What It Takes For Successful Stock Investing
One may not immediately be aware of it, but stock investing is a means to stable personal financial status. It is not unnatural for people at this day and age to look for opportunities to augment their income. Someone who works for a living, is more often than not unsatisfied with what he is earning from his day job. The nine-to-five work arrangement may sure provide for his daily expenses, but rarely does he manage to save a good amount of it. Most of the income from employment is spent on necessities, barely leaving any amount to allocate for extra income. For those fortunate enough to have surplus income, they invest the money by depositing it in a bank and letting the money grow via the bank's imposed interest rates. However, the income generated via this rather traditional way is not as profitable as one may think.
Usually, the inflation rate is higher than the interest rate which makes the bank alternative a losing deal. It is this seemingly lack of opportunity to grow one's savings which drives most of the working men and women to take on extra jobs other than their regular apartment. This is one way of increasing one's income and savings, but eventually it takes its toll on the health of the working individual, as his rest period and time off work is severely compromised. There are those who have saved a significant amount of money start their own business, only to see this grandiose plan flounder because of sheer inability to handle a business. All these high-effort but low-return means to get your hands into more money leaves us with one overlooked alternative that relatively requires less effort but offers the biggest bang for your buck: stock investing.
It is not difficult at all to succeed in stock investing. It is usually a matter of choosing what companies to invest in and when to invest in these companies. It is always wise to invest in financially and operationally sound companies. At the end of the day, even the hottest stocks may turn cold after the volatile market forces have run its course. A good company to invest in has a good product or service to go with it. Reputable companies, the so-called blue chip companies, may have stocks that are higher in price. But these are the stocks that are the envy of all investors, because it is optimal in terms of risk and profit.
The second richest man in the world, Warren Buffett, has made his millions from stock investing. This is quite an invitation to most of us not familiar with investing in the stock market.
As mentioned earlier, stock investing is not only knowing the companies but also knowing the timing of investment. Smart investors are on the look-out for fluctuations that may prove to be the very opportunities to increase the monetary equivalent he is playing in the stock market. Thus it is advisable to watch out for the business environment in order to be made aware of the conditions that may prove to be pivotal in holding or selling the stock. In this manner, stock investing is much like surfing: spotting when or when not to ride the waves.
Nowadays, stock investing can already be done by the man on the street. One does not need brokers to successfully invest in the stock market. There are online stock broker services that initially help the investor to get started. But once stock investor gets the hang of stock investing, he can directly to the investing and trading with the aid of the online portal.
When you take a closer look, the alternative means of extra income via stock investing is just a spin-off of earning from a business. Instead of putting up your own business and investing your life-savings on it despite the uncertainty, it makes perfect sense to invest in another's business without the uncertainty. It is a calculated bet on a business entity, pinning one's hopes that this company will win him the big prize. In a nutshell, an investment made to a company is being made when one does stock investing, as stocks are the basic unit of investment. You let the companies you have invested in make use of your well-earned money, so they can further expand their operations and thus generate more income for the benefit of itself and for the investor.
Lee Dobbins writes for http://stockinvesting.subjectmonster.com where you can learn more about investing your money in the stock market.
Active Investing in the Stock Market
“Life is full of uncertainties. Future investment earnings and interest and inflation rates are not known to anybody. However, I can guarantee you one thing.. those who put an investment program in place will have a lot more money when they come to retire than those who never get around to it.” -Noel Whittaker
Active investing is a strategy used in the stock market. People who are actively investing will buy and sell stocks regularly. They monitor the stock market and find way to make quick money. Most people are passive investors. They make long term investments which offer profit over a number of years. Active investors make short term, high risk investments which quickly increases their profits.
Active trading used to be something that only a financial professional could do. An investor would have to pay commission and management fees to their financial investor each time they wanted to buy or sell a stock. However, with modern technology the average individual can become an active investor. Active investors can now trade from the privacy of their own living rooms. It is quicker, easier and more profitable for the investor. Another great thing that active investing, online, offers is access to a wide range of research. Ten years ago, an investor would have to seek out a local professional investor for information and help. Today, traditional local brokers are becoming obsolete.
The difference between an active investor and a passive investor is time. For people who are saving for retirement and enjoy the comfort of steady and constant growth, passive investing works well. Passive investments include IRAs, Mutual Funds, and Bonds. However, there are some people who want to take a more aggressive and active role in their financial portfolios and they want their money now.
Becoming an active investor is not something you can just dive into. The key to being successful is being well educated and informed. Active investing can net an investor a 19% return on investments which are slightly more risky then long term investments that offer a 4% return. There are risks associated with active trading however most people find the benefits well worth the risk. The current trend is having a stock portfolio which is one part passive investing for the future. The other part of the portfolio is active and aggressive investing. This is a great way to balance and diversify a stock portfolio.
If you are interested in becoming an active trader all you need is a bit of education to move from low return to high return stock investments. This will allow you to make and use your money today not some time in the distant future. If you are interested and do not know where to begin contact a financial advisor who can point you in the right direction. In as little as two hours a week investing time, you can increase your investment profits drastically. Live the life you deserve, consider active investing today.
Visit the Global Investment Institute and signup for our free Investing For Beginners E-Course at www.Global-Investment-Institute.com
Investment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.
Investing in Kazakhstan's Uranium
StockInterview: What makes you respect the Kazakhs with regards to ISL mining in their country?
