Market analysis helps to get a clear vision of the consumer purchasing habits

Every retailer wants to know how frequently the consumers are buying their products. A thorough market analysis help the retailers track what products an individual customers are buying over time. It is indeed great for a company to figure out all of them. Let’s see how market research method helps to get a clean vision of the customers.

Method 1

The researcher uses the segmentation method where they use the transactional data to segregate the customers into groups based on their purchase history. This process can be performed at multiple points in the supply chain. This process can also be easily performed to segment distributors of the products if the retailers don’t sell to the final customers. The transactional data is distributed into different time frames and consumptions are evaluated in each of these time frames. Ideally, four to five years of transactional data are required depending on the product re-buying cycle. This is because durable goods such as appliances or cars do not get damaged as quickly as consumables. Usually, the analysis is performed using a longer time frame. The main aim to perform the segmentation method is to track the consumer in the data to establish a purchase history.

Method 2

The analysts divide the customer into three groups buyers, tryers and lapsed customers. Depending on the volume of data available buyers have purchased across all over the time frame, tryers have made a single purchase and lapsed consumers have made no purchases within the time frame. Now the goal of the researcher is to move the consumer up the ladder from lapsed, tryers to buyers.

Method 3

The additional research basically looks into the results from the transactional data. They can compare the amount of product classifications acquired across the groupings; scrutinize the churn and the products most frequently bought by any new customers. They also regulate which products have the best pushing prospects.

The market research agency is there to cultivate a strong relationship between the retailers and the customer by assisting them to target consumers more proficiently.

Intervention threat trips Kiwi dollar

On Monday night eight armed men broke into Zaventem airport near Brussels.  They drove to a Swiss-registered aircraft that was loading on the ramp and transferred 120 packages from the hold into their van.  Mistaking their actions for the normal behaviour of baggage handlers, police allowed the men to carry off diamonds worth $50m.  So far the men have not been caught.

If apprehended, they are likely to be charged with either insider trading or money laundering, both of which carry heavier penalties than armed robbery so don’t expect them to be using services on the internet to send money online.

As diamonds typically change hands for US dollars and the thieves (one assumes) are Eurolanders, they will already be looking at a book loss of €250k on their booty, the euro having strengthened by one US cent between Friday night and this morning.  If they were British bandits they would be looking at a mark-up of about £70k, since sterling has fallen by a third of a US cent over the same period.

The pound had a tough day on Tuesday. It fell by nearly a cent against the euro in money transfers, the Swiss franc and the Australian dollar and is down by one yen. As can be seen from its smaller quarter-cent losses to the US dollar and the Aussie, sterling committed no major blunder but, like the diamonds on the plane, just happened to be in the wrong place at the wrong time.  The wrong place was right on the four-year-old trend support for sterling/euro, which investors have made several attempts to break in the last couple of weeks and had another go at on Monday afternoon.

In the unlikely event that the raiders came from New Zealand they will consider themselves particularly fortunate that the NZ dollar chose yesterday to be the world's worst-performing major currency, thereby handing them a book profit of NZ$350k on their booty. The Kiwi's setback came early this morning after Reserve Bank of New Zealand Governor Graeme Wheeler warned that "the Kiwi is not a one-way bet" and that he is "prepared to intervene".

One must presume that Mr. Wheeler took the precaution of clearing his intervention threat with Prime Minister John Key, the one-time global head of foreign exchange for Merrill Lynch. In April last year Mr. Key described such action as "the stuff of LaLa Land", saying "I don't believe in intervention - never have and frankly never will. I spent my professional life looking at it and it fails." Of course, the prime minister might have changed his mind about intervention since then, having realised that he is just about the only world leader not so engaged.

The highlights of Monday's ecostats were the much stronger readings from ZEW's surveys of German and Euroland investor sentiment.  They didn't have much immediate impact but will have done no harm to pro-euro attitudes.  Worse-than-expected Japanese trade figures overnight sent the yen only temporarily lower.

With German inflation (1.9%) out of the way and with French inflation and Italian industrial production unlikely to influence investors, the most important items on the morning agenda are the UK employment data and the Monetary Policy Committee minutes.  US building permits, housing starts and producer prices this afternoon ought not to affect the dollar but the FOMC minutes at 19:00h might.

