Fully Stocked

Investing Basics: Creating and Building a Stock Portfolio

2008-06-18T23:23:00.000-07:00

If you've ever thought about investing in the stock market, but have absolutely no idea where to start, here's a primer that may help you get the ball rolling: Creating A Stock Portfolio.

When I first started stock market investing, I started with mutual funds because I felt that I wasn't educated enough to pick out my own stocks. However, as I started becoming more knowledgeable about how to pick stocks, I ventured out to create a little stock portfolio on my own.

Here is a list of articles I like that offer advice on how to build a stock portfolio:

Build Your First Stock Portfolio

Eight Steps to Building a Solid Stock Portfolio

Building a Stock Portfolio

Domain Name Investing

2008-06-01T23:40:00.000-07:00

There's a new blog carnival called the Carnival of Financial Learning, so I browsed through it hoping to learn something new...

One article that immediately caught my attention was How To Find Domain Investing Deals. I know I've talked a great deal about stock market investing here, so I think it's time to turn our attention to other things we can invest in.

Domain name investing is something I'm particularly interested in because I do a great deal of internet marketing and own quite a few websites. Domain names are the "real estate" of the internet. If you can get a good domain name and hold onto it, chances are in the future it can be very valuable - provided that you get a steady flow of traffic to the website.

Here's a great article about the similarities and differences between stocks and domains.

If you're thinking about investing in domains, you may want to check out www.GoDaddy.com's
domain marketplace. Most of my domains are registered with GoDaddy.com and sometimes they'll have sales on new domain registrations.

Photo Credit: www.viajar24h.com

Guest Post: Building up Wealth With the Stock Market

2008-05-24T00:33:00.000-07:00

This is a guest post by Larry Haywood...

Investing in the stock market can be an unbelievable way to develop wealth. Even so, there are many folks out there who refrain from investing in the stock market because they believe it's too dangerous. And you know what? To a certain extent, they're right. The stock market can be one of the most effective ways to build riches, but only if it is done right. You should be smart and strategic in the way you pick out your stocks. You likewise need to take the time to study the most favourable ways of investing your cash. Here are a few tips to help you along:

Affordability. This is in all likelihood among the most significant tips for an individual who's looking to invest in the stock market to develop money. You should only invest cash that you can afford to invest. If you're going to have difficulty paying off your mortgage or your car loan, then do not invest in the stock market. That is not wealth creation. You should always be comfy about the amount you've invested.

Earning estimates. You should always be on the watch for stocks whose earnings estimates have newly been altered upward. This is commonly an indication of competent management and it hints that the stock has underlying value. Once a company's management consistently commits to raising the value of its stock, the attempt will be reflected in the share monetary value. You need to be vigilant to any announcements for buyback programs. This is often a sign that the management of a company believes its stock to be under-priced. If a experienced insider feels that there is additional value in a stock than is presently reflected in the market, then perhaps it would not be a terrible idea for you to take a better look.

Cash flow. It's relatively painless to get your mitts on the latest cash flow figures for publicly traded companies. An increase in the cash flow of a company is normally an indication that the correct fundamentals are in place. Not only that, a company with a strong cash flow is able to add to the dividends it pays out and could grow without being forced to take on too much debt. All great things for a stock investor.

Stockholders. When choosing the stocks you would like to invest in, always have a look at the types of investors who are presently holding the outstanding shares. Broadly speaking, institutional investors give a greater level of stability to a stock if no more negative news hits the market. Then again, if a large institutional investor chooses to dump the stock, the price may drop by a significant percentage.

Mutual funds. It is very tough to anticipate which stocks are going to go upwards and which are going to go downwards. So, it may be advisable to spread out the risk of losing by investing into mutual funds. Mutual funds are wide-ranging portfolios that invest in a lot of different types of individual stocks and they also permit you to purchase smaller, but regular quantities of stock each month.

Long-term outlook. Whenever you seriously would like to construct wealth in the stock market, you need to think of it as a long term investment. Ideally, you ought to have an outlook of at least five to ten years. A one-year outlook doesn't correspond with a wealth-building strategy. Even the best investment consultants have a hard time predicting with accuracy what the better performing stocks will be in a year. You need to allow for a certain amount of volatility in your portfolio and stay cool. Whenever you're fretting about your investment day in and day out, you have probably invested too much.

