Has it ever occurred to you that you may be the only positive influence on someone else s life? Have you ever stopped to think that you may be the only example of excellence and integrity to a classmate, neighbor or friend? As strange as it may seem, people are always watching you, even if you are not aware of it. And the more you do what s right, the more your peers will look to you as a positive role model. They may never tell you. They may never admit it to themselves. They may even make fun of you for being the type of person who tries to do what is right, but that doesn t mean that they do not respect you or look up to you.

When you have a vision of something greater for your life and work towards that vision you will become a positive role model for others whether you want to or not. When you value, believe in and respect yourself, people will notice that there s something different about you. And chances are you will not fit in with everyone else. That s a good thing, because it means that you are unique and you were given the special task of being a beacon of light for others.

Being a role model isn t always easy. There will be times when you will find yourself at odds with your friends. You ll even worry about fitting in. But don t worry. You re not supposed to fit in, because being a role model means that you stand out for others to see.

As a teen you ll often hear about the importance of having role models and there s no questions that this is important. But what s also important is, being a positive role model. Who says that you can t be the positive role model?

There is something special about knowing that you are trying to set a good example and that you care enough to be the very best. Whether or not you are popular has nothing to do with being a role model. A role model is someone who chooses to put forth their best effort everyday and when they make a mistake they pick themselves up and try again. If this sounds like you, then I say that you are a positive role model. Keep up the good work.

This article is excerpted from Cassandra Mack s book, “Young, Gifted and Doing It: 52 Power Moves for Teens.”

Cassandra Mack is the CEO of Strategies for Empowered Living Inc., producer and host of The No More Drama Hour of Power online talk radio show and the author of six books. You can visit her on the web at: strategiesforempoweredliving.com strategiesforempoweredliving.com.

Taxes on wealth or simply wealth tax is the tax levied on the value of wealth owned by a person. As the term ‘wealth’ carries with it a broader meaning, generally capital transfer taxes (which include inheritance tax and gift tax), property tax, and capital gains taxes are some times invariably referred to as wealth taxes.

Taxes on wealth were first introduced in Europe, aimed at reducing the growing wealth gap between the rich and the poor. It was meant to raise revenue for addressing pressing social requirements and also to discourage the attitude towards amassing wealth.

Still, in countries across the world, majority of wealth is concentrated at the hands of fairly small number of people. Ideally taxes on wealth cuts down the disparities in wealth rather than the income, which actually is the determinant factor on how the scales are weighed for the next generations.

Also, taxes on wealth can bring about vertical as well as horizontal equity, which income tax fails to achieve. For example, neither a wealthy person nor a poor one with no income will pay income tax. But the wealthy ones need to cough up wealth tax while the poor need not.

But, as critics puts down, taxes on wealth can actually cause inefficiency by discouraging wealth producing economic initiatives. Also, the revenue generated by imposing taxes on wealth may not be that productive as the theory suggests. The wealthiest form only a small percentage of the population and by nature they are adept at avoiding taxes while remaining themselves within the contours of law.

Taxes on wealth comes in two forms – the capital transfer taxes that are levied when wealth change hands and the annual wealth taxes. Capital transfer taxes can occur either at death – also called inheritance tax – or via donation (gift tax). Some people tend to believe that Capital Gains tax to be a form of taxes on wealth. But in realty, capital gains tax is the taxation on the income obtained on capital and not a wealth tax on the capital.

Ideally, taxes on wealth should not be severe on the tax payers even if they have lots of wealth. Instead, after the minimum slab of no taxation, the taxes on wealth percentage should increase at increments, depending on the value of wealth in dollars. Such a fairer taxation not only increases the revenue but also goes a long way in bringing down the inequality aspect as well.

But with intelligent investing, one can save a lot that other wise goes as wealth tax. But that requires careful thought and advanced planning. May be a tax professional could help one in this regard.

About The Author
Jakob Jelling is the founder of cashbazar.com” target=”_new cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Maths is an unusual and confused subject in that it is taught, often by non-mathematicians, without reference to its history and meaning.

