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Unread 6 Oct 2008, 20:15   #1
Zar
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How to make some money

Yes yes, I have a reputation. I love money, I love talking about money... blah blah blah blah.

Anyway, I wish to share this with you and if this is not your sort of thing then just skip over it. If you have some appetite and have always wondered "how can I make money easily?" read below:

Right some advice:

Get a trading account/broker account, put in some cash and start investing. If you're the more risk averse type - stick to Large Caps and companies that are well capitalised.

If you've a slightly more risky complexion invest in indicies - possibly have a look at China, India, Brazil and Russia. Larger cap mining stocks are also a good bet in this catagory (BHP, RIO, VEDANTA, XSTRATA etc.)

If you have a very risky appetite, start going for smaller caps, aim companies, adr's, financial stocks (larger financials and smaller if you look around properly), junior mining companies etc.

Look to invest at every dip. Days like today are a perfect opportunity. The goal here is not to make short term profit, but medium to long term profit. Yes the markets are crumbling, yes things are looking bleak - but the underlying fact is that the markets are starting to look cheap, to look oversold. P/E ratios are ridiculously low, well capitalised companies, with good financials are being hammered and quite frankly the market is in panic mode.

Assuming no major catastrophe such as liquidity drying up completely - in the medium to longer term (1-5 years) you should make very good returns on your investments. Much much much better than sticking your savings in a bank account and cheering on the 5% or so interest you get per year.

Don't be overly concerned if your investments dip by another 10-20%. The goal here is to dip, to drip feed your investments in at every leg down. That way you aren't being forced to call the bottom, if it goes down further you haven't committed all your purchases to a higher value, and if they rise you can benefit from purchases at a higher level.

Finally remember, the goal here is investing for the medium to long term. You should be prepared to leave your money untouched for 1-2 years or more at least and not be concerned if they drop in the next few months.

Of course be aware that you should be vigilant and always keep yourself updated on what is going on. Even the most risk averse investments have risk attached to them and I wouldn't want you to take this advice without understanding that there is always risk.

These are the best times to invest and you won't get a chance like this for many more years.

Last edited by Zar; 6 Oct 2008 at 20:37.
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