Kivisild.net

5 topics to make it clear

It is recommended not to use emotions at all, when dealing with money. Clear mind should be used. Unfortunately, quite high percent of investors and traders are still losing money. They invest more and more money, when the shares are growing and selling when shares are falling. This strategy is not quite correct.
I will try to explain some topics in how to invest a little bit more effectively and in bad times keep as much money ‘alive’.

1. Do not react on everyday news.

   It is useless to react on everyday news. There is not a better possibility just not to touch invested money into good company, and wait to see the it growing.

2. Do not ignore your investment strategy.

   Make a plan, and follow it. This fill definitely maximize your income and minimize loss. This is quite difficult, because of the simple human nature- fear, that you will loose everything. Emotions will make all your great plan for buying a yacht disappear at once. Take it easy.

3. Panic because of the stock market fluctuations.

   Use this possibility instead of being part of it. The price goes down- buy good companies shares for low price! Remember, when everybody is selling - buy, and sell when everybody is buying ( the selling is mainly for traders, investors could use the cheap price to enter the market).

4. Refusing to invest into shares when market is down.

   The most successful investors were buying shares when everybody else were selling them. This is not easy at all. But isn`t it crystal clear- you are buying shares for low price, meaning they will give you back later much more. Of course, only good companies do…

5. Keep adequate resource distribution.

   You should regularly check your resource distribution. Meaning all your money is correctly disturbed, depending on your strategy, whether in shares, cash or funds. When shares price is falling, for example, you could decrease shares percentage in you capital.

Bush plan to ‘help’ financial market has failed. The reaction was momental.

At the moment :

S&P 500: 1 117.85  Change: -7, 84%

NASDAQ: 1 983.73 Change: -9, 14%

Oil price has dropped around 10%. But the oil is not so big problem. The prices will be held up, because the oil production will be lowered. Anyway…

USA has lost their hope? It was planned to give Paulson an immediate $250 billion to buy bad loans. So the credit flow to U.S. would be restored. Unfortunately, now the banks are on their own, and writing off other billions- is not an option anymore. If Bush hoped the tax payers will save economics, now nobody will do that.

But if we will look from another angle? Will it be really enough to cover the loans and restore economics. I don`t think so. The main idea is in ‘keeping the banks operational’ with minimal expenses at minimal price.

This will certanly not be a solution…

World crisis
Even the World has problems

The economic world is very unstable now. Biggest problems are coming from USA. Yesterday biggest USA bank Lehman Brothers was declared bankrupt. AIG - biggest USA insurance company is near collapse. And I need not to mention, how many world companies depend on those organizations. And at the moment the market continues to fall…

Everything started with mortgage lending in USA. People had no money to pay for their real estate. Banks started to sell property, but nobody was able to buy. Here started the vicious circle. People can not pay, banks have no money, because nobody pays back loans and real estate is standing without owners. So the real estate value started to fall. People are not able to pay back loans. In the beginning billions of dollars were write off (around 400$ billion). But unfortunately, this was not enough. World was reacting on that situation, investors were selling the shares, bank loan percents started to grow. Now USA has a lot of economical problems, other bankrupt will be declared. This will continue until the real estate market will stop to fall. Government and banks are trying to stop the crisis, by investing more money, but it is already to late. And USA can not stop the problem for themselves, because of the depts.

Now let us look for the Europe and Russia. Europe can only react on world news and activities, because the biggest players are still USA, Russia, Asia. Europe can not do anything by itself, almost.

Russia. Few days also having big problems, and mainly, emotional. Russian share market was already forced to be closed two times, and the new opening time is not defined yet. Fall main reasons are: withdrawal of investments because of the war with Georgia, world crisis, oil price lowering, emotions. War in Georgia- this was a mark for investors that Russia is politically unstable, what is important point for investment(war influence is the worst one). World crisis- Russian funds, banks are connected with world banks also. Oil price- Russia last years economical grow was succeeded with high oil price, because it is exporting it. Emotions- mainly, there are not so much reasons why Russia market should fall. Major part of stock prices are undervalued, what can be proven by biggest banks target prices for shares . Of course, the world crisis is playing the biggest role.

World crisis has good name- it proves that World will suffer.

