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While each core curriculum will differ from school to school, most education degree programs include courses in all relevant aspects of education. These courses are designed to give you the knowledge needed to be a successful teacher.Some schools also give you the freedom to choose your own curriculum for your online degree. This means that you can decide which areas of the education field you want to gain expertise in. The ability to design your own curriculum gives you a unique background that allows you to stand out from the competition and attracts potential employers. Some concentrations for online education degrees include Elementary Education, Secondary Education, Adult Education, Distance and Online Education, Educational Administration, and Special Education.People who have their online education degrees in Elementary Education usually teach kindergarten through fifth grade. The major goals of this degree are to establish a foundation in reading, writing, math, science, history, and the social sciences for all children. The courses in this field are designed to prepare you to teach these major fields of study. Some course titles include Philosophy of Education, Psychology of Learning, and Teaching Methods. You may also be required to take courses in computer technology.A degree in Secondary Education is for those who want to teach middle school and high school aged children. Many individuals who get their degree in secondary education focus their training on a particular subject, such as English, math, or science. The courses in this field will teach you about different teaching techniques, curriculum development, and other related topics.An online degree in Adult Education will prepare you to teach and educate adults. This can include a teaching career in colleges, universities, and learning centers. People pursuing this degree generally specialize in a specific subject, or have work experience in a particular field. Courses in this field of study include Adult Growth and Development, Adult Psychology, and Program Planning and Development.A degree in Distance and Online Education will prepare you to work in the field of distance learning. People with this degree generally work at colleges and universities teaching their courses online. Some of the courses in this degree include Foundations of Distance Education, Technology in Distance Education, and Teaching and Learning in Online Distance Education.People who have their degrees in Educational Administration manage the activities in schools, day care centers, and colleges and universities. They can also be directors of educational programs in businesses, prisons, and museums. Many go on to be college presidents and school district superintendents. Courses in this field of study include Introduction to Educational Research and Evaluation, Policy Studies, Current Issues in Education, and Educational Leadership.People who want to work with disabled children and/or adults generally have their online education degrees in Special Education. This degree will prepare you to work with people who have learning disabilities, mental health issues, physical disabilities, and other conditions. Courses in this field include Educational Psychology, Legal Issues of Special Education, Child Growth and Development, and Strategies for Teaching Students with Disabilities.Along with coursework, many of these education degrees also require that you work in a classroom as an intern before graduation. That way, you will have the experience along with your online education degree to make a positive contribution to your students.

SEO For Small BusinessesHow can an SEO consultant service benefit your company? For a small business SEO is marketing strategy that is absolutely essential. Why do I say this? It can be difficult to compete against the big, well-known players in your field of service. Very often a local SEO consultant service can benefit because of having local knowledge of how people are looking for services and purchasing goods.Small Business SEO – It’s Benefits.Here is a list of reasons why small business SEO is necessary:SEO is marketing, not web design. It’s how your sell your products and servcies. There is no use having a slick looking website if nobody can find it. A professional SEO consultant will be able to get you a high Google ranking and keep you there. You need new customers coming to your business, which will in turn make you more money.
An SEO consultant will look after the whole process. Time is money, so with small business SEO you don’t have to spend one minute away from your business.
Compared to old-fashioned advertising SEO small business services provide great value for money.
Results can be obtained relatively fast. A professional SEO service will usually be able to get you onto the first page of the search engines between 30 – 90 days.
Return on investment is fast. Small businesses who use SEO consultancy services usually make back their investment within 90 days and within 120 days they can even double and triple the investmentHow Search Engine Optimization WorksBefore you know what you are paying for, you really need to know how SEO works. Otherwise, you can be fooled into paying for something and for services that you don’t really need or that aren’t working. Here’s the SEO basics:Research your business related keywords that people are already using, but that have medium to low competition.
Audit your site to incorporate these keywords into your website in a natural way. A professional SEO consultant will never used tricks like ‘keyword stuffing’, which can have a negative effect on your overall Google ranking. The researched keywords will also be used in webpage descriptions and titles.