Top 5 Ways to Reduce Risks in Stock Market Investing

As scary as it may seem, there are significant risks in the stock market. This should never scare you though. You don't need to be an expert. There are 5 ways that you can do to ensure a fail-proof investment in the stock market. These top 5 ways can significantly reduce the risks in your nest eggs.

Blue-Chip Companies

Only invest in “blue chip” companies. These are companies which are in good standing in terms of profitability, years in existence and credibility.

These are companies which you expect to be still operating after 10 years. So how do you assess if it’s a Blue Chip Company?

Simple. Google the company and visit their site. See their financial reports and company profile. There you can assess if the company is growing or not, losing or profiting from its operations.

Or you can check it yourself with the brand and company itself. The more you see them on media, advertisements, engagements, etc., the more likely it is to be good.

Diversification

As the old cliché goes, “Don’t put all your eggs in one basket.” Why? Cause if the fox steals it, there’d be none left. Poor you! In stock market, learn to invest in every industry.

As a rule of thumb, you should have stocks in financial, conglomerates, oil & mining, food, real estate and retail. The reason behind this is to normalize your loss whenever one industry is down.

BUY BUY BUY!

No matter what the scenario is, you should continue buying stocks and not sell it unless you need emergency funds. When you buy stocks for a longer duration of time, you are building an empire little by little and that is rewarding in the end seeing the results!

Cost-averaging Method

Invest small, frequent amount. In this manner risk is evenly distributed per period and not in lump sum. The idea behind this is that, if you continuously buy stocks, the future market price is still way higher than the average price of the stocks.

Example, say you buy Apple stocks today for $750/share. Next year you buy it at $740. Next at $762. Then at $780. The market price is at $780/share. If you take the average price of your stocks (i.e. 750+740+762+780), that would yield an average of $758!!!

Meaning, for 4 years, you bought Apple stocks at an amazing price of $758! Since the present market price is $780, you are gaining $22/share ($780-$758)! How’s that? Imagine if you have a thousand shares of Apple stocks in four years. That would translate to $22,000 ($22/share x 1,000 shares) profit!!!

Glance in a While

While you can leave your stocks running, perhaps it is better and wise to monitor it just once a week and see the market. You can’t afford to lose simply because of overconfidence or lack of supervision.

You might not even know that your stocks are falling so it’s best to take an action before it gets worse. Now you know these important investing methods. It is now your part to share this to others and spread the message.

It is my goal to offer free financial inputs to everyone. Share this to your friends via Facebook or email. Thanks for visiting!

Check Out The Important Tips On How Can You File a Lien on a Property?

A property lien can be filed by any establishment or individual against a home owner’s property for specific reasons. Property owners who failed to pay the entire construction cost for his property may be filed with a property lien securing the amount of money owed including its interest.

For any construction job where home owners neglect the payment for the services or materials because of personal reasons, the contractor can file a lien against the property. This can be their last effective resort to collect the money they earned for their services.

A property lien can stay in the property even if it is transferred to the name of another family member. The contractor who filed the lien can also collect his interest afterwards if it takes long time for the owner to pay his debt. If you want to know how to file a lien on a property, here are tips that might help you get through with the process smoothly.

1. File a Lawsuit – You must have a judgment as you file a lawsuit against the owner of the property who owes you money which can be obtained in your local court. File a lawsuit for the amount of money or services that were taken from you by the property owner who failed to comply his obligation. Depending on the amount that was owed the law may refer you to courts intended for small claims. If you have proper documentation for your case, a judgment can be issued by the court for the specified amount.

2. Visit your local clerk’s office – You need to do this to obtain a certified copy or proper documentation for the judgment. After obtaining a judgment you can wait about a week to formally file the lien. Be sure that you will pick up a certified copy because this will be used to file the property lien. You may be required to pay a certain amount or fee for the process.

3. Remember to file the lawsuit in the local court where the property is located – Secure the right information including the address of the property to avoid delays or problems when filing the judgment. Once a judgment is declared, a lien can be filed on the property. Check if the debtor owns another property aside from the one you know, if you found out he has more, then you can start filing liens on the others as well for total assurance that your money will be paid back.

4. You may also file a mechanic’s lien – This is a record of building or property’s improvement cost. This is known as lien notice or lien claim. Contractors can file a mechanic’s lien depending on the rules administered by the state. It is usually done by many contractors before they start working on a property. When the work is done and the cost of construction services is paid, a lien satisfaction must be filed removing the burden from the property.