Each investor's own preferences, tastes, and risk tolerance will be different. There truly is no blueprint for producing wealth thru the stock market as each person's investment strategies will depend upon an investor's personal conditions. Nonetheless, standing by to these suggestions will surely help to do away with some of the risk that is involved.

Larry Haywood is a stock market enthusiast, focusing on innovative and unique techniques for building up wealth via the stock market. For a limited time, you can claim the "Insider's Guide To Forex Trading" e-book absolutely free at my stock market tips website.

Photo Credit: Martini Captures

Stock Market Technical Analysis for 5/13/08

2008-05-13T23:41:00.000-07:00

Here's a video review of what happened today in the stock market for those of you who follow the hour by hour activity. A pretty flat day...Thanks to the folks at StockTock.com for this.

Is Starbucks Right in Blaming the Economy?

2008-05-07T02:27:00.000-07:00

The last time I talked about Starbucks (SBUX) was in early March of this year and I thought it was time to revisit the company's stock to see if it's improved since the announcement by the company that it would refocus on the customer experience. I'm one who believes that stock price is proportionate to the level of service that a company provides. Looking at the chart for Starbucks, my assumption is that consumers and investors aren't impressed...

There's an interesting conversation going on over at the Starbucks Gossip blog about a recent news release which reported that the company blames the weak economy for the decline in earnings. Many of the people leaving comments don't believe that the economy has anything to do with the decline. They believe that investors have lost faith in the company and are pulling out.

What do you think?

Learn About Oil and Gas Investing

2008-04-27T18:45:00.000-07:00

Lately I've been seriously interested in oil and gas investing. I know that there's a great deal of money to be made as I look at the current gas prices! Although the future is probably going to be in solar power and there will probably be many new ways to use energy, I think we're still going to depend on oil and gas for many things.

I just found out about a company called Lone Star Securities that deals with oil and gas investments. They've been helping investors with oil well investments for over 20 years. Browsing through their website, I learned a few things...

In essence, there are two ways you can invest in oil and gas:

1. Purchase regular stock in an oil and gas company
2. Direct participation in an oil well(s) and receive a share of the income

I didn't know that option 2 was available - which is good to know. What is also interesting to note is that direct investors are entitled to substantial tax deductions and there are no income tax deductions. I also like the idea of receiving a monthly revenue check.

If you're interested in oil and gas investments, I recommend reading Lone Star Securities' online ebook, "Understanding and Investing in Oil & Natural Gas".

As with any kind of investing project I investigate, it's going to take some time to learn the industry and to find those companies to invest in who do business with honesty and integrity. I'll be reporting my findings here as I go along. Stay tuned!

Investing Tips For Young Adults and Beginners

2008-04-17T23:35:00.000-07:00

It wasn't until the last few years that I really got into investing and the stock market. I wish that I had been taught all this when I was in my 20's. I think it's important for young people to learn investing and when I have kids I'll definitely start teaching them at a very young age!

In a search for investing tips for beginners, I came across this video at YouTube that was produced by &amp;lt;img src="https://www.fusionquest.com/cgi-bin/main/hotlinks.cgi?aflt=fullystocked&amp;amp;client=FreeBy30" width="'1'" height="'1'" border="'0'" /&amp;gt;Financially Free by 30 who offers investing tips specifically for young investors...

&amp;lt;img src="https://www.fusionquest.com/cgi-bin/main/hotlinks.cgi?aflt=fullystocked&amp;amp;client=FreeBy30" width="'1'" height="'1'" border="'0'" /&amp;gt;

Related Posts:

Investing in the Airline Industry Revisited

2008-04-10T17:58:00.001-07:00

One industry that I play close attention to is the airline industry - not so much in terms of investing, but more about the customer service aspect of the industry and how service affects stock prices. Awhile back I asked if you would invest in the airlines and I still stand by word that all airlines think about is the bottom-line - meaning I still won't invest in them.

However, I was curious to see whether or not the airlines would be a good investing choice, so I did a search to see. I came across this Motley Fool article that says Warren Buffett is skeptical about making money with the airlines. That's enough of a reason for me to say, "No, thank you!" to investing in the airlines.

