MasterHowto: Make Profit from land investment

Investment is made to make profit from the owned assets. This is the basic ambition of each investor. However, various types of investments do not always offer the same as much as planned at last. Owing to ‘premature’ greed of investors, ‘hot stocks’ often tempt them for short term profit making orientation. Accordingly, the high vulnerability of short term investments in stock market is mostly forgotten. The basic goal of making profit from investments unexpectedly turns to be a loss of assets.

An asset loss takes place because of many reasons. In regard with short term investments in stock market, investors tend to love short cut process with the high threatening risks over their assets. In this case, one fundamental principle is missed and neglected. It is safety to be the first account to consider before profit making. Stocks price that we have got might meet the top value for a certain period temporarily. It doesn’t guarantee that the subsequent situation of market will be the same as what it currently works. Safety is therefore put above everything when planning an investment.

Among the given alternatives, land investments constitute the most secured option. Don’t say that profit from land investment performs slowly. It is recorded that between spring of 1986 and January 2006, land values reached 764 percent increase, almost double growth when compared with the housing values during the same period. It might seem to be too long period of investments. However, the guaranteed safety of assets will be the powerful argument to rebut such impatience of reaping profits in a short time.

The possibility of falling price of land is still opened. But the decreasing values will be as much as what frequently happens to stock markets either short term of the long term ones. The current overheating market and increasing residential demands however over the scarcity of lands. The coming future market need will be much higher than it is now surely. Though lowering price is possible, the future prospect of land will be much more valuable than the possible worsening price might be.

Additionally, there is still one remaining benefit to make profit from land investment besides its inherent value. Unlike stock market assets where trading brokers replace our role to make profit, land investment can meet personal interest of owners in managing certain businesses ranging from real estate, resorts, and many more. Building some plot on the owned vacant freehold is one example. This will beneficially give extra opportunity to manage the growing values of assets. The owners will just need building permit prior to setting up their land to be more profitable. Having the right plot on the land will be a distinct asset management by which owners can handle and manage as well as they please.

We do not need to be in hurry to reap profits from any investment. Considering that today’s financial slump has not shown the bettering performance at its best. We had better manage and secure our asset from uncertain loss to happen. It is time to make safe decision to make profit from land investment. Why not?

MasterHowto: 4 Steps before Investing Short Term in Stock Market

Using money for future profit is a good decision when individuals are holding more money. It is called investment. Letting a pile of cash in the bank account, in a jar, or may be under your mattress at home that will give no more benefits to the future need. Arguing that day-to-day operation demands a certain amount of cash to prepare doesn’t inhibit us from investing short term at least if long term investment gives personal worry. The point here is that we need to manage our case where we allocate sufficiently for the routine spending and some for investment.

The next emerging question will be which type of short term investments fit you best. Being tight of money to manage or sudden spending, stock market would be the best choice. Investing short term purpose meets the characteristic of stock trading where stockholders can buy and sell their assets whenever they please. In terms of common worry about up and down price in stock market, the new investors do not have to be shocked. There are four steps to follow as the first guide when investing short term is a choice.

First, set up your short term investment plan in accordance to the financial position you have. This is fundamental since tight money cannot compromise any efforts of making profit when sudden demand of cash comes up. Make sure that you wisely allocate the money for the routine spending as sufficient as possible. In line with the psychological feeling during a course of investment periods in stock market, this action helps secure your personal comfort.

Second, learn some fundamentals of stock market and trading activities as well. This is essential if you were a new comer in this investment. Getting to know in practice from some friends or relatives who have been familiar with stock market world is very helpful to create you own confidence. Common principles of stock market, general terms, as well as leading stock exchanges give useful knowledge that will guide you better forward.

Third, consider about the liquidity of companies from which you want to buy some stocks. Liquidity refers to the ability of companies to meet the given obligations over the traded securities. It used to happen that a company sold its assets while it didn’t have the sufficient liquidity towards the securities offered in market. In a simple word, it is like someone wants to sell the property values that he or she doesn’t really posses. You can check out company’s profile and level of market trust in order to find enough information on its liquidity.

Fourth, choose safety first before profits. When facing a good increase of stocks price, it seems to be a good luck. Common trading preference will be normally an effort to get much higher gain and profit than the current price is offering. If you don’t know exactly what caused the increasing positive sentiments in stock market, you had better wait and see for risk prevention. You don’t have to follow the common behavior since sudden declining stock price might happen anytime beyond your prediction. Safety principles keeps secured your assets though with slow growth of gains. It is however, much better than suffering from any loss of assets.

Aside from the given four steps, stock market investors have to consider extra variables in relations to the market progress and condition. Following the four steps before investing short term in stock market will give at least the first good start and help protect you from any unexpected loss of assets.

MasterHowto: Investing Big Money for Long term or Short Term?

Given the financial meltdown in the second quarter of last year, market stability is still in the efforts of moving up to a better performance level. The collapse of stock price of giant companies in the US that eventually caused the screw up face of market and business world should be borne in every individual mind of the investors. The so called “good start” of Obama administration to overcome the worsening effects of economic downturn, has brought fresh clout in the financial market and contributed to the increasing trust of among investors as well. However, serious trouble just happened and is still clearly recorded in mind. Simple advice from the last financial turmoil would be carefulness is a must when we would like to start investing big money in the ‘hot’ stock market.

Lots of things have to be considered when we would like to invest money in stock market. There are two options of investment possible; long term investment, short term investment. Both carry different benefits and disbenefits of course. Long term investment has got better stand when temporal conditions of financial market doesn’t show a chance to make economic gains. As the investment is held by a company for at least one year, investing big money for long term will be a good option and bring more share profits as soon as the term is done. However, the rate of value will depend much on the revenue that could be made by a company during a course of investment period. Such limitation of economic gains makes investors reluctant to have long term investment in spite of better guarantee on the asset safety.

