Despite years of thinking buy and hold investing strategies were profitable, we've recently seen that investing gains are not to be taken for granted. It's always better to learn to invest money with a specific strategy in mind, a plan for investing in a variety of market situations. Just as when playing a game, the result is only determined when the game is over, and a winner has been declared. Having a plan is what separates the long term winners from the losers - so begin with a investment strategy.
An investment strategy is simple, but not easy. It consists of your personal financial goals, and a plan for how to reach those goals. Having chosen your goals, you can then determine which types of instruments will best help achieve success with your plan. Each time you select a particular investment, such as bonds, stock, or mutual funds, you will be able to also choose within that category among the many options for individual investments - which stocks are a fit, which mutual funds have the objectives that meet your needs.
When you are trying to determine how to invest your money, if you haven't spent the time on doing research, your choices can quickly become very confusing, if for no other reason than because there are so many different investment vehicles and individual investments to choose from. This is why having a strategy is key, because it helps you decide which instruments will help you reach your objectives, and which are not a fit.
For investors who are not very experienced in choosing stocks, a financial planner might be a good choice to work with. Working with a professional can help you put a finer point on what you need to accomplish your financial goals and complete your plan. For exmaple, they can help you identify your risk tolerance, your resources for investing, and the time horizon over which your investments can grow.
Always have a strategy and defined goals before you invest money. This is essential if you want to profit and grow your investments. Investing without a plan is just like giving your money to someone without knowing what that money will be used for, or when you might get it back. Learn to invest money by starting with a strategy, and you'll see your financial accomplishments succeed.
An investment strategy is simple, but not easy. It consists of your personal financial goals, and a plan for how to reach those goals. Having chosen your goals, you can then determine which types of instruments will best help achieve success with your plan. Each time you select a particular investment, such as bonds, stock, or mutual funds, you will be able to also choose within that category among the many options for individual investments - which stocks are a fit, which mutual funds have the objectives that meet your needs.
When you are trying to determine how to invest your money, if you haven't spent the time on doing research, your choices can quickly become very confusing, if for no other reason than because there are so many different investment vehicles and individual investments to choose from. This is why having a strategy is key, because it helps you decide which instruments will help you reach your objectives, and which are not a fit.
For investors who are not very experienced in choosing stocks, a financial planner might be a good choice to work with. Working with a professional can help you put a finer point on what you need to accomplish your financial goals and complete your plan. For exmaple, they can help you identify your risk tolerance, your resources for investing, and the time horizon over which your investments can grow.
Always have a strategy and defined goals before you invest money. This is essential if you want to profit and grow your investments. Investing without a plan is just like giving your money to someone without knowing what that money will be used for, or when you might get it back. Learn to invest money by starting with a strategy, and you'll see your financial accomplishments succeed.
About the Author:
Looking for the best way to invest money in a bad economy? Jane Calhoun writes about how to learn to invest money in today's investment climate.
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