How to Create a Stock Investment Plan

An individual has many obligatory functions to perform, many responsibilities to undertake, and such occasions demand money. A lump sum amount is required to buy a house. For children’s education, recurring expenditure is involved. Savings need to be goal-oriented. Each responsibility is a milestone in the life of an individual and the investment decisions should be made to meet them.

Investing in shares is an overwhelming decision and it depends upon the prevailing market scenario. With thousands of shares listed in the exchanges, developing a portfolio needs to be well-studied and imaginative task. But it is a misnomer that you need to be a financial expert and a profound researcher to be a good investor. If you follow the fundamentals of investment principles, and take the advice of an experienced broker, you can overcome the staring troubles and shape as a good investor.

Create your investment plan with a systematic approach, identifying your goals and time horizon. Next, choose your asset allocation and select your investments. The portfolio created is not the final guarantee of your success. Having cultivated the portfolio, you need it to watch it with an analytical mind, relating to the prevailing market conditions and make suitable changes.

Investment strategies are like a race. Know your starting line, the distance to be covered and the time you have to cover the distance. You need to have a good understanding of your present financial commitments and for the future. At the same time, do not invest your entire savings in shares, howsoever encouraging the market conditions are. You need to own an emergency fund and a contingent savings plan.

When the goals are clearly indicated, you know how much money you need and when you need it. You also know the level of your risk-tolerance. How will you absorb the sudden losses? Will you be able to recover from the mental shock and from the financial blow? The allocation of funds needs to be as per your age limit, whether you are an adult, middle-aged or a retiree. After finalizing the plan, stick to it, and do not bother unnecessarily by the market volatility. The market functions as per its style; you need to have your own style and abide by it.

Determine the appropriate allocation of your personal assets for your age (young adult, middle-aged, retiree, and so on). Develop a regular investing program and stick to it regardless of market volatility.

Decide whether you will be an active trader and involve in share market operations like day trading or a passive investor adopting a buy-and-hold policy?

Select an online broker as per your investment needs. The broker will charge commission, but at the back of your mind, you always have the inclination to reduce brokerage commissions. Your approach needs to earn more profits and in such a situation no harm in paying more brokerage. Some of the methods to apply check on the amount of the brokerage that you pay are to use automatic investment plans, dividend reinvestment programs, and investment clubs.

Once you create the portfolio, your responsibility does not end. Watch and rank your investments at periodical intervals. The market conditions will never remain the same, as the market is subject to many pulls and pressures. With rapid industrialization, computer and internet revolution and the new technology, even the established business houses will have to do the balancing acts to survive and progress in the market. You need to bulletproof your investments against the market assaults.

Do not enter the market when the conditions are extremely volatile. If you do, succumbing to temptations, losses will be round the corner. That is to say, do not react to the market. Be proactive. Have a paper plan ready and begin investing when the market conditions are calm. Let the portfolio be core diversified. The construction of the portfolio needs to be such that it should not rob you of your mental peace and ultimately affect your physical health. You are certainly not earning to pay the exorbitant bills of the medical practitioners.

2 Ways to Invest Your Time and Money During the Recession

September 11th, The George W. Bush presidential campaign, the war in Iraq, the pending fuel crisis – These are all at fault for the current economic crisis. Job losses are at a record high and very few new jobs are being created. With this in mind it is a good idea to look at some of the more alternative ways to invest during recession.

Although most of the world is in recession, it may surprise you to learn that from January 2008 – January 2009 there was a massive 19% increase in online spending. Online spending is expected to rise by a further 10.7% annually projected over the next 4 years and will reach $600 billion by 2011. This opens many doors to both individuals and businesses alike to increase their profits. We take a look at 2 ways to invest during recession.

Internet Affiliate Marketing

Internet affiliate marketing is when a person advertises a product for a company and gets commission from every sale the company gets, that has gone through the advertisement first. It is free to join 90% of affiliate programs and you can earn anywhere from 1% – 75% commission for every sale.

There are many different forms of advertising you can use, both free and paid methods. These include article marketing, SEO, web development, email marketing, PPC and many more. There is an initial learning period involved in affiliate marketing but once it is completed you can easily earn a full time income from it.

There are many top tier affiliate marketers that started earning as much as $200,000 after 2 years working as an affiliate.

