Monthly Archives: March 2014

In Investing, Emotion Stronger than Fact

invesmentRegret and pride become the benchmark for stock investors, according to a recent study. This nullifies the assumption that the objective facts into the back of people to invest in stocks. And this phenomenon continues to occur even though it is known that emotional factors could plunge into bankruptcy or loss.

Brad Barber, a lecturer Graduate School of Management at the University of California stated, after selling its shares, investors are usually upset while watching the stock price has risen steadily and especially because of remorse for having sold it.

“They expect that disappointment and regret will increase in intensity if they do not buy a stock than buy it back. So investors are more likely to repurchase stocks previously sold for a profit that is redeemable under the price at which they sell,” he said as reported by the Futurity .org.

Barber and his team have conducted a number of studies over the years about the stock market and investors. The analysis implies that investors often make decisions based on emotions such as regret, disappointment, satisfaction and even proud. His findings were published in the Journal of Marketing Research.

How to Set up Business Finance

Business-InsuranceOne of the requirements in order to continue our efforts to develop and manage finances. Despite efforts lived including small-scale businesses, but not to be ignored finances, when it happens the same as suicide. Organize business finances is essential to know the profit or loss earned in a business.

Problems often occur, small business entrepreneurs have limitations in understanding the financial system. And if you quickly understand, small business finance you may run with fairly simple.

Here are simple tips that you can do in managing business finances.

Creating separate financial

Often small businesses do not separate the business financial the financial own. The reason is, because his business is still small, so it is not complex. The way it’s wrong. Despite its still relatively small must use a different wallet or a different bank account. Do not let the money be used for personal business, so create two separate accounts, if you need additional capital from private funds then considered a loan that must be returned.

Ask for help calculate financial statements

If you are not able to manage your finances well, you can involve others to help in calculating your business finances. In this way can reduce the risk of errors against your efforts.

Calculate the expenditure and income

If you are just starting this venture, count the needs of start-up funds that had been prepared beforehand. this is done to ensure sufficient capital to run a business owned by one year forward estimates even some of the old capital could be returned. You many examples of calculations that you can be better than online media, or at the bookstore.

· Do not underestimate all the expenses

No matter how small the expenditure incurred to run a business, lest you underestimate costs. Although it’s just buying a dish for guests, transportation, purchasing pens etc. You buy it with money, and effort for the benefit of the business, so it should be recorded. From here you can see the post is there any excessive costs or even less.

· Do not ignore all receipts

Developed and developing your business from revenue. If you sell goods and forget to charge, of money your income will fall apart. So do not ignore the acceptance slightest. Small businesses will benefit if you pay attention to inclusion in the business.