Fletcher Newton: First of all, they have a tremendous amount of experience with this. Kazakhstan and Uzbekistan have been doing ISL mining of uranium longer than anybody in the world. The Kazakhs, in particular KazAtomProm, have over the last 30 years, maybe more, developed an incredible amount of expertise in how to recover uranium effectively, inexpensively. They are extremely environmentally sensitive. Kazakhstan, to my knowledge, has had none of the environmental issues with ISL recovery of uranium that, for example, we’ve had in this country. They have gone to great lengths to be sensitive to the interests of people in local communities, who are obviously always concerned about groundwater. But, the bottom line is they are extremely competent in their ability to mine uranium. They are among the very best, if not the best.
StockInterview: Why do you call them among the very best?
Fletcher Newton: I think it’s a couple of things. They have an extremely well educated work force. These are guys with PhDs in hydrology, ground water chemistry and metallurgy. This is a legacy of the old Soviet educational system. You have got a lot of very bright people. Moukhtar Dzhakishev is a PhD in physics, the head of KazAtomProm. Every one of his people have advanced degrees in science and engineering, finance or business. They all speak two or three languages. They are urbane. They travel. That’s the current generation.
StockInterview: What makes the Kazakh ISL activities among the best?
Fletcher Newton: The Soviet system was incredibly thorough. When they went out and drilled an exploration well, they logged the entire hole, top to bottom. And they’ve kept all that data. They spent a lot of time and money in uranium production in Central Asia. And in the course of doing it, they learned how to do it better than just about anyone else in the world.
StockInterview: If the Kazakhs are among the best, why do they need Cameco?
Fletcher Newton: When we went over there to invest, what they needed was not so much our expertise, but our support. They’ve got plenty of their own expertise. And that’s an important point to make. This was in the late 1990s and the price of uranium was near an all-time low. The country of Kazakhstan was just broken off from the Soviet Union. Was it going to be independent? It wasn’t clear yet, and there was absolutely no interest in uranium mining. And so, we were able to meet that need, as was Cogema, at a time when they needed to attract foreign investment. It was very much a question of fortuitous timing.
StockInterview: So Kazakhstan needed the money then, but now they don’t?
Fletcher Newton: I do not think they need the money now. That’s true. They certainly needed it then. We brought maybe different ideas about how to mine uranium. Not better, but just different. One of the things I admire about the Kazakhs so much is they are willing to learn, willing to look at a different system and say, ‘Hmmm, ok let’s try that.’ Whereas in the United States, for example, I can tell you that getting people to change is very difficult. Again, this is one of the reasons why Kazakhstan has been so impressive. They are willing to embrace change. Moukhtar is a guy who is more than willing to say, ‘Hey, if you show me that something like this can be better, you bet, we’ll try it.’
StockInterview: Why is ISL mining different in Kazakhstan aside from the use of sulphuric acid?
Fletcher Newton: You generally use all the same equipment: the same pumps, pipes, all of that. Generally speaking, the difference is that the deposits in Kazakhstan are much bigger. They are much more uniform. As a result of that, your recoveries are a lot better.
StockInterview: Reportedly, you can get 80-percent recovery in Kazakhstan, compared to 70-percent or less in the United States.
Fletcher Newton: You have to be careful when you talk about the 80-percent recovery. The reason is you never know exactly how much uranium is down there to begin with. When you measure uranium with a logging truck, you don’t actually measure the uranium directly. What you measure is the concentration of bismuth-214, which is a daughter product of uranium. You can then extrapolate back from that to calculate how much uranium is there. There can be problems with something called disequilibrium. One of the results of that is your calculations can then be off. Your geologists will come up with what they think is a reasonable amount of uranium there. Sometimes, you’ll recover 80 percent of that. Sometimes you’ll recover 120 percent or 50 percent. The great thing about the uranium in Kazakhstan, at least in our experience is that it is readily leachable. It’s just right there in the sand.
StockInterview: How would you describe the environmental climate toward uranium mining in Kazakhstan?
Fletcher Newton: They have a very favorable and understanding regulatory environment. They have a government that supports uranium mining. At the same time, they are very sensitive to social issues, and to making sure they pursue sustainable development in everything they do. They understand that people are naturally afraid of radioactivity. They understand that people are afraid of anybody who says ‘I’m going to do something with ground water.’ Even if it’s ground water you could never drink or do something with. They go to a lot of efforts to educate people, to explain what they are doing, to protect people, and to make absolutely certain that there is never a threat to health and public safety. And they go a very good job of this.
StockInterview: During your presentation at the Platts Nuclear Fuel Strategies Conference in Washington, D.C. you had talked about the ‘challenging’ part of mining uranium in Kazakhstan.
Fletcher Newton: No. When I said ‘challenging,’ I didn’t mean that in a pejorative sense. We have the same challenges in the United States: regulatory, infrastructure, human resources. I think you would have them in any country. Remember this industry has been on its back for twenty-five years. Suddenly, in the space of four years, the price has gone from $7 to $54. Well, that makes it a challenge for everybody. Not just Kazakhstan.
StockInterview: How do you compare doing business in Kazakhstan with your operations in the United States?
Fletcher Newton: My experience is limited to just the uranium business. We are exceptionally pleased with our partner, with the relations we have with our partner KazAtomProm and with our experience there. They are an excellent partner. They are extremely technically capable and sophisticated. We learned a tremendous amount from them. They’ve taught us a lot, and it’s been a very good relationship. We do not have the horror stories you’ve heard from other people. We have not experienced that at all.
COPYRIGHT (C) 2006 by StockInterview.com
James Finch contributes to StockInterview.com and other publications. Visit http://www.stockinterview.com to find about “Investing in the Great Uranium Bull Market: A Practical Investor’s Guide to Uranium Stocks.” You can always write to James Finch at jfinch@stockinterview.com
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