How to Invest In Stocks: Fundamentals for Beginners

StrategyDriven Practices for Professionals Article | Investing in the Stock Market | How to Invest In Stocks: Fundamentals for BeginnersFinancial uncertainty plagues the lives of individuals and small business owners alike. Having some cash on the side and wanting them to produce more in the long term is usually a great idea. Nevertheless, choosing between a bank deposit and stock investments may be a hard option for those knowing close to nothing about stocks. Today, we will offer a detailed guide on how to invest in stocks and the fundamentals you have to cover before expecting to get rich while following trends in commodities.

1. Decide on Your Investment Style

If you already know about stocks and you survey some promising companies (usually, big names in the technology sector attract new investors the most), you can take a DIY approach. Typically, you need a brokering company to offer its assistance.

The best stockbrokers should offer you a reasonable minimum for your account, reliable and proficient trading tools, and, most importantly, no hidden fees and taxes, and excellent customer service.

In case you are the type of investor knowing about stocks but having no idea how to proceed further, you may want to pick a managed account – hire a broker to do the work for you. Such services require minimum efforts from your part, but they do not come cheap. Reflect on your goals and make the best decision depending on the time, energy, money, and skills you are willing to give to this investment venture.

2. Understand the Differences between Stocks

A sensitive area where investors need help is differentiating between multiple types of stock-based investments.

Buying Individual Stocks

One of the first rules when you learn how to invest in stocks is to decide what you want: short-term trades that may boost your finances in 2-3 months, or long-term stock investments in companies active in what we call “forever businesses” that you hold on to for decades. A more conservative investor will choose to buy stocks on the long term from companies that are more likely to hold their ground for years to come despite market turmoil (think Amazon, since we already mentioned tech companies).

When you buy individual stocks, it means that you purchase a single share or a few shares of a specific company, one that you trust and believe will grow over the years or the next few months. Of course, seasoned investors buy shares of multiple companies, diversifying their portfolio, but you need quite the capital (shares range from a few bucks to thousands of dollars).

Investing in Mutual Funds or Index Funds

Mutual funds allow you to buy small pieces of many different stocks in a single trade. Index funds and ETFs track specific companies or entire industries. For instance, NASDAQ, while covering plenty of sectors, is one of the best trackers of tech companies. The DAX 30 in Germany tracks the 30 most valuable companies in the country (and worldwide, since they are all global brands).

Trading indices require knowledge and experience, but your chosen brokering company can teach you how to employ the best strategies. Nevertheless, making a direct investment in a mutual fund comes with inherent diversification – meaning fewer risks for you. Mutual funds are the haven for those thinking about retiring – while they do not make people fabulously wealthy overnight, they offer slow and steady gains in the long run.

3. Research the Company Thoroughly

Sure, you heard Amazon, Alphabet, and Netflix are good investments, but why are they so? Before you begin buying individual stocks in a particular company, you should engage in thorough research months before you make the actual investment. You can use a stock price prediction tool to guide you in choosing a company to invest in. Here are some things you need to consider:

  • The company’s income statement, balance sheet, and cash flow statement; if you do not have direct access to such documents, your broker will fill in the gaps with information.
  • The latest company annual report and the letter from the Chairman. This document gives you a solid knowledge of the company and offers you insights on the trends and strategies the company will follow next. Some of the best written such letters are those of Warren Buffet. His shareholders know what to expect and what to do.
  • Check out the company’s press in the last six months. When it comes to shares, bad publicity is awful news for investors. On the contrary, extended media coverage of the upcoming revolutionary company’s product can lead to unprecedented spikes in share price.
  • Statistics on share prices, market ups and downs, stock dips and meteoric rises, resilience on both bull and bear markets, and so on for the past 5 to 10 years. Such information is almost impossible to digest, but most companies offer such data in palatable formats. Your broker will be of massive help at this stage.

4. Understand your Budget

Opening an investment account is usually a straightforward deal. Budgeting that account, nonetheless, is something you need to consider thoroughly. As we said before, shares can cost a few dollars up to a few thousand dollars (or EUR if you focus on European companies or indices).

  • ETFs are the best choice if you want to invest in mutual funds, but you do not have a robust budget.
  • Talk to your broker about trading on CDFs and learn more about indexes – while you need to master some special scalping or day-trading skills, such approaches may prove more profitable than buying stocks and forgetting you have them for 40 years.

