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Showing posts with label how to invest money. Show all posts
Showing posts with label how to invest money. Show all posts

How to Invest in Share Market to Make Money




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How to Invest in Share Market to Make Money

It is not a fluke that most rich people invest in the share market. While luck can be both made and lost, investing in shares is one of the best ways to build financial security, independence, and create wealth. Whether you are just starting to save or already have a nest egg for retirement, your money should be working as efficiently for you as you did to earn it. To succeed, it is important to start with understanding of how share-market investment works. Here we will guide you through the process of making investment decisions and put all on the right direction to becoming a successful investor.

Here we will discuss how to invest in stock market, how you can decide whether to buy stocks.

1. Establishing Your Goals and Expectations:

 
  • Make a list of things you want: To set your goals, you will need to have an idea of what things you want to have in your life that requires money.
  • Set your financial goals: you have to understand why you are investing money and how much you are investing, define a goal according to expectations.
  • Determine your risk tolerance: Your risk margin is a function of two variables: your power to take risks and your willingness to do so.
  • Learn about the market: you have to spend a lot of time for share market and watch which stocks are performing well.
  • Formulate your expectations for the stock market: it does not matter whether you are novice or professional in share market. It is most difficult step because it is a mixture of art and science. You requires that you develop the ability to account for a tremendous amount of financial data about market performance..
  • Focus your thinking: It is important to build predictions in some specific areas.

2. Making Your Investments

 
  • Determine your asset allocations: Decide how much money should invest in which stock.
  • Select your investments: As an investor, you can choose to purchase stock from individual companies, such as Atul Auto, Ashok Leyland etc.
  • Determine the intrinsic value and the right price to pay for each stock you are interested in: The intrinsic value defines worth of stocks, which can be different from the current share price. The right price to pay is generally a fraction of the intrinsic value, to allow for a margin of safety (MOS).
  • Purchase your stock: Once you have decided how much of which stocks to buy, it is time to purchase your stocks. Find a brokerage firm that meets your needs and place your stock orders.
  • Build a portfolio containing at least 5-20 different stocks for diversification: Diversify across different sectors, industries, countries, company size, and style (growth vs. value).
  • Invest regularly and systematically
 

3. Monitoring and Maintaining Your Portfolio

 
  • Establish benchmarks: It is important to establish appropriate benchmarks in order to measure the performance of your stocks, as compared your expectations. Develop standards for how much growth you require of each specific investment in order to consider it worth keeping.
  • Compare performance to expectations: You must compare the performance of each investment to the expectations you established for it in order to determine its worth. 
  • Be vigilant and update your expectations: Once you have purchased stock, you must periodically monitor the performance of your investments.
  • Guard against temptation to trade excessively: you are an investor, not a speculator.
 


Market Outlook by Elite Wealth Advisors Ltd.



LIFE TIME HIGHS AGAIN ACCOMPANIED BY CHOPPY MOVEMENT; NIFTY, BANK NIFTY MAY BE READY FOR A PERIOD OF CONSOLIDATION; NIFTY SUPPORT COMES AROUND 7950 WITH POSSIBLE RESISTANCE AT 8200; SOFTWARE (IT) REMAINS A BUY ON DIP AND CONSOLIDATION.


MARKETS GO THROUGH CHOPPY MOVEMENT WITH INTRA DAY CORRECTIONS. SHORT TERM TRADERS SHOULD WAIT PATIENTLY FOR NEW SIGNALS TO BUY AFRESH; THE SIGNALS COULD BE A CONSOLIDATION OR A MINOR DIP.

  • Trend is up in Bank Nifty. Prices have seen a rally of almost 700 points from 15500 to 16200 in last 6 trading days. A small consolidation or correction is possible. Traders should take partial profits and wait for another buying opportunity.
  •   Trend is up in CNX IT. Prices saw a big up move today and closed above 11000. We have been talking about a possible expansion in this sector. That expansion came today. Now, it may possible that prices again start choppiness. Look for a buying opportunity in Top IT Stocks such as HCL TECH, INFY, TCS, TECH M, WIPRO and HEXAWARE.
  • Short Term as well as Intermediate Trend is now up in CEMENT Sector. Prices have seen a breakout from its resistance and begin an up move. We may get a buying opportunity in Cement Stocks such as ACC, AMBUJACEM, INDIACEM and ULTRATECHCEM.

What are the 7 Biggest Mistakes Investors Make

Most stock investors, if not all, have some bad habits that keep them frustrated and ineffective is market. “your investment is giving result or not”If you are also one One of those investors, you will  probably like to improve your profit of your investment.

It is not tough to change your investing habit but you should change your habit little bit. You have to accept you would not able to buy all stocks that makes enormous price gains. No one does, and no investing system will help you spot every single huge gainers. But you can get enough of them to make a difference in your financial position, and in your life.

