10 Tips on Finding Hot Stocks
By Mark Schlarbaum | July 25, 2008
Author: Mark Crisp
1. Find them when they are still LOW!
A stock at its lowest point has no other way but to go up. You can make the most out of your money when you first bought the stock when it finds its way up. A stock that just reached the rock bottom has the most tendencies to go the opposite direction up and keep soaring.
Though you may say that this is a gamble for your part, but when a stock find its way up and keep its momentum; you find yourself a goldmine. Anyways, you went in with a very minimal risk.
2. The Early Bird Gets the Worm: Get them EARLY!
This is called penny stock investing. You get into the game from the beginning. It is common for these stocks to come up to as much as 100% on a 24 hour basis. A stock on its early stage has the most potential to find itself on the top of the food chain. When you identify these beginning stocks, you found yourself a good deal. You bought them cheap, you can sell them high.
3. Strike while the iron is hot: Get them when they are still rising!
In finding the rising stock, you can comfortably be assured that your investment is at the right track. A stock at a rise won’t be there if it’s doing something wrong. These kinds of skyrocketing stocks have larger chance to further go up because of right business decisions.
This kind of choice won’t be much of gamble than going for a stock on a slump. The downside on this kind of option is the amount of money that should be prepared. Expect this type of stock to be costly. But hey! It’s more or less a guaranteed profit.
4. Is The Business Making Money?
Ask if this company you are trying to invest on is really making money. You need to research on a company how they really do.
For example, you may consider that a fresh company is still yet to establish sales and profit. Though their ideas are feasible for marketing opportunities, fact still remains that it’s still up for a start.
5. Does the Business Actually have a product?
Dwell into the gist and details of the company. What are they selling? How are they actually making money?
You have a hundred and one ways to make money. Have a bird’s eye view how they generate profit. You can also check if others have tried it. Did they do well? Or was it a failure?
It helps if you are knowledgeable of the company’s business model.
6. How many competitors are there?
It is a good sign if there are other companies getting into the bandwagon. The increasing number of competitors simply means that there is a demand. When there is a demand, your stocks tend to go up.
However, you must also note the number of competitors if there are already so many. If this is the case, it’s hard to get into a business with so many competitors ahead already.
7. Is the Company a Leader or a Follower?
This tip is a follow up to number 6. When you have a good product out in the market and other companies try to venture same path; ask is the company a leader or a follower?
Know there history. Know how they performed in the past. How long have they stayed at the top? Did they find any slump and bounced back or did they have a successful past ever since?
Has the business established itself firmly that they will still be ahead even if there are already too many competitors?
8. Who are the people involved in the company?
Know who the investors in this company are as well as who’s running it. Try to make a research on their past record. Did they have any past failure in their ventures as businessmen? Or do they have this colorful resume of success written all over it?
These things will get you ahead. Siding with the proper people will increase your chance of success in finding the right hot stock.
9. The Scandals.
Take a good look at their past deals. Crooked deals from their records are among the things to look out for. If the company you are eyeing has this kind of past, take our advice: DO NOT BUY ANY OF THEIR STOCK.
10. What’s the newest BUZZ?
Good news regarding the company would increase their stock value up to 100%!
News about product releases and of similar content makes the buzz. This kind of news is an indicator of good things to come.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
Set Up A Portfolio And Work Online
By Mark Schlarbaum | July 13, 2008
Submitted By: Alan Lim
Want to work online? Advertise yourself on the Internet, and get freelance job offers with minimal effort.
There are a lot of ways to work online and make money. If you are a professional who has an expertise in a particular field, you can work online by providing freelance services. There are a lot of websites that are connecting service providers and buyers, and you can sign up for membership to get work online.
Naturally, as service buyers, customers need to have an idea whether you can do the job the way they want it done. You have to give them proof of your skill, knowledge, or expertise. The key is to build your online portfolio so you can find work online, or let the jobs come to you. This is important because buyers would naturally be more interested in providers whose work they’ve already seen. Your portfolio is what will get you those initial projects. Once they become your customers, you can provide quality service to keep them coming back. But you won’t be able to keep them if you don’t win them as customers first. So if you are a freelancer, set up an impressive portfolio to get work online. Before you know it, the customers will start flocking to you.