The result is that mathematics and numeracy are mixed up both in the minds of teachers and pupils. Where something approaching mathematics is taught it is often taught as a technical subject, we teach you a technique, you use it to solve problems. However real maths is not numeracy (numeracy is in fact just a tiny island of the eastern fringes of the mathematical universe!) and real maths is about using your mind creatively, not just churning out answers, especially when you don t really understand where those answers come from.

Here are two pointers that can seriously help children to grow as mathematical thinkers. Firstly maths has a history. Probably the most important person in that history was Euclid who formed much of the branch of maths called Geometry which is fundamental to mathematical thinking and, not surprisingly, is an extremely unpopular subject when it comes to the school curriculum. Euclid s work was important in that he worked out how to start with some logical statements (called axioms) and built them up using logic to deduce new things. He can be thought of as a founding father of Mathematical Proof (and guess what – mathematical proof is an increasingly unpopular subject on the curriculum).

If you can apply and train your mind in the kind of thing that Euclid did you can become a great mathematical thinker too. Now not surprisingly there is a massive gap between school/college maths and university maths. It needn t be that way. As parents you can start to bridge the gap with your children whatever their ages. The way I do that is with very simple mathematical games.

When we sit down for a meal or go on a journey my children ask me, “Please play the questions game!”. Any teacher out there will know just how enthusiastic some pupils can be when it comes to answering questions. So we play a simple game where I ask my children a question in turn and they try to answer and secretly help each other. After a while your kids will want to play this game regularly and will play it with each other in school and in the playground. If you can achieve playground math its pretty cool, because you re starting to impact positively not only on your own chidren but also on their peers.

Now if you ask just any old question you won t help much but start to ask questions that build up mathematical thinking and you ll begin to build mathematicians. On www.mathsmentor.com I ve placed a large list of questions you can use as a basis for your own questions. Don t just look at the questions look at WHY I ve used those questions.

Here are some other pointers for asking questions.

Ask age appropriate questions.

Aim to make your child think for a few seconds or even a few minutes.

Give them time to think.

Occasionally throw in a stupid question – it breaks up the tension.

Don t just use maths questions use general knowledge questions occasionally. Again it breaks up the session nicely and adds to your children s general knowledge.

Ask questions that have real world applications to.

Avoid simple “times” table questions, once your children are confident with tables extend them by throwing in questions from the 13 and 14 times tables, so they have to think about the answer. Try questions like “What is the remainder when 100 is divided by 7?”

Use questions that require a lot of thinking and imagination, like “How many holes are there on a recorder?”

You can help your children to become the mathematicians of the future. Don t rely on the school system do to it alone. Teachers swim against the tide in many ways.

Here s my philosophy:
* Ask good questions.
* Have fun.
* Build great relationships with your children.
* Build great mathematical thinkers.

mathsmentor.info mathsmentor.info

If you want to renovate your home but couldn’t do so because of financial problems you can avail online home improvement loans. It can be used for purchasing new furniture, painting, buying equipments etc. Online home improvement loans are basically of two types secured and unsecured.

BASIC INFO ON ONLINE HOME IMPROVEMENT LOANS

Online home improvement loans can be availed for renovating your home. Online home improvement loans can be availed in tow forms secured and unsecured online home improvement loans. Secured online home improvement loans require a security to be placed against the loan amount. You can place any of your personal properties like home, car, important papers, bank account etc as collateral with the lender in order to avail secured home improvement loan. But no such collateral is needed to avail an unsecured home improvement loan. The loan amount depends upon the value of collateral. You can avail a large sum as loan by placing a high equality collateral. The interest rate and repayment duration also depends upon the type of loans. Secured online home improvement loans carry lower interest rate and flexible repayment duration compared to unsecured online home improvement loans. It can also be availed by people having bad credit history due to arrears, defaults, IVA, CCJ, bankruptcy etc.

ADVANTAGES OF ONLINE HOME IMPROVEMENT LOANS

Online home improvement loans can be availed at very low interest rate by placing a security. In case you don’t want to risk your property you can opt for unsecured online home improvement loans. It is also open to people having adverse credit status. Such people can increase their credit status by paying the loan installments regularly. Online home improvement loans are approved very easily and are hassle free.

