Early Investor Earns Early Retirement
December 24, 2008
Time is the greatest ally that an investor could ever have. As an investor, you will make most of your money through compounded interest and the earlier you start, the more compound interest you can earn.
Let’s look at an example. For this example we are going to assume that two different people can both start investing at 12% interest for a continuous period of time. The first person, Charles, is going to start investing $2,000 per year at the age of nineteen until he is 27, at which point he will stop adding to his investment. The second person, William, is going to wait until he is 27-years old before he starts investing his $2,000 per year. Although, William will be continuously adding $2,000 per year to his investment until he is the age of 65.
So, Charles has a total investment of $16,000 (2,000 per year for 8 years) and William has a total investment of $78,000 (2,000 per year for 39 years). However, by the time both investors reach the age of 65, Charles will have $2,288,996 and William will only have $1,532,166. This is a difference of $756,830! Read more
Making Money in the Stock Market
July 11, 2008
You are a veteran at trading stocks and you’ve been doing it for awhile. With your current expertise, you want to progress even further and start playing with the big boys in the market. It’s time to learn about advanced stock market strategies to bring your skills to the next level. You want a whole new world of trading experiences and we’re going to discuss them below.
Advanced traders use sophisticated trading strategies to achieve their financial goals. Techniques such as considering IPOs, selling short and margin trading are employed by the big boys to explore a different dimension of potential profits.
1. Considering IPOs
Referred to as IPOs, the letters represent the words initial public offerings. IPOs mark the formal transition of a specific company from a privately owned firm to a publicly held firm. Every incorporated business issues its own stock. The original stock in an incorporated business is initially offered to a few stockholders. A company can sell stock to the public to raise capital without getting into debt. Read more