If you are a web designer offering web design services, you have to show them a lot of past websites you’ve designed. These will help them evaluate whether you’re the designer that they’re looking for. If you are a writer, set up a website where you can post the articles you’ve written. Since there are different writing styles, buyers would also want to check yours. The trick is variety; give them a lot of articles, essays, and whatnots to showcase the different kinds of writing you can do. This way, you can show them that you are a flexible writer and up for any project they may have. If you are a translator, you should also set up a portfolio. Through this, buyers can check your translating style, consistency, and your language use. Buyers would have to make sure that you can translate well, since they wouldn’t want any of their ideas to get lost in translation. As long as you are a service provider offering services online, with the huge number of people doing the kind of thing you are doing, you’ve got to show buyers your edge. Give them a reason to choose you over the other providers. It’s just like marketing yourself.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
Equity Stages In Financing Your Business
By Mark Schlarbaum | July 3, 2008
Submitted by: Janet
Author: Dh Roberts
After you have completed your Bootstrapping Round of funding and your business needs have expanded you can now look to the world of Equity Funding to get the money you need to take your business vision to the next stage of manifestation.
Under Equity Financing you have the following Financing Rounds to look forward to:
1. Seed Round
2. Start-Up
3. First
4. Second
5. Third
6. Bridge
The Seed Round: You have to prove a concept during this phase and you must go through a process to qualify for start up capital. In this stage you would be looking to get anywhere between $25,000-$500,00. Your primary source for this stage of funding would be a) Individual Angels b) Angel Groups c) Early-stage Venture Capitalist.
The Start-up Round: In this round you would have complete product development and your initial marketing underway. You would be looking to raise $500,000-$3,000,000. Sources of Funding would be a)select Individual Angels b)Angel Groups c)Early-stage Venture Capitalists.
First Round: In this stage you will initiate full scale manufacturing and sales. You would be looking to raise $1,500,000-$5,000,000. Venture Capitalist would be your source for this level of funding.
Second Round: This would be the round of funding that would address the need for working capital for initial business expansion. $3,000,000-$10,000,000 is the amount of funding that would be entertained during this phase. Venture Capitalist and Private Placement Firms would be the ideal sources to get successful funding from at this stage.
Third Round: This would be the round where your business would need between $5,000,000-$30,000,000 again you would seek out Venture Capitalist and Private Placement Firms.
Bridge Round: This round of Financing is to allow a company to go public within 6-12 months and would require between $3,000,000-$20,000,000. Mezzanine Financing Firms, Private placement Firms and Investment Bankers are usually the ones that would back companies at this stage.
Whatever the Stage or Round of Financing your company or business model may be at there are thousands of firms and individuals that are willing to provide you with the necessary backing that you would need. These sources are there to help you take your company to the next level.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
Stock Market Investment
By Mark Schlarbaum | May 23, 2008
A helpful article by: Janet Schlarbaum
Author: Arindam Chattopadhyay
Buying and selling of shares happen in Stock market. A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company. If the company loses a lawsuit and must pay a huge judgment, the worse that can happen is your stock becomes worthless. The creditors can’t come after your personal assets. There are two types of stock: Common stock , Preferred stock . Most of the stock held by individuals is common stock . NYSE, NSE, BSE etc..are few places where trading of stock happens.
Why Investing In Stock Market? Investing is the proactive use of your money to make more money or, to say it another way, it is your money working for you. Investing is different from saving. Saving is a passive activity, even though it uses the same principle of compounding. Saving is more focused on safety of principal (the amount you start out with) and less concerned with return.
Investing in stocks means you are partial owner of a business. Whenever management distributes profit as dividend you will get it. This is called dividend income - a best strategy for passive income. This is best suited for retirement income planning.
As per history, if you compare Return of Investment of stock market to that of high yield bond investment i.e. “junk” in every decade for last 100 years, investing in stock market outperforms others 8 out of 10 times by a fair margin. If your investment horizon is 20 years, statistically return of your stock portfolio will at least beat inflation.
How you Should Invest in Share Market?
Budgeting eats your time. Instead of following complex and boring expense tracking, you simply follow the financial strategies of pay your self first. You should investment at least 30% of your savings in blue chip companies and 20% to high dividend yielding stocks. On Line Investing in stock market is the best way to invest.
How to do Portfolio Management in stock Market?
You should carefully look around your daily life. You will notice what you use daily and what other people are using. This observation will give you fair amount knowledge to those products and companies. Try to understand business model of those companies. Gather more knowledge on those companies.
