Archive for the ‘Investing’ Category

The Best Stocks to Buy Right Now

Saturday, January 30th, 2010


Many individuals always seek a way to find out information on stocks. Not only do they want information, but also they want to learn what to buy. Now you can find out what the best stocks to buy right now.

Although there are few people out there with the knowledge that easy money is possible with stocks, it has to do with the lack of tools that they have. Knowing the right information can help you to find the best way to make money. This is what you will learn right now.

Do these two sites look familiar to you: TodayHotStocks.com or ETFTradingSignals.com ? I am sure they don’t, since when there is something really good out there, very few know about it. Unfortunately, most know about the sites that do not give any results, but not about the ones that matter.

TodayHotStocks.com is a great place to receive free information and tips on the best stocks to buy right now by signing up for their free newsletter. They send to their subscribers the best stock to buy every month absolutely free and also offer a best 10 stocks portfolio that generated amazing returns over the years. The stocks they recommend are volatile and not for a conservative investor but the returns they generated are probably worth the extra risk.

If you are not comfortable to take the extra risks to invest in the best stocks to buy right now you should probably consider the service below specialized in top performing ETFs.

ETFTradingSignals.com will help you to make money investing in the best performing ETFs, by using an automated ETF pick system. The system they created has many years of research put into its development. It works so well, that they outperformed the broad market every year since inception. Not only that, but you will also have the advantage of getting their buy and sell signals before market open if you subscribe to their newsletter.

Additionally, the company does not use risky investments that are likely to lose your money. They only recommend Exchange Traded Funds (EFTs) since there is less risk involved. Find more about how exactly they choose the best ETFs to buy on their web site and sign up for the free ‘ETF of the Month’ newsletter to get the best ETF to buy every month.

Modified Internal Rate of Return: Predicting Your Investment Profits

Wednesday, January 20th, 2010


How do you know if your real estate venture will make money? You’re dealing with a considerable amount of money, and you don’t want to waste a single penny. A real estate investment is not something you want to dive into blindly, which is why the modified internal rate of return is so useful.

The modified internal rate of return, or MIRR, is a calculation that gives you an idea of how much your real estate venture will make you. In the end, the modified formula tells you whether the deal is worth it or not.

Before you can understand the MIRR, you need to be familiar with the internal rate of return.

Internal Rate of Return

The internal rate of return, or IRR, is basically the expected profit on a real estate venture. There is a difference between the two figures. Knowing which is which can help you master these somewhat complex formulas. The results of this type of calculation have been used by big companies for years to predict if a project is worth financing.

Basically, this calculation tells you the expected yield of a venture or project. This yield should add to the company’s (or investor’s) wealth, and is measured against other possible projects. It is also sometimes measured against existing projects. For example, when a corporation is considering several different investments, it may use this calculation to decide which is most profitable.

The IRR Gets Modified

What makes the “modified” rate of return different? This second formula takes into account not only the expected yield, but accounts for the yield after reinvesting in the initial project. This is the goal with commercial real estate ventures; to reinvest some of that profit into the business so that it continues to increase in profits.

The MIRR is a great way to predict how much your possible project will make, but with real estate ventures, it is not always so easy. The first step for any real estate investor is to pay back the property loans that funded the project in the first place. Very few people can start a career in real estate investment without first taking out a hefty loan, and you won’t see the profits until afterward.

Advantages of the MIRR

This calculation is a better predictor of how much profit a project will make, because it assumes that the money will be reinvested at the same initial cost. If you work out the same problem using both methods, you will sometimes find that the profit balance comes out positive with the IRR and negative with the MIRR. This is dangerous, because the IRR may be misleading profit-wise.

Basically, the modified calculation is the better of the two because it allows you some flexibility. You can enter whatever amount you deem appropriate. The IRR has a tendency to overstate the amount of money you will make, so the modified internal rate of return is safer to use for long term projects.

Once you know how to use this calculation, you will be able to safely predict whether a particular real estate investment is worth doing or not.

Share Trading Techniques

Friday, January 8th, 2010


Share Trading Techniques.

While perusing through one of my trading books, I came upon some fascinating facts that were very thought provoking, so I will pass them on to you.

The author is “Daryl Guppy” a well established author and successful trader as well.

He stated, that over time he noticed that once a share magazine was published that the stocks that were recommended by the magazine went into an uptrend, because the readers took notice of the tips given and bought them. Here are the statistics.

1. One month after publication 90% of the stocks mentioned were still in an uptrend.

2. Two months after publication 80% were still in an uptrend.

3. Three months after publication only around 45% were still in an uptrend.

Obviously it pays to buy the magazines each month and buy the shares mentioned.

But I personally would be watching them very closely and would be hanging on to them only till my preset profit level had been reached and I definitely would be out after a 5-6 weeks.

They would still have to qualify to my buying strategy in the first place if not I would not touch them at all.

Now a hint for you here, How I trial my” New Ideas” out is by “Paper trading.” That way I am not risking any of my money in something that I am not 100% sure of.

If you want to paper trade the places I use are www.asx.com.au and www.sharecafe.com.au both are free sites and you can find free information there as well.

Becoming a “Dividend Stripper.”

An interesting thing I found out was that apart from being share trader I have also become a “Dividend Stripper.” I shall explain this further as to what I do occasionally.

A dividend stripper is a trader who buys shares to qualify for the oncoming dividend and then sells shortly afterwards.

You buy before the “Ex Dividend” then you can sell the next day. Making sure of course you have the dates right in the first place.

But to qualify for the “Franking Credits” you need to own them for 45 plus 2 days.

1day for buying, 1day for selling plus 45 days = 47 days. Anything less and you miss out on those franking credits.

An interesting thing to note is that a stock’s share price invariably falls usually by the amount of the dividend paid after the ex dividend date expires.

Another trick is to buy the stock 2-3 weeks earlier in the hope that the share price goes up prior to ex = dividend.

A Warning About IPO’s.

The market seems to be inundated with IPO’S (Initial public offering) these new companies all seem predominately to be in the mining sector.

All eager to get in on the current “minerals boom”

A few opened up higher than the initial entry price. Most seem to be exploration of some sort or other. The flavors of the month are usually oil or uranium.

These are of course classified as “Speculative Stocks.”

Which can mean that once the cash has dried up and they haven’t found anything, they then have to either raise more cash or shut shop? And your cash has gone with them.

The rags to riches stories are many, but the road is littered with the crushed hopes and dreams of the unwary investors.

All are searching for that elusive pot of gold at the end of the rainbow.

So be wary, do your research, and don’t jump in blind. Be an informed investor.

If it looks to be too good to be true then it usually is.