Ideas for investing and investing ideas for beginners.
It is fair to say that we are all beginners in one way or another when it comes to investing. I have met many people who have asked the question “how do I get started with investing?” and others have given the unanswerable question “how do I get started with investing in the stock market?“.
We all know there are a number of investment opportunities out there, however, how we deal with them is a decision only we can make and if we have all the required resources to make that kind of a decision.
Your Portfolio Grows Every Month
Investing Money For Beginners
Although if you don't that's not a problem as there is a great club I use myself called VCCrowd as they all the work for members so you can just sit and relax and watch your portfolio grow every month as you get new shares added every month with all the work done for you. Members have had already two IPOs and another three planning on IPOs next year.
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VC Crowd has an advisory team that is fully regulated by the FCA in the UK and which is made up of highly experienced, extremely well-connected finance professionals.
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They use their network to identify early-stage companies with real potential and they also accept funding applications from companies directly through our website.
Passive Investing Ideas
The advisory team carries out rigorous due diligence on these companies and then negotiates highly advantageous terms with them. Members will receive shares in the companies every month.
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Members just sit back and relax as all the work is done for the members including:
Ideas For Investing
Where To Invest Money To Get Good Returns
There are investment ideas for beginners I have learned the hard way, however, If you want the easy way have a look at VCCrowd. But if you want to put the effort into it your self then be prepared for a lot of work, time and research.
I have come to the conclusion that what works for me for ideas for investing may not necessarily work for everyone else and that I have to be a bit more selective when it comes to my investment ideas. I had always been told to “buy low and sell high” and I had been putting my money on the companies that I thought would perform well because I thought they were too risky for me.
The Best Ideas For Investing
I was very wrong because I have seen how the value of a company changes in a short time- I had always been told to “buy high and sell higher” and that it was one of the best ideas for investing. I had been looking for a company with short term gains that I could capitalize on in order to meet my financial goals.
Greatest Returns Over A Long Period
When looking at ideas for investing I had always looked at building properties as the best long term investment because I thought it would give me the greatest returns over a long period of time. When I started looking at the performance of this sector, I had always expected to see the market sector perform overtime to my expectations.
When I looked at value companies, I had always expected to see the value growth as the sector. When I looked at growth companies, I had expected these ideas for investing to see profits grow. I had always expected to see asset returns under 10% but what I had discovered was a different story altogether.
Investing Money Ideas
I had learned with ideas for investing that I would have to look at how I had been choosing stocks because I did not realize how the value would grow and how the growth would be a bit lower. I had always thought that having a high growth was better than a low growth company and this has been playing out in my life.
When you have discovered that you can have more success in a low growth company than a high growth company, I believe it is time for you to look at other options.
Attractive Dividend Yields
It is always better to pick a strong high growth company that has an attractive dividend yield than it is a weak low growth company with a low yield. I believe it is time to get into these companies that have attractive dividend yields as I thought this could be the best ideas for investing and building a portfolio over time that has moderate growth, with a bit of cash, a bit of dividend growth and cash flow to cover my expenses.
I have a simple rule in order to continue to have a great dividend portfolio when looking at ideas for investing. I want to have at least 3-4 companies that have 2-3% dividend growth. I have found the most opportunity by concentrating on two or three companies with this philosophy.
Best Ideas For Investing Money
I had always looked at the market sector for ideas for investing and to be the one to invest in but I had also looked at other sectors to see if there was another option that was so attractive, so capital efficient, and had the returns I wanted.
I had looked at technology sectors, I had looked at infrastructure sectors, I had looked at M&A sectors, and I had looked at consumer discretionary sectors.
Market Volatility – Liquidity Best Investment For Risk
In this market environment, with the current market volatility, I believe that the value investor will have to start looking at the consumer discretionary sector again because it is really not the same as it was five years ago so would not be one of my ideas for investing.
I had looked at this sector at the time when it was more manageable, but I had decided that I did not want to enter into this sector just to make money, as I had heard so many stories of investors who had just made money by buying and pulling out of all the sectors.
I had also heard so many stories of how investors had gotten in and out of the sector on a daily basis.
In looking at the consumer discretionary sector to enter into, I had seen some incredible winners when it was cheap, but I had also seen some incredible losers in the sector as well, as the market had been at one time or another at support, and now at resistance.
I was looking for ideas for investing in a sector that I could enter into at low costs and have a nice premium return as well. I believe the consumer discretionary sector has shown me that it can be both cheap and yield premium based on my criteria.