Although a majority of people do use the airlines to travel and it seems as if some airline companies are doing well (particularly United Airlines), it's still a pretty volatile industry and is closely tied to economic activity.

Then you have news of airline cancellations, as American Airlines experienced this week, which caused a huge drop in stock price. AMR Corporation (AMR), the parent company of AA, closed at $9.87 today. Here's a snapshot of what the stock looked like this past week...

The only way I would invest in an airline is if they made a 180 degree turn-around and put customer service (that includes internal customer service) as priority #1.

The Inflation Issue: Protecting Your Money Through Diversified Investments

2008-04-08T11:12:00.000-07:00

It's been awhile since I've kept up with my finance blog readings, so I thought I'd take a look at the recent Carnival of Financial Planning. With so much talk about a recession lately, this interesting post by Dorian Wales of The Personal Financier: How To Protect Your Money From Inflation. Dorian offers six ways to protect your money and each one of them I agree with.

It all goes back to diversifying your investments. So, how do you go about picking the best investments for you? There are some questions you should ask yourself which are outlined in this other post I came across over at The Retirement Blog.

Have an investing tip to share? Email: maria[at]salondemaria.info

Credit Repair: Resources and Tips

2008-04-02T17:25:00.000-07:00

In the U.S. part of having a good, sound financial portfolio is making sure your credit is in shape. After all, you can't get good loan rates if you want to make real estate part of your investment strategy. Because I know that there are many people out there who are up to their ears in debt, I wanted to share some information and tips to help get the credit situation back up to par...

Back in my early 20's I made the mistake of taking on too much credit and not being able to pay back some of those loans. There were car loans and unnecessary credit card purchases which put me in the hole thousands of dollars. Toward my late 20's I finally shaped up and decided to work on my own credit repair. I did it all by myself which took quite a few years and I still have yet to get everything cleared up!

I recently found out about a credit repair company called Ovation Law that helps people with credit report repairs. However, before hiring any company to help you out, make sure to check out these tips to protect you from credit repair scams.

If you're thinking about fixing your credit on your own, here are a few tips from my own experience:

If you want to dispute an item on your credit report, make sure to send a certified letter to all three credit bureaus.

Have a calender to keep track of when you sent out the letters. The credit bureaus have to investigate and respond back to you within 30 days or else they have to remove the item in question.

Be persistent.

Women and Investing: Advice From Kim Kiyosaki

2008-03-25T10:12:00.000-07:00

Are there differences between men and women when it comes to investing? Based on my own experience and what I’ve observed about the stock market industry, I’ve noticed that it is dominated by men. Just about every finance blog I read is written by a man. However, that’s not to say that there aren’t women who are just as interested in finance and investing.

Many of you are probably familiar with Suze Orman who has her own show where she offers financial advice. Then there’s Kim Kiyosaki, the wife of Robert Kiyosaki. Robert is well-known for his Rich Dad, Poor Dad book.

The Kiyosakis have a very inspiring rags to riches story. At one point in their lives they were homeless and sleeping in their car while they were working on building their business. People were telling them to get a job and put their dreams on hold until they were more stable, but they pushed on and stayed focused on their ultimate goals. Nowadays the Kiyosakis are living the good life and sharing their knowledge and wealth with others.

The Fear Factor

Kim Kiyosaki has written a book titled Rich Woman - A Book on Investing for Women. She was interviewed by SUCCESS Magazine. Here is what she says about how fear comes into play in regards to women not getting involved in investing:

“Fear is huge. It’s the fear of making mistakes, it’s the fear of losing money, the fear of having someone say, “I told you it wasn’t going to work!” But the way to overcome that fear is to get some financial education and to take baby steps. It starts with little victories. That’s where the confidence comes.”

Kim Kiyosaki goes on to talk about the differences between men and women when it comes to investing. Women study more and are a little bit slower, whereas many men have the “Go, go, go!” mentality.

My Investing Philosophy

I would have to say that I am one of those women who likes to take things fairly slow. I do quite a bit of reading on investing and watch finance news once in awhile. If I want to invest in a company I do all kinds of research and take into account factors such as the integrity of the CEO and whether or not the company offers great service. I’m generally a fearless person, so what Kim Kiyosaki said about fear doesn’t apply to me.

