To all who seek freedom from dependence on a steady job or sell their time for pay, are excited about being able to get rid of all that and start building your financial freedom. Therefore, we must start with the basics that are to spend less than we entered, save all you can to lean to hold our tickets and studying a lot about the subject at hand. Some want to build a new business, others to seek the best returns for their money. If this is your case, I bring you what the analysts of the Elliott Wave International firm, believe are the 5 fatal mistakes that affect our way of investing.

1. Lack of methodology. If you aim to be a successful investor, then you should have a methodology that is clear and concise and allows you to look objectively at the nature of the business where you want to invest.

The guesswork and instincts do not work long term. If you do not have an investment methodology, the lurching walks. This is more relevant when making investments in the stock market if you do not follow a methodology you have no way of knowing that is a sign to buy or sell.

On the other hand cannot even identify the trend consistent. To overcome this fatal mistake, enter your methodology. Define in writing analytical tools and more importantly, how to use them.

What really matters is that you make the effort to define it. If your methodology is too complicated to be written on the back of a business card, it is probably too complicated.

Indeed, the methodology is not something that should remain static and should be perfected over time.

2. The lack of discipline. When you have clearly defined investment methodology, you must have the discipline to follow your system. The lack of discipline in this regard is the second fatal mistake.

Religious discipline should be taken to follow the methodology of trading or investment that you have developed.

3. Unrealistic expectations. How many times you have not met with warnings like: “I spent $ 150 and to date have won 10 thousand” ads like this just make people lose money in droves.

They also help create another fatal error: unrealistic expectations. What many people ignore is that higher risk higher return. Such is the case of higher yields paid by countries with more risk of default.

Put yourself, it is better to win but win little risk for higher yields and left with nothing.

4. The lack of patience. This error is one of the more money we lose. A business where you want to invest East requires patience for the results.

The best advice to combat lack of patience do not have to worry about the lack of opportunities, because there will be tomorrow, next week, next month, that without fail.

5. The lack of money to invest. Managing money according to the risk correctly is the key to not losing money. Limit the risk as much as possible each time we make an investment.

Words, we must invest in our capital. Success is not easy. It’s hard work. If someone leads you to believe otherwise, run in the opposite direction, and fast.

The hard work can give a reward, because you can make a profit above the average.

A few weeks ago I wrote a couple of articles about what is, and how the business of the Stock Market.

I received very good reviews, but many of my readers requested more practical guidance and summary on how to proceed with investments.

So, I have prepared this list of 8 steps to invest in the stock market, I’m sure will be useful for those wishing to enter this field.

1. Research and documentation, about the subject before investing in the stock market. There are very good courses and online tutorials to help you.

2. Use a simulator for a while investments in the stock market. This allows you to measure your knowledge and investment skills in a safe environment without risking your money prior to it in reality.

3. Choose one of the Stock Market to invest, preferably in USA. The reason is simple: there are more resources available online and corridors for the region.

4. Select a broker. This is essential because the person or company was authorized to execute investment transactions. They will give you specific advice according to your choices as amounts, terms and investment options.

5. Look for companies with high potential for investment. This is probably the most important task of the process and also the most difficult because it needs to “soak up” or know enough about the field of business of the company.

6. Run your investment transactions. Whether you delegate your stock broker’s decision to seek the best options that you specify or directly where you want to invest, the next step is to actually execute the operation.

7. Proceed to the payment of commissions to your broker. After running a negotiation, your broker will automatically debit their fees according to the contract signed with them initially. You must clear the commission rate from the beginning as well as other possible charges for additional costs.

8. Monitor your investments. After running one or more negotiations, it is desirable to maintain an ongoing monitoring to determine the low and high in the companies where they have invested and make decisions about when you can agree to buy or sell.

Finally, and as I mentioned in previous posts, although you can expect to earn very good money as an investor in the stock market, as in any business is also important to be aware of the risk involved in an investment.

Have you entered this field? We love to hear your experience.

Internet: A market and a means for business

What is the Internet business? What is a online business? This is the question asked by thousands of entrepreneurs around the world.

Internet emerged as a vast source of cold lemonade in the desert, but most investors were spurted ambition, greed and easy wealth speculative stock market led to the intense cleansing living today.

Confusion between business and media

There are many reasons for the debacle of so-called dot-com, but one of the most important is the question “What is the Internet business?” is as irrelevant as the question “What business is selling burgers on TV?”.

The multinational fast food chains usually have billionaires  budgets TV advertising, to offer their products and promotions, but when one gets hungry he is to go to the real selling point. It is not enough digital photo of the burger. (more…)

Social networks not only are revalued in stock (up to 377% percent in the last year), but also help predict the vagaries of stock market, according to some studies. In this context, it is easy to see why over 80% of financial adviser believes that over the next five years, social networks help to attracting customers and also enhance the relationship with them. Currently, between 15% and 20% of the investment is captured through social network.

Behind this trend, in the words of Marc Garrigasait, president of Koala Capital SICAV, the transparency that social networks provide the financial world. “If you are transparent, investors will appreciate what this means more empathy and more benefits,” he says.

Over 70% of financial advisors are registered in any of the social networks, especially Facebook, LinkedIn, and Twitter Unience, according to a survey on the use of social networks by EFPA Spain (European Association of Advisers and Financial Planners -Heritage). The vast majority believe that social media are very useful for several reasons: because they represent an efficient channel of communication, constitute a direct and easy communication, are a good tool to keep abreast of new trends, and consider marketing tool  and online advertising.

The asset allocation formula is often used incorrectly in an effort to impose a tool of speculative investment in a strategy that has no real merit on their own, eg reinstatement of an annual portfolio, market adjustments and changes in a mutual fund. The asset allocation formula itself is sacred, and if constructed properly, should never be altered due to market conditions and equity income. Changes in personal circumstances, objectives and goals of the investor are the only concerns that should modify the asset allocation process.

Here are some ways to asset allocation:

(1) All decisions involved in asset allocation based on the basic costs of the guarantees involved. The current stock market can be higher or lower, but does not really matter. (more…)