S&P Consumer Discretionary
My first choice was to look at S&P consumer discretionary sectors that had small caps with attractive yields or sectors with small-cap names that were growing.
With low costs, I believe this sector has the ability to still give me a nice return for my money, especially if it can hold on to where it is at support. I have seen this sector being at support on the chart from time to time, which tells me that it can hold on to at least some of the ground that it has gained.
My second pick and ideas for investing was the technology sector, which I believe is a great sector to be in for a short term move.
Investing Business Ideas
My third pick for ideas for investing was going to be sectors that had the ability to hold on to the ground, but that was small enough to enter into, yet had big enough names that gave me the kind of return that I wanted. I had looked at sectors with both cheapness and yield premium potential but had a problem finding them that were big enough names. I had finally found them, but they were quite unexpected.
You see, I have been looking for sectors that had cheapness and I believe they all have some type of cheap name, but I had looked for names that gave me the ability to get a decent return on my money.
So, after looking at sectors for a while and having some ideas for investing, I had a problem finding names that had both cheapness and yield premium.
This is when I had looked at the sector I had been doing quite well in previously. It was the consumer staples sector, which you may recognize as being the S&P retail sector, which had been doing quite well for me over the past few months.
But, after reviewing some of the recent histories between the two sectors, I thought that the consumer staples sector may be due for a pullback. I had been buying the sector in the hopes of a pullback and had only been disappointed once before in late 2007 when the sector had only done a small pullback.
I had now seen the sector up around 60% and had decided to wait and see if the sector would respond to my buying and my ideas for investing.
The Technology Sector
And, it did, in the form of an old favourite of mine, the technology sector. The consumer staples sector had had a minor resurgence in late 2007, and the technology sector had seemed to do quite well in the meantime but had not had quite the presence as the consumer staples sector had done.
With the two sectors touching all-time highs, and the technology sector now doing around 50% more trade volume than the consumer staples sector, the two sectors seemed to be on the verge of a renewed big rally, one that would result in a new bubble in the sector as a whole.
And indeed, after more than two weeks of trading, that is what happened. I had picked the high for the sector, and the sector had responded, both the technology sector and the consumer staples sector, to a big rally in the sector, both up over 100%.
However, like the old traders say, “What don't we know, that we know already.”
First, the consumer staples sector had been falling for weeks, having fallen about 45% at one point over the summer.
Event-Driven Investing Ideas
Thus, having responded to the sector up move, the technology sector had responded to the fall from the sector up. I had started buying the sector down, trying to catch the sector up, and this had seemingly caught the sector down.
This had resulted in the sector having made new lows, and the sector has been near new highs for most of the summer.
Thus, the two sectors had changed drastically but had responded to each other, the old sectors up and old sectors down. The old sectors up being the tech sector and the old sectors down being the consumer staples sector.
Thus, we had two sectors, sectors that had never been right adjacent to each other, moving in opposite directions.
Now, this did not last long, and the sectors started changing again. The consumer staples sector had been falling for some time, having been down about 45% at one point during the summer. But, it had been moving up, and had responded to the tech sector.
The tech sector had been moving up during the summer, having been up 100% in a span of weeks at one point. The two had started responding to each other and had become the old sectors up and old sectors down.
Market Cap Basis
The old sectors up being the technology sector and the old sectors down being the consumer staples sector. Thus, we were now seeing a big move in the sector that had never been very big, and the sector that had responded to the big move in the other sector had become small, having become small on a market cap basis.
Thus, the sectors were moving back and forth, the old sectors up and old sectors down.
This had gone on for quite some time, with the new sectors up and the old sectors down.
At one point during the fall, the old sectors had moved down so far that they had become new sectors.
This had happened on the final day of trading of the year, when the tech sector had made a huge move up to make a new high, and the consumer staples sector had responded with a huge move down to make a new low.
As the new sectors moved down, they became old sectors, and the old sectors moved up to make a new sector.
The new sectors down had become old sectors, the old sectors had moved up to make a new sector, and the old sectors had moved down to make a new sector.
This had gone on for two months, a surprising move in a market that usually moves only a couple of percent in any given month.
It had gone on for a month that had surprised the market many times during the year, and it had finally turned around. It was now the new year, and the market had a few more months left.
That first day of trading that ended the year proved to be one of the most significant days in the history of the market.