I invest in companies that I’m familiar with and whose products or services I personally use. This I learned from Warren Buffett. As I’ve said before, I’m also a long-term investor and don’t get caught up in energetic day trading or short-term investing strategies.

I’d love to hear from other women investors. What’s your investing policy? Please leave your comments below…

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Photo Credit: Luis Miguel Munoz-Najar

The Fortune Cookie Says on Investing...

2008-03-12T19:47:00.001-07:00

I ate out at a Chinese buffet last night and received this fortune about investing...

Warren Buffett: 3 Lessons From the World's #1 Billionaire

2008-03-08T11:59:00.000-08:00

Forbes came out with their world's billionaires list this past week and guess what? Bill Gates has fallen to #3 on the list! That distinguished place at the top of the billionaire list now goes to Warren Buffett, the guru investor that many of us want to emulate. If you've been reading this blog for awhile, you know that I'm a Buffett fan. I have read Buffettology to gain some insight as to the philosophies and strategies that goes on in the mind of a man who has risen to extreme wealth.

One thing I've learned from many successful investors is that to be a good investor, you must diversify your risk in the stock market. I came across this list of stocks owned by Berkshire Hathaway that contains some very big names in the corporate world including Wells Fargo & Company (WFC), Wal Mart Stores (WMT), Proctor & Gamble Company (PG), and American Express (AXP), just to name a few. In his recent letter to shareholders Buffett says:

"Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag. We like to buy the whole business or, if management is our partner, at least 80%. When control-type purchases of quality aren't available, though, we are also happy to simply buy small portions of great businesses by way of stock-market purchases. It's better to have a part of the interest in the Hope Diamond than to own all of a rhinestone."

Here is a video of Buffett talking about PetrolChina and his strategy on buying stock...

Another thing I've learned from Warren Buffett and why he is so rich is because he values his employees and he gives back to the community. I'm a firm believer that "to get...you have to give".

However, one of the most important things I think we can learn from Buffett has nothing to do with investing savvy or business skills. Warren Buffett simply loves what he does.

"Every day is exciting to us; no wonder we tap-dance to work."

Related Post:
Warren Buffett Gives Warning About Investing in China

Following Starbucks Stock

2008-03-03T17:23:00.001-08:00

There's been much buzz the past week about Starbucks' new plan to improve the customer experience. As a Starbucks (SBUX) fan myself, I've been following the company's stock the past year because I've been considering investing in the company. Here's a screenshot of what the stock has looked like for the past year...

When the company held their meeting last week (Here's Howard Schultz's letter to his employees/partners), the stock did increase a little bit, however not enough to convince me to buy right now. However, I will keep it on the watch list as Steven Mallas of BloggingStocks suggested.

Some are predicting that Starbucks stock will go up this month. If the company can improve its customer service, I too, do believe that the stock will go up.

BTW, if you're passionate as I am about helping Starbucks improve their service, check out The Starbucks Project and leave your feedback!

Related Post:
I Was Going to Buy Starbucks Stock, But...

*** Get a FREE Portfolio Manager

Should You Invest in Solar Power Companies?

2008-02-12T19:25:00.000-08:00

In the past couple years we've heard quite a bit of talk about "green" initiatives (a.k.a ecology movement). The other day I received a newsletter from the Cabot Wealth Advisory talking about how investors in solar power companies are making triple digit returns. Here are a couple examples given (figures for 2007):

First Solar (FSLR) gained over 795%
SunPower Corp (SPWR) gained over 251%
JA Solar (JASO) gained over 292%.

Is it all hype? Is the industry facing a boom or bust?

Some say that investing in solar companies is still pretty risky and that people who are risk-averse should invest in large cap companies like GE who are exploring alternative energy sources.

I'm one of those people that believes that solar power has a bright future. Granted, right now the costs are high to develop and implement the technology, but in due time companies will figure out ways to produce affordable energy. With billions of dollars being invested in clean energy, it's not a matter of "if", but "when".

Photo Credit: Jim Clark

An Eventful Tuesday

2008-02-05T22:02:00.000-08:00

It's been an eventful Tuesday with the Super Tuesday Primaries taking precedence in the news and the stock market being down a couple percent. Perhaps the Primaries were the cause of the slowdown...or maybe it was The Superbowl that caused the drop? Whatever it is, I'm sure tomorrow it will be something else.