Conclusion

Some investors are comfortable with significant degrees of risk, while others prefer a “quieter” way to make money in the long run, taking the safer, more conservative path. If the kids’ college fund or your retirement plan are your main goals, mutual funds are usually a good way to go about stocks. If you aim for profits by taking advantage of the market itself or the price differences between stocks, you should have a long discussion with a broker about trading.

How To Prepare For Your Next Big Meeting

StrategyDriven Practices for Professionals Article | Business Pitch |How To Prepare For Your Next Big MeetingThere comes a time in every business owner’s lives where they need to host a meeting that could affect the future of the company. Whether it’s investors you’re after, or you need to pitch some ideas to your fellow business partners, it’s imperative to get it right so that your business can continue to thrive. However, meetings can be daunting and it’s important to prepare wisely so that you can nail it on the head. Here’s some tips on how to prepare for your next big meeting.

Provide food

As you’re probably aware, meetings can last for hours and when this happens, energy levels begin to drop. Rather than risking losing the attention of your audience, provide food such as sandwiches, crisps, salad, and refreshing drinks so that they can pick as you’re talking. Also, providing food at a meeting is good etiquette and will earn you some much needed brownie points.

Hand out merchandise

You want people to remember who you are when the meeting has finished and more importantly, giving people something for nothing always helps win them over, especially if you’re hoping they will dip their hands in their pockets and invest in your company. Hand out merchandise such as pens, mugs, and t-shirts. Lanyards are also a great example of merchandise to give away, and you can buy them here.

Prepare a visual presentation

There’s nothing worse than being in a meeting and having to listen to the same person droning on for hours. Not only is it boring, but people tend to react more positively to visual aids. Prepare a visual presentation of what you’re trying to achieve so that you can pique your audience’s interest and also look super professional.

Dress to impress

If you’re looking to impress investors with your business then you’ll need to make them like you too. First impressions matter, and that’s why it’s important to dress smartly so that they can see you mean business. Pick out a nice suit or a dress to show that you’re as serious as they are about this meeting.

Pick a professional meeting room

Finally, as mentioned earlier meetings can go on for hours, and if you’re in a small and stuffy room you’re not going to win over any clients. Choose a meeting room with plenty of air and light and more importantly, one that looks professional. Doing this is sure to win over whoever you’re trying to impress and you can then further your business as planned.

How To Prepare For Your Next Big Meeting

StrategyDriven Practices for Professionals Article | Business Pitch |How To Prepare For Your Next Big MeetingThere comes a time in every business owner’s lives where they need to host a meeting that could affect the future of the company. Whether it’s investors you’re after, or you need to pitch some ideas to your fellow business partners, it’s imperative to get it right so that your business can continue to thrive. However, meetings can be daunting and it’s important to prepare wisely so that you can nail it on the head. Here’s some tips on how to prepare for your next big meeting.

Provide food

As you’re probably aware, meetings can last for hours and when this happens, energy levels begin to drop. Rather than risking losing the attention of your audience, provide food such as sandwiches, crisps, salad, and refreshing drinks so that they can pick as you’re talking. Also, providing food at a meeting is good etiquette and will earn you some much needed brownie points.

Hand out merchandise

You want people to remember who you are when the meeting has finished and more importantly, giving people something for nothing always helps win them over, especially if you’re hoping they will dip their hands in their pockets and invest in your company. Hand out merchandise such as pens, mugs, and t-shirts. Lanyards are also a great example of merchandise to give away, and you can buy them here.

Prepare a visual presentation

There’s nothing worse than being in a meeting and having to listen to the same person droning on for hours. Not only is it boring, but people tend to react more positively to visual aids. Prepare a visual presentation of what you’re trying to achieve so that you can pique your audience’s interest and also look super professional.

Dress to impress

If you’re looking to impress investors with your business then you’ll need to make them like you too. First impressions matter, and that’s why it’s important to dress smartly so that they can see you mean business. Pick out a nice suit or a dress to show that you’re as serious as they are about this meeting.

Pick a professional meeting room

Finally, as mentioned earlier meetings can go on for hours, and if you’re in a small and stuffy room you’re not going to win over any clients. Choose a meeting room with plenty of air and light and more importantly, one that looks professional. Doing this is sure to win over whoever you’re trying to impress and you can then further your business as planned.

The Secret to Success: It’s Not a Secret

StrategyDriven Practices for Professionals Article | Secret to Success | The Secret to Success: It’s Not a SecretVisualize your goals and then craft a plan for achieving them

Many people wonder about the secret to success. Successful people are viewed as special, possessing unique talents, vision, and unflagging commitment.

