Investment Stock Market Help – Tips That Will Make You A Fortune With Your Investments

So you want some investment stock market help to reach your financial goals? The stock market is one of the most intriguing financial investment vehicles in the world today, because of the incredible return on investment it can offer. Many people look at icons such as Warren Buffet or Peter Lynch, and think they can automatically do the same thing.

Unfortunately, the vast majority of investors never reach their financial goals through the stock market. Why do the vast majority of investors either lose money or simply not make enough on the market?

Quite simply, most investors don’t take the time to become financially educated about investment in the stock market, and simply trust others like a mutual fund manager or stock analysts to make their investment decisions for them.

The vast majority of investors view investing as simply buying the stock of a business, as opposed to investing in the business. They somehow think that these are two separate entities. In reality, every time you buy shares of the company, you are buying a part of that company.

If you were considering buying into part or all of a business, don’t you think you would probably want to know the companies’ financial statement and how it was doing currently, and its’ future potential for profits? Investing is no different.

With investment, you are buying into part of a business. Unfortunately, the vast majority of investors simply see investing as buying a stock price, and that the stock is somehow different than the company it represents.

While it is true that short term, the stock market price can be affected by factors that don’t have anything to do with the companies’ overall profitability, in the long run the market always values a stock according to its’ actual value. Therefore, you absolutely must be able to read a companies’ financial statement and determine its’ overall financial health before buying.

This topic is obviously well beyond the scope of this article; there are many great books on the topic. The best investment help for the stock market I can give you is to educate yourself financially, and you will make a fortune with your investments.

Going Step by Step Towards Success in the Stock Market

A good strategy always pays in any investment product including businesses. This will let you know how to invest, guided step by step in the process. Not all strategies give excellent results. There are many successful investors who have reached the current success point because they were never disappointed but took every failing strategy for trading a share in India as a stepping stone to a better strategy. So, they plan another strategy and then another one until success-oriented strategies for trading of a share are reached. Of course NSE and BSE market (the key market movers) situations should be taken into account when shaping strategies. Do not forget to watch the BSE live and NSE live including the BSE sensex, nifty in the live stock market. It will also help you implement your plans.

At times even experienced investors may find trading of a share not going smooth, especially when the market is extremely turbulent. Novice investors are the worst hit during such a scenario but it does not prevail all the time. When the clouds of turbulence disperse, you can again expect normalcy and your usual research methods and finding values will yield results. You will come across stock market tips in a live stock market displayed in many a financial platforms. There are countless financial portals that operate to the advantage of the investors, acting as a knowledge platform as well as the live stock market. Go only for reliable trading portals, especially those that already have a name in the market. Here you will not only get relevant and useful stock market tips from experts but also get guidance and suggestions with a personal touch. Besides if you are trading in BSE stocks, you can always stay in touch with BSE live, BSE sensex, BSE companies and all BSE related information.

Trading of a share with guess work will hardly give you results. For example, if you are trading in a share of a BSE company and just blindly buy it without following any consideration, you may experience a chance win or no win at all. You cannot always leave your trading venture to chance. Your hard earned money should not be let to be gone to the drains. So, if you are not educated about the BSE market or trading terminologies or factors that govern in buying the right share, you will not able to make conclusions even after watching BSE live or BSE sensex in the live stock market.

All information related to a share can be accessed online; the only thing you need to have is time and eagerness to do some research. A blend of your knowledge and stock market tips can well steer you towards success. You may often think how to know about the history of a share being traded. Well, you can access the same online at an online share trading platform; so, get registered and start reaping the advantages!

Stock Market Tips – Are Mutual Funds Really Mutually Beneficial?

Mutual funds are one of the most popular investment vehicles in America.  So popular that there are well over 10,000 available to choose from!  Most articles focus on picking a fund but I’m going to ask a completely different question. Are the benefits of mutual funds mutually beneficial?

What is a fund?

To start let’s define what a mutual fund is for those readers who may be a little unsure.  A mutual fund is an account (called a fund) where many people pool their money for the purpose of investing. Imagine you want to buy a McDonald’s franchise.  However the cost of opening this store is going to be almost $2 million.  You do not have that much money so you look for partners.  Eventually there are 5 partners, each splitting the $2 million startup investment.  Then 4 years later the 5 of you decide to sell.  You sell the complete business for $10 million and divide the profits 5 ways.  That would be a partnership.  And yet it’s also a good  picture of how a mutual fund works.

A mutual fund is a bunch of people who become small partners.  They pay in their investment and then someone else runs the business – in this case a stock portfolio.  However there are some partners who don’t pay in.  In fact they get paid to not pay in.  They are the fund managers and all the people involved in the business.  And that’s where the mutual benefits break down. 

The inequality comes in the form of SEC rules.  According to SEC rules a mutual fund can only buy stock, hold it, and sell it later.   That means a mutual fund can only make money when the stock market goes higher.  The plan of the fund manager is to buy low, and sell high.  Unfortunately the stock market does not always go up (just look at the October 2008 market crash).  So inevitably the fund’s value will go up and down.  At the end of the year investors are hoping generally for an annual return, or growth, of about 15-20%. 

This description may not sound bad to you.  That’s because you have probably adjusted to this treatment and assume it is “the rules of the game”.  After all this is how you have been programmed to respond.  But what you may not know is what happens behind the scenes. 

It may not be legal for a mutual fund to trade your MONEY during a down market, but they CAN trade the fund’s assets.  And they do.  And they make bank.  In fact the trading behavior of institutional investors is so predictable an entire segment of stock market analysts spend their time watching behavior of institutions and trading off of that behavior. 

What Are They Doing With Your Money?

So what exactly are they doing with your stocks?  Most they are doing one of two things.  They are:

Lending your stocks to Short Sellers.   When an institution has a fund full of stock shares those shares are available to be lent out.  And believe me, they do.  When it looks like a stock is going down they lend your stock to people who want to sell it without owning it.  These people are known as short sellers.  When they lend these stocks you know of course they make profit.  In and of itself lending stock to short sellers is not a problem.  The unfair part is the fact that the institution alone, and not the fund investors, benefit from this little dealing.  So the fund manager is lending your stock, and making money, while you sit at home wondering why your portfolio is getting smaller and smaller.

Write Options against it.  The second thing funds may do is to write options against your stock.  They really don’t even care how it pans out.  Worst case scenario for the fund is they sell your stock for less than they meant. So long as the people make a little profit the fund doesn’t care if the people don’t make as much as they could.  And what about the option?  Well they make money on that too.  Usually 10-20% per month.  That’s right, you are settling for 20% each year, while the people managing your mutual fund are making 20% each month with the stock you bought. Again, the practice they are doing is fine – but it’s not fair that they make the money and do not share in the profit.

There is however a way you can profit from the same tricks traditionally held for fund managers.  You simply learn the same strategies and techniques and do them on your own, without a fund manager.  Not only are these strategies legal, they are done every day by millions of Americans.  The difference in you and them is simply a little education.