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About Me

Darren Winters is a self made investment multi-millionaire and successful entrepreneur. Amongst
his many businesses he owns the number 1 investment training company in the UK and Europe.
This company provides training courses in stock market, forex and property investing and since
the year 2000 has successfully trained over 250,000 people.

Wednesday, 25 July 2012

9 tips for creating wealth from the stock market.

1. Do not spread your money too thin.

My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.

2. Do not pay commission fees to purchase a stock.

If you are going to invest your hard earned dollars into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!

3. Only purchase those companies that pay a dividend.

The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.

4. Only purchase those companies that have a history of raising their dividend every year.

The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is dong something right.

5. Dollar-cost average into each stock position.

By dollar-cost averaging (buying the same stock at different prices through the years) you’ll never pay too much for the company’s stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.

6. Forget making a profit; instead focus on the income provided from your stock portfolio.

That’s right! Forget making a profit. The burden is now lifted - no more pressure on making a buck in the stock market (Instead of trying to bend the spoon, that is impossible, instead just think of the spoon as – omigosh! - I’m in the Matrix). When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividends each year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!

7. Make every stock purchase with the intent that the purchase will be a long-term investment.

Do not trade in and out of your holdings. There have been many up and downs in the stock market. The down markets only accelerate your income. GE has raised their dividend for 28 years in a row. Why sell it? 100 shares of GE ten years ago has turned into 1200 shares today due to stock splits, and that is not counting how many shares you would have now if the dividends were being rolled back into more shares of the stock through those years.

8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.

The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place. For example, a company pays a quarterly dividend of 50 cents a share. A company has little control on how much its stock price is worth in the market place on any given day. You will receive 50 cents a share per quarter whether the stock price is at 50 dollars a share, or drops to $40 a share or goes up to $70. While the stock is down at $40 a share your dividend reinvestment is loading up on more shares.

9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.

The savings could be as little as $5.00 a week. Why put that savings in a savings account at 1.2 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission, all of that $60.00 a quarter you saved and invested would help your dividend reinvestments to dollar-cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment). - Charles M. O'Melia

Wednesday, 18 July 2012

Facebook Stock Drops as Investors Fear Slowing Sales

Facebook‘s stock price fell 8.1% — its biggest drop since May 29 — as investors feared the company will report slowing sales next week.

At the close of business on Monday, Facebook was trading at $28.25, a 26% decline since the company’s May IPO, though the stock was up slightly in after-hours trading. The company is expected to report second-quarter sales of $1.16 billion, according to analysts’ estimates compiled by Bloomberg. That compares to revenues of $1.06 billion in the first quarter.

Analysts also expect Facebook to report earnings of 11 cents per share, a figure that has declined 11% over the past four weeks, according to Bloomberg. Facebook is expected to announce its second-quarter earnings on July 26.

Laura Martin, an analyst at Needham & Co. in New York, told Bloomberg that she and other investors will be watching Yahoo’s earnings on Tuesday to get a sense of how the online ad market is doing. “Some of the stock weakness could be in anticipation of weaker earnings,” Martin told Bloomberg, referring to Facebook. “We’ll have a better idea about the picture after Yahoo reports earnings.”

Wednesday, 11 July 2012

Building Wealth Requires You To Make Mistakes

From the time we are born we're told that making mistakes is bad. When we're young, we're scolded for misbehaving. When we get older and start taking exams we are punished for getting the wrong answers and given a bad grade. Our society views good grades as success and you get good grades by not making mistakes. The problem with this is that we learn by doing and when we're punished for making mistakes we can't grow. We become afraid to do for fear of making the mistakes which we've been conditioned against. The same fear of making mistakes is what holds people back from being truly successful. Part of the learning process is to learn by doing, and even though you're guaranteed to make some mistakes, this is the fastest way to learn. Once you learn what not to do, you also learn how to become successful faster. Some of the world's richest people have declared bankruptcy more than once only to come out of it and become just as wealthy within a few years. The main difference between us and them is that they actually went out and started learning by doing. Many of them opened their own business or became real estate investors while most of us got a standard 9 to 5 job because we were afraid to take a chance for fear of making a mistake. The fact is that the fear of failure or making mistakes is what is ultimately holding most of us back. For all of us, success lies not in knowledge, connections or financial means but rather in our belief in ourselves, the ability to take chances and accept that we will make some mistakes while learning from the process. There is no faster way to learn than when your money's on the line and the sooner you get started; the better off you'll be in the future.

Many people wonder how I know so much about investing and wealth building and it's not because of my education or even luck.  It's because I took the time to learn different areas of investing and most importantly, after educating myself, I went out and actually started investing and learning from real life experiences. I've made my fair share of mistakes but learning from those mistakes was as valuable as the money I lost. That's why I'm far ahead of most people my age and wiser than many others that are much older. Don't wait another minute or give yourself more excuses. Get out there in the world of investing and start learning now! No matter how many times you fail, you'll be glad that you took the journey and you'll be light years ahead of many others. by Jamie
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