Description: The article is about sdccu login. As a part of the ongoing Managing Your Money seminars presented by SDCCU, the author analyzes some bad financial habits including getting in on hot stock tips, buying sinful stocks, doing socially responsible investment and reaching for yields.
I came across a neat little article about seven bad investing habits. I’m going to do these quickly,they will make a lot of sense. This comes from a book that I’ve never heard of,it’s called Heads I win Tails I win,it is written by Spencer Jacob. He talks about the seven bad investment habits.
Number one,get in hot new deal. Somebody tells you about a hot stock tip,they said that there’s a hot IPO that you need to get into,I listened to some satellite radio and they’re running these advertisements on satellite radio for some IPO which is ten cents a share.
It’s throwing your money away,but they make it sound like that it’s going to go to $100 a share immediately. Don’t chase hot deals. There’s one item that I find fascinating on its list. This comes up all the time,it is combining your money and your morals.
This is interesting. Sinful stocks are tobacco alcohol and gambling. Investors who are morally opposed to such companies always do that. It’s not a new type of investing,it’s called socially responsible investing,you invest in companies that do good in theory.
He says that those investors who are morally opposed to such companies can consider donating some of their investment profits to charities such as the American Lung Association. It’s an interesting thought. I talked to many people who are socially responsible investors, there are a lot of great mutual funds structured for socially responsible investors,they don’t own those, but they will be morally challenged.
Number three,the market constantly votes on which companies are most likely or least likely to succeed accordingly. I heard somebody on CNBC talking about stocks,he was watching and looking out all the stocks,they were hitting new loads.
He’s looking for buying opportunities,that’s probably the worst place to look for buying opportunities. you don’t want to buy stocks that are going down especially in a market like this, other people have suggested you looking for your own stocks,you can take a look at stocks that are hitting new highs, because they’re going up for some reasons, there’s a reason why they have been consistently going up over time.
Probably it will continue. There’s an old expression on Wall Street, never try to catch a falling knife,that’s what happens when you try to buy stocks on the new low list. Reaching for yield is dangerous in these times for a number of reasons. Interest rates are low, it will stay low for a long time,that puts a lot of people in a very difficult position.
They want more money to come in from their investments, but in order to do that,they have to take some risks. It can be a frightening experience for them,it leaves them vulnerable for investment fraud. I look at the pages of the Securities and Exchange Commission and the Financial Industry Regulatory Authority all the time. These are two watchdog groups and they always have reports of the latest scam or fraud or ripoff.
Most of them are targeted toward seniors. They asked Willie Sutton a question. Why do you rob banks? He said that was where the money in. The money is in the hands of people over the age of 65,75 percent of the wealth in this country, is in the hands of people over the age of 65. Do you know an investment scam target towards a 23-year-old single man living with his parents? He doesn’t have any money, it’s not going to work for you too.
They find ways to ingratiate you,they promise you safe returns of 10 or 12 percents,they convince you that the money is safe when obviously it’s not. We live in a one-percent world,anything above that is going to carry with a certain amount of risk,that includes stocks,bonds and any other thing that they promise to generate those returns.
It isn’t as safe as other types of investments. It has been proved that people who try to time the stock market will lose money,it’s very hard to do. The stock market gives you ample opportunity to have risk, you don’t need to magnify that risk by trying to time in and out of the stock market,you may find that few people will back in. You can think of the dot-com bubble back in 2000.
There were people who quitted their jobs to day trade stocks.It was found out that about 11 percent of them made money,which means 90 percent of them didn’t make money. Don’t chase that. Those are a couple of interesting things.