Is Debt Costs

If you have a debt, whether it’s debt to the bank, payable to the creditor, then you  pay interest. Suppose you owe to the Bank valued at 100jt to the bank with interest at 18% / yr, then you will be charged a fee of 1.5juta each month. So is the cost of debt, the longer you pay it off, the greater the cost of which you bear. Try to calculate if you owe with a duration of 3 years, which cost you bear is 1.5 x36 = 54, more than 50% of the loan principal. If you have debt, quickly paying off your debt. If you have not had a trial and error do not owe.

People We Love Can Be Cost

If the husband / wife or your child has a birthday, we always want to describe who’s special birthday gift, like new watches, toys, expensive clothes, etc.. Though not necessarily they need it and want it. If you bought your (male) to buy 1 set of expensive equipment which make up your wife, of course, increases the cost in your family, but if your wife bought a gold necklace complete with liontinnya, you actually have to do INVESTMENT. If your family’s future financial crisis necklace can still be sold at high prices, even the price has gone up. So what will you buy for your wife? Jewelry of gold? Or the equipment expensive cosmetics reply?

Seeing the title of this post I guess you’re thinking this will be an “Aesop’s Fable,” but it is not. Let us define two major trends in the stock market (stock exchange) which are the bull market and Bear Market.

Bull Market
The bull market is defined when there are many pleasant expectations in the market. When investors have a high certainty that the value of the shares will rise and that many fruits will come on the market (eg 2006-2007) states that investors are ragout (that word I have just invent, Bullish). Rather is characterized with many investors entering the market again as the economic boom is imminent. So when a company is offering bull signs (bullish signals) means that this is a time of rising.

Bear market
I imagine that as the story of Ying-Yang, you have expectations that the Bear Market tends to be more melodramatic, pessimistic and “un-cool.” Bear Market (Bear Market) in completely the opposite of the bull. Investors believe the market will fall in value (eg when it has risen so much that growth is not supported by any basis) or external forces (oil, economy, climate) anticipates a drop in consumption or profits for companies. This trend investors sell their shares and wait for the market have the opportunity to grow again.

The “short sellers” (Short Sellers) and its contradictions.
As we explained in the previous post on “short selling of stocks,” those who invest in this type of sale, sale-purchase I work in the opposite system at the same time. When the market is “bullish” they dump their shares, and when the market is “bearish” they buy shares “short” (bone, borrowed to buy and sell later at a lower price).

Technically (and in an ideal world), you could buy stocks when the market is ever fought (bullish) and you can “sell short” the shares when the market is Bold (bearish). But one of the rules you need to know is that it is extremely difficult to predict or speculate in the market (the market timing) and this could take more losses rather than the opposite.

I hope you could understand a little more about these two business trends.

I will mention the most important things that the best international and American investors, the likes of Benjamin Graham, Warren Buffett and William O’Neil, among others, recommended do’s and don’ts for success in the stock market.
1 .- What mentality we need to win in the bag?
2 .- One key recommendation: “Cut your losses and let your profits increase”
3 .- The importance of having a long-term vision

To invest you need to have a mentality and attitude that will make the difference between success and failure.
We must be disciplined and develop a habit, a habit, a way of investing that suits our goals and our personality, and profitable. At the end of the day is for this to what we invest on the stock market to try to maximize our profitability, although this should not blind us.
If we look at two investors who own the same stock (value), we can see that one is making money while the other one is missing. This is motivated by the acquisition and sale price of the shares. Even though both buy the shares at the same time and at the same price as the subsequent movements of each, see different results. Therefore, besides knowing how to identify which stocks to buy, you have to know how to manage the portfolio, to decide when to sell and when to buy again.
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