Although a property lien can be considered as great remedy for securing that you will get the money from the services you made, there is no given right to anyone to just file a lien on a person’s property. Filing a property lien is considered only as a privilege, it not actually a right. Contractors must also follow certain rules administered by the state before placing a lien on someone’s property. If you want to file a property lien you must make sure to do this on the right time following the regulations of the court. If you are not sure when to start doing this, it is therefore necessary for you to seek professional help. Consult a lawyer and ask about the proper timing and steps towards legal completion of filing a property lien.

Alexander is a lawyer who specializes in property lien. He has been dealing with client for this kind of cases for more than a decade now. He is also a good source of information for those who want to know how to file a lien on a property.

Three Online Stores That Truly Do Save You Money

The Internet has been a Godsend to bargain hunters. There is no other entity on earth that can save you as much money as a computer and Internet connection can when they are used in the correct way. Bargains aren't just "low prices" on products you want. There has to be an element of quality as well, otherwise you've just gotten a cheap item that you have to buy again at a later date. The following three online stores don't just offer a cheap product that you have to buy again later because it was a low quality product. These stores actually offer you high-quality merchandise that's discounted.

Overstock

Stores sometimes order too much inventory. When they do this, it's your lucky day. Overstocked items are sold for drastically lower prices at the end of their stock date because the store failed to move all of the merchandise. There's nothing lacking in the quality and no defects in the product. It's just a matter of management ordering more of a product than the store could sell, and when this happens you can find these items up marked down as much as 90%, just so they can get rid of the inventory and move new inventory onto store shelves. Overstock does this year-round and makes an entire business out of selling items for reduced prices.

My Jewelry Box

If you're searching for jewelry online, my jewelry box is an excellent choice for bargain hunters. You'll find rings, bracelets, necklaces, and more that are marked down as much as 70%, thanks once again to a store being smart enough to grab up and sell overstocked jewelry. There's nothing inferior about this jewelry. It's just that someone ordered more than they could sell and now they need to move the merchandise quickly. The items found at this store are truly beautiful, but they're always in limited stock so get it when you can.

6 PM

The Internet is well-acquainted with this remarkable apparel and accessories meta store that compiles designer brands together all in one place so that you can search by % marked down. This is a clothing and accessories store that gives you huge designer brand names and quality merchandise all in one place, so that you can pick and choose who to shop from and for what price. It's not unusual to find the biggest designer names marked down a whopping 70% at this store.

Eloise Hammond is a professional writer with 10+ years experience. She enjoys hiking, reading and spending time with her family. Also, check out FindTheCoupons and SkullCandy discount codes.

Personal Finance For Muslims (Omar Usman)

An article on MuslimMatters.org compelled me to create this blog. Brother Omar Usman delivered an awesome message that Islamic personal finance is lacking the attention it deserves. The banking world solely focus on the complexities of the financial industry, where most are intertwined with riba, and creating products that is "halal" for the Muslim consumers. Yet, the products offered, may be so harmful to an individual's finances that it may be considered haram when weighing the advantages and disadvantages.

They ask you about wine and gambling. Say, "In them is great sin and [yet, some] benefit for people. But their sin is greater than their benefit." And they ask you what they should spend. Say, "The excess [beyond needs]." Thus Allah makes clear to you the verses [of revelation] that you might give thought.

2. Surat Al-Baqarah (The Cow; 219)

Definitely check out the video below!

Islamic Personal Finance, Front And Center

Bismillahi r-rahmani r-rahim. As-salamu alaykum.

Sisters and brothers. It's time, for Islamic personal finance to take center stage!

Believe in Allah and His Messenger and spend out of that in which He has made you successors. For those who have believed among you and spent, there will be a great reward.
57. Surat Al-Ĥadīd (The Iron; 7)

Do they distribute the mercy of your Lord? It is We who have apportioned among them their livelihood in the life of this world and have raised some of them above others in degrees [of rank] that they may make use of one another for service. But the mercy of your Lord is better than whatever they accumulate.
43. Surat Az-Zukhruf (The Ornaments of Gold; 32)

While I was thinking of what web blogger address I should take, I looked in the Qur'an for the word "wealth". Interestingly, that word is "amwaal" or "amwaali" (2:155), which remind me of the word "wali", meaning guardian or protector. Allah has made it clear in the Qur'an that His wealth is entrusted and apportioned to us. It became clear to me that I am a guardian over the wealth given. I am responsible for any decisions I make in regards to "my" money. We shoulder a big responsibility, and the best place to look on how we manage this responsibility is in the Qur'an.

