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15 Investment Success Mantras

Successful investors from across the globe have some common attributes. It isn’t hard to replicate their ways of thinking but you can certainly learn from their success mantras.

1. You need to post-analysis of all your moves in the stock market if you want to learn from your mistakes and successes. Only experience can make you an expert investor!

2. You can pick a winning stock only when you know how to perform both fundamental and technical analysis. Trading is not gambling!

3. You can make maximum money by trading stocks when you buy and sell at the perfect moment. Timing is more important than anything else!

4. Winning stocks almost certainly have very strong earnings and sales. A novice investor can still choose the wrong timing and lose money!

5. You can make big gains in the stock market only when you buy stocks right after it emerges out of the base area. All big opportunities are where stocks begin to move beyond the price consolidation area.

6. You should choose stocks from leading industry sectors in the beginning. Companies that have led the market in the recent past were also a part of such leading industry groups.

7. When stocks go up, it is never due to an accident! Do not let yourself believe in accidents or coincidences in the market. Stocks rise or fall abruptly only when big transactions take place or significant political events unfold.

8. You have to mentally accept the fact that you might lose money in the next few days. Even the most successful investors have lost money in the stock market. Just make sure that you don’t lose your money without earning an even more valuable investment lesson!

9. Learning to investment is a long process. It never happens overnight and if someone tries to sell you a product that can help you make big money in the market, you need to run away from him or her – as fast as you can!

10. Beginners should always start with cash accounts. Margin accounts are not for novice stock market traders.

11. You do not need a big sum to get started. 500 dollars is a good investment to begin with.

12. Buying stocks that fall under 15 bucks per share is a bad idea. It is almost a fact that all big companies in the world simply do not price their shares below 15 bucks.

13. You need to learn both technical and fundamental analysis to become a real investor in the next few months. You cannot rely on third party guidance forever if you want to be a successful investor someday.

14. The key to success is to know when you buy and sell in the market! That’s what separates a winner from a loser, who handle the same stock – sometimes on the same day!

15. Do not place any value on personal opinions of people. No matter which way you go, you’ll always find people with mixed opinions. The most you can do is to listen to their opinions. In the end, it’s your money and you alone has to make the decision.

Buying Platinum Jewelry As an Investment

Investing in a precious metal like platinum can be a good long-term hedge against the volatility of the stock market, and there are many ways to invest in it. One of the best ways is to buy jewelry made from pure platinum. This allows you to hold a valuable commodity as well as wear a beautiful piece of jewelry – sort of like having your cake and eating it too!

Here are some great reasons to buy platinum jewelry as an investment:

  • The strength of platinum allows jewelers to make quite intricate, yet extremely durable, pieces without mixing in other metals. Thus, you can have a piece that is practical both as jewelry and as a bullion-type investment.
  • Platinum is about 30 times more rare than gold, yet is usually valued in the same general price range. Since it is so rare and so useful, many people believe that platinum could drastically increase in value in the coming years.
  • Platinum is stronger and more durable than either silver or white gold, and is impervious to rust or tarnish, and so is a great alternative to these metals as jewelry.
  • Platinum is important in the auto industry, for use in anti-pollution devices. As environmental regulations get stricter over the years, the value of platinum should continue to rise. And as emerging markets like China and India continue their explosive growth (car sales in China grew by more than 50% in 2009), the demand for platinum will continue to grow as well. All these factors point to a steady increase in the value of platinum jewelry in the coming years.

Financing Your Business With Vendors

Vendors are critical partners having the ability to seriously help or hinder your business. A good relationship with a vendor will help with cash flow, assist in quality service with your customers, and help you reduce the struggles of managing inventory. A bad relationship with a vendor can cause several headaches including seriously hurting the lifeblood of your business, your cash flow. Most business buyers never consider partnering with their vendors to finance their purchase. Here are a few ideas on how to work with vendors in financing a new acquisition.

1. Extend your terms – If you purchase a business that has a heavy need to work with vendors you maybe able to get your vendors to extend your terms after your acquisition. This can allow your business the ability to free up critical cash flow. Don’t be fooled into thinking that an increase in cash flow will pay for you acquisition. It may help with the temporary lull in business that naturally occurs after the change on ownership. One of my students got a primary vendor to extend his terms from net 30 to a one year, no payment no interest relationship. This worked well for my student and the vendor had established a relationship that can potentially last a lifetime.

2. Sharing a letter of credit – Depending on what type of vendor you have (and your relationship with them) occasionally vendors will be willing to extend or share a letter of credit with a client to help them. For example, a construction company that needs materials such as granite countertops maybe able to go to a granite wholesaler and in lieu of a profit they could share a portion of their letter of credit to finance a portion of the construction. Obviously the vendor would be compensated by future business and a spread on the letter of credit.

3. Trade services for materials or like-kind services- A general contractor could offer to trade services for materials. A grocery store could share space for warehousing with a food supplier in lieu of product. The possibilities are endless.

4. Equity investors – Vendors frequently become squeamish of investing in clients because there can be a change in the perception of the relationship. I think that this can be a perfect marriage between two businesses if it is done correctly and with consideration. For example, a struggling business has past due debt to a smaller vendor. A new party could acquire the business and share a portion of the stock in the company to resolve the past due debt. Vendors are not in the habit of investing in their clients; however there can be a time and a place where it is necessary for the survival of all parties.

5. Leaseback strategies- This is a strategy you can use with equipment vendors. An existing business owns $200,000 in equipment. You sell the equipment to the equipment vendor and in turn leaseback to you. Consequently you free up cash to assist in your business purchase.