10 Ways You Can Become a Better Investor

The stock market is an unforgiving beast. It can reward those who do their homework, and take remorselessly from those who blindly throw it money. Countless millions of investors feel they have the investing prowess to go against some of Wall Street's finest, only to eventually take it on the chin. It'd be foolish to think that you'll be successful all of the time, but I do have ten methods you can follow that should make you a better investor.

1. Avoid pack mentality

This might sound like a no-brainer, but it pays to think for yourself. Don't get me wrong -- it never hurts to pay attention when Warren Buffett tells you what he's buying, or take notes when David Einhorn tells you what's on his short list. But marching to the beat of your own drum could mean the difference between huge returns or hefty losses. Just because Sirius XM (Nasdaq: SIRI) is a popular play, doesn't mean it makes for a good investment. Sirius's technology might be found in many new cars, but I question how it will pay off more than $3 billion in debt when it has thus far struggled to maintain profitability.

2. Know your horizon

The next step is to establish your investment time horizon. Younger investors will have numerous decades to accumulate wealth, while baby boomers are preparing to live off their retirement nest egg. Knowing whether you're an active trader or a long-term investor is essential if you want to make your investing strategy as effective as possible.

3. Know your limits

Understand what level of risk you're willing to tolerate. For instance, Tesla Motors (Nasdaq:TSLA) has proven clean-energy technology. But the company has been unprofitable so far, and it has more questions than answers. Given that it's likely to be volatile in the years to come, I wouldn't recommend the stock to a baby boomer nearing retirement. But younger investors might want to be more aggressive, since time is on their side.

4. Understand what you own

It's imperative that you not only understand what the companies you own do, but why you bought them in the first place. For instance, I definitely wouldn't put any of my own money into shares of Krispy Kreme (NYSE: KKD), even though I'm a big fan of their donuts. Krispy Kreme doomed itself by expanding beyond its financial means in 2004, and it's shuttered numerous stores in light of its crippling debt. The lesson: Don't just invest in what you know. Pick growing businesses in which to invest your hard-earned cash.

5. Accept that you're not perfect

This is absolutely the toughest suggestion to take to heart, because even I sometimes refuse to admit defeat, but minimizing your losses needs to go hand-in-hand with maximizing your gains. One of the worst losses I took came in August 2009, when I bet against the SPDR S&P 500 (NYSE: SPY). It rallied along with the rest of the market, and it's now 90% above its 2009 lows. I continued to ride that loss upward, despite improving economic news. Remember not to let portfolio potholes become sinkholes.

6. Invest in increments

Once you've found that perfect company, remember to edge your toes into the water before you jump in headfirst. Investing in increments removes most of the "all-or-nothing" emotion, and keeps you from adding to losers which can burn a hole in your pocket. As an example, integrating streaming media with its traditional DVD mailing business took Netflix (Nasdaq:NFLX) years to accomplish, but its subsequent soaring subscriber growth has rewarded long-term shareholders with triple-digit gains.

7. Stop paying Uncle Sam

Although this may not always work perfectly, it pays to keep track of when you buy and sell stock. Short-term capital gains taxes can be as unpleasant as 35% for those in the highest tax bracket, while long-term capital gains taxes never eclipse 15% across any tax bracket. In the end, a profit is a profit, so you shouldn't hesitate to lock in gains. But taking your investment horizon and goals into account should help to determine whether holding for a longer durationmight indeed save you money.

8. Pay yourself instead

Instead of giving your money to Uncle Sam, put it to work in companies that will pay you. Consumer giant Clorox (NYSE: CLX) has dozens of popular brands in its portfolio, including Glad and Brita, that provide financial stability during rough economic times. It also has a rock-solid dividend yielding 3.4%, which has provided dependable income over the years. Dividend-paying stocks have historically outperformed those which don't pay a dividend, so why not give yourself a raise?

9. Set clear goals

Sure, we'd all like a billion dollars, but setting clear and reachable expectations from our stock picks can help us determine the best time to sell. Often, when I'm purchasing a stock, I have a set level at which I aim to take profits. This level can change as the fundamentals of the stock change, but I always have a sell target in mind. So should you.