ONLINE HOME IMPROVEMENT LOANS: APPLICATION

Applying for online home improvement loans is very easy. All you need to do is fill up an online application for giving details like, amount of loan you want to avail, type of loan, period for which you want to avail, contact details etc. Within few hours lenders will contact you with their offers you can use search engines to look for lenders providing online home improvement loan. With few clicks you can get loan quotes from various lenders and then you can compare between them to select the offer that suits your needs the best. Being online the process of approval of online home improvement loans is very faster, hassle free and also less paper work is required. With online home improvement loans you can renovate your home without bothering about the expenses.

Mathew Kenny is offering loan and financial advice for quite a long time. He is working as the senior financial consultant with Easy Cash Loans. To find cash loans UK, Instant cash loans, Easy cash loans visit easycashloans.co.uk/ easycashloans.co.uk

Starting college is a big milestone in anyone s life. In some families, starting college is almost like getting married – it s a big step, a giant move towards independence. Everything that happens during college counts towards the future – that s why it s so important for students to start college on the right footing.

First of all, see if you have everything all pinned down before you start college. If your college is going to be quite a distance away from home, you ll need to find a place to stay. And if you ve already found a place to stay, you ll need to find roommates who can share the rent with you. You re only starting college and finances are going to be tight – with someone sharing the place with you, you can bring the expenses down.

The next thing that you have to decide on before starting college is the mode of transportation. Your options are…college car, a motorcycle or a bicycle. The mode of transportation depends on how far you are going to be housed from the college. If you re within college campus, you can probably start with a bicycle. If you re located outside the college campus, you might need a car to get you around.

Next, go shopping for college clothes. A whole new wardrobe is necessary only if you are moving to a place where the weather is very different from where you live, for example, your home is in Maine and your college California. Otherwise, you can probably live with what you already have in your wardrobe. If you don t know the kind of clothes you will need for college, why not factor the cost of a new wardrobe into your starting college funds. You can go do some shopping when you ve started college. Living on your own and starting college also means that you ll have to do some calculations on the use of kitchen utensils (getting some of your own is a good idea), and also some entertainment. Yes, you re starting college but you still need to have some fun once in a while.

Starting college means that you re probably going to need your own computer, printer and scanner too. Most colleges have these facilities in their college campus. The options are:- buy new ones if you can afford it before you start college, buy second-hand ones, loan one from your relatives or parents, use the ones available in college or pay for the services in Internet cafes where these facilities are widely available. Research the area near the college and see if there s a need to get your own electronics. If you can save the money for something else, you can start college without it and use the ones in the college first.

If you have reasons to want to move tables, beds, furniture and shelves from home, this could save your parents some money. Starting college is already ripping the bank accounts apart, so, if you can save on furniture, why not? If you re bringing the furniture from home, find a relocating service contractor to help you move the furniture to your new place.

Most importantly, before starting college, you ll need to get a list from your college so that you can purchase the books before college starts. It is best that you start college on the right footing, so, don t wait until all the books are gone.

Dakota Caudilla, journalist, and website builder Dakota Caudilla lives in Texas. He is the owner and co-editor of your-college-life.com your-college-life.com on which you will find a longer, more detailed version of this article.

With over 1,300 UK credit card providers, the credit card industry in the UK has mushroomed beyond all recognition in the last decade. Nonetheless, much like at any other time during which credit cards have been made available to us in Britain, once we select a credit card provider we rarely change. This does beg the question: “Is your UK credit card doing you credit?”.

Competitive interest rates

With the publication of the recent Office of Fair Trading report on excess interest and fess being charged by UK credit card issuer, many credit card providers in the UK are now having to re-examine the interest rates they charge. Consequently, it is possible to obtain extremely competitive (for credit card use) interest rates at the moment. Do be left behind, make sure your card provider is offering you the best rate of interest available in the market place.

Minimum fees

Some credit card providers charge their members an annual membership fee. Others charges what are known as hidden fees if they fail to make repayments on time, use an ATM to withdraw money, conduct transactions overseas, etc. However, with the cut-throat nature of the business at the moment, you should be able to make sure you get a provider willing to offer you a credit card without you having to incur these fees.