Understand company’s balance sheet & Profit- loss statement. Look for Profitability in business, cash in hand, auditor’s report, director report of the company. Try to understand the business model of the company and management team. Check return on asset. price/earning, return on equity and credit management of the company for last 5 years. Check analyst report on forward p/e.
If all these are satisfactory, invest in the company. Like these you need to find 6 to 9 companies from 5 sectors like Energy, Oil and Gas, FMCG, Service Sector, Biotech. Pharmaceutical, Bank, entertainment, IT industry and Insurance.
Your investment philosophy is to own a small part of the company for 20 years. This ownership mentality will really give you money in the long run. In the high bull market do partial profit book regularly. If market sentiment is strong bull, buy option. If market sentiment is strong bear buy put option. Use 5% of your money in option trading. Option trading basically used to hedge your asset and also make some speculative gain.
In strong bear market, your blue chip companies can generate good income if you use covered call option regularly. It’s not difficult to get 40% p.a. ROI by writing Covered Call Option.
Money Management tricks for you to ride Bear - Bull of Stock Market
1. Never investment more than 50% of your savings in stock market
2. It is necessary to invest in speculative investment for big money but never invest more than 10% of your portfolio.
3. Get out of loss making investment. It will protect you from bigger loss and the loss you can offset against your profit in your tax return.
4. Do not make buy decision out of greed.
5. Do not take sell decision under panic
6. Understand the market and where you investment with clear objective why you are investing.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
Investments Solutions Company, Get Advice and Make Profit
By Mark Schlarbaum | May 19, 2008
Helpful advice by: Mark Schlarbaum
Author: Anton Kadin
You work hard to make money so this is your responsibility to take care of it, to save it and at the same time to make it grow. As far as growth of money is concerned, there are various options with different benefits. But the question is which is the most suitable investment option and what is the right way of investing so that we can save tax also. You also would have so many questions regarding investment which should be answered and for that you can choose an investment solutions company.
As far as investment is concerned, many questions can be raised and before investing anywhere you need good answers of all those questions. These questions may be like how much you should invest, where you should invest, for how long you should invest and why should you invest. You can get answers of all these questions by opting for a good Investments Solutions Company. The company would show smart ways of investing and it will suggest where and for how long you should invest. You can give them a budget and now this is the company’s responsibility to provide to tailor made investment solutions.
You can choose some best investment solutions for you among numerous options. It may depend on your budget and preferences and many times on the time span of the investment. As some people want short term investment and some long term. Generally, investment products are made up of four variables of cash, (deposits), corporate bonds and gilts, equities (shares) and property.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
Here Are The Ground Rules For Successful Investing
By Mark Schlarbaum | May 9, 2008
Recommended content by: Janet Schlarbaum
Author: Michael Hehn
Not long ago investing was easy. There were few places you could invest and if you had money you wanted to invest, you left it to the professional stock brokers. However, deregulation of the financial markets has changed all this. In the past 20 years new investment products have been launched, changes have been made to the tax systems and retirement plans which have altered the attractiveness of many investment products.
Up to about 20 years ago, share investing was purely in the domain of the wealthy. For most people it was difficult to trade in overseas stock exchanges, there were no such thing as cash management trusts, installment warrants, exchange traded options, dividend imputation, reset preference shares and endowment warrants - to name a few. Now about 50% of investors are “mums and dads” investors who either own shares directly or in managed funds. Unfortunately, in recent years many investors have been “burnt” because they did not understand the risks of investing in financial markets.
Governments around the world have made it clear that it is important for people to take control of their own financial futures. The sustainability of government funded pensions is under pressure. If you do not save and invest, you will suffer a significant decline in your retirement living standard. The average life expectancy is about 80 years, so if you retire at 60 years of age, the savings you have accumulated in the 40 years of your working life will need to fund your retirement of 20 years or more.
Deregulation of financial markets, interest rates and currencies means that the market determines the value of investments and not government decree. This provides opportunities for educated investors to build wealth and for unwary investors to lose wealth. You must understand the opportunities and risks.
The ground rule is that if you want to be a successful investor in financial markets, you must educate yourself about investing. Even if you put your faith in a licensed investment advisor, not all are competent. It is essential that you understand how the financial markets work so that you do not put your hard earned money in the hands of an incompetent advisor who is only interested in the commissions available. How can you tell whether a particular investment is right for you? The only sure way is to become familiar with the language used in the financial industry and to have a sound investment strategy. Does this mean that you should keep you money safe by putting it under the bed or keeping it in the bank? No - but you do need to understand the risks involved and set ground rules for successful investing.