Here's a recap of today's stock market from Trader Mike...and here's a video with a technical analysis of what happened today...

Stock Prices Are Important on Two Occasions

2008-01-31T23:04:00.001-08:00

Here's an interesting article about the downside of stock investing. I completely agree with this statement:

"Stock prices are only important on two occasions: First, when you are presented an opportunity to buy a good business at a cheap price, and second, when you can sell a once-undervalued business at or above fair value. Any other time, they're meaningless."

Perhaps this is the mindset of a long-term investor. I'm sure day traders would beg to differ...

Yahoo's (YHOO) Challenge

2008-01-23T09:38:00.000-08:00

Yahoo's stock (YHOO) is in a slump and there are reports that the company will be laying off thousands of employees. For years Yahoo has been fighting to compete with internet search giant, Google, but it just can't seem to get up from the knock-out.

However, with many people angry at Google (myself included), web masters and bloggers are looking to other search engines for alternative ways to get web traffic.

The biggest challenge for Yahoo is to find a way to grab the attention of the younger generation and to develop or invest in a platform that will appeal to them. I also think that Yahoo has a chance with web publishers if the company will just take the time to reach out to them with an offering that outwits Google.

Trading Psychology - Fear and Greed

2008-01-08T17:26:00.000-08:00

This is a guest post by Manny Backus of DayTradingPro.com...

No matter what system and tools are available to those who are day trading online, true success in trading still relies on the psychological strength of the individual trader. Day trading is a system based on rules, but as charts are analyzed and prices fluctuate, traders may find that they have a difficult time sticking to those rules when fear or greed become involved in the analysis. Successful traders are able to buy despite feelings of fear and sell despite feelings of wanting to prolong the holding of a stock.

A confident trader will still take the time to test and re-test a stock. At first glance a stock might look like it's in top shape and performing as expected, but a successful trader will not solely rely on first glance appearances. Those who day trade stocks know that in an instant the market can change and it's important to stay abreast of company information as well as market news and conditions. A successful trader will stick to the rules set up in day trading systems to ensure that his or her reactions remain unbiased throughout the trade.

Effective day trading strategies focus on providing consistent and disciplined actions. Successful traders have a consistent approach to the market and trading. They will take the time to systematically build up their own trading system that takes into account their own personal elements of risk control and they will take the time to stick to their original trading plan. It's not that traders shouldn't make changes based on market information, but that the changes made should be based on established trading rules that help traders determine what their entry and exit points on a trade should be.

Some of the best day trading tips that a trader can get help them deal with fear and greed. Many traders find that they may be able to memorize the rules and familiarize themselves with knowing how to accurately interpret stock charts, but they also need to learn how to prepare themselves to deal with fear and greed.

Fear in trading primarily takes on two basic forms - the fear of loss and the fear of missing out. The fear of loss leads to selling stocks prematurely and as a result, they aren't able to capitalize and recover fully on the trade. When they start to enter into trades, the trade isn't given enough time to mature and the trader sells so that more isn't risked.

The fear of missing out is another form of fear that compels people to abandon their rules so that they don't lose out on another major stock move. These fears need to be dealt with because they will impact a trader's entry and exit decisions.

Greed is the motivation for over-confidence. Dreams of "making it big" in trading can cloud a trader's perspective. Again, they abandon the rules of their trading system in the hopes that more money will come their way. Traders need to learn how to deal with greed so they can maintain their focus and not have their thoughts be swept away with illusions.

Manny Backus is an expert at helping day traders make hundreds or thousands of dollars within just the first hour of the trading day. Visit Day Trading Pro, http://www.daytradingpro.com/ for more information.

Weekend Readings at the Festival of Stocks

2007-12-29T23:41:00.000-08:00

In reading the latest Festival of Stocks, I came across Pivotal Investing's Top 10 Growth Stocks For Under $10. Penny stocks have piqued my interest this year, so it's interesting to see what kind of companies would be good to invest in.

It's no surprise to see a Chinese auto parts supplier on the list - Wonder Auto Technology (WATG). If this company can tap into the growing demand of hybrid cars and connect with car manufacturers who are looking for new suppliers who can keep up with the demands, then they should do well in the next couple years or so.