Write articles based on these keywords and have them published on line. These provide great exposure for your website.
Use social media platforms like Facebook, Twitter and Google+ to increase exposure.
Build backlinks to your site.
Send you monthly reports so you know how your investment is being used.Although the SEO basics seem simple, an SEO consultancy expert knows how to use them in the most effective ways together so that you get a higher Google ranking.Free SEO ServicesMore often than not, a professional SEO consultancy service will offer some free incentives and will take a personal interest in making your business profitable. Because after all they need you to make money so that they can make money.If you are going to hire an professional SEO consultant, make sure that you check his credentials carefully. Any affordable SEO service will offer you a free website audit report so that you can see what is needed and what you will be paying for. This audit also keeps the SEO services transparent. You know exactly what they are doing and what kind of results you can expect.So before you hire any kind of SEO consultant ask for a free website audit.

When a company undertakes a search engine optimization program, whether it is performed in-house or outsourced to an SEO service, most of the attention (and rightly so) is focused on the company website. This is the one aspect where there is a feeling of control–once a website is released into the wild, the company will have to see how its site fares against all the other websites out there, whether the other sites are using ethical SEO tactics or not.Apart from changes made to the company website, the assumption is often that the company and, if it is using one, its SEO service, has zero control over what appears in search engine results. However, this is not usually the case. Often, you or your SEO service can have a direct effect on search engine results by monitoring your competitors and reporting them to the major search engines when the SEO techniques used on their site fall outside what is popularly referred to as ethical SEO. (Please note that while I believe that the word “ethical” is tossed around too often, “ethical SEO” has become the standard phrase to describe white hat techniques, and so it is the phrase I use throughout the article.)Primary CompetitorsTo start with, let’s define competitors. Almost every company has at least a handful of other companies that it considers to be primary competitors–the ones that sell the same products and services, that are of similar size, and so on. It is important that the SEO efforts (or lack thereof) of these competitors, whether they are using ethical SEO techniques or not, be monitored on a routine basis. If they have not hired an SEO service of their own, or if they have not started doing SEO in-house at all, you will have peace of mind knowing that the use of this channel, for the moment, is yours. If your competitors begin an SEO campaign, with or without an outside SEO service, you can learn much about their sales and marketing tactics by evaluating the keyphrases that they target. And you can also investigate whether they are using ethical SEO practices in their campaign.Your Online CompetitorsIt’s important to keep in mind that it is unlikely that searchers are going to decide only between you and the primary competitors you have listed. They are going to consider any company that matches their particular needs and that shows up for their search term. This is why your criteria for a competitor online should broaden to encompass any company that offers products or services like yours that outranks you for any of your targeted keyphrases. If your in-house staff or your SEO service not only continually monitors your search engine positions but also analyzes the companies that appear above you in search results, you can often identify forward-looking competitors of which you were previously unaware–your primary competitors of tomorrow.ViolationsThis brings us to the key issue of ethical SEO. Search engine optimization is still a very new concept to most companies. Even the most respected companies can make mistakes in this arena, either by choosing the wrong SEO service, or by trying to avoid hiring an SEO service altogether by bringing it in house with well-intentioned but unqualified people. For example, BMW’s German site was recently removed temporarily from the Google index for using doorway pages–something that is not considered an ethical SEO practice. It stands to reason that your competitors are also not immune to violations.Bad FirmsThere are very notable examples of otherwise smart and established companies hiring an SEO service that put them in a worse situation than before they pursued SEO–by getting their site removed from major search engines for violating the engine’s terms of service, for example. Not long ago, there was a well-publicized example where most of the clients of a Las Vegas SEO service were penalized. Almost all of the clients claimed that they were not informed that the firm was not practicing ethical SEO and that they were therefore at risk.SEO firms are generally