Finance Figured-Guidance for investors for when to invest in stock markets?

The right time[(EGSPSM9DWT9M)] to enter into a stock market to invest,both by veterans and novices alike, has been a big tussle for them, more so when there is a constant tussle between the bulls and bears in any year, to rule the market.So, for an average small time investors,time to enter into the market itself is a big speculation.

This difficulty can be, to an extent made easy by always buying at low and selling at high.(The Right Price...)The most common mistake small time investors make is to go along with the market, that is buying when the market is in a bull phase, trying to cash in, on the run.By doing so they only end up holding the stock, bought in bull run,and seeing that stock's price go down when market swings in the other direction. Small investors should never buy in a heated market.
So, you may ask, when is the time to buy a stock? The best policy is buy at low,or average at dips.
Will it not be useful if one can gauge which days in a month will be the best time to invest.So to help small time investors to zero in on the days, when the market is going to be at its lowest, one agency has attempted and analyzed the data for the past 25 years and have arrived at some findings, which the small investor can
use, after careful study and a bit of his own analyses.
The findings are:
1)The first five days of a month has been the lowest, for one-third of the duration of the research period.They aver that these are the best times, in a month, for a investor to invest in a market.
2) The last five days of a month are also the best time to enter the market,as their analysis's has revealed that these days have been the lowest for nearly 27% times of the duration of the analyzed period.
3)10th to 15th of the month have been only lowest for 8% of time during the analysis's period.
4)In terms of returns, the second half of any year has given higher returns than the first half,(60% and 40%).So investing in the first half is better to reap good returns, when the market goes up in the second half of the year.
5)The third quarter of the year has outperformed the other quarters.Quarter4, which is the beginning of the year, has not performed well,Which goes on to prove that the second half of the year is better in terms of returns.
So, their conclusion is to invest in the first three months of the year.
Raghu Natrajan.

FINANCE FIGURED-MONEY SAVING TIPS FOR ALL.

money matters

Here are some money saving tips that have[ (EGSPSM9DWT9M)]worked for many,which would very well work for you too. These tips were noted down, from the experience of money management and from my friends, books and some financial advisers.

Don't spend more than what you earn.This is the fundamental principle of making wealth.Also saving as little as possible will reward you in long run.
To keep a luxurious lifestyle people tend to spend more than they earn and as well go for debt.Carrying a debt is like having swords always hanging over your head,without you even knowing.The most common form of debt is credit cards.Avoid them to the maximum possible.
Credit to the creation of wealth (home loan)is not that dangerous, if taken judiciously, knowing fully about your ability to pay the credit. Always take only 50% of the value of the asset.The monthly payment also in the range of 50 % of your take home money.Pay the loan as soon as possible.

1)Never postpone the decision.
Never postpone your decision about your financial matters, whether it is about savings, paying your debts,or preparing your monthly budget.If tomorrow will be your answer to this, than you will be missing your opportunity in saving early.The early you save the more the compounding system works for you.

2)Set aside a sum when you receive your pay check.
When the pay check comes,you choose to set aside a specified sum for savings.This is  the first step in creating a secure future. The savings account you transfer should be,if possible a low fee account with high interest-rate paying account.This amount is for wealth creation.

3)Save some for your vacation.
If you set aside a minimum amount every week’s regularly for a year, you would be surprised by the amount of money you had saved by the end of a two year period. Whatever little you can set aside, just do it. First transfer it to your savings account. This saving is not to be in the form of cash, since there will always be ways to spend it.

4)Prepare a shopping list and stick to it.
Take a shopping list before you go for shopping. Shop only the items listed and nothing else.Sticking to the list will avoid impulsive and unnecessary buying.
5)Have your annualised expenses report.
Write down your monthly expenses that you do in a typical month and increase that by 12 times to give you the annual expenses.To this you have to add your vacation expenses,your travel mode expenses, that is if you own a car take into account the interest for the value and fuel expenses plus depreciation of the vehicle.
From this:
a)fix a percentage,on the amount, that you will reduce on annual basis.
b)list them in order of total expenditure and try to avoid unnecessary ones from the list.
c)List out which are all of secondary importance and reduce them.
d)See which items total up to a major expense, and try to reduce that.

6)Make note of every day’s expenses.
Sit down and write every day’s expenses.If you do that you will know where the money went and for what purpose. It is easy to remember your daily expenses.At the end of the month, just add them into categories, such as Groceries, Clothes, Food, Movie and other things. You would be surprised by the financial awareness it creates for you.

7)When you go out in a group, Spend for yourself only.
When going out in a group, try to spend for yourself only.If someone is paying for you, give back your money to them or spend for them another time.

8)Carry your lunch box.
Yes, it works.

