Monday, 3 June 2013

A Investment Strategy For Stocks Which Can Work For You

In the absence of any solid investment strategy the stock investing won't work for you. The main question here is: how to make investments in stocks with lesser risk while still earning some reasonable returns. Here we discuss a proven strategy for intelligent investment, an excellent tool which surely works if used in a proper way.
You can make use of a tool know as "dollar cost averaging" for lowering your risks and also improving the overall performance if you make investment in the stocks periodically over a period of time (like 401k investing plan). When you want to invest a good amount in the starting then this strategy will work wonders.
Here's an example of how to invest in stocks using this tool with a general diversified stock fund as the stock investment. Why we use this as our stock investing vehicle will be explained later.
Imagine you want to invest $60,000 in the stocks, while residing in a 401k investing plan. The stock market is turning volatile and you would want to lessen the risk at this time.
Solution for you: you can make use of dollar cost averaging by making investment of a similar amount of funds in a methodological way at some predetermined gaps. In the current case you will invest $50,000 by making investment of $10,000 after every three months interval, for about five quarters, in a completely diversified fund.
First of $12,000 at the cost of $20 gets you 600 shares.
Second of $12,000 at the cost of $15 gets you 800 shares.
Third of $12,000 at the cost of $10 gets you 1200 shares.
Fourth of $12,000 at the cost of $15 gets you 800 shares.
Fifth of $12,000 at the cost of $20 gets you 600 shares.
You invested total of $ 50,000 and purchased 4000 shares. Now the entire value of your investment is: 4000 X $20=$80,000. This means you reaped a net profit of $ 20,000!
The prices of share fell and then subsequently again recovered ending at the same price at which it initially started. You invested just same amount of funds each time for your buys ranging from $20 to $10. If you had made a lump sum investment of $60,000 at $20 you'd surely have faced some rough ride and would have been 20,000.
Try to make the dollar cost averaging as an integral part of your investing planning. It just compels you to buy more as stock prices move down which results in lower average cost for one share.
Understanding the investment mechanism in the stocks with a sound investment strategy which helps you in smoothing out risks is surely a key for a comfortable and risk free stock investing.

Best Investment Strategy & Best Funds to Invest in on Your Own

The best investment strategy still involves investment in stocks and bonds, and mutual funds are still the best investment options for most people investing on their own. Now, where do you find the best funds to invest in?
In order to put together your own best investment strategy you will need: access to a variety of investment options, diversification, and a low cost of investing. All three of these requirements can easily be satisfied and simplified if you invest directly with the right fund companies. That's where you can find the best funds for your money, plus good service free of charge.
Let's start with the need for a variety of investment options to choose from. Both stocks and bonds come in many varieties with varying degrees of risk. With mutual funds you can be conservative or aggressive in both investment categories by simply choosing funds that agree with your risk tolerance. For example, shorter-term bond funds are much safer than long term bond funds and could be the best funds for the conservative investor in search of higher interest income than is available at the bank. Each fund states its objectives and is rated for relative risk.
Now let's look at diversification in putting together your best investment strategy. Diversification is the key to long term investing with less risk, and is the signature of mutual funds. Instead of managing your own list of dozens of individual stocks and bond issues, you can be instantly diversified and own a small part of a large portfolio of stocks and/or bonds with a single mutual fund investment. Plus, your investment will be professionally managed for you, usually at a reasonable cost.
In uncertain times like today, don't overlook the importance of keeping investing costs low in your investment strategy. Some of the best funds today come from some of the lowest-cost and largest fund companies in America. A higher cost of investing can lower your net profits significantly. The two largest mutual fund companies in America are Fidelity and Vanguard. Both offer low-cost funds called no-load funds that have no sales charges (loads) and lower than average yearly expenses.
Where can you find these best funds for your money? Simply get on the internet and search "no-load funds". The major fund companies that offer low-cost funds will be at your fingertips. Visit their websites and request free information. If you have questions call them toll-free. I've personally steered dozens of friends, family, and former clients in this same direction without a single complaint.

Best Investment Strategy For Most People

The best investment strategy for most people is to KEEP IT SIMPLE. Don't complicate things when investing money or you'll likely feel uncomfortable and lose interest. Here we offer a simple solution for both choosing investment options and asset allocation.
The best investment options for most people who want simplicity: index funds. You don't need to worry about fund performance since these are mutual funds that track a stock or bond index. Plus, the cost of investing money is low if you go with a major no-load fund company.
The other half of the investment strategy equation is called asset allocation. To keep it real simple, you will be investing in three different types of mutual funds: stock index funds, bond index funds and money market funds. How much (what percent of your total investment assets) should you invest in each?
Best investment strategy for most people: 50% to stock index funds and the rest split evenly between bond index funds and money market funds. Investing money with this asset allocation puts half of your money at risk in an attempt to make greater profits. The other half is safer and pays interest in the form of dividends.
Your bond fund will generally pay more interest, and you will benefit when interest rates are stable or falling. When interest rates rise expect losses in any bond investment. Money market funds, on the other hand, benefit when rates go up and rarely (if ever) fluctuate in value.
If you want higher safety put more money in your money market fund than in your bond fund. For greater income in this safer half of your portfolio, invest more in your bond fund. Otherwise just go with our original asset allocation above.
Now, you know how to set things up. But to have a complete investment strategy you need to manage things over time. We'll keep this simple as well.
Don't let your allocation numbers get out of line as time goes by. If you started investing money with 50% in stock index funds and the other half evenly split as suggested ... keep it that way. At least once a year review your progress and your percentages. Move money around when necessary.
For example, you see that your stock fund accounts for only 45% of your total vs. your original allocation of 50%. Move money from your other two investment options to get back on track.
Why I call this the best investment strategy for most people: It's easy to set up and implement; and you can make better returns than many investors without the risk of taking huge losses like many do in a year like 2008.

