Effective Money Management

Critique on Consumption Approaches

People adopt or depict multiple attitudes towards money management. We may categorize them into four styles - Miser, Moderate, Lavish, and Generous. Moderate and generous life styles are positive or constructive while miser and lavish life styles are negative or destructive. Moderation and generosity promotes stability and growth, while misery or lavishness promotes volatility and decline. A moderate person spends according to available means and maintains cash reserves, generous person spends on others and maintains moral courage, miser spends only on inevitable needs, and lavish spends according to lust/brain impulse. A better Money Management gives stability to individuals during some money crises and growth during normal time.

An effective money manger defines her spending demands as needs or important, facility or less important, aesthetics or least important, luxury or unimportant. In addition, an effective money manager adopts some prudential financial techniques to attain maximum benefits such as, financial goal setting, financial planning, rational execution of financial plans, and finally evaluation & adjustments of consumption/saving attitude.

http://EzineArticles.com/expert/Muhammad_Ilyas_Qadri/466764 

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Stock Market

Effective Stock Trading

Stock Market is like the wavering sea with countless opportunities/threats. Some take out pearls, some come out with fish and some come out simply wet. Stock Market is utilized in multiple ways depending on how much risk a trader is willing to incur. Traders usually focus on daily, weekly, monthly and long term earning. To maximize the financial benefits, you need to decide what kind of stock trader you want to become. The right fit depends on personality, time availability, financial prudence and capital investment. Almost all types of stock trading are potentially profitable.

Precisely speaking, you should be flexible (not volatile) towards different types of strategies in your market system and your investment approach, so that you can adjust to the market, be it bearish, bullish or even range bound. Although, the future remains unknown, investors who come with good research, use independent thinking rather than naively follow the crowd, have the mental fortitude to stick to their targets and sell once target returns have been achieved, are likely to realize superior returns on their equity investment portfolios.

A day trader watches the daily behaviour of share prices and tries to get a margin on account of daily fluctuations. A day trader is a proactive and professional market participant who purchases shares of a company with a focus on her technical and fundamental variables. A prudent day trader watches price fluctuations, keenly, and tries to profit from short-term market volatilities. 

Investor Awareness

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Stock Market - Investment Planning

Technical Analysis Vs. Fundamental Analysis

Successful Share Trading depends on the conceptual ability of trader to predict accurately prices and practical ingenuity to manage efficiently risks. Two techniques are commonly used to forecast prices - Fundamental Analysis & Technical Analysis. Technical Analysis forecasts the direction of prices through the study of past market data of price and volume. On the other hand, Fundamental Analysis determines the intrinsic or true value of the shares. If the intrinsic value is higher than the market price it is recommended to buy the share, if it is equal to the market price hold the share and if it is less than the market price sell the shares. The fundamental analysis consists of four types of analyses, that is, Economic Analysis, Industry Analysis, Company Analysis, & CEO/Top Management Analysis.

Investors can use these different but to some extent complementary methods for stock trading. For example, a fundamental investor may use technical arguments for deciding entry and exit points, while, a technical investor can use fundamentals to limit their universe of possible stock to 'Well Performing' companies.

Muhammad Ilyas

CEO

Silverline Management Consultants & Software Engineers (SMCSE)

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STOCK MARKET - Investment Planning

Stock Day Trader

Any task that a person undertakes is called work. A work for monetary benefits is called economic work. Economic work creates financial returns within stipulated durations of time such as a day, a weak and a month. The daily earning through knowledge-driven skills is delicate and thin area of economic life. However, with the advent of the internet, an entirely new home-based / self-employment opportunity has surfaced. It is Stock Trading. This business has the potential to generate reasonable income everyday. However, the opportunity has a risky downside; the possibility to lose money is as great as it is to make it especially for the novice / inexperienced.

The keys to earning as a stock day trader are two, first, to gain as much knowledge about the relevant industry as possible and, second, to maintain rational expectations during wavering situations. Specialization in some specific type of stocks is plus point for profitable day trading.

Remember, majority of day traders go for short gains, buy in early and sell out the same day. Holding overnight is too much risky, especially for capital-starved traders in unstable market conditions. The golden rule of stock trading is, 'never risk more than you can afford to lose.’'

Muhammad Ilyas

CEO

SMCSE (www.smcse.com)

Stock Market - Investment Planning

Initial Public Offering - IPO

Generally, the very first sale of company shares to the public is termed Initial Public Offerings (IPOs). IPOs are often issued by smaller/younger companies seeking the capital to expand, but the approach can also be used by large companies. In an IPO process, the issuer company obtains the assistance of an underwriting firm, which helps in determining what type of security to issue (common or preferred), the best offering price and the launching time.

IPOs can be a risky investment, especially, for the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future because there is often little historical data with which to analyse the company. In addition, mostly, the IPOs proposing companies going through a transitory growth period, which are subject to additional uncertainty regarding their future values.

The issuing of shares through an IPO is one of the primary reason of stock markets' existence, so that the IPO process is the locomotive of stock market. Entrepreneurs, venture capitalists and angel investors consider the IPOs a realistic benchmark of a new and growing firm.

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STOCK MARKET

It is an organized and regulated financial market where securities (bonds, notes, shares) are bought and sold at prices governed by the forces of demand and supply. 

The stock market can be split into two main sections: the primary market and the secondary market. The primary market is where new issues are first sold through Initial Public Offerings (IPOs). The secondary market now starts her functioning where investors can sell their securities to other investors for cash. The whole subsequent trading activities is secondary market.

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CRISES MANAGEMENT

CRISES MANAGEMENT

Crises Management is essential aspect of any entrepreneurial /leadership struggle. It is required to prevent crises or to manage crises amicably. Crises Management guides how threats are converted into opportunities, how weaknesses can be made irrelevant, and how strengths are used optimally.

SMCSE