Sms- credit trouble in Estonia
This is a bad idea- pay one dept with another, bigger one…
Sms- credit is a fast money loan service, via the popular sms service in cell phones. The plan is simple. At first you register at the service webpage. After the registration you can send sms to your sms- loan service company, and few moments later you have the money on your bank account.

This is very fast way to get money. No paper job, no bank loans, etc. Sms, click- and here is the money. Now here is the main problem. The faster the money you get, the bigger problems you have. The bank loan percent is around 15% (simple money loan, no real estate), but the sms- service has 200% -300%! Imagine. It is very easy to get 50 000.- dept, when receiving a loan for 5 000.-

Unfortunately, many people do not care so much about their month budget, waiting for the next salary already in the middle of a month. Somehow the financial life should be helped, so the sms- credits are taken, what makes the situation worse. People start to paying for they flat loan by taking sms- credit, just not to loose the flat. But everything is understandable.

Survey what one of the sms- credit provider has taken had interesting results. Around one third of people, taking sms- credits own higher education. This means the problem is in financial education. Not everything is so bad, of course. The biggest part of ’sms- loaners’ are paying back loans, but why to take it at all?

Even the government started to pay attention to this problem. If in the beginning the loan interest rate was around 1000% and was only ‘one sms away’ ( you did not have to register, just sent account number, the sum, and here you go), now there is registration, and loan interest has fallen.

Never try to pay one dept with another one, never! Find another job, spend less, but never take a loan if you are not sure you can pay it back. Think about the future, and always look around the corner. The money does not just appear and disappear. When somebody is loosing money, the other one receives it.

Today I would like to introduce most extraordinary Web 2.0 projects, in my opinion. I think you should check them out.


NameThis
When the crowd decides



At first glance it is a simple naming- service, but it is not. Really this is about collective naming- service. The main idea is simple. Client pays 90 dollars, describing the product/ service etc. he want to get name. The next step is after society. Users offer their names to the customer. After 48 hours the best name is chosen and winner takes 40 dollars, 10 dollars are shared among his influencers. 2nd place user takes $16 and his influencers $4. 3rd place user takes $8, influencers $2.
Simple math, simple idea, and everybody is satisfied.

DreamBank
When the dreams come true



How often do we receive the ‘unwanted’ gifts? I think quite rapidly, but why would all your friends, relatives, co- workers just make some kind of a big fund and ask you, what do you really want? That is DreamBank about. The system is quite simple. You just register and put up you dream, for example, ‘Trip to see the Northern Lights’ or ‘Run the Vancouver Marathon for Charity’. Post your dream and how much will it cost, after what all people could help you, in getting closer to your dream. It could take days, or even years, until the fund is completely filled. But when it is, you can go, and fulfill your dream.

Podioboooks
Free serialized audio books, delivered on your schedule.



Project is concentrated on downloading from the site separate book chapters, what are not protected by the DRM. The podcast are sent by RSS feed, or can be downloaded as mp3 and then listened almost anywhere.
Podiobooks.com publishes only those books, whose author and publishers allowed that, and authors receive 75% of all the proceeds from the donations from listeners.

What do publishers have from that? It is better to say, that they are loosing nothing, but perhaps, you would like to buy the book instead of listening to 3 954 part of it…

Clip2net
Share yourself to the Internet



Simple web- publishing site. Upload photos, files…
But it is really simple, now you do not have to log in to page, then upload any files manually. With the program running, you can easily drag any files to Clip2net shortcut, and they will be automatically uploaded. Same goes to screenshots and desktop captures.

At the moment applications is still in beta- testing, but I think sooner or later if will be complete.

BlogoWar
Declaring war



BlogoWar is not another blog rating page, it is a game!

Main idea is receiving maximum ‘Unts ‘ (something like a rating). Standard blog rating is measured by traffic received. In BlogoWar, the rating is based on live traffic. This means that first place can become last one, in few minutes. This is good opportunity for novice.

How it works.
You write a post. Make link for another blog. BlogoWar finds your RSS- feed , after what your ‘Unts’ is growing, but the ‘Unts’ of a blog you have in link is falling. As any online game, it also has experience, money (for money you could buy weapons, and kick down other rivals).

Place where you can not only enjoy ‘playing’ but get some traffic to.