Most people don't spend much time wondering what money is. Their only major concern is how much they have, and how to get more!
What is money?
It is a medium of exchange.
What does it do?
It ensures the success of exchange by being the one item on offer that is ALWAYS acceptable.
Why is it necessary?
Because human beings must exchange to live together in peace, and to prosper!
That's all!
On the other hand, without money, the production and exchange of anything but the most rudimentary goods and services is impossible. It is not difficult, or time consuming, or inefficient, it is IMPOSSIBLE!
Animals don't exchange (or trade) amongst one another. They are self-sufficient, or they take from each other, or they exercise the prerogative of superior strength and/or cunning.
There are some human beings who get along in a very similar fashion, but the overwhelming majority recognise the benefits of voluntary exchange.
Strictly speaking, the use of the word "voluntary" in this context is redundant. The phrase "your money or your life" is not the precursor to an exchange, whether the person uttering it brandishes a gun or a government identity card!
The first rule of any voluntary exchange is simplicity itself. If two people are willing to exchange, each must view the results of the exchange as being beneficial. If either of them is not of that view, the exchange will not take place.
The ways to make money in this world are simple:
Marry someone who is already rich.
Have a rich person die and will you their money.
Strike oil.
Discover gold
Win the lottery.
Rob a bank.
Work for it ...
Or have it work for you through investments!
In investing, you don't have to be an expert to take advantage of real opportunities!
But, in order to invest with confidence, profitable success and consistency and be able to take advantage of opportunities, first you should assure, that all your essential financial needs and responsibilities are met.
Then, start with:
1. Setting aside sufficient liquid funds for cases of emergency.
2. Making sure you are completely and adequately insured.
3. Building a reasonable retirement plan.
4. Getting out of debt -- and staying out!
5. Determining your time frame, and
6. Start investing with the aim of becoming financially independent!
As each of us enters different stages of life, our changing family status and objectives, incomes, expenses and living standards shape our investment strategy.
By having a clear idea of what you want your investment to accomplish, you'll be able to put your money to work more productively.
Investing is generally defined as the conversion of risk-free assets into risky ones with prospects of greater return.
Every investment has a certain amount of risk associated with it. You can minimize risk, if you are able to understand the different characteristics of the various investments and build your portfolio accordingly.
Given the existence of risk, why invest at all?
Because historically, the existence of greater risk is commensurate with greater rewards for investors.
You are almost certain to pick a bad investment sometime. The secret then is to cut your loss as soon as possible.
Unfortunately, most people find this very difficult to do. No one likes to think that he has made a mistake and there is a big temptation to hold on and hope for better days.
But there is almost always a time when an investment starts to turn sour that you can get out with only a small loss.
If you hold on you could be on the losing side for many years and then lose even more money in the end.
Having the courage to admit that you were wrong is an essential technique of successful investment as well as in other aspects of life.
A Swiss banker put it rather well:
"If you are losing a tug-of-war with a lion, give him the rope before he gets your arm ...
You can always buy a new rope."
Ioannis - Evangelos C. Haramis
I was born in Athens, Greece and I studied Business Administration, Marketing and Economics in Greece, in the U.S.A. and in Belgium.
I am active in the equity and money markets as an investor, stockbroker and consultant to individual investors and various funds.
I am the publisher and editor of the "Learn to Invest" www.GreekShares.com web site and the author of "The Stock Market Guide to Profitable Investments" book.
Since 2002 I am also the New Business Development Director at a Greek Bank.
Article Source: http://EzineArticles.com/?expert=Ioannis_-_Evangelos_Haramis
วันอังคารที่ 14 สิงหาคม พ.ศ. 2550
Online Business Directory
Online business directories are becoming a useful tool for people around the world. Online business directories are just another spin-off advantage of having an internet connection. The World Wide Web is where many people are turning to find all sorts of different information. Now online directories are just another useful portal where people are directed to information on the internet. People use these search engines to find specific products, services and information on the World Wide Web.
Small and Large businesses are benefiting from increased internet exposure to potential clients with these directory services. Online directories help people find your company information or your services and products. Therefore, the first major benefit of online business directories for companies is to get more clients finding products, services and company information. For a small yearly or monthly fee, businesses can get advanced and specialized advertising to clients through online business directories.
