Blue Chip Investment Articles

Have You Given Up Your Hope on Stock Investment?

Sep 21, 2011
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I have working in the financial sector for 8 years now. Having worked in investment company and also worked as a broker, this allows me to gain a lot of knowledge in the financial world.

But the best learning experience actually comes from a 50 years old secretary in one of my previous firm. Her stock dividend alone is $20,000 a year, to her this is her tour package fund. She will use this amount of her dividend to travel to Europe and Australia.

So I ask her what is her investment strategy. She said buy blue chip stocks in market downturn and wait patiently. Then she will list down the buying price of all her blue chip stocks, all of them are in super low price. When blue chip stocks make money, they will pay out good dividend. And good companies will increase their dividend payout year after year.

Recently I had heard some of my friends saying that they will not invest in stocks anymore. It seems like they have lost hope on stock investment. Then they will lose the biggest money making opportunity of their life time.

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Retail investors should adopt a very long-term horizon to benefit from the stock investment.The best opportunity of major stock investment is during bad times. Always try to start major investments during a recession, a global market crisis, a banking crisis or when nobody is interested in stocks, such as now.

When fear and panic happens and people sell irrationally, fundamentals and intrinsic value are thrown out the window. This is when good companies get dumped together with the bad. Even stocks that are not directly related to the financial crisis are being sold at ridiculous prices.

Bull and bear markets always repeat themselves, just like summer and winter. We all know from history and common sense that the market will eventually recover and go to even higher highs.

If you want to emerge a winner, then stay calm, keep your logic and hold and invest in solid companies that are generating free cashflows, low in debt, and has to ability to recover after a recession.

I am calling for a bottom when S&P500 goes down to 800 or when STI goes down to 1200. At that time it would be the time for investors to commit “big”. I am sure our investment will pay off handsomely 2 – 3 years down the road.

If you dont have a broker account yet, send an email to me at metal.commodity@gmail.com, I will recommend my broker to you.


Disclaimer:

The material on this article has no regard to the specific investment objectives, financial situation, or particular needs of any visitor. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments.The author accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material.

Originally published here.

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Stocks Investment – How to Make Your Million Dollars from Small Cap Stocks!

Sep 16, 2011
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Many people do not know how stock investment can make one to become a millionaire. The Investors, who have the required discipline for a long time investment, will surely make their million dollars from small cap investment.

There are minor, penny and blue chips stocks, for investors to trade on short, medium or long time. Minor stocks are those stocks which are less than one dollar, below penny stocks; these are Chinese companies listed in American Stocks Exchange.

The plan is applicable to any type of stock. But it is known that small cap stocks usually yields and double profits, than the penny or blue chip stocks within short time.

For any one to make the million dollars; the need to invest on small cap is necessary and such Investor must hold his initial quantity of stock for about 10 to 15 years to grow, provided the company remains in operation. The shares/money will continue to rollover through the annual bonus shares benefit from the company.

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Though, this is not easy for someone with low earnings and this is why I am recommending “mini-cap stocks” for any one to invest. Minor cap stocks are just within cents.

Remember also, that your investment/minor cap stocks will not remain as minor cap forever; as it will rise to penny and further to blue chips.

This type of investment does not require any training but the major factors before going into such investment are viz:

i. To understand the company background though, they are in most cases new companies,
ii. Study their growth from early days when they began business,
iii. Find what sot of business they do and project what they can be in the next 15 years,
iv. Who are the personalities behind the Company of your choice?
v. Try as much as you can to avoid one man business, which does not carry people along,
vi. Make sure your investment is worth doing, though, investment carries lots of hidden and opened risk, but you must try your best to reduce the risk factors to the barest minimum. You can find these on Google search engine.

Lastly, buying the minimum of about 5,000 quantities of shares is what is necessary here; the quantity of the shares matters most and from there, to rollover as long as you can hold the quantity for number of years.

Find this link to a table for more explanation, to enable you understands how it will affect your proposed investments to your success.

Originally published here.

Boluji Olatunji

Be Cautious When Using Stock Market Tips

Sep 15, 2011
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Buying stock and shares can be difficult for experienced players on the stock market, and for novices it can be downright scary. There are tips everywhere, such as those from friends, the Internet and newspapers. There are so many contradicting opinions, not to mention mind-numbing figures that seem to lack any logic. Not all stocks are the same, some have more risk involved than others, some will make a profit over the long term, some are better as short term investments. There’s defensive stocks, income stocks, blue chip stocks, inactive stocks, the list just continues on and on… So, how can you work out what stocks to buy, and which to ignore? In the following paragraphs there are a few tips to help you out in making wise choices and minimizing the risks with your investments.

Be Wary of ‘Tips’

Firstly, if you are new to the market, there will be people out there who claim to be experts and will offer you ‘tips’ of companies that are about to make shareholders a big payoff. However, how does this person know this, where did they get the information from, do they have a history of the market and investing, do they actually know what they are saying, or is it just a hunch? Be very careful on who you take your tips from. Just because you’re hairdresser’s cousin has a company and they say a certain stock is a good thing doesn’t really mean much, if anything. Be questioning and wary of the advice you take, as if you lose money, it is your fault and no one else’s.

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Go With Companies You Trust

Many of the companies that you use everyday are also listed on the stock exchange, such as the maker of your car, the building company, your bank or financial institute, perhaps even the brand of clothing that you wear. If you use these products or services, you already trust the company and know the quality of the products or services they offer. For a beginner, they are a good place to start until you know more about different companies and businesses. (Find out about Review of Finexo Forex Trading. Also make sure to visit etrade.)

Research the Company

Before you bought your car or your home, you did your research to find out if it was a worthwhile purchase, to make sure there wasn’t going to be any nasty surprises that would pop up out of nowhere to spoil your dream. Stocks are much the same, and before you invest your money into a company, research the past and present of the company, find out how it has fared over the years. If it has been on the rise for a while, chances are the stock is highly priced and likely to fall at some point soon. If the share price has been falling or low for some time, find out why that is, and research if this is likely to pick up any time soon. Knowing where and who your money is going to is extremely important, because you wouldn’t invest in someone who came knocking at your door asking for $1000 without questioning them, would you?

Originally published here.

Ajeet Khurana