Make your credit card loyalty program work for you

9 out of every 10 UK credit card users now chooses to have a credit card provider that also offers a loyalty program that we like. However, more than 1 in 5 of us neglects to redeem our loyalty points in a timely manner. This is estimated to be a net cost to credit card users of £50 per issued credit card. If you are not making maximum use of your loyalty program, then you are not making maximum use of your credit card and your credit card is not doing you credit!

In need, transfer your credit card balance

Credit card providers have caught on to the trick where credit card users transfer balances from one credit card provider to another in order to take advantage of special introductory promotions. However, if you’re on of the 6 out of every10 Britons’ who carries over a credit card balance each month, and are stuck with paying high credit card interest, and have not investigated whether or not you might be able to reduce this burden by transferring your balance to a promotional program with a lower rate of interest, then you are not making maximum use of your credit card.

Be willing to look at the competition

Finally, whether you are credit card user who like to pay off their balance in a timely manner at the end of each credit card statement payment day, or one who carries over a debt on your credit card each month, the most important thing about using credit cards in the UK today is that you educate yourself about what is going on in the UK credit card industry and that you be willing to swap and change provider to meet your individual credit card needs. In short, similar to staying with the same employer throughout your working life, the days of staying with the same credit card provider throughout your adult life is a thing of the past.

Joe Kenny writes for the Credit Card Guide, offering the latest cardguide.co.uk/ 0% credit cards, visit today for introductory cardguide.co.uk/transfers.html 0% balance transfer credit cards and start clearing credit card debt today.
Visit today: cardguide.co.uk/ cardguide.co.uk/

If you have ever fallen behind on your debts you already know
that dealing with your creditors can be a hassle. Sometimes
it can be downright humiliating. It doesn’t have to be that
way.

With millions of people experiencing financial problems it
is absolutely necessary for everyone to know and understand
their rights as a consumer.

Federal law requires that you receive fair and equal treatment
from businesses issuing credit. This law applies when they
evaluate your applications for credit, insurance, employment,
and even leases.

The one area where I receive the most complaints are from
individuals that are being harassed by debt collectors. These
complaints range from debt collectors contacting their work and
family members to being called names. All of these are a direct

violation of the Fair Debt Collection Practices Act (FDCPA).
This article spells out exactly what your rights are as a consumer.

I have copied some areas of this article directly from the
Federal Trade Commission’s web site to ensure that the
information is explained exactly as the law applies. These
areas are identified.

The FDCPA lists the following guidelines that must be followed
by all debt collectors:

(Copied from the Federal Trade Commission web site)

—————————————————————-

~~Debt collectors may contact you only between 8 a.m. and 9 p.m.

~~Debt collectors may not contact you at work if they know your
employer disapproves.

~~Debt collectors may not harass, oppress, or abuse you.

~~Debt collectors may not lie when collecting debts, such as
falsely implying that you have committed a crime.

~~Debt collectors must identify themselves to you on the phone.

~~Debt collectors must stop contacting you if you ask them to in
writing.

It also prohibits debt collectors from engaging in unfair,
deceptive, or abusive practices while collecting these debts.

—————————————————————-

It is very important to keep a record of any contact you make
with your creditors especially when there is a dispute or
misunderstanding regarding your account. You should list the
name and address of the company, date and time of the call, the
name of the person you spoke with and the content of the call.
I have developed a form that can be used for this purpose. You
can find it at homemoneyhelp.com/ccrs.html

Another important aspect of your consumer rights is Credit
Reporting. Derogatory information in your Credit Report can
have serious consequences. It is ultimately your responsibility
to ensure that the information in your credit report is accurate
and up to date.

There are numerous companies that offer “Free Credit Reports”,
however, you are obligated to sign up for their “Debt Monitoring
Service” which usually costs about $80. You will receive a free
credit report and if you cancel your monitoring service within
30 days it will cost you nothing. Your best bet is to order your
credit report directly from a Credit Reporting Agency. It will
only cost you about $9. Below is a list of the three main
companies:

Equifax
PO Box 740241
Atlanta, GA 03074-0241
(800) 685-1111

Experian
PO Box 2104
Allen, TX 75013-2104
(888) EXPERIAN (888-397-3742)

Trans Union
PO Box 1000
Chester, PA 19022
(800) 916-8800

I would advise you to visit the below link to find out exactly
how to obtain your credit report:

pueblo.gsa.gov/cic_text/money/fair-credit/fair-crd.htm
Having knowledge of your rights under the Fair Credit Reporting
Act (FCRA)can save you a lot of time and trouble when you apply
for credit. The following explains these rights.