9)Never use credit cards, instead use debit cards.

10)Have a eye for financial news or refer some books, if investing.
Not everyone can be a financial expert. We need to know only necessary things that are enough to make our life comfortable, and make better decisions on investments.  And, if you keep your eyes and ears open, you will receive good financial advice. Don't believe in easy money. Get rich schemes are designed to swindle money. Hot tips in stock markets are only Short-circuit tips. MLM schemes are a clever way to make the agent as the customer. Don't chase hot investments,they have crossed their prime buying price. Buying hot is overpaying for the stock. Always have a BUY price and SELL price for a stock ,derived by your own judgment(look Here). Defence against a single class of stock is to invest in a few other class of shares and not over diversifying,which may become unmanageable for ordinary investor.

These tips are effective only when you act on them. Start with a one or two. First start with budgeting.Without knowing where your money goes, it is difficult to save or cut-down your expenses.

Just do it.




RAGHU NATRAJAN

THE GET RICH SCHEME" SUCIDE PITS"

It is  understandable that millionsof people have ambitions, desires and wishes to have their own business.  Countless millions of people are in jobs, they do not really like, nor get any satisfaction from. Financially, what they get is enough only for  month to month existence, but cannot build up real wealth. It is a constant struggle to make ends meet, frustrations are commonplace as people have little control over their own lives. 


Don't we all deserve the freedom, the riches, that the owners of successful businesses enjoy?

What is easy to forget is that, usually, those business have been built with a lot of blood, sweat and tears. Running a business is very hard work; running a successful business is even harder. Those who have succeeded have usually had a vision, taken calculated risks, researched, worked long hours, and have learnt from inevitable setbacks and mistakes. They have learnt about their market sector, how to run a business, marketing, finance, and the law as it affects them in their business. Although what you may now see is a big business in glossy corporate offices, you can be sure it was originally built from hard graft.

Aah, you may be thinking, that was before the internet. Anyone can do it now!
Sorry to disappoint you, but having a Successful internet business requires hard work too; it involves an awful lot of learning, maybe years together.

Does all that put you off having your own business?

Does that all seem too much like hard work?

Do you want the benefits without the hassle?
If you answer "YES" to any of those questions, then you are prime fodder for the Get Rich Quick Schemes :

Welcome To The Internet Danger Zone

Once you start turning your attention to earning money online, you will soon be bombarded with hundreds, thousands, of "opportunities". You will see promises of millions of dollars, thousands of people paying you $20 into your Paypal account for the rest of your life; instant businesses with no physical work.

Now, stop and think about it. Be honest with yourself. How realistic are all of those claims? While each of them is possible, how sustainable are they really?

Many newcomers to the world of internet business should be aware of scams, which is good. There are scams around; many of them.

But the biggest danger is not these deliberate scams, but  greed to make tons of money without really knowing the  nitty gritty about it,coupled with bad management. The fact is,it is easy to set up a business online.It would be advisable for people to do so, who have  idea, how to run a business, plan for business success, manage finances etc.

Follow to enhance your financial status

N.Raghu

TIPS TO START SMALL BUSINESS

These are  some general tips to keep in mind as you design/operate your small business:

1. Take the time out to explore and understand whether or not you are compatible with running our own business.
2.Get your personal finances in order. Before you jump into the entrepreneurship world, get your own money matters squared away.

3. Pick your niche. Many small business owners succeed in businesses that are hardly unique or innovative. Take stock of your skills, interests, and employment history to select the business that is best suited for you.

4. Benefit from your business plan. The exercise of creating a business plan is what pays the dividends. Answer the tough questions now before the meter starts running.

5. Acquire the proper background. In the early months and years of your business, you will have to acquire many skills. Gain the background you need to oversee all facets of your business well, but determine what tasks you should outsource or hire employees.

6. Remember that nothing happens until a sale is made – How many good products go nowhere because they do not reach the shelves? Sales drive your business. You will need a good marketing plan to sell your product or service.

7. No matter how busy you are, spend at least 25% of your time with customers. You cannot make the proper business decision without understanding their viewpoint.

8. Solve your customers’ problems. The best way to satisfy your customers is not by selling them products but by giving solutions to their problems. There is a big difference.

9.Quality takes minutes to lose but years to regain. Quality is not a destination, it is a never ending journey.

10. Put profitability first, rewards seconds. In small businesses, profitability must come first. Find out how to measure your cash flow and understand key financial ratios.
11. Hire supporters. If you intend to create a growing business, your number one duty is to assemble a great team of employees.

12. Vendors are partners too! Treat your vendors like customers and watch your partnership grow.

13. Make use of benefits. Understand how to provide insurance and other benefits for your employees and cut your tax bill at the same time.

