Seven Cures for a Lean Purse

1.Start thy purse to fattening 
Take one-tenth of what you bring in and save it for the future. The book uses a coin analogy: for every nine coins you spend, take one and put it away for yourself. This is very sensible; a goal all of us should have.

2.Control thy expenditures
Don’t buy frivolous things even if you have enough money to pay for them. Instead, make sure that you can continue to save one-tenth of what you bring in. For this reason, I write about frugality on The Simple Dollar.

3.Make thy gold multiply
Once you start to build up some savings, invest that money so that it will make more money for you. Another pretty clear point; if you start saving money, it shouldn't just sit in a mattress. Even a high-yield savings account is much better than that, and it can double your principal in about fifteen years.

4.Guard thy treasure from loss
This one is interesting: you should only invest in things where the principal is safe. In other words, the book seems to discourage stock investing. I found this to be particularly interesting given that it was written in 1927, right in the midst of the first big American stock market boom. Of course, 1929 proved the author 

right.

5.Make of thy dwelling a profitable investment
One should own their own home rather than renting because then money can be invested in the home or invested in other things rather than handed over to the landlord. Something tells me that this lesson applied better before people were looking at homes that were three or four times their annual income.

6.Insure a future income
In other words, invest for retirement and your family’s well being after your passing. You should be dropping some Hamiltons right into your retirement account if you can possibly afford it.

7.Increase thy ability to earn
Work hard, look for opportunities, and educate yourself. Today, a college education is one of the best investments you can make; I'm not saying that it’s a requirement to be successful, but it opens the door to greater possibilities.

Those who wants to download the whole book please find from the following link.
http://www.ccsales.com/the_richest_man_in_babylon.pdf
Happy reading.

15 Characteristics of Sophisticated, Successful Investors

1.Successful investors are proactive learners
The first characteristic of successful investors is that they are proactive learners. They spend more time studying than the average investors. They are also voracious readers. Successful investors know that their cup of knowledge must never be full, so they always keep their minds open; ever ready to learn.

"To learn new things; you might need to unlearn old thought and tricks. Both processes can never be achieved without humility." – Ajaero Tony Martins

These set of investors are also willing to pay for knowledge so long it’s something new. They read books, journals and magazines ranging from investing to personal development. They also attend seminars to improve themselves.

"The rich invest in time, the poor invest in money." – Warren Buffett

2. They always invest with a planned exit strategy
"Go to the mouse you foolish investor and learn. A mouse never entrusts its life to only one hole." – Ajaero Tony Martins

Successful investors know that there are always two sides to an investment. They know that the future is unpredictable so they prepare in advance for it. Average investors try to predict the future of their investments; they count their chickens before they are hatched. Successful investors do the opposite; they prepare for the best while still preparing for the worst.

"Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental." – Rich Dad

This is the ultimate reason why successful investors make money when the market goes up and even make more money when it comes down. Do you want to be a successful investor? Then plan your exit before you enter any investment.

"Many people rush into the game of investing thinking they are predators. When they get to the middle of the game, they then realize they are the prey and try to escape but it will be too late. Only the preys with a well defined exit strategy will escape, the rest will be slaughtered by the real predators." – Ajaero Tony Martins

3.They are patient
Successful investors are very patient. When they make their calculations on an investment, they are prepared to wait to make sure their plan materialize. They plan to take advantage of a short term bulls market but as a backup plan, they still plan to hold on for as long as.

"I never attempt to make money on the stock market. I buy on assumption they could close the market the next day and not re-open it for five years." – Warren Buffett

4.Successful investors have strong emotional control
Every true investor knows that the market is driven by sentiment. Market surges and declines are mainly caused by two emotional factors; fear and greed. Average investors invest based on these emotions but successful investors have a stronger control over these emotions. They don't allow the talks from investment pundits or financial advisors affect their choice or method of investing.

"Every few seconds it changes, up an eighth, down an eighth. It's like playing a slot machine. I lose $20 million, I gain $20 million." – Ted Turner

Successful investors also have a neutral reaction to either winning or losing. They don't abandon their investing strategy simply because of a few failures and they don't become over confident when they are on the winning side. No matter the market conditions, they still respect the 50-50 chance of winning or losing.

"To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game." – Rich Dad

5.They have a well defined investing strategy
"A winning strategy must include losing." – Rich Dad

Every successful investor has over time developed a well defined investing strategy that works and they stick to this strategy. While some successful investors implement the portfolio diversification strategy, others like Warren Buffett follow the portfolio focus strategy.

"Diversification is a protection against ignorance. It makes very little sense to those who know what they are doing." – Warren Buffet

Though I strongly believe in portfolio focus strategy, I think every investor is entitled to his or her investing style. No matter the strategy you use, just make sure you know what you are doing.