There was certainly in their stories a lesson for those of understanding. Never was the Qur'an a narration invented, but a confirmation of what was before it and a detailed explanation of all things and guidance and mercy for a people who believe.

12. Surat Yusuf (111)

InshaAllah, this blog will be updated weekly on topics about money and the values within the Qur'an that can be applied. If you'd like to get a head start, you can purchase Islamic Personal Finance; Grains of Wisdom on Prosperity from Al-Quran for the Amazon Kindle, or swing by the Facebook page.

I am very excited to start this blog and equally in welcoming everyone.

Peace.

Sultan Burhanuddin

Stock Market Trading VS Investing

I have always asked few people, “Why don’t you invest in the stock market? You already saw me earning!” Yet quite a few shook their heads and some even answered in deep silence. Some said it’s too hassle monitoring the stock prices, perfect timing for buying and selling and little profit. They’re missing the point!

Risk

We know for sure that stock market is a high-risk investment. Yes I strongly agree. And I also believe that it’s the cramping factor of people not investing to it. But risk can be reduced (even eliminated) with simple methods. (You can read it on my blog post - Top 5 Ways to Reduce Risk in Stock Market) So stay connected and subscribe to my RSS feeds.

The Difference of Investing vs Trading

Easily defined, investing is using of resources to profit in the future. This may not be the definition on Webster or Wikipedia but I will define it in a bite-size, easy to understand manner.

Thus, to invest is to outlay or spend something with the goal of earning more than what is spent. Now this sounds business. In stock market, it is buying stocks at a particular time and selling it after SEVERAL years. Long years in such a way to realize a GOLIATH and massive profit from your stocks.

Too long? Well then, stock market is not meant to be your main income but a “retirement” fund.

To blunt, investing means reaping the fruit after sowing the seeds, watering the shrub and applying fertilizers. It is no shortcut. No get-rich-quick scheme. No rocket science. It is a conservative way.

Therefore, what is RISK then? On the other hand, stock market trading is a short deal of buying & selling stocks. Meaning, to trade is more or like speculate in the stock market: buying a low-priced stock with the anticipation that it will rise next week! Do you see the difference?

                        Risk                Term               Good for

Investing       Low                  Long                  Retirement

Trading         High                 Short                 Immediate income 

Now it is already clear what sets investing apart from trading. For all of you who read this, good for you. You are at least ahead of anyone else. You may post this to Facebook or email to a friend.

Understanding the Different Benefits of Unemployment Insurance Covers

This is the unemployed insurance system formed by federal state, which helps people who have lost their jobs by providing them some part of their wages when they are looking for job. The Unemployment Insurance program was formulated in the year 1935 in the form of social insurance. It is the contribution made to the system by the people who are working for an income support, in the unfortunate event that they lose their current job.

Temporary Federal Programs and Govt. Aid

Temporary federal programs, which are implemented at the time of recession, are funded fully by the federal government. Many states in U.S were literally affected during2007-2008 recession and these federal programs helped them to solve some of their problems. This system also helps consumers at the time of fall in economy and provides dollars for families to spend.

What is Unemployment Insurance?

Unemployment insurance is nothing but a temporary income, which comes to your aid when you suddenly lose your job, and don’t have any money to pay for your monthly bills. This type of insurance is given to deserving workers, who lose their job for no fault. To receive such benefits, you must be willing to work, ready to work, and able to work.

State Regulations Vary from State to State

In the state of New York, employers pay tax, which funds unemployment insurance. The amount is not deducted from their salary; instead they pay tax. If you qualify for the benefits, then the Department of Labor decides on this.

If you’re in Chicago, Texas, California or Vancouver, things may be different, because each state has its own set of laws in this regard.

To generalize, the eligible workers, who lose job for no fault of theirs, the Federal State provides this benefit through Unemployment Insurance Program. This means the individual should be eligible as per the state law and has to meet all other eligibility criteria. If you’re in Texas, you should seek help from a reputed Austin insurance agency in this regard.