So now let’s think about mistakes dine by investors.

Mistake 1 :- Using too many different investing methods and styles

When we say you should decide on an investing style and stock with it, we would recommend growth investing, don’t mix it with some speculative stocks, some value investing and may some day trading for quick pop here and there. By mixing all these styles, you will just dilute your focus and dilute your result.
So pick a style and go with it. You will develop an experience and you will begin to recognize the better names and understand when to buy and when to sell them.

Mistake 2 :- Using so many sources for investing information

you should know all stocks are not equally created. Be aware of what they are really saying. Never buy a stock just because someone in media recommended it “pay no attention to parade of professional fund managers”. You have to do one thing , just watch the financial channels to get some basic news on what moving the market, but never watch for stock tips.

Mistake 3 :- Cluttering up your investing with layers of complexity

you know the saying: keep it simple stupid. But there are lot of people out there who seem to think they sound smarter by throwing around a lot of fancy sounding investing jargons centre around the “technical “or put simply, the price and volume movements of stock. You have to use tools. Chart is one of the best tool for stocks and it is effective. There really are only a few basic elements you need to understand we are here to help you with that at simple growth investing.

Mistake 4 :- Owing too many individual stocks
   
Ever notice how some individual investor have dozen of individual stocks in their portfolio. By limiting yourself to just a harmful of individual stocks you can easily have some  key facts at your fingertips such as the date by holding only a few stocks at time its much easier to keep up with development that could have a big effect on the price.

Mistake 5 :- Believing that “ sell” is a dirty word

You don’t need to told that “WARREN BUFFETT” is one of the most amazingly successful investor in history. He is developed a phenomenal system that’s resulted in making billions of dollars in the stock market. For the individual investor, there is nothing wrong with selling as you see market weakness and simply parking your money in cash for parking your money in cash for a while, months if necessary.

Mistake 6 :- Fighting the Market Trend

This one goes along with the idea of selling. When the market is trending higher, it’s right time to be looking for stocks making fresh run-ups. Buy in an uptrend, be how do you know the general trend of the market? It’s pretty simple to determine, by watching whether or not the major indexes are moving up or down over the courses of several days or week, you also have to check trading volume on days when the indexes make significant moves. Because the majority of stocks move in same direction as general market, it’s absolutely crucial time you’re buying and selling to the way the indexes are trending.

Mistake 7 :- Not expecting to make mistakes and not fixing it quickly

Even the best investor make mistakes in the market, may be you buy a stock that doesn’t really have the kind of fundamental and technical strength that normally precedes a big uptrend. May be you bought a stock without a stock without noticing that it was due to report earnings the next day. Then bam! The report is disappointing and the stock slumps 15% in one fell swoop. Or may be in one fell swoop. Or may be industry events or economic events unfold that neither you nor anyone else could have anticipated.

If you do not want to make any mistake, and want to build your wealth with our financial planners, just Share Your Details Here

How Market Behaves Today (3_07_2014) - A Research from Elite

LIFE TIME NEW HIGHS AGAIN – NIFTY CROSSES 7700, UPSIDE MOMENTUM REMAINS STRONG. PRE-BUDGET RALLY MAY CONTINUE WITH SOME PAUSE AND CONSOLIDATION; THIS MAY BE THE FINAL BLOW OFF RALLY FOLLOWED BY A STRONG CORRECTION

NIFTY AND BANK NIFTY MAY PAUSE, CONSOLIDATE AFTER THREE STUNNING DAYS OF GAINS. RALLY MAY WELL CONTINUE WITH MINOR TRADING RANGES IN BETWEEN.
  • Trend is up in Bank Nifty. Prices remained inside its large trading range 14750 – 15700. Inside this range, prices broken and closed above to its short term resistance at 15400. Now a strong resistance comes at 15700 near its life time highs. A breakout from this resistance may give us another buying opportunity.
  • Trend is up in CNX IT. Prices are trading very choppy from last 2 trading days. We may see a big move when this choppiness gets over. Traders should look for a buying opportunity in IT Stocks like HCL TECH, WIPRO, INFY, TCS and TECH M.
  • Trend is up in CEMENT Sector. The Sector has seen a minor correction. After that prices formed a trading range. A breakout from this range may give us a buying opportunity in Cement stocks like ACC, AMBUJA CEMENT, INDIA CEMENT and ULTRATECH CEMENT. As of now ACC is outperforming the sector.
                                         CURRENCY TRACKER: [USD INR (Future Price): 59.92

     
   Short term Trend is now sideways in USD INR. Prices are trading inside a narrow trading range 59.90 – 60.60. A breakout from this range will give us a trading opportunity. Prices are now trading near the lower range. Take a short trade if price breaks below 59.90. Place your stop near 60.25 with a target near 59.10.