Short term investment is likely sexier than the long one. The up and down of stock price is potential to reap huge profit from the short term investment. Despite the risk is definitely high, the potential gain to make is more interesting somehow. That’s why some investors apply certain strategy to manage their portfolio investment. Value investment strategy is normally used to analyze the declining stock price in market in relations to the earning ratio. The declining stock is bought with cheap price from the companies accordingly. The main point to see here is the extent of feasibility of the declining stocks to recoup in the near time. Once the recouping stock price takes place, inventors will find their assets ten times bigger than it was.

Investing big money for one of the two options, long term and shot term, is okay as long as each form is managed properly. To invest big money for long term period is safer from temporal market shock. Yet, when this done at bad performing companies, it would not give any good prospect nor profit. One year period of investment or more is not a short time. Declining revenue and income could happen anytime when not really good companies are the place of investment. On the other hand, short term investment in stock market is somewhat risky without good strategy and smart broker to help execute the trading. Either investing big money for long term or short term will be depending on how investors manage their assets well.

MasterHowto: EBIT Information is Useful for Investors

EBIT stands for Earnings before Interest and taxes. It is simply defined as a corporation’s profit for a particular period before taking interest and tax payments into account. EBIT is used within financial and business accounting to know the extent of profitability that excludes taxes and income tax as well. The way to know EBIT is by reducing the total operating revenue with operating expenses plus no operating income given. Operating income is considered the same as EBIT, which is obtained from the difference between operating revenue and operating income.

Sometimes there is a misunderstanding about the use of EBIT and EBITDA. Since there are key component that define the position of cash flow; first, company’s profits, second, required investment to achieve the expected cash flow. Required investment means the amount of company’s expenditure to obtain the planned level of profitability. Regarding to the two components, EBIT include the factor of depreciation and amortization as well. EBITDA stands for Earnings before Interest, Tax, Depreciation, and Amortization. Accordingly, it excludes the depreciation and amortization while focusing on the profitability level of a company only without taking the required investment value into account.

EBIT information is very useful when an investor would like to assess the level of expediency and economic prospect of a company. Generally, investors start looking at the position of company’s fundamental earning potentials in order to see the optimal management of debt and given equity. Investors prefer EBIT to net profit due to the fact that it doesn’t give a better impression on company’s performance which is usually taken from the ability to cut tax bill. EBIT simply reveals how profitable a company is from its operational standpoint to run the business from day to day.

We cannot deny that some people give critics to EBIT information using in relations to the need of company’s profile in details. It is because EBIT never consider the leverage and debt into expected attention of financial status. According to critics, many companies tend to reap more much after taking certain amount of debt by which they attract the investors. No matter how much interest rate of liabilities has to be paid on a monthly basis, this amount will not be shown on the EBIT information report. It is worried that companies will play with the debt exclusion from the financial status to cover the ‘pseudo’ liquidity of assets. That’s why EBIT is preferably used to be the tool of evaluating the operating profit of companies.

Since cash flow constitutes an important part of companies, EBIT plays better to help analyze the profitability level unlike EBITDA which excludes the required investment of companies to achieve the profit. Aside from the critics over the exclusion of debt or the so-called leverage of companies within EBIT, we can simply define two historical conditions; companies with bad historical loss, and second, companies with good historical profit. The simplicity will help ease investors to fine the alternative for their investment. Whether a company deserves an investment of nor, investors simply need to read the given EBIT information.

How to Find the Best Investment Broker

There are a set of preparations prior to making an investment in portfolio. Having done with the step to set up a comprehensive investment plan, investors will have to choose for of financial securities to please to buy. This is essential part of investing money in portfolio investment since each form of financial instrument has got its own characteristic by which economic gains can be made. Whether the investment will be for mutual fund, stock certificate, bonds, anything else, will depend on the convenience of individual investors themselves.

Deciding the right trading sites or broker is going to be the next step to carry out. Investors can easily find a few alternative sites to make an account of investment. As a result, investors cannot hope much the benefits of the investment. That’s why it is a common challenge to handle when it comes to the question “how to find the best investment broker for our portfolio assets”. Since online brokers have a fundamental role to help manage the trading process and activities, expected gains will depend much on the right decision of investors to choose a reliable investment broker. However, some port folio gurus have suggested a few points by which investors assess the extent of professionalism and performance of investment broker.

The first point to consider is brokerage rates. As a matter of fact, every single trading activity whether it is selling or buying equities is charged certain percent of rates for fee. The calculation is normally based on the number of sliding scale. However, a large purchase of units can negotiate the rates. That’s why investors need to ask for the details on the rate level at the very beginning. Before singing any contract, investors have to make sure that the terms applied really meet the interest of trading activities expected.

The second point to consider is the rate fee for trading account. We cannot deny that some bad brokers charge hidden fee to their clients. It’s called ‘hidden’ due to less obvious explanation and understanding from the investors themselves at the very first time. Best investment broker always tends to explain account fee clearly to the clients prior to signing the contract. However, it will be fine if investors ask for an extra list of fee while reading the given terms of investment itself.

The last point is accessibility of money. Best investment broker for portfolio normally has some official cash account. This will linked to the trading account which is possible to be accessed by the investors any time necessary. The access for money might in accordance to the account owner ranging from Master Card, Visa ATM, or others. However, many options are available to agree each other basically between investors and the brokers. Investors could possibly ask for some details about the accessibility of money prior to starting the trading activities.

The three points above have not explained whole aspects of how investment should be managed best. At least, the most risky part, choosing the best investment broker, has been smartly selected based on the three categories. I wish you would have the best one that would bring lots of benefits.