Eligibility Criteria

1. The person should fulfill the criteria of the state law with respect to wages or duration of work during the established period of time, which is known as base period.

2. You should be unemployed for no faults of your own as per the state law and should meet all the requirements of federal law.

The purpose of Unemployment Insurance is to provide temporary financial support to workers who are eligible under the State Law.Every state offers different unemployment insurance program, which are with the guidelines of the state law The benefit amount, duration of benefit provided, and the eligibility criteria, which are available, are provided by the state law under which the claims can be established.

The amount of benefit provided through this program depends upon the funds contributed by the employers as tax. The employers are obliged to pay only a small amount towards this program.

Noteworthy Benefits

The benefits under this program depend upon the individual’s earning over the 52-week period up to the maximum amount, which is decided by the state. In most of the states, the benefit is paid maximum up to 26 months.The benefits may be extended for few weeks only in case of high unemployment or during tough financial times of recession, and uncertainty. There are states like Texas, which provide additional benefits for a specific purpose from separate state funded programs.

These benefits are subject to the law of federal income tax and should be reported to federal income tax. If you do not want to contribute to the funds of Unemployment Insurance agency, you can opt out of it, but it’s highly recommended to contribute regularly, to accumulate contingency funds for sudden job losses.

Hannah, a member of Unemployment Insurance Program, often writes about the benefits of unemployment insurance programs and government financial support programs, which have helped countless people during tough times of recession.

TOP TEN Terms Commonly Used In Stock Market

After reading the Introduction and Self-assessment, convinced that you are now ready, it is time to understand the terminologies being used in the stock market for you to be able to use them well according to your intended purpose.

If you haven’t read my previous posts about introduction and self-assessment phase, you can read it first. The basics of the stock market are quite easy. Here are the terms that you should study beforehand.

Stocks

In its simplest sense, it is the capital raised by the company to continue its operations. This may be sometimes called informally as crowd-funding. Instead of lending money from banks or other financial institutions, companies prefer to sell their capital to the public.

In this manner, they would have no liabilities and future obligations from another firm. That is why you often hear “companies sell stocks”.

Example: I bought 3,000 stocks of Apple last week.

Stock Market

This is often confused with stock exchange. However, there is a slight difference. Stock market is a place where stocks are being bought and/or sold.

Simplified, it is more or like a “public market” where people buy and/or sell dry and wet goods. Thus, stock market is the venue of stockbrokers to transact business in behalf of their clients.

Example: The Philippinestock market crashed because of the global recession.

Stock Exchange

Is a private firm who facilitates the stock market. Facilitate in a way that they provide the equipment and the facilities to stockbrokers to complete the transactions.

These can be in form of the building (which stockbrokers use), the trading platform (where stockbrokers monitor and accomplish transactions), computers (for smooth flow), telephones, printers, etc.

Thus, New York Stock Exchange, Philippine Stock Exchange is simply a private company engaged in the stock market. That is why they are commonly called as stock market.

Example: Philippine Stock Exchange Inc (PSEi) grew 6.5% in June due to massive trades in the stock market.

Stock Certificate

It is a certificate that contains/documents ownership of a corporation. Stipulated in the certificate is your name, shares in the corporation and the name of the company itself.

In real estate, it is called as “Land Title” which serves as your official document in the ownership of a property.

Example: I saw my friend’s stock certificate that indicates her 3% stake of Google.

Shares

Still the same in the laymen’s term – the fraction of the big chunk that you own. However, in stock market it represents the assets you own in a corporation.

Shares can be expressed both in the number of shares own or the percentage of the whole asset. You might say 50,000 shares or 5% share.

In most cases, percentage is often used when someone has a majority stake of a corporation because ownership can be expressed explicitly in terms of percentage. Else, if stake is way smaller, the number of shares is preferable.

Example: I have 50,000 shares of Microsoft due for selling.

Dividend

The part of the earnings of a corporation which is given to the shareholders. Dividend is proportional to the shares that you have in a corporation.

Usually, dividends are given to shareholders as a gratitude for investing in them and to encourage shareholders for further investment which in turn spur the economic growth of the company.

Example: Jessel was astonished with the P20.00 dividend/share from San Miguel Corporation.