The reality is there is no secret. Success is not limited to a few individuals, but is within the grasp of everyone. All it takes is an honest assessment of your abilities and creating your own definition of success. This doesn’t have to include owning a private jet or a villa in France. You just need to figure out the things in life that will make you happy, and create a roadmap for achieving them.

During my career as a successful commodities broker, I learned a key lesson about success: self-management is more important than talent. The most successful people aren’t necessarily the ones with the most talent, but the ones who believe in themselves and are determined to persevere in the face of adversity.

High achievers are often regarded with awe and respect. They are seen as extraordinary beings because they accomplish so much. Yet there are consistencies in their behaviors that anyone can follow. High achievers:

  • Identify goals
  • Study how to make them happen
  • Plans steps to achieve them
  • Execute

Whether they are called ambitions, purposes or aims, goals can help you live a meaningful, productive life. There’s a difference between goals and dreams. You can dream about winning the lottery, but if you make that your life’s ambition you’re going to end up sorely disappointed, unless you’re incredibly lucky.

Goals are dreams that can be realistically attained. Don’t get me wrong. I have nothing against material rewards. But a desire to be wealthy without a clear path to attaining it is a recipe for frustration.

Businessman and author Philip L. Stephen aptly describes the basic goals of life:

  • Family: what you will do for them
  • Professional: what you aim to achieve
  • Financial: planning for the present and the future
  • Social: the groups you belong to
  • Health: taking care of yourself
  • Intellectual: continuing to learn
  • Recreational: taking the time to relax

A powerful tool in goal setting is visualization. If you can see where you are going, it’s easier to anticipate the complications that will inevitably arise. That gives you an advantage because you’re not just concentrating on achieving an outcome, you’re also figuring out ahead of time how to avoid or face difficulties that will arise.

A frequent stumbling block in developing and sticking to a plan is negative self-image resulting from childhood experiences. You can rid yourself of negative thoughts by telling yourself that you are a unique individual with unique abilities. You can be what you want to be – if you accept that you can. As Henry Ford said, “Whether you think you can or you think you can’t, you’re right.”

Be bold! Don’t be afraid to reset your goals as the need arises. New objectives will form, and they may very well be the means to all kinds of rewards.

To summarize:

  • Define your goals
  • Accentuate the positive, minimize the negative
  • Adopt good habits that center on self-motivation
  • Visualize what you want to accomplish
  • Select goals based on your own needs, not on others’ needs

In closing, remember that the only chains and shackles that hold any of us back from any goal in life are those that we ourselves forge in the fires of doubt and hammer out on the anvils of lack of belief.


About the Author

StrategyDriven Practices for Professionals Article | Secret to Success | The Secret to Success: It’s Not a SecretRaymond Houser is the author of THE WINNING ADVANTAGE: Tap Into Your Richest Resources. He started earning money by selling pecans when he was six years-old. By the time he was 12, he had a paper route in addition to working in grocery stores and a bowling alley. When his dream of becoming a major league baseball catcher ended, he knew he had to focus on other goals. And that is what he did, challenging himself to overcome shyness and knock on doors until he became the highest-grossing divisional book salesman of his time for the Southwestern Company. After that he started, developed, and eventually sold, his own book company. His career had its ups and downs, including a bankruptcy. Yet, despite setbacks, he never gave up. Starting a new career in his 40s, he was hired at Merrill Lynch where he became a successful money manager who earned accolades — and substantial income for himself and his clients — through trust in himself and innovation. In time, he started, developed, and eventually sold, another company. Today he is a sought-after speaker who offers his experience and perspective on managing a career and, most of all, a life. He divides his time between Dallas and San Diego. For more information please visit, www.thewinningadvantagebook.com

Three Ways to Make the 4AM Club Work For You

StrategyDriven Practices for Professionals Articles | 4AM Club | Three Ways to Make the 4AM Club Work For You“Early to bed, early to rise makes a [wo]man healthy, wealthy and wise.” – Ben Franklin

You’ve heard it said a million times before: the early bird catches the worm, and in the opinion of many highly successful people, the phrase is much more than a cliche. The benefits of an extremely early morning routine have been touted by so many self-made celebrities that the “4 AM Club” has become a part of the public vernacular. Any web search will pull up a dozen articles with contradictory research on the benefits and downsides of the routine, along with firsthand accounts of people “taking the 4 AM challenge.”

