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| The Important Things To Know Before You Invest |
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| Written by Rahn Naro |
| Saturday, 31 January 2009 10:19 |
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All of us want to make money when we invest, but it's important you understand your current financial situation before making a decision to invest in the market. This is true whether your investment is penny stocks or long-term blue chips. In order to determine this, you'll need to calculate your income and expenses, adjust the following to meet your personal requirements. What is your mortgage payment? What taxes do you owe? Do You have loans and/or credit card debt? What are your daily/weekly living expenses? Do you have an evergency fund in place (crucial)? What expenses are involved with transportation? Do you have leisure or entertainmy expenses? Are there student loans owed? What other obligations do you have to family or friends? When we begin thinking about investing, we need to first look at our own financial situation to determine what amount we can safely invest each month. It's always wise (that should read crucial) to invest with your surplus, and not your rent (by rent we mean any monthly expense you know will be spent). In order to accomplish this and not invest scared money, it's wise to first save (put aside some capital), and use that money to invest with. How much you decide to put aside is your decision, but many financial experts recommend 10% as an emergency fund, then an additional 10% for investing. Different people will have different takes on these suggestions. If you're single, this may not apply but if you're married with children, always put your family first. We may be investing to help our family, but we don't want to put them in jeopardy in case something were to go wrong. In order to accomplish this, you'll want to make certain your debts are paid, life insurance in place, and emergency fund has sufficient assets to help the surviving spouse begin a new life. Each of us is unique and deals with investment strategies, and life in general, differently. There are those among us who are conservative, and others who are risk takers. An honest conversation with yourself, or your spouse, will help you determine what type of investor you are, and what are your goals for the future. we are extremely bullish concerning penny stocks, believing they can be an integral part of any portfolio, offering significant possibilities for excellent ROI. The time tested piece of investment advice is this, diversify. While penny stocks have allowed this author to obtain wealth, that doesn't mean they are my only investment, I'm well diversified and so should you be. The market will always fluctuate, it has done so for years and I can see no reason it will change in the near future. Is crucial before buying a stock, that either you do proper research, or be a line with an expert, or pennystock newsletter that understands the market. Over time, you will find that many of your most fruitful investments, or the ones not recommended by most brokers. Stockbrokers, just like investors, are either risktakers or conservative investors. We believe a blend of the two is why can help increase your nest egg the quickest. While we believe the majority of the big moves are predictable ( with penny stocks), there will certainly be the time you're on board a loser. When this happens never chase the stock, take your licks, liquidate your position, and lived to invest another day. while the feeling is wonderful when you're onboard a winner, do not let your emotions rule, take your profits, celebrate, then reinvest. About the Author: Penny Stocks do not rise or fall based on financials or fundamentals, but on investor awareness campaigns. If you knew which stocks were getting ready for a big advertising push, would you be interested? We know the BIG PLAYER from the wannabees. Let us prove it WhisperFromWallStreet.com will prove how to profit from penny stocks picks. Visit and download free, "1500 Stocks That Rose 25% Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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