"The wise man put all his eggs in one basket and watches the basket." – Andrew Carnegie

6.They are focused
"The men who have succeeded are men who have chosen one line and stuck to it." – Andrew Carnegie

Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time. For instance; Tim Ferris said on his blog that he would rather stick to angel investing than attempt to stock trade because he understands angel investing better. Warren Buffett is focused on stocks, Tim Ferris on angel investing, Jim Rogers on commodities future and Donald Trump on real estate.

7. Successful investors use trend to their advantage
"Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend." – Ajaero Tony Martins

Another attribute of successful investors is that they know how to use trend to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because it's based on these fluctuations that they make their money.

Successful investors use trends such as market sentiments, political instability and company's crisis to their advantage.

"Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it." – Warren Buffett

8. They are persistent
"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." – Henry Ford

Sticking to your investing strategy whether you are winning or losing requires a great deal of persistence. Average investors lack persistence and that's why they will forever remain average. They jump from one strategy to another and are always looking for the next hot tip.

"Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down." – Henry Ross Perot

9.They thrive on risk
"Risk comes from not knowing what you are doing." – Warren Buffett

Investing is a risk but not knowing what you are doing is a greater risk. Every professional investor, whether on the winning or losing side still respect the 50-50 probability of success or failure. A major difference between a professional investor and an average investor is that a professional investor will always invest with a strong risk management system in place. Have you ever heard of the word "Hedge?"

"Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet." – J. Paul Getty

10. Successful investors are disciplined
Successful investors are strict with themselves when it comes to investing. Aside their investing rules and principles, they are still guided by a strong self imposed standard. Professional investors know that it takes a great deal of discipline to stick to your investing strategies despite distractions from self proclaimed investment pundits.

"My two rules of investing: Rule one – never lose money. Rule two – never forget rule one." – Warren Buffett

11. They know how to use leverage to their advantage
Before I proceed, I want to ask a question. What's the major difference between a successful investor such as Warren Buffett and the average investor? My answer is this; a successful investor knows how to make money by investing with other people's money while an average investor invests with personal funds. Investing with other people's money is a form of leverage.

"The most important word in the world of money is cash flow. The second most important word is leverage." – Rich Dad

Other people's money is not the only form of leverage an investor can utilize. Your leverage can be your professional team, your investing experience or inside information.

"Financial leverage is the advantage the rich have over the poor and middle class." – Rich Dad

"If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem." – J. Paul Getty

12.They learn quickly from their mistakes
"Even a mistake may turn out to be the one thing necessary to a worthwhile achievement." – Henry Ford

When investors talk of experience, they are simply talking about the trials faced, mistakes made, lessons learned and triumphs achieved. You can never become a successful investor without making some miscalculations or mistakes.

Successful investors make mistakes but they are not discouraged by these mistakes because they know mistakes are part of the process to becoming a better investor. Average investors perceive mistakes as bad but successful investors see mistakes as an opportunity to learn something new.

"Only those who are asleep make no mistakes." – Ingvar Kamprad

13.They have a team of professional advisors
"It is better to hang out with people better than you. Pick out associates whose behavior is better than yours and you will drift in that direction." – Warren Buffett

If you observe successful investors closely, you will notice they have a team of professional advisors. Average investors try to beat the market alone while professional investors invest as part of a team.

Successful investors also have a network of friends made of professional investors. They share advice and brainstorm on investing challenges with their investor friends. Do you want to become a successful investor? If yes, then it's time to start choosing your friends carefully. Remember, birds of the same feather flock together.

"I have been within the four walls of school and I have been on the street. I can confidently tell you that the street is tougher, challenging, daring, exciting and more rewarding. In school; you play alone. But on the street, you play with the big boys." – Ajaero Tony Martins

14. They have a strong financial background
"Business and financial intelligence are not picked up within the four walls of school. You pick them up on the streets. In school, you are taught how to manage other people's money. On the streets, you are taught how to make money." – Ajaero Tony Martins

Just as stated in the quote above, you only become a better investor by being on the streets. Successful investors have a solid financial foundation; a foundation molded on the streets. On the streets, you learn from your own experience. Successful investors build up their financial base by attending seminars, reading books and journals, learning from a mentor and listening to tapes; after which they go out on their own to gain street experience.

Average investors try to hone their investing skills while still striving to avoid loss. Successful investors on the other hand know that experience come with losing money and learning from the loss.

15. Successful investors are passionate about investing
"Men of means look at making money as a game which they love to play." – J. Paul Getty

Why are you an investor? Your answer to this question will determine if you will be successful in the world of investing or not. A famous author once said this: "if you are going to play a game, choose a game you can play throughout your lifetime and investing is one of such game.”

If you take a look at average investors, they are always after how much they are going to make now but successful investors use delayed gratification and compounding to gain an edge.

