Posts Tagged ‘strategies’

Property Investing

Saturday, August 15th, 2009

Purchasing an investment property is a complicated business decision.  Make sure that you study this subject in detail prior to taking action, don’t hesitate to consult with a professional i.e. your attorney, accountant, or real estate agent on this matter.  That said, it is always prudent and well advised to have a plan in mind before you start looking for help.

Tips and strategies to bear in mind when searching for property investing.
Investment Type:  Unoccupied land, rental houses, condos, apartment buildings, commercial properties, industrial properties, mobile homes etcetera. Each has different level of risk and reward associated with it.  For beginners, a rental house or small apartment building is ultimately the finest choice.
They offer the chance for income on a regular basis, have shorter vacancies on average than commercial or industrial property, are less regulated than condos and mobile homes in most areas, and there are many places that you can get information and education on becoming a successful landlord in small residential properties.  It is a good place to start, and it is the investment type we will be concentrating on in this article.

Area Selection:  Buy property in an area that has a varied economic base offering many employment opportunities.  After all, the tenants will need an income in order to reliably pay rent.  The area should offer good schools, shopping, and transportation.  Idyllically, it should be an easy drive from your residence so that you can keep an eye on your investment.  And, the area should be safe. Profits and money are not worth risking your life for, and the quality tenants that you want to attract do not want to risk their lives either.

Research property values and rents: This information readily is available from real estate agents, as well as from a variety of other services in most areas.  You will want to call rental ads in the paper and talk to local landlords about what they are offering, how much they are charging, and what their experience is with the market.  Some of them may be open to selling their property and may even be willing to finance it, so don’t hesitate to ask.

Property Investing can be fun, just be sure you conduct your research first.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com

Options Trading

Wednesday, July 22nd, 2009

Are you a directional trader? If you answered yes, then Options trading can be an ideal way for you to play the markets as opposed to stocks or futures. When you trade options, you get the flexibility of specifying the maximum loss you can stomach upfront; you can even define where you want your options traded at when it expires.

Options trading provide the investor with unmatched advantage not available to other investment vehicles.  This is because option contracts offer the flexibility of placing bets on very definite market outcomes. A good example is that an options trader can place a bet that in 7 months time a particular stock will appreciate or depreciate in value - a two way bet per see.

Should the stocks trade between the forecasted price range in 7 months, the trader loses a preset amount. This options strategy is known as long straddle. Options contracts offer huge leverage. In America, 1 option contract is equivalent to 100 basic shares. In Australia, 1 option contract is sold in multiples of 1000 times the basic commodity or stock.

This means that even with a small grubstake in dollars, an options trader can manage huge stock position. The leverage factor makes options trading very risky for the newbie investor because losses as well as gains are greatly magnified when leverage is applied. As an options buyer, the biggest advantage is that you cannot lose more than your initial account equity.

Options trading allows the investor to gain from every move in the underlying asset - whether up, down or sideways. An options trader can easily participate in the stock market downtrends by purchasing a put option without the risk of margin calls prevalent in Forex by simply shorting the underlying stock.

It has been said that trading options could be less riskier than trading stocks. In order to trade options, you have to open an online options account with an execution only broker. Ensure that the broker offers online options trading, then you can practice trading call options for stocks you anticipate to rise in value, and purchasing put options for stocks you anticipate to fall in value.

Once you become completely familiar with options trading, you can advance to more complicated options strategies.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com

Share Strategies

Sunday, July 19th, 2009

The term Share strategies in Google brings about 70,900,000 results, with such large number of links, its little wonder that a person looking for help to develop their share strategies can easily get overwhelmed. In this section you’ll find some nice tips on the best known share strategies, most with proven track record in both short and longer term periods with above average results.

That said, it should be emphasized that no single stock market strategy can always be successful.  If there was one, perhaps everybody would adopt it leading to share price fluctuation that undermines the original strategy. The commonest strategy so far is the recognition of undervalued shares. Below are more shares strategies to consider;

Dollar cost averaging

Due to the difficulty involved in getting correct timing decisions when transacting in the stock market, some authorities back the dollar-cost averaging, this share strategy involves the purchasing of a fixed sum of stocks at regular intervals, done without regard to the performance of the stock market.

Cut loses Policy

This strategy advices that if a share value falls after purchasing, you should liquidate it. Meaning you cut losses immediately the share price drops to a predetermined level - say 15 per cent. This method also referred to as “Stop-loss policy” warrants that you don’t loose more than 15 per cent of your account equity.

Contrary opinion

It’s popularly stated, especially in the stock market that when everybody agrees with a certain course of action, follow the contradictory opinion, the funny thing about this strategy is that the stock market analysts seldom agree on anything.

Liquidate Underperformers

Some market pundits recommend the liquidation of underperforming stocks, thus stocks performing below the market average should be sold and the money used to purchase well performing stocks.

Success breeds success

This very old strategy otherwise known as “The reversal system” advises that in any given four weeks period, a share should be purchased when it’s price rises above it’s previous high price and liquidated when it drops below its previous low prices. This share strategy has been empirically tested and reported to deliver very good results.

Love life, not just the weekends. You only have one life, Live It! @ www.NicciAndLee.com