divided into two camps–those called “White Hats” (those that use ethical SEO practices and will never knowingly violate a search engine’s terms of service) and those called “Black Hats” (those that do not use ethical SEO practices and that will attempt to unravel the latest algorithms and exploit any loopholes to achieve rankings at any cost). Neither approach is invalid–it is not against the law to violate the terms of service of a search engine. Moreover, black hat techniques can be quite effective. However, the tactics are risky, and anyone hiring an SEO service that wears a black hat and does not use ethical SEO practices should definitely be apprised of this risk up front.Internal ResourcesFirms are often tempted to avoid hiring an SEO service by performing SEO in-house, and the project almost always falls onto an already overburdened IT department. The problem with approaching SEO from a strictly technical mindset is that the strategies employed, such as the keyphrases targeted, will not necessarily be in line with the goals of the marketing and sales departments. In addition, an IT resource will usually approach SEO from a purely technical standpoint, without being aware of ethical SEO practices, and this can lead to trouble. Penalization is a very real possibility, and it is hard to get back onto an index once your site has been removed.MonitoringA thorough SEO service will monitor not only the handful of competitors that you deem crucial but also the sites that appear higher than you for any of your chosen search phrases. This may be somewhat controversial, especially to any SEO service or webmaster that uses tactics forbidden by the search engines’ terms of service. However, many white hat SEO service firms consider it an obligation to their clients to routinely monitor the sites of any competitor found on the engines to be sure it is using ethical SEO techniques.There is a reason that every major search engine has a form to report sites who do not use ethical SEO tactics and who violate the terms of service so that these sites can be subsequently penalized or removed. Spam filters cannot catch all violations without also removing a large number of good sites. Search engines rely on their users to help them to keep their indexes clean and free of sites not using ethical SEO tactics. There are many techniques to spam an engine–far too many to list. However, a good SEO service not only knows what all of these techniques are but knows how to identify them when it sees them so they can be reported to the engine accurately.The End ResultBusiness is business, and your interests often run directly counter to that of your competitors. When you report a website that is not using ethical SEO, it is very likely that it will be removed. This means there is one less company that you need to worry about in the online arena, at least for the time being. If the site in question outranked yours, you also get the added benefit of seeing your rankings improve as the violating pages are removed–provided, of course, that you are using ethical SEO techniques and steering clear of violations yourself, or you may be reported by a competitor of yours or its SEO service!The engine also benefits from users reporting violations. Engines do not like people trying to trick their indexes, since there might then be pages showing up for particular search terms that are not actually relevant to those terms. Clearly, search engines understand this benefit–if the engines thought they could weed out all the spam themselves, they would not provide a reporting system. Supporting such a system, after all, is not free. Real people employed by the engine have to visit the offending pages to confirm that they are not using ethical SEO tactics.In the notable example cited earlier of the firm that got most of its clients penalized, the owner of the SEO service in question was quoted as saying, “Google can kiss my ass. This is the Wild Wild West.” He may be right–maybe it is the Wild Wild West. But there are a whole bunch of new sheriffs in town–and they are wearing white hats.

Waste is indeed one of the growing problems in the country, has been one of the major cause of dilemmas and tragedies both in the past and up to the present time. To eliminate this, different municipalities have come up with a uniform solution to end this hoarding destitution: landfills; which have been the major cause of land depletion and sicknesses for folks who live nearby.There are lots of technologies that have been invented in order to be of solution to the growing insolent waste problem. One of the examples is the technology brought by the Japanese people here in our country; where biodegradable waste materials are being processed to become environmental by-products. The main question here is: how about for non-recyclable waste materials?The Biosphere Technology doesn’t exclude non-recyclable materials. It uses all kinds of wastes which serve as fuel for the biosphere process to generate electricity. Biosphere gasification technology is something that we harness in order to build a better world to live in, how: through a zero waste nation campaign.
