Success in investing requires both persistence and trust. Despite a history of occasional recessions and drops in the stock market, the overlying trend is upwards.
Applying answers to the basic questions of what, when, where, why, how and who will enable you to grow your retirement account safely or to build your everyday investment portfolio without fear of losing all your money.
"Who" is you, or your family. If you take control of your future, your financial future, like you do driving a car, you can take your finances ahead just like driving a car forward. Sure you may have to change lanes, stop at red lights for a while, maybe even change models but you can get to your destination and reach your goals.
"Why" is simple. If you are to protect and grow your retirement account or regular investment account safely and profitably you need to take some action to ensure your money or someone else's money is safely invested and will grow. If your money doesn't grow it slowly shrinks in value as inflation makes each dollar worth less tomorrow than it does today. And just keeping even with inflation means you are not really building or enhancing your financial future or your ability to enjoy retirement without wondering how you are going to pay your bills.
"When" is about when are you going to take action. If our last recession scared you and you have your money "safely tucked away" so you don't lose more than you already did you are probably losing unless you are monitoring with an investment software program that tells you when to get back into the markets after a downturn, any downturn.
"When" is also about when to sell your positions because they are stagnant or declining and to buy a new fund, stock or ETF that is going up or has the potential to climb and help you reach your goals.
"Where" is about where do you put your money, your future. This involves a number of factors:
- Do you choose mutual funds, ETFs or stocks or some of each?
- Do you have a retirement account or a regular wealth building account, or both or even more?
- Is your money, your investments in your hands or someone elses?
"What" is about different factors similar to "Where", but from a different perspective.
- Exactly what stocks, ETFs or funds are you going to invest in to reach your goals?
- What investment software are you going to use to give your buy-sell recommendations?
- What investment software or technique are you going to use to tell you when to exit the markets and when to start investing again?
"How" is about putting When, Where and What together. When these are together in a complimentary mode like a football or baseball team executing a play then great results will occur and strong defenses will prevent major losses.
For example, if your how involves a software program based upon relative strength investing using alpha analysis or relative strength momentum analysis (amongst others) you can get winning recommendations under almost any market conditions.
If your "how" includes a market exit signal then you can invest knowing that when the markets hit a pothole you will be signal to pull out and protect your money until the markets are rising again. Proftiability is the name of the game.
The "how" is also going to tell you what investment to choose and when as long as the how involves a comprehensive look at your investment choices. In other words you are not limited to just stocks or just mutual funds.
"How" is also going to take into consideration how much time and when you have time to take control and manage your future. Just like driving the car, how you like to choose your route or fuel because you are in control of your vehicle... and your financial future is equally in your hands.
Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana.
View his software at: http://www.dynamicinvestorpro.com
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