There are a number of ground rules in investing that haves stood the test of time. With time, patience and effort you can become a successful investor in all the areas that are open to you. This will not come overnight and you will have to be prepared for that fact there will be times you lose money. However,perseverance is a virtue above all others. The road is not always easy, but nothing worthwhile is.
Here are the ground rules for successful investing:
1. Be your own investment manager. No advisor or stockbroker should do it for you. Only you know what your real needs are, what your temperament is - and only you are motivated by your own best interests, not sales commissions. It is also more fun to do it yourself.
2. Confront risk and then reduce it through spreading your investments.
3. Take a contrarians view to investment markets. That is, look for opportunities and do the opposite of what everyone else is doing.
If your investing facts are out-of-date, how will that affect your actions and decisions? Make certain you don’t let important investing information slip by you.
4. Do not be put off by investment jargon. Master it instead.
5. NOW is the best time to start investing. Do not wait for the markets to improve. If the share market is filled with gloom, that is the time to buy.
6. Make good quality shares the core of your investment strategy. Then you can rest easy when you invest in more speculative areas.
7. Always consider tax implications of making investments but never let tax minimization be the main objective. The fundamental rule is to think in terms of after-tax returns.
8. Keep up to date through reading the financial papers and searching independent investment research websites.
9. Discussing investments is stimulating. Condition your mind to talk to others about investing, especially people who are more experienced and knowledgeable than you are.
10. Do not be greedy. Discipline yourself to cut your losses with bad investments and cash in when you have made a reasonable profit.
11. Be patient. Rome was not built in a day. Similarly, you may not become wealthy overnight, but you will over time.
12. Never invest in anything you do not understand. If a particular investment sounds too good to be true, it usually is.
13. Pay yourself first. Most people invest money they have left over after paying the bills. Allocate yourself the first 10% of your monthly income to build up your investment capital.
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | Comments Off
The Three Golden Rules of Investing
By Mark Schlarbaum | March 21, 2008
Author: Webrepairservice
The whole aim of investing is, of course, to create a passive income stream, so while you’re out on the golf course, hanging with friends or whatever, your money is working for you, rather than you working for money.
There are three golden rules to investing that, if you follow, will lead to great wealth and financial freedom!
The first golden rule is to just get started! One of the main reasons people fail to create wealth is because they don’t understand the power of compound interest as they think investing just a few dollars, or even putting coins in a jar will never be enough to invest, so why bother.
The truth is many successful wealthy people started out by just investing a tiny amount then watching it grow thanks to the power of compound interest.
The second golden rule is to start young! If you invest say, $2000 when you’re 30 you will end up with more money than if you invest that same amount at 35. The reason is compound interest. Imagine planting a seed, then fertilizing it for 30 days.
That seed will just grow and grow, spread more seeds and turn into a big bush! Now, imagine planting the same type of seed 1 year later and only giving it half the amount of fertilizer. This plant will grow but won’t catch up in size to its counterpart. That’s what compound interest is like!
The third rule is to have a plan. There’s an old, and very true, saying: Fail to plan - plan to fail. Write your plan down, review it regularly and above all, keep your eye on the goal.
The most common forms of investment for most people are real estate and the stock market. When you invest in the market, you are literally buying stock in a company, which then uses the money raised to run its business, expand, pay down debt, or buy another company.
You can either buy shares through a broker who will charge a fee, or trade on your own online. The advantage of a broker is that they follow the market continuously and should know what the stocks are doing. If you plan to trade online on your own, be prepared to study the market extensively and learn how it works as it can be confusing.
Real estate has been a popular form of investment for thousands of years and with good reason! The aim of your investment is to get someone else to pay off the debt while your asset increases in value.
The keys to this are to invest in a high demand area, don’t borrow too much and be prepared to hold the property for at least five years. Always look for property in a prime location and that needs only minor maintenance or repairs that you can undertake at minimal expense to add thousands of dollars to its value.
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How To Get A High ROI In Stock Market Trading
By Mark Schlarbaum | March 21, 2008
Author: Pildster
The Return on Investment (ROI) in stock market trading is the profit you make on the sale of a security or other asset divided by the amount of your investment. ROI in stock market trading is expressed as an as an annual percentage rate.