What is Biosphere Technology?The biosphere gasification technology or simply called biosphere technology is a kind of green technology that the biosphere machine uses to be able produce electricity. Biosphere technology is a process of turning waste to green energy in a cost effective manner. Biosphere technology is different from the other technologies that diminish waste. I came across also with a kind of green technology invented by the Japanese that transform waste to environmental by-products.It is also a very good kind of invention but there is a flaw in it, only recyclable waste materials are to be used for the process. The good thing in biosphere technology is that it uses all kinds of waste materials for the process so there are no waste materials left to pack up landfills.What is the significance of Biosphere Technology?Biosphere technology uses the process of incineration that burns waste turning it to electricity. Everybody opposes the idea of burning tons of waste materials just to be able to diminish them. The answer is the gasification process. Biosphere gasification process is done in a limited oxygen environment that causes zero atmospheric emission. We all know that fuel price increase is also the number one problem that this world is facing. And for every process concerning technology, fuel is a very much vital source of substance to be used.Biosphere technology uses a gasification process that uses waste as its fuel thus eliminating the use of overpriced fuel. It is like birds hit with just a single stone. Fuel problem is eliminated, waste is diminished plus a new form of renewable electricity is produced, what else could surpass this kind of technology.Biosphere Technology is something to glee about. Waste being the number one unsolved problem of our environment doesn’t only affect the atmosphere but causes land depletion and fun gutter for the government. As we are all unaware about, to manage a single landfill, a municipality would cost for thousands of funds every day. And for some places that I have stumbled upon, I learned that to haul garbage to a designated landfill in other places it will cost hundreds of thousand for a single day; what a waste!Biosphere technology is a process that diminishes waste in a cost effective manner turning it to electricity causing zero harm to the environment. It is done in limited oxygen environment therefore eliminating atmospheric emission. Biosphere gasification technology hopes to produce the electricity that will serve as glow to every light bulb of every home.
The innovative gasification process is set to change the world one city at a time. One day, optimistically, the electricity which will be coming from the biosphere machines will serve as glow to every light bulb of every home.A company needs to be innovative in what they furnish so it may attain the reputation of a business that always provides valuable and beneficial products or services to the people. Being a company inclined to finding real solutions in making this world a better place, Innovation is very meaningful to us, which is why it should be adoptive of the benefit of biosphere technology that is expected to be a breakthrough in green energy while creating a better world to live in hand in hand.

Aspens are wonderful trees. They offer qualities which instruct us to look beyond beauty, to look inside and underneath to discover greater meaning. Did you ever think a tree could tell a story? Aspens do; they tell a story of what it takes to be a supporting, thriving community.Have you ever come across or seen just a single Aspen tree, standing alone with no others nearby? If you are familiar with Aspens, you know this rarely occurs.By their nature, Aspens are not a solitary tree. Their roots spread below the earth’s surface and facilitate growth in others to form a group. Aspens grow as a community; they are unified by their roots and share nutrients and resources to support each other. The community is enlivened through a solidly linked foundation.If you look at the root structure of Aspen, you will notice that they are survivors. An Aspen’s roots can remain dormant for years. At the right time, they jump to life and re-generate as a community. Aspens have strength and resilience, unseen by many.Aspen groves thrive on diversity. They are strongest when there is a mix of young and old. The diverse mix guards against disease and natural disasters, delivering greater assurance that the community survives during the tougher times.Aspen trees have restorative qualities which reach outside their bonded community to the natural world around them. Animals gain nourishment in the winter months from an Aspen’s trunk and pains can be soothed through their medicinal, aspirin-like value. Even humans can gain protection from the sun or relieve a cut or burn by rubbing an Aspen’s bark on their skin.Aspens tell us an important story, if we choose to listen. They share with us lessons of connectedness, survival, and outreach to serve as a guide for our communities.What story do our communities tell?From today’s world springs a new humanity of being electronically connected. Many benefits can be realized from these new roots of joining people together. Connections through Facebook, Twitter, and LinkedIn easily multiply with short bursts