"Wealth is only a benefit of the game of money. If you win, the money will be there." – J. Paul Getty

In conclusion, these are the 15 characteristics possessed by every successful investor. If it's your desire to join this league of investors, all you need to do is gradually develop these characters. As a final note, I want to state categorically that becoming a successful investor is within your reach. Just model the masters of the game and you will see yourself improving.
By Ajaero Tony Martins 

http://www.goodinvestmentadvice.com

Quote for the day

“As investors, we also always have to be aware of our innate and very human tendency to be fighting the last war. We forget that Mr. Market is an ingenious sadist, and that he delights in torturing us in different ways.” - Barton Biggs

13-Sep-2013 CSE Trade Summary

 

Crossings - 13/09/2013 - Top 10 Contributors to Change ASPI

 

 

Following Stocks Reached New High / Low on 13/09/2013

 

Quote for the day

"Knowing is not enough; we must apply. Willing is not enough; we must do." - Johann Wolfgang von Goethe

12-Sep-2013 CSE Trade Summary

 

Crossings - 12/09/2013 - Top 10 Contributors to Change ASPI

 

Following Stocks Reached New High / Low on 12/09/2013

Big Mistakes That Destroy Investor Returns

A little knowledge can be disastrous when you're wading into the stock market for the first time. There are some huge traps that can cost you a fortune. Here are some of the most insidious:

1. Buying Load funds
Many investors love the convenience of mutual funds. They don't have the time or the energy to do their own research, so they buy the fund recommended by their investment advisor or other guru. If that fund is a load fund, they've probably just made a big mistake. Front-end loads require you to pay a percentage of your money for the "privilege" of buying into the fund. Back-end loads charge you to redeem your shares. Both will take a giant chunk out of your returns. (Some funds charge a back-end load only to those who redeem in less than 6 months or some other set period. This is done to discourage short-term trading. If you know you're going to hold for the long term, this is not a problem.)

There is no evidence that the average load fund performs any better than the average no-load. Some do, but predicting that in advance is almost impossible. Some also do much worse, leaving you with a double whammy. Of course, if your load fund was Fidelity Magellan during the period when Peter Lynch managed it, the small load was worth it. But you're much more likely to get stuck with Alice Average or Larry Loser than the next Peter Lynch. Your best bet is often a low-cost index fund. If you want to go for active management, research the manager's credentials and track record carefully.

Finally, keep in mind that a fund with high fees can wind up costing as much as a load fund. Never purchase a mutual fund without finding out what percentage of your investment is charged as fees and avoid the expensive ones. This is one instance where you're unlikely to get what you pay for.

2. Selling just because a stock or the market as a whole is dropping
There is absolutely no evidence that anyone can consistently predict what the market will do on a short-term basis, and long-term predictions aren't much better. If your company is making more and more money and is reasonably valued, don't sell it just because some fools have decided the sky is falling.

3. Buying just because you're afraid you've missed the boat
When stocks and mutual funds are bargains, no one wants them. When they're going higher and higher, everyone jumps in, afraid of missing a fortune. When you're tempted to buy into an expensive market, just remind yourself: there will always be another chance. Perhaps the only thing that can be said about economies with certainty is that they are unstable. There will always be another boom-- and another bust.

4. Being too cautious
Most investors are more upset by losses than pleased by gains. As a result, they invest in bonds and c.d.s whose returns can't possibly keep up with inflation. Ironically, stocks are generally a safer investment than bonds IF you are properly diversified and are willing to hold for the long term. A portfolio that contains both is even better. Only during periods of declining inflation and interest rates is it wise to lock in rates with long-term bonds and c.d.s.

5. Taking on too much risk
If gambling is your problem, you'd be best advised to avoid the market. There are a million ways to make money in the market and a million ways to lose. If you find yourself saying "let's take a chance," you're probably headed for trouble. Nothing is ever certain, but you should know why your stock or fund has a very strong probability of performing the way you anticipate. All of your risk should be very carefully calculated and based on due diligence.

6. Trying to catch the absolute top or bottom
It's impossible to know where the absolute bottom or top is for a stock or a fund, since this number only becomes apparent in hindsight. If you have a good reason to buy or sell a stock or mutual fund, do it and don't try to squeeze out every last penny.

7. Chasing performance
Every now and then, an investment guru or mutual fund manager will hit a lucky streak. Everything he or she touches is golden, and you can't wait to get your share. Unfortunately, the lucky streak is likely to collapse just as you buy in. If you must have a guru, look for one who has performed well in all sorts of markets over a period of many years.

8. Buying the market instead of the company
Even in the best markets, some companies go bankrupt. Just because the economy is improving doesn't mean your stock is, and the same thing is true in reverse.

The difference between beating the market and being beaten up by the market is often as simple as controlling your costs and thinking twice before you act. Avoid these mistakes and you're likely to have a much bigger nest egg in a few years.
By Anthony Bae
Article Source: http://EzineArticles.com