14. Ignore regulatory issues at your peril. Federal, state, and local governments require licenses, registrations, and permits. Obey them or face losing your business.

15. Know the tax laws. Invest in understanding tax issues that affect your small business.

16. Develop a passion for learning. As your business grows, you need to change and grow along with it. One common denominator can be found in all successful business owners and that is a passion for learning.

N.Raghu

SELL TO SUCEED

Let's face it: the greatest accomplishment for a member of the sales community is closing a deal with a skeptic. Many who are proficient at this art agree that it is far more gratifying to convince someone who initially felt your product was not necessary. Let us examine the fundamental techniques used by those who succeed in persuading the worst of cynics.

1. Know your product/service
Know it inside and out, backwards and forwards. You should know its strengths, weaknesses, and any proprietary features. Also understand the factors that influence its supply and demand. All of these will strengthen your presentation and help the skeptic make a more informed purchasing decision.  You will definitely be asked questions, so be prepared to demonstrate all aspects of your product/service in response.

2. Know your prospect
Along with knowing your product comes knowing your prospect. Strive to know all you can about your potential clients. Make sure you deal with the decision maker. You should know their purchasing habits, what motivation determines their choice, and how long a buying decision takes. You must understand how your product fits into their overall purchasing strategy. When you know the buying habits of your prospect, you can use it to develop a longer-term sales plan—that means repeat business. Put yourself in the most favorable position to get a "yes" by focusing on what most concerns your prospect.

3. Believe in your own words
You will never be effective selling something you do not believe in. Your lack of enthusiasm will be  obvious as you attempt to convince your potential buyer. When you emanate passion and confidence, you break down the wall of doubt the cynic has built.  If you are lucky enough to sell a product you do not believe in, you still lose because you risk killing referral business and losing the trust of your customer.

4. Be transparent
Too often, we give strong pitches with lots of hype and little information. Be prepared to give as much information as needed to convince the potential buyer to make a purchase. Transparency builds trust. Things people do not understand will always be greeted with "no." The more information available when making a purchasing decision, the more likely they are to say "yes." Another benefit of being transparent is,the more  you divulge , the more likely you are to generate interest in your product/service.

5. Compare and differentiate yourself from your competitors
Know the nature of your business. Is it commodity based, where the low price bidder wins? Is the strength of your brand a factor? Is there something unique about your offer? You must understand your competitors and their advantages and disadvantages. If possible, demonstrate the differences that make your product/service unique or superior.
6. Sell the relationship, not the product
 The best salespeople not only close deals, they foster relationships. Relationships are more valuable to both you and the prospect than a one-time transaction. For the salesperson, relationships bring repeat business , increased referrals because you gain access to the prospect's network base. For the skeptic, relationships help build trust.,which let them know they will not be abandoned after the transaction is finished. Ultimately, they are buying a relationship with you and your firm, not the product/service, so approach selling that way.

7. Focus on benefits offered and value delivered
Self-interest is the skeptic's primary concern, so focus on how your product/service solves their problem, fulfills their need, or satisfies their desire. If your prospect is solely bottom-line focused, your presentation should be centered on how your product or service will make or save them money. If your product satisfies a desire, focus on how it fills an emotional void. Emotional selling differs from bottom-line selling because it focuses on feelings rather than costs. Remember to focus on the benefits that concers the potential buyer,otherwise he will lose interest and you lose the sale.

8. Isolate their objection
 One of your fundamental goals as a salesperson is to help people make informed decisions.  A series of well-placed questions will allow you to isolate any objections. You should brainstorm every possible reason, that a skeptic will rely on, not to buy from you and formulate an effective solution or rebuttal for each. Any other question should be crafted in a way that allows for only one reasonable answer, and that answer should compel your prospect to agree with you.

9. Don't seem desperate!
Your emotional state will be apparent, never appear as though you "need" a sale. Everyone avoids a hard-pressed individual.  Understand there is always a bigger sale out there, so you need not be pressed for this one. Your confidence will put the cynic at ease and make them more likely to buy from you.


N.Raghu

LONGTERM INVESTMENT IN SHARES- FOLLOW YOUR OWN JUDGEMENT.