of challenging, calming, and even inspirational words typed and distributed through the networked maze. New people outside our typical span are engaged offering new insights through tenuous relationships.While the electronic community may be thriving, the face-to-face community dims. Our communities tend to be more solitary and thinly rooted.With all the popularity focused on social media and its limitless scope via the internet, how much do we know about our neighbor a few doors down? Do we even know their names? How do we support each other within our neighborhood block?Our community relationships have become superficial or nonexistent, with only impersonal facts known about our neighbors. It is an “acknowledged” relationship. There is little depth to our knowledge about them. Their joys and concerns remain within their four walls or expressed through the electronic relationships that extend beyond their immediate surroundings.Just as Aspen tree communities can remain dormant underneath the surface for many years and then spring to life at the right moment, are we ready to engage with the people in our neighborhood and activate our communities?What can we learn from an Aspen community?Aspen trees deliver strong guidance on how to engage personal relationships and build a sound community. Through connectedness, survival, and outreach, our communities can spring to life again with supportive relationships, inciting our society to be better, do more.Connectedness. Aspen trees are intertwined underneath the surface, creating a foundation for growth and life. The connected roots are what support the beautiful life above the surface.Within our cities and neighborhoods, our connections need to be strengthened. We go through the motions of everyday life, and time quickly escapes us. Rather than building relationships within a 5 mile radius, we log-in and connect to people in other states and countries. As a result, our foundation weakens; neighborhoods become lonely places. This is in stark contrast to our ancestors who created rich and vibrant communities fueled by daily social interaction with their neighbors.A vibrant neighborhood should emulate the beauty of an Aspen grove. Healthy communities have healthy relationships. They should be like walking into Cheers, where “everyone knows your name.”Survival. Just as a diverse mix of Aspen trees withstand the ups and downs of existence; our communities need to be built in the same manner. Diversity builds not only strength but understanding.Often, we move to ensure our kids are in schools of people who are similar to us, or we want to find the neighborhood that has all the right ages for our kids to play with. Some aspects of this are good but sometimes these objectives can go too far and end up doing more harm than good.We need to embrace the differences in our communities. Spending time with the elderly can provide insights into our own lives, foster a sense of generational continuity, and deliver warmth in our interactions. Spending time with the younger generation will reintroduce us to vigor and inspire us to get out of our comfort zones.Outreach. Another import element for our communities is outreach. This can be achieved by helping others who may have been hit hard by the current economic waves or weather-driven disasters or just need an attentive ear to listen and provide comfort. Offering a helping hand to other communities is critical in thinking outside our immediate walls and engaging in our larger community.A strong community stretches outside its borders and offers assistance and sustenance to other communities in getting through rough patches. Essentially, it is giving what we can, spreading the healing salve on the wounded communities or providing protection for those which may be threatened.Outreach facilitates the spirit of leading meaningful lives. Actions which strengthen and energize others will long be remembered as what really made the difference.Setting an Example. People should strive to represent the best of what communities can be. Rather than Aspen trees setting the example, we should. The beauty in this type of human community will outshine what a grove of Aspens can ever produce.Deeper, supportive relationships within our neighborhoods will enable us to lead richer lives and extend our reach more easily to others a mile down the road or in the next state or country. The common thread will be a well-grounded root system which connects and supports us. In other words, the strength of our immediate community will allow us to stretch our helping hand farther.The decisions we make in how we connect with our community will drive how our society continues to develop. Will we be more insular or more inclusive? Will we be more self-centered or people-centered? Can we balance our growing interest in social media with an active sense of community and compassion for our nearby neighbors?So the next time you see a neighbor, stop, talk, and listen. Go beyond the surface questions. Ask them what is going on in their job, their family, their life. Make a connection. Develop the roots.Just as an Aspen community of trees can regenerate themselves after being dormant for many years, with enough steadfast commitment, the roots of our community can rejuvenate, connect, and thrive once again.