Lot

It is the minimum number of stocks that can be bought in a certain corporation. In buying stocks, there is a minimum order that can be bought by the public. Say, Apple has a minimum of 50 lots.

If the current price of Apple is Php40,000 per share, then you have to invest Php2M (Php40,000 x 50 lots) to buy Apple’s stock. You cannot buy even 40 lots or even 49 lots. It is the required number of share to have ownership of a company.

The number of lots also represents the increment orders. In our example, if you buy more than 50 lots of Apple’s stock, you can only have 100, 150, 200, 250 lots and so on. Meaning, orders should be by 50 and nothing else.

Example: Minimum order of Google’s stock is 50 lots at $750/share.

Stockbroker

Is the agent of buying and selling stocks. They are the representative to conduct business in behalf of their clients. Stockbrokers often advise clients in terms of market situations and recommend trade positions because they are the ones constantly monitoring the stock market.

They earn thru commissions in every trade placed by their clients.

Example: COL Financial is the newest stockbroker in the Philippines.

Stockholder

Is a person or a company who owns shares of stock in a corporation. Meaning, anyone who owns a certain share of a corporation is called a stockholder.

There is no shares requirement when referring to a stockholder.

Example: I’m proud to be a stockholder of San Miguel Corporation (SMC).

IPO

Initial Public Offering. It is the corporation’s first offer to sell stocks to the public. This is applicable to companies who transform their business organization from sole propriety or ownership to a publicly-traded corporation.

One of the reasons why firms go public is because they want to raise more funds usually for expansion purposes.

Example: Sterling Bank is the newest IPO on the list this month.

Understanding the terms help investors trading in the stock market. With the right knowledge, proper decisions are made. Thanks for visiting my post! You can check my other posts below. Happy investing!

Top 4 Investments that Provide Long-Term Family Fun

Too often, families divide their items into two broad categories: items for adults and items for children. While each age group should have some of their own items, it can be nice to have activities for the whole family. Games help build bonds, and ongoing activities are great for building connections within a family. Here are four investments that will provide fun for the whole family for years to come.

Trampoline
No matter how old we get, trampolines are always fun. Kids enjoy being able to bounce high on them, and families can all enjoy some jumping time together. In addition, trampolines are a great way to exercise, and they can be an effective way to get kids away from the TV and computer screen for least a little while. Just be sure your kids are safe while jumping on the trampoline. Consider using a net around the trampoline or making an ground level trampoline.

Hot Tubs
Hottubs provide fun for kids and parents, whether together or for each of them separately. Family hot tubs and spas can be a great way to spend time with each other. While they are fun for the whole family, adults can use them after the kids have gone to bed, and kids will enjoy hot tubs as they become teenagers. Hot tubs are fun in all climates, and quality hot tubs are built to last. They will continue to serve parents well after the kids have left home.

Croquet Set
While the game is often considered outdated by modern standards, croquet is still a popular sport around the world, and croquet sets can be bought for low prices. On a freshly-cut lawn that is relatively flat, an improvised game of croquet can be a fun way to spend a weekend or evening with the whole family. These game sometimes turn competitive, which can help keep kids interested over time.

Game Table
A high-quality card table can be fun for all family members. Families that are competitive may enjoy them more than most. These tables are great for card games and board games. One fun activity families can do is to gamble for household chores. With a few lucky hands, mom and dad might be able to avoid doing the dishes for an entire week.

As kids grow up, they will inevitably form their own groups of friends and spend less time at home. By using the investments outlined above to start weekly activities, parents can get their kids to spend at least a bit of time with them. By making family time fun, parents can encourage their kids to keep coming back to spend time with mom and dad.

This article was written by Dixie Somers on behalf of bullfrogspas.com.

Top 3 Things To Consider When Investing In The Stock Market

Stock market can be the most rewarding and profitable business of all. However, this could also be the worst investment ever if not managed well. So before you start, it is a must to know the things to consider before you invest.

No matter what happens, don’t quit. Because being a loser sometimes is part of the learning process.

Before leaping on this vehicle, it is vital to have these 3 things considered if this investment suits your interests and needs.

Self-assessment is vital in every business decisions. Knowing thyself is the ultimate step before anything else. Read the Introduction to Stock Market.