These trials are often full of negative impressions: disorientation in the dark hours before dawn; a mid-afternoon slump that belies productivity; and by dinnertime, the inability to form coherent sentences. And then, almost as quickly as it begins, the challenge is over, sworn off forever as an unrealistic, unachievable, and borderline inhumane goal.

Yet 4 AM remains the magic hour for many world changers like Oprah, Michelle Obama, and Tim Cook, and experience has taught me why. In my world, it’s a time of quiet, focus, determination and accomplishment.

My routine is not without naysayers. An 8 PM bedtime with a 4 AM wake-up call has made me the subject of much critique over the years. Many people feel uncomfortable with my choice, claiming that my practices are unhealthy and not sustainable for the long term. Yet I’ve found deep joy in the practice.

As an entrepreneur and the mother of a growing family, high-paced days at my desk and endless days on the road, are only outpaced by high-energy evenings and weekends with my family of five. My favorite use of this early morning time is for my own personal development and self-care so that I can be at the top of my game during the remaining hours of the day. By waking up at 4 AM, I’m able to routinely take time for myself. I work out while listening to audiobooks, I meditate while I stretch, I prepare a healthy breakfast — and most importantly, I tackle my most critical work of the day while enjoying my espresso — all before 7 AM.

If this is something you’ve wanted to try but haven’t yet managed to find success in, here are a few keys I’ve found to making this routine not only possible, but extremely enjoyable as well:

Check your DNA

Have you ever referred to yourself as a “morning person” or “night owl”? We typically use these terms to indicate our preferred time of productivity — but they can signify something much more fundamental to our being. Our tendency to be productive at certain times of the day is often hard-wired in us, an internal clock that’s determined by our DNA. This genetic predisposition is called our chronotype. If you identify as a night owl, then you can stop reading now. This method is not for you and it never will be. In fact, research shows a correlation to weight gain, diabetes, and heart disease if you try to force an extra early wake-time when your DNA is telling you otherwise. But if you feel like you do your best work in the morning, or maybe you’re not sure, than the 4 AM club could be for you.

Check your Watch

The key to making this system work, and to sustaining it, has everything to do with getting to bed at the right time each evening, and being consistent about it. Knowing the exact number of sleep hours that support your peak performance is requisite to success — mine is eight. While I can certainly make accommodations when my schedule forces me to get less sleep, more than a few nights of that in any given month effectively compromises all the systems that work together to make me successful in my day-to-day life. Without enough sleep, my motivation to exercise is zapped, my food choices start moving in a downward spiral, and my productivity at work takes a nosedive.

Check your Excuses

If you’re going to take a shot at creating a new early morning routine, you must go into it knowing that this is a no-excuses kind of practice. Follow the 21/90 rule — on average, it takes 21 days (or three full weeks) to form a habit. If the system seems to work for you, another 90 days (about three months) practice is recommended to turn it into a permanent lifestyle change. That said, you can bet your money on the fact that the first few days will be brutal. The first morning your alarm goes off at that other-worldly hour, your instinct will be to hit snooze with your inner voice pleading, “just a few more minutes.” A few more minutes inevitably turns into another hour or two, which is not getting you any closer to seeing if this system really works for you. Try combating this sleep trap by using the Rule of 5 as soon as you hear your alarm go off. When you hear the buzzer, count to five, pop up, and start moving out of bed, no matter how you feel about it in that moment. It’s totally normal to move through the motions of the first part of your morning like a zombie at first, but don’t let that stop you from making a routine of it for a least three weeks. Watch out for that sneaky 10-day slump too — for some people, the excuses come out after we feel like we’ve accomplished something, and we let our guard down.

Above all, know that every person is wired in their own way, and successful habits look different for everyone. Do not try to define yourself by what works for others — instead, let them inspire you to find your own routines that drive you toward your goals.

StrategyDriven Practices for Professionals Articles | 4AM Club | Three Ways to Make the 4AM Club Work For YouJudith Nowlin, Chief Growth Officer with Babyscripts. Judith created iBirth™, a mobile care companion for pregnancy, birth and postpartum, to help healthcare practitioners deliver better health outcomes for women and children in the United States and beyond. The original idea for the app was born out of her prior decade of service in maternity care. The technology platform she and her team built has since impacted nearly 1 million families on their journey toward optimal health and wellness during one of life’s most precious times. iBirth was acquired in June 2018 by Babyscripts, Inc., the leading virtual care platform for obstetrics. You can find her here