If you're just beginning your journey into trading stocks, another good read at the Festival of Stocks is this article, 4 Easy Steps to Start Trading.

I am going to take the advice and start reading as much as I can. That'll be one of the things to do in 2008. Browsing through Amazon, I came across this book that I've added to my wishlist: A Beginner's Guide to Short-Term Trading: How to Maximize Profits in 3 Days to 3 Weeks

Related Post:
Risks, Benefits, and Tips on Buying Penny Stocks

Is the Stock Market a Mind Game?

2007-12-21T02:02:00.000-08:00

In my search for videos about the stock market on YouTube, I came across this video by Zapata George who explains a myth about the stock market and the economy...

I've always been one who is skeptical about what the news says, so what Zapata George says comes as no surprise. It is difficult to really figure out what affects the stock market because there are so many factors to think about. Economics was never a strong subject for me in college, so I can't really talk in depth about this subject.

However, I did come across this article by Arthur MacEwan titled U.S. Stock Market vs. Economy where he says:

"...Yet the market's swings are much more extreme than the ups and downs of production and corporate incomes. A good deal of the swing reflects the stock market's speculative nature; it is a huge gambling game at times driven more by the psychology of investors than by economic analysis..."

So, can we conclude that the stock market is more of a mind game than anything else?

Give Stocks to Your Kids For Christmas

2007-12-16T00:08:00.000-08:00

This morning I watched CNBC and they were talking about giving stocks to your kids as a Christmas gift. I never would have thought to do that, but I think it's a great idea.

When buying stocks for kids, they recommended that you buy stocks from companies that the kids are familiar with. For instance, companies like Microsoft (MSFT), Mattell (MAT), or Walt Disney (DIS) would be perfect. I would also recommend tech companies like Apple (AAPL) or even Sony (SNE), the makers of all those popular Nintendo products.

They also stressed the importance of talking with your kids about investing and what these stocks mean to them in the future...which makes me wish that my parents would have done that!

I came across this article that also gives advice on profitable presents for kids...or how about giving the gift of a future?

What's It Going to Take to Turn Dell Around?

2007-12-09T23:31:00.000-08:00

One company that I've had my eye on for the past year is Dell (DELL). It's not that I'm thinking about investing in the company - just more curious about the relationship between their stock price and their customer service. Is there a correlation between the two?

Dell has been getting some bad press the past year and I'm one of those people who is rooting for them. Some may even call Dell the business world's train wrecks of the moment and yes, I probably would have to agree. But we definitely have hope that Michael Dell will turn things around...

Well, it looks like Dell's stock has seen a little dip in the past couple weeks and it closed at $25.07 on Friday. However, The Peridot Capitalist says that Dell Stock Looks Attractive After Last Week's Selloff.

The consensus among most people is that in order for Dell to regain ground in the computer industry, it needs to improve its customer service. When it can do that I think you'll start to see the stock go back up as the company regains the trust of consumers.

Investing Blog Discovery: Random Roger's Big Picture

2007-12-01T17:08:00.000-08:00

One of my sources for investment information and news is Forbes.com and yesterday I received their "Best of the Web" newsletter. The investment blog featured is Random Roger's Big Picture, a highly informative blog full of information and commentary about portfolio management, foreign stocks, and just about anything related to investing.

Roger Nusbaum is a portfolio manager from Prescott, Arizona, and judging from what I've read so far on his blog (he's been blogging since 2004), I assume he knows what he's talking about ;)

What's Your Investment Plan?

2007-11-26T22:51:00.000-08:00

I was reading one of the issues of The Stock Market Carnivale when I came upon a post by The Digerati Life titled "5 Tips For Creating a Solid Investment Plan". It's a great article and a must-read for anybody who is serious about investing in the stock market.

I like the idea of diversifying the portfolio, however, I'd like to add that an investment plan or portfolio should not just include stock market investing, but should also include other types of investments such as real estate or businesses.

My own investment plan includes the stock market, real estate, and my own business - which has worked out well for me so far. I don't have "all my eggs in one basket" and when one area is slow (like real estate is right now), I have the other investments for backup.

What's your investment plan? Do you have one? Have you written it down?