Google AdSense

Google AdSense is another way you can make money online and invest during recession. The potential for as large an income as affiliate marketing is slightly less but you would be using some of the same techniques as you would as an affiliate, especially SEO (search engine optimization)

The way to make money from Google AdSense is to make a blog or web site and drive massive amounts of traffic to that in the hope that some of your visitors will click on you Google AdSense ads that you will have places in between your text on your page.

You can earn about 20-50 cents per click. Potential daily earnings can be from $10-$200 depending on the amount of traffic you can drive.

Must Know Tips Before Starting a Home Based Business

There are a few “Key” things to look for before getting started with any Home Business. I have been in this business a while now and know you really have to find these things and make sure they are in place before you get started in order to help ensure your success.

Now there’s a HUGE difference between those who make money online with a network marketing/and or Home Business and those who do not. There is only a small percent of people who will ever make Serious money online working a home based business. When I say “Serious” money I am referring to at least 10K – 20K++/per month.

So how do you do that? Well what I want to share with you are just a few tips on what you should look for in both the person you join and the company you join.

These tips will guide you to the actual decision process of finding the
” right” Home Based business for you to partner with.

1. Finding the “Right” Company.
- Most people now a days are staying away from MLM’s due to the small profits, the time it takes to build a downline and the very high turnover and failure rate. My suggestion is find a Top Tier Direct Sales business. There are some Top Tier Direct Sales opportunities out there where YOU make anywhere between $1k – $15k profits Per sale… a lot better than making $30 commissions from the typical MLM.

2. Find the “Right” Mentor.
- A mentor is someone who is going to be there for YOU, someone you can trust, someone you have a connection with and you feel comfortable with. You want the person to come off as a leader, make sure they are having success in the business and making money as well. Make sure they can teach you how to market yourself so you can be successful as well.

3. Make Sure There is Duplication.
- Make sure the company has a system in place that you can follow and plug your potential future business partners into to really get all the information about the company, products, compensation plan, etc. The more duplication, the more success for everybody.

4. Make Sure There is Training
- There should be training calls from the company on marketing, webinars, video tutorials as well as training from your mentor/sponsor. You can have the greatest company and products in the world…however if you are not trained on the business and on how to market, you will Fail. Make sure there is training in place.

5. No Personal Telling, Selling or Explaining
- What do I mean by this? Well this falls back on the system again; most Good companies have a system in place that will really do most of the telling, selling and explaining of the business. That way you can leverage your time really just following up with your prospects and seeing if your business is a right fit for that person. Of course you still want to build that relationship with that person, but there should be a system in place that does a lot of the work for you.

6. Long Term Vision.
- Make sure the company and founders have a long term vision and the company has some longevity as well. You want to make sure this company has and will be around for a long time.

7. You Must Be Passionate.
- You are going to have to be able to be passionate about what you are doing and believe in your company, products and business opportunity if you are going to be offering this to others. If you are not passionate and don’t truly believe in what you are doing…you will also fail.

8. Return On Investment.
- This one might come to a shock to some people but here it comes, if you are looking to make 100K+ in a home business, you will not find one that you can join for Free. Shocking right…you would be surprised how many calls I get where the person tells me “I want to make $300K a Year” and the next question is “does this cost any money”?? If you are getting started with ANY Legitimate business where you can make serious money, be prepared to invest anywhere from $1,500 – $3,000 to get started. Remember, this is a “Business” and it will be YOUR business. Anyhow, back to the return on investment, make sure when you get started you don’t have any “training” sales or “pass up” sales before you can make money. You should be able to be in the money making seat from day ONE. If not, find a different opportunity. You should also be able to have a pretty quick return on your initial investment.

9. Make Sure You Can Make Money Part-Time
- Many people can’t start a home business full time from the get go. So make sure you can make money part time until you replace your current income and then dive into the business full time. Pretty simple. Don’t let anybody tell you to quit your job and just dive right in…unless you want to or are able to.

10. Have FUN!!
- Have fun with what you are doing, this goes hand and hand with being passionate about what you are doing. Remember, you will be in business for yourself (NOT by yourself) but for yourself. So, you are the boss, you make the rules, etc. So have fun in what you are doing and live life on your terms. The more fun you have with the business, the more success you will have and you will really enjoy every aspect of your life that much more.