10. Invest in yourself

Some view paying for books or financial newsletters as a sign of weakness. On the contrary,investing in yourself is the smartest move you can make. The stock market is really just a never-ending sea of data that needs deciphering, and you shouldn't shortchange yourself when it comes to your retirement.

5 Car Insurance Surprises

Responsible car owners need auto insurance. But not all policies are alike, and a little investigation can pay off handsomely. Start by making a list of the features that appeal to you. Then see which company can offer the policy you want at a price that works for you.

All is forgiven

Filing your first claim from an at-fault accident no longer guarantees that your rate will go up. Some insurers offer an "accident forgiveness" benefit, for which they'll go easy on your first such claim. Ask your insurer whether it offers such a service, and whether you qualify. Some insurers expect you to have been with them for a few years first; others offer it right away.

This kind of coverage can cost you a little more, but the peace of mind it offers may be worth it to you.

Good guys finish first

Doing the right thing doesn't always get rewarded in life, but it can where car insurance is concerned. If you're a good driver with a clean record, you'll pay less for car insurance than others. This can make a considerable difference. If you're a "high-risk" driver laden with tickets and/or accidents, you can expect to pay 10% to 15% more than a good driver on average. If your policy costs you $1,500, that's an extra $150 to $225 per year.

Having good financial habits can pay off, too. A high credit score can lead to lower insurance rates, among other things. If your score is among the lowest, you may be charged several thousand dollars more than a high-scorer. (This is a good reminder that even if you think your credit rating is high, it's worth getting a copy of your credit report just to make sure, so that you can correct any errors.)

Breakdown insurance

Some insurers (and even some credit unions and other financial firms) now cover repairs to your car. These policies offer benefits beyond your car's regular warranty; they can pay to fix just about every kind of mechanical problem, not just the drive train or major systems, and the policies apply to work done at a wide variety of shops, not just at a dealer. Older cars with more mileage may not qualify, though.

If this costly coverage seems like more than you can afford, consider another option: Just pretend to buy it. Put the cost of the premiums aside in a special account. Then, if you run into costly repairs, you'll have some money ready to pay for them. If not, you can keep the money -- perhaps to help pay for your next car.

Make and model matters

You probably know that certain cars will be more expensive to insure than others. High-priced cars with steep maintenance fees, or frequently stolen models, will doubtlessly command a premium. It pays to consider this when you're shopping for your next car.

It's also a good reason to shop around for the best insurance rate. Even given your particular make, model, and year, insurers can vary widely in the premiums they charge. A few extra phone calls or online quotes could save you several hundred dollars a year.

Payback for diminished value

Your insurer will repair your car after it has been in an accident, but let's face it -- it will never be the same. Some insurers will compensate you for that with a "diminished value reimbursement." It's only available in 14 states at this point, though, including Florida, Texas, and Virginia -- and only if you weren't at fault in the accident.

Close the gap

Finally, consider buying some "gap insurance" to protect yourself, in the event that what your insurer will pay for your totaled car won't be enough to pay what you owe on it. Imagine that you take out a car loan to buy a $30,000 vehicle. If it's totaled later, when it's only worth $20,000, and you still owe $25,000 on it, you'll still have to cough up $5,000 beyond what your insurer pays you -- in addition to the cost of a new car. That's where gap insurance can come in handy.

Insurance for cars is more multifaceted than you might think, so be sure to shop around. A recent study by Consumer Reports found that 14% of its subscribers would save money by switching insurers. Learn about all the options available, and decide what makes the most sense for you.

Accounting Tips - Free Helpful Tip For Merchant Account

Divide your Direct Deposit into multiple accounts. Putting money in the bank manually can offer a sense of control with the sensation that you know how your money is being deposited every pay day. Nonetheless, after receiving every take a look at, if you've got to cash it first in your checking prior to moving some to your high-interest account, you'll be looking for trouble. A good way to avoid spending your money prior to you will be able to save it, is to have your employer route some of the cash from your salary directly into your deposit account. This way, you won't run the danger of defaulting on your saving agenda .