Online directories are useful tools for consumers as they provide instant and accurate information on particular items, services, products and companies. This means that more people are using online business directories due to convenient, fast and easy information available on the internet. In addition, companies are getting new customers by being listed on online business directories. Therefore, the potential for more sales through new customers is vastly improved for companies.
Another great benefit to being listed on an online business directory is that customers who are specifically looking for your products or services will find your company. This means that the clients who are led to your company information are quality clients who will most likely buy your products and services. Clients who find your company information through these searches also have more faith in your products and services as your company is part of an exclusive network. Listed companies can also become a part of a networking community, where companies can benefit from enhanced business relationships.
There are millions of people searching the internet for businesses, products and services, why would you not take the opportunity to benefit from internet exposure, which is affordable? Get advanced advertising and internet marketing for your business, products and services by getting a listing on an online business directory. Watch your business grow, as more people are able to find your website, company information, products and services using an online business directory.
Phil Smulian writes for a business net working web site, who will provide info on a small business network, Find In Africa.
Article Source: http://EzineArticles.com/?expert=Phil_Smulian
Small and Large businesses are benefiting from increased internet exposure to potential clients with these directory services. Online directories help people find your company information or your services and products. Therefore, the first major benefit of online business directories for companies is to get more clients finding products, services and company information. For a small yearly or monthly fee, businesses can get advanced and specialized advertising to clients through online business directories.
Online directories are useful tools for consumers as they provide instant and accurate information on particular items, services, products and companies. This means that more people are using online business directories due to convenient, fast and easy information available on the internet. In addition, companies are getting new customers by being listed on online business directories. Therefore, the potential for more sales through new customers is vastly improved for companies.
Another great benefit to being listed on an online business directory is that customers who are specifically looking for your products or services will find your company. This means that the clients who are led to your company information are quality clients who will most likely buy your products and services. Clients who find your company information through these searches also have more faith in your products and services as your company is part of an exclusive network. Listed companies can also become a part of a networking community, where companies can benefit from enhanced business relationships.
There are millions of people searching the internet for businesses, products and services, why would you not take the opportunity to benefit from internet exposure, which is affordable? Get advanced advertising and internet marketing for your business, products and services by getting a listing on an online business directory. Watch your business grow, as more people are able to find your website, company information, products and services using an online business directory.
Phil Smulian writes for a business net working web site, who will provide info on a small business network, Find In Africa.
Article Source: http://EzineArticles.com/?expert=Phil_Smulian
10 Simple Rules to Make You Serious Money in the Sharemarket
10 Simple Rules to Make You Serious Money in the Sharemarket
Don't Fall in Love with You're Stocks(Collect a Free EBOOK - see website)
It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can't take a loss. On the other side of the equation: if I was wrong and XYZ was not going to make me a fortune - then what could I do?
Okay I spotted one of my stocks in the "Shares" magazine - I confess! I was just reading about all the up-and-coming stars and there was this little snippet asking a question like: "Could this be a new Microsoft?". Now they may not have said that exactly, but it was enough to make me think XYZ was a good news story as its price will testify - at the time(in the 70's ). I mean it was there - it had to have some merit!
It was a miner and had a technology company in its portfolio and a percentage of another tech company and was doing very little in the resources area because there was more hype in tech shares at the time. It was a time when many miners were turning into tech companies. Can you visualize the miners making their way to the goldfields?
Well I was right into that - so I bought heaps and the crazy part was that I was not going to sell something that had such a great future. Nearly $60 000 went into this company and I've still got it. Not because I am still in love, but because it's nearly worthless. It will be a reminder to me never to do that again!
How much is this RULE really worth to me? That's simple - without counting any other stock in my tech-wrecked portfolio, this RULE is worth $59 494.45 saved.
If I just add one more, an online retailer, which cost me $69 928.20, my total saving would be $129 422.65. So if someone had given me the above rule to live by, I could have sold out early and kept most of $129 000.
The unloved by the market, which included many of my startups have plummeted since the tech boom - some went up like shooting starts, only to be blasted to pieces and fall back to Earth. You won't get directors coming out to say that the market has put an outrageous price on this company or that one, and that really, there is no substance to back up the price. However someone will notice that the king is really naked and when they do there is no mercy from the crowd.
I have heard say, "The market is always right", and maybe it's not a bad one to remember. Those that didn't participate in the tech boom will have lost considerable money and those that fell in love with the naked royalty will have lost their shirts.