How to invest in shares on longterm basis(refer to my previous article)
Since it is your money that your are going to invest and the fruits of the investment is for your later life as well as for your family members, so take double care in judging the shares that you select to invest. Dont go by the trend of the market. Market trends ore only for short term, in which vested intrested persons will surely have a hand in the unusual and unrelated movement of price and quantity of shares. It could be a reder aquiring that particular share or someone having a insider information might be doing the damage. It is your money, so avoid such kind of shares from your perview to invest. Also never attempt to invest all your cash reserves in one particular share, though you have selected it after making a detailed study of that share, since your judgement will be based on the future performance of the share. future is not that easy to predict. So invest only about 30persent of your cash reserves in shares, 40 persent in immoveable assets or bullion and the remaining in other debt instruments. Also dony jump into the wagon to buy a perticular share at any price(refer my previous article)

When you want to buy a particular share and by chance your are short of money to buy, let it go, and drop your idea, since the cycle pf up and down will come and you can take your chance at the next oppurtunity. NEVER borrow to make investment in shares, wharever the merit of the share.

Also keep track of the price to earning ratio of all your shares and that of the index. When the index price to earning ratio crosses 20 be watchfull and when above 23 encash your investments. History waens us of the trouble whenever the index's price to earning ratio is above 23.

Almost majority of investors go by trend ie when the market is in a bull run they want to jump in and benefit, which will put you in trouble. No speculator has made honourable money from the market. Stoch market histroy has lot of instances of people who had indulged so and had badly reminded about the perils of such activity. People always invariably hesitate to buy the shares whem the market is going down, ignoring even the fact that it is available at the BUYABLE PRICE arrived by them(refer mu previous article). Why is this? Permit me to say that it is sheer greed. Always set your target BUY price and SELL price and bo by that, in all circumstances.
When you are not having a target BUY price and SELL price for your share, your are misguided by the downward trend of the market and you always miss the oppurtunity to buy at your BUY price and sell at your SELL price.Human nature is that people wait and want the market to go down furthur, when it is downtrend and go up furthur, when it is uptrend. but the market will not have its journey ONE WAY only, it has to and will always turn around to continue its jorney the other way, till it is made once again to reverse its journey. So, when you are sure about your target BUY price and SELL price, you will always be sure to GET IN and GET OUT of that journey without any loss for you.

Do not also go by any advice bu the broker, since he will be compelled more by the commission he earns rather than the performance of the share. Similary many and most of the shares announced as IPOs is always invariable introduced when the marketis in bull phase. We have seen cancellation of many IPOs when the market turns bearish.Make your judgement, when even financial instutions back any particular IPO, they have their own resons for it.

So, he sure way to invest in shares is to learn the fundamentels, detailed study of that particular industry, choose the company as per its value(refer ny previous article) and be bold to actaccording to your judgement. So invest in fundamently good company, with good track record, and also try to buy (if your cash reserves permit) during downtrend, so as to bring down your average cost, by which you will be turning the trend to your advantage, rather than sulking atit.

BR PREPARED FOR THE OPPURTUNITY, IF MISSED, IT WILL TAKE ITS OWN SWEET TIME TO RETURN.

N.Raghu

FINANCE FIGURED

Longterm investment in shares- the sure way to make money-returns better than Banks.

This is for those who want to invest their hard earned money in shares on a longterm basis. There are lot of facts to be considered to predict the market. Any shrewd investor should do his homework on the industry in which he is going to buy shares from the market. The industry will have its ups and downs. This has to be taken into account. Some external factors and events will also effect the performance of the industry as a whole.So, prudent as you are, choose a few indusries in which you have some basic knowledge and study them for atleast 6 months, when you have a considered opinion about that industry,make a list of the companies in that industry and select some to make investment.

PARAMETERS TO SELECT A COMPANY

1) Equity capital should be in accordance to its scale of operation.

2) Debt capital should be optimum, should not be in excess to its scale of operation and technology. Excess debt not advisable.

3) Return on Capital(equity capital+debt capital) should be consistent on for a long period, should equal the industry average. Below that avoid. Above average consider. This ratio is available in periodicals in the market. Zero in for a 15-20% return.

After making a list of companies, now the question is which to choose?. Go for a compnay which has good return on capital and at the same time available at a low price. If the price is high wait. Naturally the price will be high when the market is on a bull run.
HOW TO VALUE, WHETHER THE SHARE PRICE IS AT 'BUY' FOR LONGTERM?.

To arrive at the value you should know:

1) Enterprise Value

2) Return on Capital (averagr return)

3) Calculate total capital at the time of buying shares.

Enterprise value is the value that market is prepared to pay for that company.
Enterprise Value = Market Capitalisation + debt Capital
Total Capital =Equity Capital + Debit Capital

Equity Capital is the money contributed by promoters and other share holders plus the portion of retained profits(after disbursing dividents)

So when you decide to buy make sure that
Enterprise Value = Total capital at the time of buying X[1+ average return on capital%]^5 or 6.

If the left side is < or = to right side than 'BUY'

So the golden rule is invest in HIGH 'return on capital' companies at a LOW price, which produces HIGH 'return on investment' over a period of time.