If you are searching for information regarding checking account online, you will get following related article very useful. It provides a cool point of view that is much related to accounting programs and in various style related to interest savings account, small business accounting software, managed forex account or savings account rate. It isn't the similar old type of information that you will locate elsewhere on the Internet connecting to savings account.

Depending on your goals, a deposit account would possibly not be your best option. As an example, if you would like to have a minimal risk investment that returns a good quantity of interest, check out Certificated of Deposit ( CDs ). The only drawback is that you have got to commit your money for a designated period of time - sometimes a quarter to five years. The longer you leave your money in a CD, the more well off you might be when it's time to money out. CDs are FDIC insured up to values of $100,000.

A web high-interest account is intended to hold the money you do not plan to use right away. Unlike checking accounts, it has a tendency to pay a little higher rate. Many of these accounts work like a piggy-bank because they add money to your existing checking accounts. If you'd like not spend cash in the future, you can move it into a savings account. If you decide to use it, you'll be able to easily transfer it right back. In a number of cases, you'll even pay bills directly from your saving account.

MEANWHILE -- I hope you have been able to get a full grasp of the main points related to internet merchant account or other related online checking account, cpa, accountancy, accounting course online, bookkeeping accounting and banking account in the first half of this article. Whether you answer Yes or No, keep reading as there is a lot more to uncover in this article that will excite you.

It's daunting to put your hard-won cash into an account, only to watch it diminsh due to ATM charges, debit costs, monthly use charges and other nickel-and-dime expenses. Some banks charge you cash at the drop of a hat. Others offer free checking, free ATM and cash card use, and no monthly payments. Check out one or two banks prior to you set up a checking account.Also, ask concerning overdraft protection. Some banks offer it absolutely free.

Open accounts that carry penalties. This could appear like a strange path to take, but it's an excellent idea to open accounts which will penalize you for withdrawals and falling below a minimum daily or monthly balance. This will help pressure you into saving cash instead of just putting cash in the bank that you may withdraw only a few days later for an enjoyable shopping orgy. With this sort of account, you'll learn the meaning of what it means to be financially trained.

POSTSCRIPT -- If this article didn't succeed in educating you about small business accounting, it obviously either entertained you or informed you, right?

If you'd rather have fast access to your cash, consider a money market checking account. These account return an increased rate of interest than regular savings accounts. Some banks need a set deposit to open money market accounts, and there are typically limits on the quantity of withdrawals you can make each month. Speak to your bank for details.

Free Credit Score Check – How you can increase your credit score

Credit score is extremely important for individuals especially when they need financial services. Most of the people know that credit status plays important role while purchasing a loan, credit card, car, or home. But they are now aware that this score can affect eligibility of employment too. It is impossible for people to spend huge money just to check the credit score every year. Government of United Kingdom made a policy where every individual got a right to get free credit score once in a year. According to experts, it is necessary for people to keep a close eye on credit score. A credit history always reflects the true picture of past financial mistakes. If credit holders do not want to waste time and money while visiting credit bureaus, they can get the online credit score from home.

If one knows his credit score then he or she can avoid discomforts on loan availability. The credit score report shows the amount of debts that currently has its proportion to actual income. This is extremely helpful in ascertaining whether or not borrowers are ready to take on a major financial responsibility like buying of a house or new car or even moving to a different State. In the United Kingdom, there are three credit bureaus which determine the credit report of the borrower.

Take advantage of free credit score check so that one can see just what kind of adjustments he need to make on his budget. It might take a lot of scrimping and considerable reductions on expenditures every month in order to restore balance but you can get there in time. Better debt management can increase current credit score and overall credit worthiness of credit holders. In most respects, one can rectify the errors he has done when it comes to spending and debt management. It is quite easy to access free credit score check online. All it takes is filling out the fields in the online application and wait a few minutes for it to be processed. Once an applicant has the information, he can print it out so that he can refer to it anytime he needs.