Avoid The Greatest Investing Pitfall - Don't Trade On Emotion Or Gut Feelings Alone

By MoneyBlueBook

Are you like chicken little? Are you currently huffing and puffing because you feel like financial ruin is just around the corner and that current market problems suggest you should take quick action? Well, try to relax and see the big picture. Yes the stock market has experienced quite a bit of red lately and the foggy road ahead appears to be quite bumpy, but that doesn't mean it's time to make hasty decisions.

The year is coming to a close and many anxious and disappointed investors are starting to react in predictably panicky ways. While some people want to sell off a portion of their holdings to capture tax losses that can be used to offset their current year's capital gains for tax purposes, others are reacting in more hasty and emotional ways. Those who push the red panic button now and act on this heated emotion might regret their decision down the road. Smart financial decisions were never made by people in the midst of an emotionally driven haze.

The Mortgage Mess and the Credit Crunch Are Causes For Concern But In Time They Will Pass

Yes this is a scary time for short term investors but we must tread with a firm and loyal commitment to the key to successful compound growth - long term investing. While the housing market meltdown was not entirely unforeseen, I will admit that the severity of the credit crisis was unexpected. Starting with Countrywide Financial and later progressing to Etrade, financial institutions that owned and traded

By MoneyBlueBook

For the past week, my stock investment portfolio has been taking a massive beating. Many of my Asian emerging market funds that were previously delivering great returns have suffered greatly, along with the rest of the world financial markets. But am I worried? Nope, not the least bit. When I see all the red numbers on CNBC, I just smile. It's a healthy market correction that needs to happen from time to time.

My Funds Have Tanked Before and I've Always Recovered Plus More

In February, my portfolio plummeted almost 10 percent. I was ecstatic. Why? Because when the market dips that much, it signals a very attractive buying opportunity. I know with a long enough investment horizon, historically, the market has always cumulatively trended upwards. I am confident in my belief that every cent I invest now will very likely pay off in spades in the distant future. I see dips as the efficient market at work so I always try to take advantage of every attractive buying opportunity.

In turbulent times, it's best not to mess with your investment portfolio. Some are whispering about the possibility of recession and suggesting that the housing and mortgage-linked credit crisis will drag down the American economy, and in turn pull the rest of the world financial markets down with it. But I urge everyone not to be too hasty or emotionally driven in their financial decisions. Try to stay cool as a cucumber.

Come Out Ahead Of the Market By Continuing to Invest

The single most important thing you can

By MoneyBlueBook

To my fellow stock market investors, heed my warning as someone who has foolishly traded before on things he read about in an online discussion board. I regrettably did this when I was an investing novice back in college and got hammered big time. If you are a new investor, you should absolutely stay away from stock related discussion boards like the ones you find on Yahoo or Google Finance. Google Finance is not as bad as Yahoo, but both should be avoided like the plague.

It Is All Too Easy To Get Influenced, Especially If You Are a New Investor

If you are a newbie to the stock market, you will likely be more prone to investment temptation and more easily influenced by what you read on these finance discussion boards. But diving deeper into the substance, you will find nothing of redeeming value in these unregulated forums. All you will find are misleading, self motivated comments made by individuals who have a hidden and vested interest to influence the gullible.

On these boards you will find that the vast majority of posters are what the investing community commonly refer to as pumpers and dumpers. Pumpers are people who own shares in the stock being discussed in a particular message board. Their deceptive mission is to spread rumors and fill your head with greed-driven motivation to buy shares in the company to help drive up prices. The more people that fall prey and buy shares, the more long volume there is to force share prices

By MoneyBlueBook

My investment portfolio is up more than 40% so far this year. I accomplished this by taking advantage of the serious growth potential in the developing markets, primarily in Asia.

I think investors these days are much too risk adverse. Now if you are only only a few years away from retirement I understand why you would choose asset preservation first, but for those of you in your 20's or even 30's, why are you so afraid of losing money in the market? After all, stock markets have always cumulatively trended upwards historically given a long enough investment horizon. By overloading with safe conservative investments, you are greatly limiting your possible returns.

China Is Booming and Growing Rapidly

Due to its sheer size, massive population, and capitalistic ambitions, China will be the focus of the world's economic growth for the next few decades and is on track to develop into the world's next economic superpower. China's gross domestic product currently expands at more than 10% a year, compared to only 3% for the United States.

If you want to see your money grow to its greatest potential, investing in American or developed markets alone won't get you to that result. If you are content with steady growth, then stick with the usual S&P 500 type value funds. But if you desire growth and are willing to take on a reasonable amount of calculated risk, you really need to get on board the China train.

I jumped on board earlier this year and invested a large sum and proportion

By MoneyBlueBook

Whenever two Goliaths want to duke it out for supremacy, I'm the first to grab some popcorn and a front row seat. I can't help but watch and be entertained. Like watching a cafeteria brawl back in high school, it's just too fascinating to pass up.

Fox News' Not-So-Secret Secret

Yesterday,Fox News confirmed that it will be releasing its long overdue 24 hour cable business news channel Fox Business Network by the end of the 4th quarter of this year. In doing so, Fox News will be launching itself into a head on battle between the current dominant business news channel, CNBC (one of my favs).

Back in February 2007, Rupert Murdoch raised my eyebrows when he indicated that his new Fox Business Network channel would be more business friendly than CNBC" which he complained was quick to leap on every scandal". Fox News president Roger Ailes also indicated in a separate interview, that "Many times I've seen things on CNBC where they are not as friendly to corporations and profits as they should be," and adding that "We don't get up every morning thinking business is bad."

I certainly hope this doesn't mean Murdoch plans on creating a business news network that will operate with a particular preconceived and slanted agenda, an allegation some have levied against his current news network.

To Succceed Fox Business Network Will Have To Find Its Niche

The advertising market and demographics for Fox News compared to the other cable news channels such as CNN

By MoneyBlueBook

The mightiest monetary force in all of the investment world is not the Federal Reserve. It is the power of the compound interest. If I could offer only a single piece of financial advice to anyone, I would encourage the individual to understand how compound interest works and why its effects are so dramatic over time. Even ole Albert Einstein supposedly called it the "greatest mathematical discovery of all time", and deservedly so.

Very few people become rich or financially secure through wages alone due to the realities of the trading hours for dollars concept, but by taking advantage of the miracle of compound interest, you can have a much better shot at achieving your financial goals.

The way compound interest works is quite straight forward. When you invest money, you earn a certain percentage as interest for the first year. In the second year you earn interest on the original principle and the interest accumulated during the first year. In the third year you will earn interest on the original principle as well as interest on all the previously accumulated interest. The more time that passes the greater the interest that accumulates.

The best time to invest was yesterday, but the second best time is now. Don't delay! The sooner in time you start investing the greater the benefit you'll reap through compounded interest.

Hypothetical Example To Demonstrate the Power of Compound Interest

To illustrate, let's compare two people - Bill and Hillary. Bill invests $2000 for 6 years straight in a savings account earning a fixed