Monday, March 31, 2008

Importance of setting targets

One should always know the objective whenever putting any money
into the market and ask yourself “Why are you investing in the markets”?
I know all of us want to make a quick buck from the markets but how
much do we want? As much as we can...
most of the person will
answer this. But always that is not correct. Sometimes or say most
of the times, in trying to get the most returns, persons had to face
losses. So always try to set your targets for all stocks.

Now the question arises how to set the targets and on what basis?
Let’s see some of the ways to get better returns or some ways to
help you understand how to set the targets.

# If you are a long term investor, by long term here I mean if you want
to invest for years...
I'll sub-divide this long term into two points:
- If you want to invest for your retirement or for your childrens, their
education then you should not take operator driven stocks at all and
try to invest in fundamentally strong stocks or can say in blue-chip
companies. But that doesnot mean you just forget after investing your
money. You have to keep track of your portfolio atleast 3-4 times in a
year. Here you dont have to set your targets as such but have to track
your portfolio and market conditions periodically.

- If you want to invest for some of your personal needs (near future) that
is for a period of 2-10 years, then again above mentioned rules apply
but here you may set some targets like 50 – 200% profit or more
depending on the scrip and you should track your portfolio atleast after every 15 days.

# If you are a mid-term investor, I mean if investing for a period of 6
months to 2 years then you should set some targets ( realistic targets ).
It should not be like you are buying some scrip at around Rs. 500/- and
set the target of Rs. 2000/- or 3000. Targets should be realistic and
also it depends on the future of that sector, like currently banking and
infrastructure seems to be having decent future. So set some target
and if your target got achieved sell them off completely or if you think
its having some more up-trend, then sell half of the shares and hold
rest of them but again set some target for that.

# If you are a short term investor, means investing just for 0-6 months in
order to make some quick bucks, then you have to take some more
risk, you have to follow HRHR rule (high risk high returns). Here you
should track your portfolio almost daily or atleast on alternate days.
And set some targets like 10-30% and exit whenever you reach your
target. Here you may have to book some losses sometimes in order to
take out the money from the non-performing stocks and to put in better
or market performer stocks.

If you just enter the markets without even knowing what you want from
them, you might be in for some big time trouble. You might just be
revolving between long term and short term investments without knowing
a clear direction. View them as vehicles to create wealth and not as vehicles for some “short term excitement”.

If you don’t know what are you are getting into, you might end up being a
helpless spectator when this uptrend reverses.

Check various other options to invest money.

Thursday, March 27, 2008

Positive Thinking

It is quite common to hear people say: "Think positive!” to someone who
feels down and worried. Most people do not take these words seriously,
as they do not know what they really mean or do not consider them as
useful and effective.

Not everyone accepts or believes in positive thinking. Among the people
who accept it, not many know how to use it effectively to get results.

Positive thinking is not just a philosophy, Positive Thinking is a practice
that something you have to do everyday, over and over again.
Affirmations are a great way to start developing positive thinking.

Researchers have also proven that people who have a healthy and
positive attitude or incorporate positive thinking, live better lives. Why?
Because they know how to use the power of their mind.
Unfortunately most people never get their mind working for them.

Instead, they get their mind to work against them, creating things
they don't want. Then they wonder why positive thinking doesn't work.
The truth is they were never practicing positive thinking.

One of the best ways to create change is by using affirmations
that lead to positive thinking. Positive Thinking Affirmations are simple
statements that you say to yourself over and over again. Through
constant repetition your subconscious mind picks up the message and
you start taking action to create change. It's a way of changing
behavior to achieve your goal. Affirmations create Positive
Thinking which leads to greater change.

Here's an example of one of the affirmations from Joseph Murphy:

"I am one with the infinite riches of my subconscious mind. It is my right
to be rich, happy, and successful. I am forever conscious of my true worth.
I give of my talents freely, and I am wonderfully blessed financially. It is wonderful."

This is a great affirmation if you can remember it and if you speak that way
Unfortunately 99% of us don't think or speak this way -- and that's what
makes any of his affirmations ineffective.

Psychology says that our mind controls our body. So, taking charge
of your mind becomes a vital factor in keeping your body healthy.
You can do this through affirmations that establish the power of your mind.

You can develop the habit of exercising your body and mind by affirming:
"I can easily get up early in the morning everyday to exercise and keep fit and cheerful."

" If you can imagine it, you can achieve it.

If you can dream it, you can become it."
- William Arthur Ward

Praise yourself and others. Dream of success. Be enthusiastic. Keep your
mind focused on important things. Set goals and priorities for what you
think and do. Develop a strategy for dealing with problems. Learn to relax.
Enjoy successes. Be honest with yourself. Do your best and don't look
back. See learning and change as opportunities. Try new things. Consider
several options. Meet new people. Ask lots of questions. Keep track of
your mental and physical health. Be optimistic.

Studies show that people with these characteristics are winners in good
times and survivors in hard times.

One can get relaxed by following these steps:

* Sit in a comfortable chair or lie down on a bed.
* Let go of all the tension by repeating to yourself: "I can now relax
comfortably. I can now relax my body. I can now relax my mind.
Easily, quickly and positively. Now I can enjoy the state of alert
relaxation peacefully."
* Let a feeling of soothing comfort take over.
* Feel a universal healing energy surrounding you and getting
absorbed into your body and mind.
* Feel a cool breeze around your body. Visualize a white sparkling
light pouring through your head down your body and seeping
deep within you.
* Think that soothing and healing forces are vibrating within and
radiating from you.
* Maintain a positive and peaceful state of mind during the session.
Also, take precautions that you are not disturbed.
* Mentally repeat to yourself: "Day by day in every way I'm getting better and better and better."

When the attitude is positive we entertain pleasant feelings and
constructive images, and see in our mind's eye what we really
want to happen. This brings brightness to the eyes, more energy and happiness.

Negative thoughts, words and attitude bring up negative and
unhappy moods and actions. When the mind is negative, poisons
are released into the blood, which cause more unhappiness and
negativity. This is the way to failure, frustration and disappointment.

Smile a little more, as this helps to think positively. Once a negative
thought enters your mind, you have to be aware of it and endeavor to
replace it with a constructive one. The negative thought will try again
to enter your mind, and then you have to replace it again with a positive one.

It does not matter what your circumstances are at the present moment.
Think positively, expect only favorable results and situations, and
circumstances will change accordingly. It may take some time for the
changes to take place, but eventually they do.

You are what you think. You feel what you want.