Risk Tolerance

Will I be scared if ever my investment depreciates? What if my Php 10,000 investment is now worth Php 8,000 after few weeks?

Would I suffer hypertension or a heart attack? Funny but some people are too scared to invest. They could never afford to lose.

Winning, at all times, is their inclination not knowing that “playing safe” is the RISKIEST decision. Price fluctuation is common and NORMAL in the stock market.

The cause of this erratic price change is due to the economic factors affecting the industry.

Economic factors could be expansion of the company, population growth (which can affect greater number of customer base), higher employment rate, GDP & GNP increase, development of a certain location and many more. 

There are countless factors that affect the stock prices.

For example say, a real estate company has acquired hectares of lot in the city. With this acquisition, they build a condominium where it has 300 units and is now worth Php 500 Million.

With this activity, it is expected that stock prices of this company will increase since a newly-opened business could generate higher income potential.

Nevertheless, disastrous loss can still be avoided. And one of the ways to do this is to invest in BLUE CHIP companies only (read the post on how to minimize risks in stock market). 

Blue Chip companies are solid, stable companies which exist in the market for many years and they are REALLY profitable companies. So stable that we can say they will still exist in the next 10 years. Common examples are Ayala Corporation (AC), SM (SM), Globe Telecommunications (GLO), Cebu Pacific (CEB).

It is therefore important to assess ourselves and ponder on these questions.

1. How much am I willing to lose?
2. Will I be strong enough to accept loss?

If you are confident with your answers then you may proceed to the next step.

Investment Needs

Unlike any other businesses, stock market is designed to be a long-term investment.

By long term, we mean you will be investing for many years and you will reap the fruit (profit) only after 5 to 10 years. Too long? Indeed, it is.

In investing, religious periodic cash outlay is a VITAL requirement for you to achieve financial growth. Periodic, in such a way that you will invest every month or every quarter depending on your commitments.

So if you have child and you’re planning for your child’s college tuition, stock market is a perfect investment.

By investing a small chunk of your income every month, it will continually grow after 10 years which can be reaped for your child’s education.

Also, if you’re 30 years old right now and you want to have an early retirement at the age of 40, then stock market is really for you.

Stock market is not for people who want to earn immediate income like 1 to 2 years.

While you can profit within this duration, optimal profit cannot be realized. Why? Because companies tend to grow every after 3 years, on average.

Although there are other ways to earn in the stock market like trading or “short-selling”, investing is still the safest. I will make a separate blog for Short-Selling so better subscribe for updates.

Guide questions:

1. Am I planning to have a sufficient money after 10 years that banks cannot offer?
2. Do I want to have a significant increase of my investment for long-term?

If your answers are yes, you may proceed to the next step.

Other Priority

Investing in the stock market is the easiest investment by far!

You can do other things, your priorities, and still invest in the stock market. And I can attest to this.

Whether you are employed full-time or you have a business, you should really consider investing in stocks.

My main income is active income. This comes from my employment as an engineer. Since my energy and time is focused on my job, it is hard for me to have my own business.

That is why I consider investing in the stock market.

What I do is I only invest every month and watch my money grow. Via online transfer, I am investing every month straight from my ATM.

I don’t have to go to the bank to deposit and I don’t have to call to the broker for advice.

It’s easy as getting wet in the rain. And I don’t even have to monitor my stocks! I believe in the company where I invest and I’m not afraid to lose.

So if you’re someone who has another priority and commitment yet still wants to have a massive financial growth (in due time), stock market is the best investment.

Guide questions to ask yourself:

1. Am I so busy with something that I couldn't leave this time, yet I still want to have an investment?
2. Do I want to have a residual income (dividends) aside from my active income (job)?

If your answer to these questions are yes, then get your ass off and invest now :) 

Tips for Buying a Car with a Bad Credit Score

Do you have bad credit but want to buy a car? There are many individuals in the same position. Listed below are tips that may help you get your car despite a poor credit history.

1. Check out local car dealers

Car dealerships may work with you in financing a car, especially with the recent economic upheavals. Check with dealers in your local area about the options that are available to you in acquiring a vehicle. Do not be afraid to negotiate for better prices and lower down payments. You can also do some of your research online and save yourself time and legwork.

