All of us want to make money when we invest, but it’s important you understand your current financial situation before making a decision to invest in the market. This is true whether your investment is penny stocks or long-term blue chips. In order to determine this, you’ll need to calculate your income and expenses, adjust the following to meet your personal requirements.
Mortgage Taxes Loans and credit cards Day to day living expense Emergency fund (make certain to put this in place) Transportation expenses Leisure activities Student Loans Other commitments to family and/or friends
When we begin thinking about investing, we need to first look at our own financial situation to determine what amount we can safely invest each month. It’s always wise (that should read crucial) to invest with your surplus, and not your rent (by rent we mean any monthly expense you know will be spent).
If you do not have the money to invest today, begin to save a little bit from every paycheck or lump sum you receive. Experts suggest putting 10% aside as an emergency fund, then taking out an additional 10% for investing. While you’ll need to make your own decision concerning this, be certain to consult your budget to be certain all areas are completely covered.
Depending upon whether or not, you have children, or a spouse, always consider the needs of your family before making an investment. While we strongly suggest investing, we do not want you to put your family in jeopardy, because no matter the best intentions, sometimes things do go wrong. Be certain that your needs, and the needs of your family, including insurance, shelter, utilities, and debts are paid, then consider your investments.
Each of us is unique and deals with investment strategies, and life in general, differently. There are those among us who are conservative, and others who are risk takers. An honest conversation with yourself, or your spouse, will help you determine what type of investor you are, and what are your goals for the future. we are extremely bullish concerning penny stocks, believing they can be an integral part of any portfolio, offering significant possibilities for excellent ROI.
There is a piece of investment advice that has stood the test of time, and that is to never put all your eggs into one basket. While the niche that has brought significant returns to my portfolio or penny stocks, I’m also will diversify and recommend that you be also. No matter your intelligence, or information gathering abilities, there will always be fluctuations that you have not planned for in the market.
Always take the time to either research before you invest, or be involved with a quality expert or a newsletter that knows your niche. Often times you’ll find the best investments are those that run contrary to what your financial advisor, (usually very conservative) may advise. Just like investors, there are conservative and risky financial advisors. Take anything that is said as advice, not fact then research on your own. There is no such thing as a Wall Street crystal ball, but there are ways to obtain good information.
While our newsletter has an excellent track record, even we sometimes climb on board a loser. When this happens, never chase it, cut your losses and live to invest another day. There are many penny stocks, in fact 1500 or more that rose as much as 25% in a single day in 2007 and 2008. However this is not always the case, so be certain to place proper stop loss orders, insuring your profits.