Why must we ever give a thought about making an investment? Is it even a necessity or it is just a matter of one’s choice? Even when it comes to investing, why are mutual funds a preferred option than any other instrument?Yes, mutual funds are any way the best investment solution where one could get better returns in lieu of lesser risks. Moreover, your capital is managed by a fund manager who is an expert of every financial subject and has an experience of more than 10 years, which qualifies him to attend and resolve every matter of concern related to your investment. A mutual fund offers you a choice of investment and flexible withdrawals, where your money is planned inline with your needs.Smartly ManagedThey are managed by fund manager who is profound at tracking the markets and managing the investments. They guide you at every point from when to buy and which one to buy to when to sell the stocks. They manage your funds far better than you. The fund managers have a vast experience of all financial matters and they are an assurance that your investment is safe and will flourish with time. They take the entire responsibility from the very stage where you invest your money to the phase where you wish to withdraw your investment with high returns. This is the reason it assures you better security and management of your funds.Better ReturnsMutual funds offer higher and better returns than any other traditional investment plan. They offer the best choices to the investors who wish to take lesser risks in lieu of the investments. One must begin with a savings plan by investing in the right mutual funds today. A few investors are often worried about the volatile phase of the market but the data of over the years clearly indicates that investors can make more money if they continue to bet on the market during the volatile phase. Further, mutual funds are one of the safest modes in the sense that the investors are protected against any kind of fraud.Easy InvestmentIt is one of the easiest and safest ways to invest your money in stocks. The whole plan is also offered online and is just becomes a matter of a few clicks. Even tracking down the performance could be done easily. The lumpsum is a one-time investment in mutual funds, whereas there is SIP, in which small amount is vested periodically. SIP amount is automatically debited from the investor’s account every month. Thus, it is an easy process which offers higher returns.Choice of InvestmentWhile most of the other plans are more about dictating you their already laid down plans, mutual funds give you multiple choices. From the very choice of what type of fund do you want and for how long to how much do you want to invest, these all choices reside with you and you have all the right to pick or choose the plan that suits you. All in all, they offer a customized investment plan which is designed as per your requirement.Diversified InvestmentIn mutual funds, your funds are diversified and invested across a wide variety of stocks. If one stock faces any change, it will be balanced by the performance of the other stock. It is further advisable, not to invest your money in a single mutual fund category, rather diversify it across different ones to lessen the risk.Secured FutureWhile you invest in mutual funds, you actually commit to investing a certain amount of your earnings or savings into a Systematic Investment Plan, where you consistently deposit your money for certain years. This helps in securing your future, where you are disciplined to add a certain value into your plan every month. This becomes your fixed monthly spend, while your other expenses are made from the remaining amount that you are left with. It ensures that save an amount of your earnings that will contribute in offering you a secured future, irrespective of all the miscellaneous expenses that you make. Your amount remains intact and it keeps on growing for a better tomorrow.Flexible WithdrawalWhile almost all the investment instruments hold your money for a specific number of years, this makes it really difficult for you to withdraw the amount in case of emergencies. Mutual funds provide the benefit of liquidity on your invested money. However, you can withhold your money in the plan for as long as you wish to. But it is still advisable not to withdraw the funds before it gets matured complying with the terms of the investment plan.We hope now you are well aware of the benefits of mutual funds. To know more about this investment option, connect with a financial expert asap.

When you get saddled with debts, you might like the idea of putting some money into your commercial venture. This way you can get it repaired and with the earnings you can mend your bad credit in a better way. But, the fact is that everyone does not have plenty of money and that’s why, some people look for loan solutions to get their bad credit repaired through commercial ventures. Obviously this is a unique process of managing stands on bad credit. So, there are unique solutions also. They are the bad credit commercial loans which help you to add some money in your commercial venture to get your bad credit repaired soon. Sounds good? Let’s know it then.Bad credit commercial loans are available for any sort of commercial purpose. You can take Bad credit commercial loans to remodel your plant or put some more money to run it swiftly. Again, whatever be the shape of your commercial venture, you can always avail bad credit commercial loans. It is available for all shapes, medium, large or small commercial ventures and bad credit is no fetter in this attempt. Only, to avail bad credit commercial loans, you need to place a detailed plan of your commercial purpose.And, bad credit commercial loans are available in both the classical formats, secured and unsecured. If you are looking for cheap rates you should go for the secured versions and if you are looking for loans without collateral, you can opt for unsecured bad credit commercial loans.However, Bad credit commercial loans are available online which is, indeed, the most sparkling side of the flamboyant image of these loans since the online option of bad credit commercial loans offer loans at cheap rates where the loan processing also takes much less time. So, with bad credit commercial loans, bad credit record hurts not any more, rather gets improved.