(Copied from the Federal Trade Commission web site)

—————————————————————-

Your Credit Report
Your credit payment history is recorded in a file or report.
These files or reports are maintained and sold by “consumer
reporting agencies” (CRAs). One type of CRA is commonly known
as a credit bureau. You have a credit record on file at a credit
bureau if you have ever applied for a credit or charge account,
a personal loan, insurance, or a job. Your credit record
contains information about your income, debts, and credit
payment history. It also indicates whether you have been sued,
arrested, or have filed for bankruptcy.

The Fair Credit Reporting Act (FCRA) is designed to help ensure
that CRAs furnish correct and complete information to businesses
to use when evaluating your application.

Your rights under the Fair Credit Reporting Act:

~~You have the right to receive a copy of your credit report. The
copy of your report must contain all of the information in your
file at the time of your request.

~~You have the right to know the name of anyone who received
your credit report in the last ~~year for most purposes or in
the last two years for employment purposes.

~~Any company that denies your application must supply the
name and address of the CRA they contacted, provided the denial
was based on information given by the CRA.

~~You have the right to a free copy of your credit report when
your application is denied because of information supplied by
the CRA. Your request must be made within 60 days of receiving
your denial notice.

~~If you contest the completeness or accuracy of information in
your report, you should file a dispute with the CRA and with the
company that furnished the information to the CRA. Both the CRA
and the furnisher of information are legally obligated to
reinvestigate your dispute.

~~You have a right to add a summary explanation to your credit
report if your dispute is not resolved to your satisfaction.

—————————————————————-

If you believe that your rights have been violated under one of
these laws you can file a complaint with the Federal Trade
Commission online at:
https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

While these laws won’t eliminate your obligation to pay your
just debts they can prevent debt collectors and others from
taking advantage of you.

Terry Rigg is the author of Living Within Your Means – The Easy
Way homemoneyhelp.com/ebookadpage.html homemoneyhelp.com/ebookadpage.html and editor
of The FREE Budget Stretcher Newsletter and Budget Stretcher
web site homemoneyhelp.com homemoneyhelp.com. He has 25 years of
experience counseling individuals and families concerning their
personal finances.

Parenting absorbs another irony as teens and pre-teens move off to the range of summer acting camps, in order to learn the arts of creating real-life character dramatizations. Script analysis, language and diction, the relationship of actor to camera, lighting, sound, stage design, TV versus 16mm film versus video, and much more in the latest generation of performing arts summer camp programs.

What Goes Into A Summer Drama Camp? From a high-impact high-intensity weekend workshop summer theater camp to 2-week long arts programs, your budding teen stage or screen artist gains small group highly personalized instruction in the creation and delivery of believable performances projecting entirely new characters. Truthful characterization, the immersion process that results in a young actress totally absorbing a learned role, means overcoming shyness through instruction, while adopting the physical and psychological attributes of a newly acquired character…just like witnessing an acting session by an emerging Tom Cruise, Marlon Brando or Robert Duvall or Kate Blanchard.

Acting Camp – Writing Development. In any multi-faceted performing arts summer camp, the “total artistic” composition includes the dynamics of creative writing…establishing a plot…developing artistic tension through events and dialogue…creating characters with depth and nuance…weaving the various characters into a plot…ensuring that the film score or stage play conforms to the timing limits of the performance. All this and more adds to the creative writing immersion experience for young actresses and film makers.

Summer Theater Camp – Learning About Directing. Making Star Wars or producing weekly Comedy Central programming combines the best of creativity, scripting analysis from the writers pool, selection of actors and actresses best suited for each role, understanding and manipulation of the various staging, lighting and sound technologies, as well as creating budgets and producing to a due date time table. Teen actors looking to enter the entertainment and creative arts industries use summer acting camp as an exposure experience to learn the skills and responsibilities of directing. Rule? Know what a director knows and you ll become the very best actor you can be!