One Great Investment Strategy

All it takes is one great investment strategy to make a big difference to your lifestyle. But how do you find the right one? You can test various methods yourself or you can learn from others. By learning from others who have trialled and tested methods of investment you will save yourself money and time.
You will find various investment opportunities as you research and most are based on the stock market or on property investments. These investments usually focus on either a short term or a long term plan. Investment strategies can also be based on a return on capitol or an income producing result.
Let's look at one example. In the stock market you can buy and sell shares. Most investors prefer to buy blue chip stock. Most hold these stocks for the longer term, and rely on both capitol growth and income from dividends paid. There are various methods of leveraging these investments to produce greater returns than the expected average. The more leverage used the greater the risk undertaken buy the investor. To get better returns by leveraging is relatively easy, but minimising the risk is hard, unless you understand what risks are involved.
If you use a combination of leveraging derivatives such as options and CFD's, (contract for difference), you can effectively minimize your risk. A combination of both these products at the right mix based on blue chip stocks will produce a higher than average return and minimal risk. The exact formula is a complicated one and is dependent on other factors such as volume, volatility, spreads and market timing factors. Other considerations are based on dividend returns and historical data. The full details of this strategy are far too much to fully explain in this article.
The important consideration is that this strategy is possible with the right information and education. When it is put in place it consistently returns a higher than average return with minimal risk. Get educated about your investment area and explore all the associated derivatives and leveraging possibilities.
There are other areas of investment where the same principles apply. By understanding all the choices available to leveraging and applying combinations of risk reducing products and services, an investment strategy can give higher than average returns whilst maintaining minimal risk. That one great strategy is possible and will increase your investment returns.

Get Investment Strategy From Market Advisers

To win in any game you need to have a good strategy. The same rule applies for a stock investment strategy. Always remember whenever a good strategy is applied you will surely be rewarded with profit. If in near feature you are planning to do investment, then you need to have a strong investment strategy. If you have not yet planned, then you can start right now, so that you don't end up in risky investments. You can take the advice of other people who does regular investment in the stock market. You can also review the sample investment strategy from the internet to help you deal with the proper investment.
There are many websites that provide investment strategy and tips on how to manage super funds. You need to have a deep study to get into business. You can also search for the type of the investment that you are planning to do with the stock market. Making your own strategy is somewhat a tricky task. You have to take several few things into consideration like duration of your investment, type of investment, the amount that you are going to invest etc.
Seeing the current economic scenario, you will find that many people have managed super funds own their own. If you rely on your DIY superannuation, then you should know that how to manage them. You have to reduce expenses on some luxury so that you don't find difficulty. Another thing that you can do is you can have advice of some financial adviser so that you don't end up in risky investments. An alternate way to manage your pension funds, once you leave the workplace you must understand your type of pension plan. Understand how much cash you have in combined cash flow and financial assets.
Consult with your budgetary advisor, and make up a plan for yourself that allows you to live properly without sending yourself into unwanted financial debt. The best way to get this done would be to take a look at your financial position, the way it currently exists and determines what your requirements are for making investment. You can also search the internet for information on investment strategy or how to manage super funds. This will not only help you to give you better idea but also help in risk free investment for your coming years. You can also go through the articles or blogs related to the DIY superannuation and decide accordingly.

Investment Strategies: 3 Things To Consider Before Investing

Many of us have a dream of becoming rich someday. That's why many people take the risk of investing their money hoping that they could profit more than they have invested. But then there are always two possible consequences when you are investing your money; success and failure. Before you invest your money to anyone or anything, you first need to learn some investment strategies. This will help you weigh things if you could actually profit with that type of business or not. Of course, it's a given fact that we want to make our money grow and profitable. But sometimes the problem with people who invest their money without investing, they get scammed and ripped-off. Here are some of the tips that you could do before investing your money with a specific person or business.
Investigate: This is the first thing that you need to do before you decide of investing your money. Investigating the background of that specific person or company would give you a good idea if that person or company could be trusted. By investigating, you also know about the reputation of that person or company. You either do a background check as part of your investigation. This is one effective investment strategies that you could do to prevent getting ripped-off or scammed.
Know the possible risk: Before you invest your money, one important thing that you need to be prepared for is the risk that you need to take. There is always a risk when you invest your money. As you investigate, it's better that you also learn and find all the possible risk that you need to take so you will be prepared with the solution. That's why back-up plan was invented and recommended by most experts. These are also another good investment strategies that you need to do.
Consult a professional businessman: Consulting a successful businessman is one of the most effective investments strategies that you can do before investing your money. Since, successful business has more experience when it comes to investments. He could give you tops and advices that you can use for you to be successful like him. You can ask them about the things they did that they have achieved with their position. List them down and apply it.
Those three investment strategies are already proven to be effective by most successful businessmen. It has become a part of their success. By studying all the possibilities of investing in business, it will lead you to come up with a better solution in case problems occur along the way.