The year was 2001. October 31st had just occurred, and the market had declined for three months. It had taken the market down from $71.64 to $40.74 on October 31st, a decline of 3.3%.
This day was a historic day for many reasons, but especially so for the fact that it ended the long fall from $71.64 to $40.74, and the fact that it had begun the long climb back up. It was also a historic day in that it was the first day that the market had made a lower high, and the first day that the market had made a higher low than the previous year.
The fact that the market had begun the year with a lower low than the previous year was also a historical moment because it was the first day that the market had fallen from a $100 dollar increment year to a $50 dollar increment year, which is a 10% decline.
This day was an important day because it marked the beginning of the longest sustained period of decline in the stock market that had ever been recorded, a decline of 13%, which is equivalent to a 50% decline over ten months, and it marked the beginning of the longest sustained period of increase in the stock market that had ever been recorded, a rise of 12%.
So why did this day mean so much?
Historically speaking, this day marked the beginning of the long climb back up, and this was the first day that the market had started the year with a higher low than the previous year, and this was the first day that the market had begun the year with a lower high than the previous year.
This day was also significant because it was the first day that the market had traded in a zone of support that was lower than the previous year, which is important because if the market can stay in a zone of support for a few months, it means that it is most likely about to break through that support.
The fact that the market had started the year with a lower high than the previous year also meant that the next two years were very important for the market, as it was the first days in the next two years that the market had traded higher than the previous year.
Another important fact was that this day marked the beginning of the long sustained rise in the stock market that had been occurring ever since the market started working through its correction.
For anyone who has studied technical analysis as a profession or who has been relying on technical analysis as your sole indicator for making decisions in the market, this day was a huge day.
Anyone who had been relying on technical analysis for identifying support and resistance had to change their strategies immediately.
All of their indicators suddenly became out of date and were no longer accurate predictors of future price movements.
All of the fundamental analysis tools which were not based on technical analysis were rendered useless and were forced to be reworked to account for the new information.
The entire process was painful for those who were relying on old methodologies and made them very nervous, and most of them gave up on technical analysis altogether and tried to come up with new indicators or different methodologies.
This made most of the practitioners in technical analysis bitter and upset, and a few of them left the profession. This bitter feeling has continued to this day and has made many technical analysts bitter.
For those of you who are using technical analysis, have you heard the expression bitter or upset all over your stock market journey?
Trade At The Wrong Time
It probably means that you're on the wrong side of the trade at the wrong time. And that has been making most technical analysts bitter, and they can't figure out why their methods would be wrong.
Most technical analysts feel that if their indicators were accurate and reliable, they should be able to predict price movements with great accuracy, not only of the downside but also of the upside.
But they're not, not even close. Most of them would like to blame external factors for their lack of success, but they can't come up with a single culprit.
They'll always be stuck with the fact that their indicators, indicators which they have painstakingly built over many years, just aren't accurate.
Determine The Current Price
That's why most technical analysts have given up on technical analysis altogether and are turning to other methods to determine the current price of the stock. The two other most popular methods are trend-following and oscillators.
Trend following is the process of following the general upward trend of a stock, using indicators to determine the strength of the trend and when to enter and exit the market to take advantage of profits.
Most trends following methods include using an indicator which is also known as a moving average crossover. If the indicator agrees with the overall trend, then it indicates that the trend is strong, and that is where the entry points should be.
There are two main types of trend following strategies. The trendline method and the head and shoulder method. Most trends following methods include using at least one of these two methods.
The Head and shoulder method doesn't include entering or exiting markets by using a trend following indicator, but rather it involves using the trendline method to find the entry points.
This means that trend followers enter at market open, using the trendline method, and exit at market close using the head and shoulder method.
There are oscillators available for technical analysis. Some oscillators are based on individual components of price, while others are based on time.
Technical Analysis Oscillators
Some oscillators are simple to use while others are difficult to use. Some technical analysis oscillators may be used in both horizontal and vertical directions, while others are only effective in one direction.
The two most popular technical analysis oscillators are the average true range and the pivot point.
The average true range indicator is a relative indicator that simply compares the actual past prices to an average price.
The average true range can be useful in determining if a trend is rising or falling.
When the actual prices are higher than the average price, the trend may be considered to be rising, and when they are lower than the average price, the trend is considered to be falling.
The pivot point indicator is a pivot point indicator that indicates the pivot point where a trend is considered to be neutral.
The pivot point may be defined as the price at which a sideways or curvilinear chart enters a linear period. This indicates a change in the trend direction.