Summer Acting Camps – Technologies Unwrapped. What s the difference between a 16mm camera, a pocket held digital camera or a video camera? How does daytime lighting…mixing artificial with natural sunlight …compare with night time stage sets? How do you create the ideal camera crew? How many people are required? How many cameras? What sort of post-shooting editing is necessary to finish an “in-the-can” theater or film project? What sorts of sound equipment, microphones and placements are available, and from how many separate input channels? The top theater camps set the foundation for future actors jobs. Just ask any Oscar winning actress, writer or director.

Scheduling, Enrollment Tips And Costs. Pure acting camps or musical theater summer camp programs more heavily focused on song, dance and dramatic theme vary on curriculum format…expect enrollments to be small-group oriented unlike a summer sports camp…enrollments typically fill out quickly pre-summer, yet for older actors and actresses can lead to all-year theater jobs. Costs vary from New York to California and spots between…estimate up to $200/day or more depending upon the location and whether leading stage and film actors and actresses provide workshops…add your travel costs…remember to throw in “spending money” for incidentals. Check to see that the summer acting camp maintains current wide coverage indemnity insurance to protect your child against unforeseen risks.

The Acting Bottom Line. Imagine the gain in knowledge, self-expression and confidence as your daughter or son completes a total immersion performing arts summer camp, returning home to star in a local production, or prepare themselves for a college acting degree program or launches their film or production career!

Learn More About Acting Camps.
Please go to the following links for additional details on teen summer acting camps for your family s needs.

Info on Acting Camps: wise4living.com/kidcamp/acting.htm wise4living.com/kidcamp/acting.htm

Info on Teen Summer Camps: wise4living.com/kidcamp/ wise4living.com/kidcamp/

Author Robin Derry is publisher for wise4living.com/ wise4living.com/ a specialty knowledge site that gives insights and solutions into specialty summer acting camps programs, auto tire and wheels technology trends, medical spas, home and gardening projects such as decks and deer fencing, technology trends, unique gift designs, HDTV and home entertainment systems, technology gifts, tips for families committed to youth summer camps, body health, household, sport, travel, footwear, education, spendthrift trusts and family law legal needs, and much more.

Chris Lofton, the Tennessee guard may not see much action on Tuesday against LSU after missing two weeks of games with a sprained ankle. Since January 20th, the day he got injured, the Southeastern Conference’s leading scorer has missed four games against South Carolina. He has been listed as doubtful for each game, and while he dressed for the last two, Pearl said he would be available for emergencies only.

Chris Lofton, is going to try and play who knows how much he’ll play and how effective is he going to be. Lofton, only a junior, is averaging 21.5 points. He missed games against Mississippi, Kentucky, Georgia and Florida. The Volunteers (15-8, 3-5) lost three of those games, beating only Georgia.

John Brady LSU’s coach is preparing for Lofton to play. It is almost certain that Tenesse will shoot him out last minute as a surprise. So LSU is going to have to pay attention to him and guard him and put their best defender on him and give a lot of help off some screens and hopefully from the layoff he won’t be as sharp.

It is common knowledge that Lofton could struggle to change directions on defense, and he may be slower driving to the basket or running on fast breaks. Chris struggled last year against at LSU, a loss for Tennessee. He was held to a season-low two points on 1-of-7 shooting from the field. So if we analyze it makes it a really tough game for Lofton to come back to.

Ally White is a top senior copy writer on sportsbook action for instantactionsports.com instantactionsports.com
Feel free to reprint this article in its entirety on your site, make sure to leave all links in place and do not modify any of the content.

We touched briefly about common investing pitfalls here. Here is a more comprehensive list. Some of it may happen to the more experienced investors as well. This serves as a guide for Novice Investors:

Investing with debt. You should not invest when you still owe a lot of money in your credit card. Credit card interest can run to as high as 20% while in the long run, investing in the market indices can give a 10.1 % return historically.

Not Starting Now. By now, you should have known that compounding works its magic in longer time frame. The sooner you start, the longer time you let compounding do its magic and the larger your savings will be at retirement age.

