Real Estate Investing 101

Let’s say that you have ,000 and you invest it in a stock. It doesn’t really matter what the investment vehicle, just that you are investing in something you expect to receive a positive return on.

A wise time to choose to get out is when the value or quality of the company materially changes. Over the years competitors enter and exit a market. This provides opportunities for growth and sustained profits. If it is clear that the company is no longer capitalizing on these opportunities, or if so many people now believe in the spectacular future of this company that they could not ever possibly live up to the expectations from their shareholders and the share price they have dictated, it is time to exit. You can use all the techniques we mentioned earlier to determine this.

Daisy chains are a chain of people claiming they have direct access to a ‘list’ of property for sale as long as you have the finances available. However, it turns out they don’t have the list at all.

The truth is that the market is unpredictable and no one can truly determine when it’s at a peak of or is about to shoot back up. This is the same with any stock. Because of this, we can deduce that the market is volatile and constantly moving upwards or downward. The only way to profit from such an environment is to be invested long term, ready to ride out the rough patches in order to reap benefits later.

Markets move in cycles. Learn to recognize these cycles and the investment strategies that prosper in that cycle. Right now we are in a secular bear market. Expect a lot of volatility and little long-term market movement within a large trading range.

There are dozens of quick-read investment primers that can do the job. My own “investing 101,” Mike Piper’s “Investing Made Simple,” Eric Tyson’s “Investing for Dummies” — these are all straightforward lessons on how to invest wisely. Reliable financial planners are also available but research carefully before choosing one.

Choose the fund you want to invest in, then complete the application for that fund. Be sure to include your name, your address and your Social Security number. Depending on the fund family, you might also be asked to provide information about your job and your income level.