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How patience and analysis play a major role in the market?



Basic information of the share market and getting the perfect time to invest in the stocks both plays a very important role in the market. You need to clear all your confusions that you have on your mind about the shares and stocks present in the market.  If you think that investment in the stock market does not require any research then you are wrong. You have to make the best efforts to know how you can earn good income by selecting the right stocks from the market. It not only requires oodles of patience and discipline, but also a great deal of research and a sound understanding of the market, among others. 

 If you find that you have committed a small mistake in the market then you would have to risk all your money. So it is best to get some time to know the market well so that you are able to research on the different available stocks. You have to look at the market conditions before you wish to invest your money. If the market condition is not favorable then you should avoid making any investment in the market. Things are not very simple to earn good profits and if you make a simple mistake in choosing the stocks for you then you would have to bear a huge loss in the market. You should try to know how patience and analysis play a major role in the market. 

Try to analyze the different stocks

You should be able to differentiate between the profitable and the non profitable stocks in the market.  When you are sure that the stock that you are willing to invest in the market would help you earn good profits then you can invest your money. But you should be aware of the fact that there is always an element of risk that is present in the share market. If you are able to tackle the risks and get the right stocks then you can get rid of your losses. You can read books on stock market or even watch the daily business news where you would be able to get yourself updated on the market. Sometimes you might find that you have lost much of your money in the market but this should not make you think that you would always be unsuccessful in getting the profits from your invested stocks. So try to have some good confidence while investing and also do try to take the best decisions so that you do not have to lose any money in the market by choosing the non profitable stocks.

Keep yourself away from fraudulent websites

You might be interested to go for online share trading in the market. Well this type of trading has become very popular amongst the investors who are able to save much of their time as well as money. This is because one does not need to go out from their place to invest in the stocks in the market.  But you have to know that there are some websites that are not genuine and these websites try to adopt fraudulent means by taking into account all your banking as well as credit card details. So if you happen to give all the details to these websites then you might have to risk all your money. So try to play safe in the online stock market by getting hold of a website that is 100% genuine. It is best to research well on the different websites so that you can know which website would be the ideal one for you to buy or sell stocks online.

Look for your goals during investment

You have to know which type of investment would be the best for you in the market. If you wish you can choose either short term or long term investment in the market depends on your requirement. So all you have to do is to get the perfect timing to invest yourmoney in the market. You would be glad to find that you have taken the best decision to invest in the right or the profitable stocks for you. Thus you have come to know how patience and analysis play a major role in the market.

Importance of Estate Planning: Planning Beyond the Will



Planning ahead is the best way to assure, protect and manage your estate upon your demise.  You have worked your whole life to accumulate the property that you own.  Who do you want to decide regarding how your life’s work will be distributed when you are gone?

Inheritance Issue:

·        Estate planning is the difference between assets and liabilities, to be inherited by legal heir(s)
·        It ensures that an estate is distributed or used for a purpose in the way you want
·        Without plan, an estate is passed on according to religion-based succession laws
·        It should be an integral part of financial planning
·        Many shun it as the value of their assets is not sizeable but that is no factor

Why Estate Planning?

Estate planning is about life – in the present and in the future. Most importantly, estate planning is about the life of your family, your loved ones and the peace of mind you get from helping to provide for their financial security. A well-prepared estate plan will also help uncover alternative solutions you hadn't considered or didn't know were available. 

Whether your estate is of large or modest value, your estate plan should be part of your total financial strategy and based on solid financial planning principles. In its essence, estate planning addresses the establishment or continuation of a tradition, one that involves the accumulation, conservation and distribution of assets in a tax-efficient manner. It requires a complex interaction of various disciplines and laws. 

Estate planning involves all assets left behind after death, from a house and everything in it to savings and investments. Estate planning means planning what happens to all of your assets when you die, and what happens to you if you become incapacitated. Most estate plans include
  • a will
  • an assignment of power of attorney
  • a health care proxy
  • a trust, possibly

Simple Ways to Raise Your Savings

Many people starting out in their careers find themselves burdened with lots of debt (perhaps from student loans, credit cards and car loans) and very little savings for future needs. But there are simple strategies for gradually building small savings or investments into large sums, even during your school years, and often with the help of automated services that make it easy. Here are key examples.

Save for specific goals. You should have a savings plan for large future expenses that you anticipate — perhaps education costs, a home or car purchase, starting a small business, or preparing for retirement (even though that may be many years away). And, young adults just starting to be responsible for their own expenses should build up an “emergency” fund that would cover at least six months of living expenses to help get through a difficult time, such as a job loss, major car repairs or unexpected medical expenses not covered by insurance.