Warren E. Buffett offers the following advice on the qualities of a successful investor. Buffett essentially suggests that a successful investor does not need an extraordinarily high IQ, exceptional business acumen, or inside information. To enjoy a lifetime of successful investing, you need a solid decision-making framework and the ability to maintain your emotions.A successful investment strategy requires a thoughtful plan. Developing a plan is not difficult, but staying with it during times of uncertainty and events that seem to counter you plan’s strategy is often difficult. This tutorial discusses the necessity of establishing a trading plan, what investment options best suit your needs, and the challenges you could encounter if you don’t have a plan.The benefits of developing a trading planYou can establish optimal circumstances for experiencing solid investment growth if you stick to your plan despite opposing popular opinion, current trends, or analysts’ forecasts. Develop your investment plan and focus on your long-term goals and objectives.Maintain focus on your planAll financial markets can be erratic. It has experienced significant fluctuations in business cycles, inflation, and interest rates, along with economical recessions throughout the past century. The 1990s experienced a surge of growth due to the bull market pushing the Dow Jones industrial average (DIJA) up 300 percent. This economic growth was accompanied by low interest rates and inflation. During this time, an extraordinary number of Internet-based technology firms were created due to the increased popularity of online commerce and other computer-reliant businesses. This growth was rapid and a downturn occurred just as fast. Between 2000 and 2002, the DIJA dropped 38 percent, triggering a massive sell-off of technology stocks which kept indexes in a depressed state well into the middle of 2001. Large-scale corporate accounting scandals contributed to the downturn. Then in the fall of 2001, the United States suffered a catastrophic terrorist attack that sent the nation into a high level of uncertainty and further weakened the strength of the market.These are the kinds of events that can tax your emotions in terms of your investment strategies. It’s times like these that it is imperative that you have a plan and stick to it. This is when you establish a long-term focus on your objectives. Toward the end of 2002 through 2005, the DJIA rose 44 percent. Investors who let their emotions govern their trading strategies and sold off all their positions missed out on this upturn.The three deadly sins and how to avoid themThe three emotions that accompany trading are fear, hope, and greed. When prices plunge, fear compels you to sell low without reviewing your position. Under these circumstances, you should revisit the original reasons for your investments and determine if they have changed. For example, you might focus on the short term and immediately sell when the price drops below its intrinsic value. In this case, you could miss out if the price recovers.An investment strategy that is based on hope might compel you to buy certain stocks based on the hope that a company’s future performance will reflect on their past performance. This is what occurred during the surge of the Internet-based, dot-com companies during the late 1990s. This is where you need to devote your research into a company’s fundamentals and less on their past performance when determining the worth of their stock. Investing primarily on hope could have you ending up with an overvalued stock with more risk of a loss than a gain.The greed emotion can distort your rationale for certain investments. It can compel you to hold onto a position for too long. If your plan is to hold out a little longer to gain a few percentage points, your position could backfire and result in a loss. Again, in the late 1990s, investors were enjoying double-digit gains on their Internet-company stocks. Instead of scaling back on their investments, many individuals held onto their positions with the hope that the prices would keep going up. Even when the prices were beginning to drop, investors held out hoping that their stocks would rally. Unfortunately, the rally never happened and investors experienced substantial losses.An effective investment plan requires that you properly manage the three deadly sins of investing.The key components of an investment planDetermine your investment objectivesThe first component in your investment plan is to determine your investment objectives. The three main categories involved in your objectives are income, growth, and safety.If your plan is to establish a steady income stream, your objective focuses on the income category. Investors in this category tend to be low-risk and don’t require capital appreciation. They use their investments as an income source.If your focus is on increasing your portfolio’s value over the long term, your objective is growth-based. In contrast to the income category, investors strive for capital appreciation. Investors in