Does it hurt? You bet it does! It hurts every day, but it will get better one day - I hope! It was a great experience, even though it was a painful one. Now it is you, the reader, who stands to benefit from my mistakes; which increases the value of such insights and will make this book probably the most treasured book about the market's affect on individuals' psychology and an awesome reminder of the pitfalls of sharemarket speculation.
Do I think that I'm the worst case? NO WAY!! You only have to look back in time to see what companies, underwriters and well-established financial houses paid for software companies and internet security companies - even our beloved Telstra(using the taxpayer's wealth) suffered its billion dollar nightmares, not to mention News Corp's businesses going bust. The bigger they are the harder they have fallen: Enron, Vivendi, Worldcom and others handing over billions as if there was no tomorrow. Well now the penny has well and truly dropped as these huge gorillas fight for their survival under a pile of debt and scandal. Nope...I'm in good company. The scandals and falls since June 2002 have certainly been enough to scare me. We live in hope that we don't end up with a depression and that the losses of up to $US8 trillion at the time of writing, are finally stemmed without bringing the whole financial system to its knees.
How many lucky devils bought News Corp at $26 and how many have watched the decent to $8.46? Losing $12 billion in one year only makes people want to
Don't Fall in Love with You're Stocks(Collect a Free EBOOK - see website)
It appears that I have a dislike for admitting that I could ever get it wrong and this explains why I sometimes can't take a loss. On the other side of the equation: if I was wrong and XYZ was not going to make me a fortune - then what could I do?
Okay I spotted one of my stocks in the "Shares" magazine - I confess! I was just reading about all the up-and-coming stars and there was this little snippet asking a question like: "Could this be a new Microsoft?". Now they may not have said that exactly, but it was enough to make me think XYZ was a good news story as its price will testify - at the time(in the 70's ). I mean it was there - it had to have some merit!
It was a miner and had a technology company in its portfolio and a percentage of another tech company and was doing very little in the resources area because there was more hype in tech shares at the time. It was a time when many miners were turning into tech companies. Can you visualize the miners making their way to the goldfields?
Well I was right into that - so I bought heaps and the crazy part was that I was not going to sell something that had such a great future. Nearly $60 000 went into this company and I've still got it. Not because I am still in love, but because it's nearly worthless. It will be a reminder to me never to do that again!
How much is this RULE really worth to me? That's simple - without counting any other stock in my tech-wrecked portfolio, this RULE is worth $59 494.45 saved.
If I just add one more, an online retailer, which cost me $69 928.20, my total saving would be $129 422.65. So if someone had given me the above rule to live by, I could have sold out early and kept most of $129 000.
The unloved by the market, which included many of my startups have plummeted since the tech boom - some went up like shooting starts, only to be blasted to pieces and fall back to Earth. You won't get directors coming out to say that the market has put an outrageous price on this company or that one, and that really, there is no substance to back up the price. However someone will notice that the king is really naked and when they do there is no mercy from the crowd.
I have heard say, "The market is always right", and maybe it's not a bad one to remember. Those that didn't participate in the tech boom will have lost considerable money and those that fell in love with the naked royalty will have lost their shirts.
Does it hurt? You bet it does! It hurts every day, but it will get better one day - I hope! It was a great experience, even though it was a painful one. Now it is you, the reader, who stands to benefit from my mistakes; which increases the value of such insights and will make this book probably the most treasured book about the market's affect on individuals' psychology and an awesome reminder of the pitfalls of sharemarket speculation.
Do I think that I'm the worst case? NO WAY!! You only have to look back in time to see what companies, underwriters and well-established financial houses paid for software companies and internet security companies - even our beloved Telstra(using the taxpayer's wealth) suffered its billion dollar nightmares, not to mention News Corp's businesses going bust. The bigger they are the harder they have fallen: Enron, Vivendi, Worldcom and others handing over billions as if there was no tomorrow. Well now the penny has well and truly dropped as these huge gorillas fight for their survival under a pile of debt and scandal. Nope...I'm in good company. The scandals and falls since June 2002 have certainly been enough to scare me. We live in hope that we don't end up with a depression and that the losses of up to $US8 trillion at the time of writing, are finally stemmed without bringing the whole financial system to its knees.
How many lucky devils bought News Corp at $26 and how many have watched the decent to $8.46? Losing $12 billion in one year only makes people want to
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