Investing based on stock tips. Stock tips are just that, tips. It is supposed to help you invest but not giving you a shortcut. Doing your own due diligence is an absolute must even when you get stock tips from the so-called professional.

Investing for the short-term. The easy access of internet makes it cheaper for small investors to buy stocks online. However, short-term trading is not going to work, no matter how small your commission is. It is extremely hard to predict short-term movement of stocks. Traders come and go and those that stay seldom beat the market in the long run. Furthermore, what do you prefer? Spending a few hours each week and making a 14% return on your investment? Or spending 8 hours a day where the odd of beating the market is slim?  I would prefer to spend just a few hours a week, of course.

Buying stocks because the price is ‘low’. Yeah. That’s right. It is tempting for a lot of people. They figure, if a $ 1 stock can rises a few cents, they will make 20 or even 50 % of their investments !! Sure, you can. But the reverse holds true as well. With a few cents of movement, you can lose 20 or even 50% of your investment !

Investing in sectors you have no clue of. Biotechnology and RFID sounds cool. However, unless you are really really familiar with it, there is no reason to invest in it. You may know how Voice Over IP works, but do you know how does the company make money? If you don’t, then you should stay away from it. There are hundreds of other companies that are easier to understand than how gene works.

Checking your stock price often. You read today’s newspapers and you go straight to the stock price section. You arrive at the office and the first thing you do is going to Yahoo! Finance website. You went home and the first thing you do is turn on CNBC and check your stock price. Get the idea here? While you may check your stock quote anytime you want, but your time may be best served by doing other things. Finding the next best investment opportunity is one such thing.

Paying Too Much Attention to Past Result. A stock just drop 20% in a week and you figure, hey it is cheap. It has a P/E (Price over Earning) ratio of 7 ! Isn’t that cheap? Err…it depends. If you were talking about forward P/E, then of course the stock is cheap. But if you were talking about trailing P/E while your analysis shows that this company will never turn a profit ever again, then the stock is not cheap. An example would be looking at a type-writer company during 1980s.

Lack of Diversification. Investing in one single stock can make you rich. Imagine if you have put all your money on Yahoo! in 1997. It can also break you. What if you have bought into Enron stock instead? I believe your most important investing goal is capital preservation, not capital appreciation. Once you have picked a solid company, capital appreciation will follow.

Over diversification. Contrary to lack of diversification, Over diversification will give your portfolio a mediocre return. Furthermore, having 500 different stocks on your portfolio will cost a significant amount of commission. The ideal portfolio in my opinion should consist of between 7 to 15 different stocks.

Ignoring Insider’s Activity. Insiders are generally people with ownership of a company and who know the inside working of a company. While insider selling may not be negative signs, a spike in this insider selling may spell trouble. Insider buying on the other hand signals a vote of confidence for the company.

Buying Stocks On Margin. While using margin can enhance your return in a rising market environment, the reverse occurs when your stock price drops. As always, the most important goal of an investor is capital preservation, not chasing the highest return.

The Desire to Be Fully Invested. While having all your portfolio fully invested is a good thing, sometimes keeping cash is a better thing. I would prefer my money to earn a 0% return rather than buying a stock that lost 50% in value. Therefore, if you cannot find a good stock to invest, keep the cash.

Investing without knowing technical analysis.  We believe in investing for the long haul. However, it does not mean that we blindly buy any stocks that look undervalued. Supposed a stock A is undervalued at $15. If technical analysis predicts a steeper fall, would you still buy it? Of course not. We would rather buy the stock A at a lower price if all else remains equal.

Unrealistic Investing Goals.  You heard somewhere that TravelZoo (TZOO) rises 20 fold in 2004. That’s right. 2000% in a year. So, you figure, if you can pick 9-10 stocks and one of them rises 20 fold, then 50% annual return for your portfolio is a conservative goal. Well, not really. Think about this. Let’s say you start investing early with $ 1000 investment. If you can maintain 50% annual return for the next 35 years, your $ 1000 will grow to $ 1.46 Billion. Sure, you can have a good winning streak of 50% return for several years. But the odd is, you won’t achieve that for 35 years in a row.

You can view Hari’s other commentary at noviceinvesting.com noviceinvesting.com. Yep, it is free. No string attached.