2. Get the best price possible

If you have your eye on an auto that really appeals to you and, upon checking it out, have found it to fit your needs, do a bit of research among several dealers in your neighborhood who sell that make and model. Check out the prices that are being offered and see who can give you the best price for your car.

3. Get a free copy of your credit report

Every year, you are entitled to receive a free credit report from one of the three credit bureaus in existence, Equifax, TransUnion and Experian. Read over your report carefully and check for any inaccuracies that could be giving you a lower score than you deserve. When you have a copy of your credit report to refer to, it will give you a better idea of your current credit situation and the steps you will need to take to improve it.

4. Consider used rather than new

Of course, you would love to have a new car, but you might want to consider obtaining a used one that will be less costly and easier to purchase. You may be able to acquire a new vehicle in the near future when you have given yourself time to clean up your credit history and improve your score.

5. Try pre-financing

Websites such as RoadLoans.com will provide you with pre-financing that can be a very useful option for you when buying a car. It is a simple process to fill out the loan application. In most cases, you will know within 24 hours if you have been approved for a car loan.

6. Work out a budget for car payments

Before actually buying your car, work out a budget plan to see if you will be able to afford the car payments each month. Do not jump into purchasing a car unless you know beforehand if you can afford to pay for it.

There are ways to obtain a car even when you are plagued with bad credit or no credit at all.

Melanie Lewis writes for a site that provides information on car loans with bad credit as well as a useful payment estimator to help you calculate your monthly payments.

Philippine Stock Market - An Introduction

Welcome to my first blog! If you are one of the people who want to know more about investing in thestock market, you belong. Else, you are definitely lost out of nowhere.

Most people say stock market investing is boring and slow-moving. Maybe! Some even said that it is VERY risky and your potential earning is too far from reality. Possibly!

But here’s the catch. Assuming all the statements above are true, then why do many people get rich in the stock market? Hmm.. Luck? I don’t think so. Destiny? Not even close.

ENTHUSIAST, not a BROKER

Just so you know, I am not saying I am Houdini in stock market investing. Far from it! I am not even a stock broker who knows all sorts of market fluctuations and all economic events.

I cannot give you an absolute advice as to where to invest, when and how much.

But the thing is, I invest because I believe in the potential of this vehicle. Well, I started investing in the stock market last Dec 2012. I was hooked up on this idea when my officemate, a manager, showed me his account and got an astounding profit in just few months!

He also started investing last May of 2012. Since then I got my savings from the bank and invested in the stock market.

BANKS ARE CROOKS!

Why am I saying this? Because banks are actually stealing money from us every time we deposit our money. Stealing in a sense that they are using our money without our intent! They don’t even ask permission from us to use it.

They just simply take it away and invest in other means. Worst, they don’t share equally with us how much they earn from our own money. Bitter me? Not really. I’ve just learned this from my few months of forex encounter.

But I am not saying that banks are of no use. They are, of course! Without them how can we receive our salary? How about our credit cards?

How can we loan for our houses, cars, businesses, gadgets, etc? Where do our accountants and bankers go? Banks are very important. They are one of the economic drivers of our country. And I mean that. They are part of our progress.

IS STOCK MARKET FOR YOU?

Not all of us want to invest in the stock market. Still this does not suit to some. Now here are the indicators that you need to invest in the stock market.

1. You want to have a long-term investment where you plan to use the money after 10 years. If you are planning to have a pretty good sum of money for your son’s education, or you are just planning to get wed, this is perfect for you. Or maybe you want to retire after a looong years of work. This works best also.
2. You are not risk-averse. Price fluctuation in the stock market is like a taxi in the street. Every now and then you get to see that whether you like or not. But this shouldn’t scare you. This is common in every IPO. However, there are some companions that we have which I will blog later on.
3. You are not contented with the interest the bank gave you. If you are piling your money in the bank for a long time and yet you earn say, roughly P150 pesos out on your P10,000 savings deposit, then it is time for you to move on. You are just being beaten by inflation. Your money will no longer have value before you know it.

    A WORD OF CAUTION

Stock market is a high-risk investment. And I don’t recommend this to anyone who is super-conscious and extra-sensitive. Better invest in other vehicles. However, good thing is stock market is truly rewarding. Yes you know that the higher the risk, the higher the reward.

Risk ≈ Reward

Just a heads up, I am having my account online which I will show on my next blog.