President

Written by David Teng


Continued from page 1

Salary x (25% Raise) = (Stock Investment) X 15% Return

Conclusion: What! I need a 25% raise to make more than my investment. I need to focus more onrepparttar more profitable income source.

As you can see, assuming a modest 15% return, it makes sense only to focus on your investment after you have saved an “investment fund” larger than or equal to your current income.

100% Investment Return ... Just A Thought

However, if you can get an above average return then it is reasonable to focus more on your investment even if your investment capital is less than your income. Let’s look atrepparttar 112674 following case:

CASE 3: Salary > Stock Investment

Specific Numbers: Salary = $60,000 Stock Investment = $20,000

Salary x (33% Raise) = (Stock Investment) X 100% Return

Conclusion: Holy Moly! 33% raise will probably take maybe more than a couple promotions. But how can anyone make 100% in a year? Making in excess of 100% per year is not that difficult if you follow with discipline systems that had been proven to work:

Value Investing Insider Trading Analysis Industry Trend Analysis

What we have done is a very crude analysis of a hypothetical situation and it is very enlightening. There are really ONLY two choices before you have a net worth greater than your income:

Work Harder At Your Job Or Attain Superior Return fromrepparttar 112675 Stock Market (which can be risky if you don't follow proven systems).

Since we are not investment advisors, we are not allowed to give out individual investment advice. This is as specific we can go.

For more information and advices on investing and finance, please visit: http://www.value-discovery.com

David Teng is the President of Value Discovery, Inc.

He led the effort to offer individual investors a comprehensive finance and investing topics website. Striving to be unbiased, Value Discovery uncovers many of common misunderstanding created by the investment arena.


Find a Methodology and Minimize Investment Madness

Written by Ulli G. Niemann


Continued from page 1

Duringrepparttar period from 1/25/91 to 10/13/00 my $10,000 investment grew to $37,840, which is a 14.67% compounded annual return.

On 10/13/00, based on a methodology I was following, I liquidated all of my domestic mutual fund positions and moved 100% torepparttar 112673 safety of my money market account. Thanks to this move, my portfolio retained 100% of its value on that date.

As we now know with hindsight, most people held on to their investment positions and have so far lost on average 50% to 60% ofrepparttar 112674 value of their portfolios. For this example let us use 50%.

If I had held onto my position, my portfolio would be down to $18,920. Last time I hit that level onrepparttar 112675 way up was in 1995.

In other words, not only would I have lost 50% of my portfolio I would have lost even more by having used up 20% (8 years) of my total financial life.

How can you avoid mistakes like that inrepparttar 112676 future? Spend a little of your valuable research time looking for investment methodologies that allow you to side-step bear markets and let you move back in during bull markets. In other words, invest your time looking at methodologies instead of investments themselves. This will layrepparttar 112677 foundation for more effective use of your money and time.

If you find a methodology that you like, and it matches your investment philosophy, stick with it forrepparttar 112678 long term. It should haverepparttar 112679 aspect of telling you when to get out of, as well as when to get into, an investment.

I suggest you follow these broad guidelines:

• Don't be afraid to take a small loss to avoid bigger disasters.

• Stay away from commissioned sales people (because they have incentives other than your best interests), and if you use an advisor, be sure he or she is fee based.

• Above all, don't get overwhelmed by news, rumors and predictions that are irrelevant to your strategy.

If you take this advice, I guarantee that pretty soon sleepless nights will be a thing ofrepparttar 112680 past and you'll be on your way to more confidently and successfully (that means profitably) managing your investments.

Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped hundreds of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: .


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