Do start investing early April 2, 2007
Posted by netyolk in Investing, Wealth management.add a comment
I could not stress it more here that investing is one of the strategies for growing your wealth. Majority of people believes that putting all savings in the banks are the safest way to ride through life. That is what we all are taught of all this while. The fact is, our savings in the banks are depreciating in value over time. This is due to inflation. Do you ever notice that most necessities that you bought 10 years ago may be costing you double or even triple of the price in the past. No economy could insulate itself from inflation. Inflation causes the price of goods to increase.
The only way to offset inflation with your savings is to grow the savings over time faster than the inflation rate. The average inflation rate per year is around 1% to 2%. The rate may varies every year but the average per year over the past 10 years is roughly that. If your savings remain static to the current value, its real value will be depreciating by 1% to 2% as you can buy less goods with those amount.
This is why it is important to put your savings into investment portfolio. A low-risk portfolio could gives return of investment rate of 4% to 5% in 10 years, a high-risk portfolio could reaches up to 10% of return. Even with low-risk portfolio, you should be able to vest your savings against those 2% inflation rate.
A low-risked investment portfolio mostly consists of carefully picked mutual funds, bonds, and even blue-chip stocks. A high-risk porfolio may consists of volatile stocks, and high yield investments. It is extremely important to start building your investment portfolio now. Do it and you will see how your savings grow over time. I even have so friends who have such mixture of low-risk and high-risk portfolio. Their portfolios are so vested that they could still ride through the last recession with profits. It is amazing that some of them did not even start out with big amount. Be it $100 or $1000, start investing today for your financial freedom!
Where is your trading plan? March 27, 2007
Posted by netyolk in Traders' Guide, Trading.add a comment
Today, I’m going to share about trading. I, myself, do trading in stock market as part of my investment plan. Wait! You want to do trading successfully just like me? 
In my deepest opinion, a written personal trading plan or guideline is the key to a successful trading on the market, be it for the stock market or foreign exchange market! Do you have one yet? Read on if you yet to have one!
Successful traders like us understand the importance of having a personal plan before entering the trading arena. I believe that a lot of people, even some of my friends, jump into the stock market with little idea of why and how they are going to trade. That would be similar to going into a casino without knowing how much losing or winning you are going to undergo before calling it a day. So, here is the first thing to do before you put all those money – write your personal trading plan!
You can define and write out the rules that you will follow as you entering a trade decision. This includes your money management strategy and other details of your trading system, if you have one. You must have a trading plan if you want to be successful on the trading market. Do it and follow it through during the actual trading.
Unfortunately, writing a good trading plan needs discipline and commitment. Are you ready? It won’t be an easy task! If you think you are not ready to put in such effort, I believe you don’t have to read further. Just the thought of the word “discipline” could scare a lot of potential traders. Continue reading if you are not scared of such commitment.
Many people are likely to break rules, even the ones they have set for themselves! How many people have made new resolutions but never actually follow through those resolutions after a while. You could not afford such half-hearted commitment when it comes to trading. You must realise the importance of demanding the highest level of discipline from yourself to execute according to your personal trading plan with extreme prejudice! A personal trading plan has to feel right for an individual person. It is unique for each person as every individual is unique and has different approach when it comes to crucial decision making, and there is indeed a lot of critical decision making when it comes to trading. Make sure you are comfortable with your trading plan. If you are not comfortable with your trading plan, you will very likely to stop following it as the time goes. The personal trading plan is to be respected but it should also be fine-tuned once in a while.
So, take your first step by drafting a personal trading plan. Pass it to your friend(s) , family or me and ask for opinions! 
Once you personally agree with the plan, use it as guidelines in your actual trading sessions. All this really requires certain character traits. You must have patience, commitment, desire and discipline to execute it all. It takes time and a lot of fine-tuning along the way to be successful in trading. If you think you are ready to trade seriously, start by developing your personal trading plan!
I think that is all for today. I will touch more about the personal trading plan in my future posting. There is only one thing stopping you now, and that is you! Put in the required effort and don’t look back.