Return on investment (ROI) is stock market trading includes all the income you earn on the stock. It also includes any profit that results from selling the stock. If the sale price plus any income is higher than the purchase price, then you have a positive ROI. If the sale price plus any income is lower, then your ROI is negative.
Of course as a stock market trader you are always looking not just for a positive but a high ROI. Below are some ways to ensure that you get a high ROI in stock market trading:
Always know what your buying
The most important thing to do to ensure high ROI in stock market trading is to acquire as much information as possible about the company you are planning to invest in. Do some basic analysis to find out if the stock is worth the price or else you will be gambling. You can always ask other people to the research for you if you don’t have time. Reliable sources are websites of major brokerage houses, finance publications and mutual-fund companies.
Don’t confuse smart investing with a bull market.
There are many reasons why you could be getting a high ROI in stock market trading. One is you could really be investing smartly. Another is that you could just be lucky enough to be in the right place at the right time and made money with hardly any effort. Sometimes we feel smart when the market is going up so we’re tempted to trade more frequently and take on riskier positions.
Avoid active trading
It is tempting to trade frequently especially when your gaining. This is particularly true with online stock market trading where investing is only a few clicks of the mouse away. But remember that it’s tough to make money by beating the market consistently. It is advisable to employ a buy-and-hold strategy to ensure a high ROI in stock market trading.
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What Stocks Are and How Stock Market Investments Work
By Mark Schlarbaum | March 7, 2008
People hear about the stock market every day. Each time the stock market hits a high, or a low, people hear about them. Daily statements are also issued about the activities of the stock market and its relevant economic implications. But what really is a stock market? What are stocks? And why is it that people want to do stock market investments?
The stock market is the marketplace where the trading of company stocks happen. These stocks may either be the securities which are listed on the stock exchange or those which are traded in a private manner. Stock market investments allow companies and private individuals to get a share of ownership in large corporations. It is also a way of gathering large sums of investment capital which is difficult to produce if the business is solely-owned. The large capital then comes from the stock market investments.
Stocks are shares of a company or business which gets on sale in the stock market. Stock market investment happens when a person buys a share of a company’s stocks that were put on sale in the stock market. For example, a businessman decides to sell his business in the stock market. Each stock market investment is represented by the person who buys his share of stocks. When this happens, any person who buys stocks in the businessman’s company will have an equal share of profits by the end of the year, and an equal vote in the company’s business decisions.
In the past, stock market investments were done by individual buyers and sellers. Through time, however, this has changed and the market participants evolved from individual investors to large corporations. This change in the activities of stock market investment has also helped to control movements in the market.
To encourage stock market investments, a business that wishes to sell its stocks to individuals and corporations could only do so if it becomes a corporation. Individual capital investors and big corporations who buy a number of shares of a business or a corporation are then called shareholders. Shareholders are the owners of the new incorporated business. Their stock market investments gave them the authority to claim ownership of the business. These people can now decide whether to privately or publicly hold their corporation.
In a privately held company, the shareholders are few and probably know one another. Their stock market investments are known to each other. The publicly held company, however, is owned by a large number of people who do stock market investments on the public stock exchange.
Author: Pilkster
Topics: Janet Schlarbaum, Mark Schlarbaum, Schlarbaum Capital Management | No Comments »
Portfolio Management - Let The Professionals Take The Load
By Mark Schlarbaum | February 27, 2008
Author: Wanda Cortez
Do you have a lot of shares in different companies?
Do you have a large sum that you are looking to invest in the stock market?
Are you finding that doing the essential research too time consuming?
You might want to consider a portfolio management company.
Share Portfolio management is an option for those with a high value portfolio of shares, or a large amount of capital to invest in shares and commodity futures. Portfolio managers have various minimum values that they require to actively manage your investments.
The reason large minimum values are in place is because of the high commission charges that these companies make. It would not be worth a small investor, with $10,000 employing a company to manage his portfolio of shares in one or two companies.
Having a professional Portfolio Manager does remove a lot of anxiety from the individual. The manager’s role is to ensure that your portfolio is a balanced one, without excess exposure to currency fluctuations or to any one sector of the market.
It is part of the managing company’s role to conduct research, so that they can advise you on the best options. Research is an area that many individual investors find difficult, unless they spend hours every day watching share prices. The professional advisor employs people to conduct research into specific companies or market sectors, allowing you access to better research than you would have otherwise.
Your Portfolio Manager will also ascertain the degree of risk that you are happy with and ensure that your portfolio of shares is not at odds with your risk acceptance.
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