this category tend to be younger and have a longer investment time frame. If this is your preferred category, consider your age, investment expectations, and tolerance to risk.The final category is safety. Investors who prefer to prevent loss of their principle investment. They want to maintain the current value of their portfolio and avoid risks that are common with stocks and other less secure investments.Risk toleranceWhile the main reason for growing your portfolio is to increase your wealth, you need to consider how much risk you are willing to take. If you struggle with the market’s volatility, your strategy should focus more on the safety or income categories. If you are more resilient to a fluctuating market and can accept some losses, you might favor the growth category. This category has the potential for higher gains. Nevertheless, you need to be honest with yourself and the level of risk you are willing to take as you set up your investment plan.Asset AllocationAs discussed in the previous sections, part of your investment plan is to determine your risk tolerance and investment objectives. After you establish these components, you can begin to determine how you will allocate the assets in your portfolio and how they will match your goals and risk tolerance. For example, if you are interested in pursuing a growth-oriented category, you could allocate 60 percent in stocks, 15 percent in cash equivalents, and 25 percent in bonds.Make sure your asset allocation reinforces your objectives and risk tolerance. If your focus is on safety, your objectives need to include safe, fixed-income assets such as money market securities, high-quality corporate securities (with high debt ratings), and government bonds.If your strategy focuses on an income category, you should focus on fixed-income strategies. Your investments might include bonds with lower ratings that provide higher yields and dividend-paying stocks.If your focus is on the growth category, your portfolio should focus on common stock, mutual funds, or exchange-traded funds (ETF). With this category, you need to vigilant in managing your portfolio by regularly reviewing your objectives and adjusting them according to your risk tolerance and objectives.Effective asset allocation helps you establish a guideline for properly diversification of your portfolio. This enables you to work toward your objectives and manage a comfortable amount of risk.Investment choicesYour trading strategy includes deciding what types of investments to buy and how you will allocate your assets.GrowthIf your strategy is based on growth, you might consider mutual funds or ETFs that have high market-performance potential.Wealth protection/income generationIf you choose to pursue a wealth protection method, you might choose government bonds or professionally-managed bond funds.Choosing your own stocksIf you prefer to select your own stocks, establish some rules for how you will enter and exit your positions. You objectives and investment strategies will determine these rules. Whatever approach you use, one trading rule you should establish is to use stop-loss orders as a form of protection against downward price movements. For example, if your investment drops 60 percent, it will need to increase 110 percent in order to break even. You choose the price that you will set the order, but a good rule to follow is to set a stop-loss order at 10 percent below the purchase price for long-term investments and a stop-loss order at 3-to-5 percent for short term trades.Your strategy might also include investing in professionally-managed products such as mutual funds. These give you access to professional money managers. If you hope to use mutual funds to increase the value of your portfolio, choose growth funds that focus on capital appreciation. If your intent is to pursue an income-oriented approach, choose income-generating avenues such as dividend-paying stocks or bond funds. Make sure your allocation and risk structure align with your diversification and risk tolerance.Index funds and ETFsIndex funds and ETFs are passively-managed products that have low fees and tax efficiencies (lower than actively-managed funds). These investments could be a good way to manage your asset allocation plan because they are low-cost and well diversified. Essentially, they are baskets of stocks that represent an index, a sector, or a country.SummaryThe most important component in reaching your investment goals is your plan. It helps you establish investment guidelines and a level of protection against loss. It’s important that you develop a plan based on an honest assessment of your investment style, level of risk tolerance, and objectives. You also must avoid letting your emotions influence your investment decisions even during the more discouraging times.
If you are still uncertain about your ability to effectively develop and follow a plan, consider employing the services of an investment advisor. This person’s expertise can help you adhere to a solid plan to meet your investment objectives.