To develop an investment planning, that are include difficult steps. Most investors are influenced by two main factors, namely greed and fear. When markets are in ferment, so investors fear.not sell at current prices increased but they sell when the price down.
Greed
Often occur, due to want to rush to get big profits, investors forget to think and act based on rational ‘instinct’ that was more emotional. For example, when combined stock price index increased from an 400-level for the first time and again to penetrate a 700-level, many new investors fear their greed inflame emotions.Unfortunately, not long after they buy shares, combined stock price index decreasing.
What happens? Because of the less of knowledge and investment patterns that are not appropriate an advantage but they get loss.Investors are influenced by information about the performance of an investment. The decision to receive the benefits based on past performance of an investment.
Fear (Fear)
When combined stock price index decrease(continued the story above), the emotional of new investors to switch from greedy to be Scared (Fear). As a result, they roll out of the market. So they do not buy cheap and sell expensive, but buy expensive and then sell cheap, that is loss.arise fear because of potential losses. Many research says that we are more dislike loss of instead of we love the victory .
In the case of monitoring the investment you have alocated and place will be better when you see every 6 months or 3 months. This can reduce your desire to sell (because of changes right) shares or stock-owned investment.
why employee must save and invest their earnings
March 23, 2009
An employee whatever their earnings It will not be rich if they don’t save and invest their earnings. Unfortunately, many financial books that give an impression as that save and invest that is the complex to do.
there are 5 practical tips that can easily be done by employees to save and invest:
1. Set Financial Goals in the Future,
2. saving your earnings Monthly,
3. invest your bonus,
4. make productive your money
5. Set-Up your mind to take on difficult moment
Try to understand each point and get the power to just talk ” who peole say that the employee can not be rich”
INVESTMENT PLANNING
March 23, 2009
Planning of the invesment we intend is planning with duration for a lifetime, so that decision-making must be considered and thought for lifetime. however make decision pursuant to ‘ term’ what is selected that is term related to the 4 criterion very personal:
1. specific financial purpose
for investment,we must set goals or purpose for the desired destination in the future.by specific financial purpose,we can define the steps and strategic.for example: married, build homes, the future of children and families, or start open a new business, Go up haji for Islam people or pilgrimage to holy land for clan Kristiani and for old age pensions in the future.
2. time period
period in the investment levels are depending on the size of the funds needed in each period or each month to reach the purpose.
3. risk tolerance
each investment has a risk comparable with the results of which will be obtained. if you wish the high rate of return of you are also have to accept the height mount the risk. Every individual have the tolerance level different each other to risk, there is which like with risk or dare to take the risk or oppositely is which in fear of risk. We have to recognize the ownself condition, if someone wish the high rate of return however he/she self is including the people have the low tolerance level to risk hence will arise the conflict in ‘self in have investment.
4.various kinds of investment
there are many different types that we can to invest.Some elementary investment instrument which it is important to know for example deposits (banking instruments), obligation, share, mutual funds (company or securities instrument capital market), property and gold.