Commit to saving money regularly. This is important for everyone, but especially if you are supporting yourself financially. Aim to save a minimum of 10 percent of any money you earn or otherwise receive. Putting aside a designated amount is known as “paying yourself first,” because you are saving before you’re tempted to spend.

Put your savings on auto-pilot. Make saving money quick and easy by having your employer direct-deposit part of your paycheck into an insured savings account. Your employer or your financial institution may be able to set this up for you. If you don’t yet have a steady job, you can still set up regular transfers into a savings account.

Make use of tax-advantaged retirement accounts and matching funds.
If you’ve contributed the maximum at work or if your employer doesn’t have a retirement savings program, consider establishing your own IRA (Individual Retirement Account) with a financial institution or investment firm and make regular transfers into it. Remember that you can set up an automatic transfer from a checking account into savings or investments for retirement or any purpose.

Think about ways to cut your expenses and add more to saving. Differentiate your earning and expenses. Look Your Monthly expenses from food to phones and think about the ways to save. For financial services, research for investment plans through which you can get extra income for secure future. You can also contact financial advisor for investment

How to Increase Your Investment Income?



Investors invest their money for earning higher profits in the stock market. So they make a well research of the market before investing their hard earned money in the stock market. It is very important to know how to boost your investment income so that you can get the ultimate benefit from the market. So, it is very important that you get more knowledge on the working of the Indian stock market or ways of how to make money. So let us have a look at some of the tips where you can increase your investment.
 
Avoid the herd Mentality & Impatience nature

The typical buyer's decision is usually heavily influenced by the actions of his acquaintances, neighbours or relatives. Thus, if everybody around is investing in a particular stock, the tendency for potential investors is to do the same. But this strategy is bound to backfire in the long run.

No need to say that you should always avoid having the herd mentality if you don't want to lose your hard-earned money in stock markets. The world's greatest investor Warren Buffett was surely not wrong when he said, 'Be fearful when others are greedy, and be greedy when others are fearful!'

You will find many investors who are very impatient and they do not like to wait any longer to invest their money. This is very wrong and has an adverse effect on the investments that you have made. So you need to be very patient when it comes to investing your own hard earned money in the stock market. You should only invest your money in those stocks where you are sure that you would reap great benefits from the market.

Take Informed Decision with Good Research

Life is a risk, if you do not take risk in the market, then you are not bound to get good benefits. There are many investors who take very high risk and this is the main reason why they are so successful in the stock market. So, take some risk and you will see that you have actually gained in the market. Also if you fail to make a good research on the market, then there are chances that you would incur heavy losses on your money. 

Take Help of Good Wealth Advisor

Your main aim in investing your money in the market is to gain huge benefits, so for this you need to consult a good and experienced person who could help you in making your investments more profitable. So, always take the help of a good stock market advisor so that they can help you in choosing the right kind of stocks for you. Wealth Advisor can help you to taking right investment decisions.

So, it is very important that you have all the basic idea how to increase your investment income so that you become successful in your investments that you have made in the stock market. Your main aim is to get good returns from the market and for this you need to get all the required information that is necessary to get good benefits. Remember you need to take risks and also go for good stock market advisor who will help you to remain tensed free.

Do you have Any Control on Your Money?




“Achieving Your Goals and taking control of your money usually better with a plan. And a key part of a financial plan is budget. Many people do not use budget and investment strategies to control money and raise wealth. As a result many people get themselves into financial problems.”

Using money wisely is a skill — and a skill that pays off. Like all resources, money can be used effectively or for the wrong reasons. It can be used for the best purposes or it can be misused. It can be used productively, getting the most possible from it — or it can be wasted. 

Many people do not keep a budget because they feel that they do not earn enough money to justify a budget. In reality, it can be argued that the lower your income, the greater the need for a budget. The challenge of managing one’s financial affairs, making ends meet, and building up savings is usually greater the lower one’s income level. Therefore, budgeting is for everyone, regardless of income level.

A budget is the key to financial control. A budget represents your decision to take control of your financial affairs, to know where you stand and where you are heading.  It enables you to keep work out a step-by-step plan to achieve your goals. You can do it on your own end or contact to a financial planner for fulfilling your goals.

Financial Planner can help you to achieve greater financial freedom. A financial planner can easily described detailed outline of income and expenses. A plan can reveals true picture of your financial state.

Steps to taking control of your money:

  • Analyze where your money going day to day and month-to-month 
  •  How much money is coming in? How much money is going out? 
  •  Do Your budget or make plan with the help of financial planner and compare your income and expenses 
  •  Set your priorities where you want your money to go 
  •  Take action to make your money work for you.
So we must have to control our money for bright future else it will control you.