Investment Strategy
People say that life is like a game. Or in some cases, a box of chocolates, but for our purposes think of it as being a kind of game. As with any game, there are winners and losers, and the best players, the ones who always come out on top, are the ones with a strategy. If you don't know what you're doing, you'll never get anywhere, and just as it is with the game of life, so it is with investing. If you want to get the most out of your investments, you need a plan - an investment strategy!
This means planning ahead, and deciding how you are going to get the best value from the huge number of investment opportunities available. A book store sells hundreds of books, and if you don't want to get lost when you go in, you need to know whether you are looking for a book on cooking or gardening. Similarly, with investments, there are hundreds of possibilities available, so you need to know what you are looking for going in. This means knowing your financial goals, in terms of money, risk, and time. Buying an investment is not quite the same as buying a book, but there are some things that apply in both cases.
Thinking through your options in advance can be overwhelming, as there are just so many to choose from. That's why you need a method of sorting the good from the bad, and that method is your financial strategy. Know what your goal is, have it totally clear in your mind, so that you can immediately spot the investments that won't help you and ignore them. That way you can concentrate on examining the investment possibilities that do meet your goals, and finding the best one - or combination - to help you achieve them. In particular, pay attention to your own tolerances. If you only want a safe, secure investment, then you can cross off the riskier ones; but if you are less worried about risk, you might want to focus on other aspects. In any case, the important thing is to know what you want, what you are looking for.
If you have not previously done any investing, it might be best to begin by talking to a professional financial planner. These are experts, who have seen it all, and done it all, before, and they can advise you as to the best strategy to pursue. You need to take every aspect of your situation into account, including your personal preferences as well as your goals.
Make sure you don't invest anything can't afford to lose, either. Some people are just lucky, and breeze through life with no problems, but for others... well, it's best not to take the chance. If you don't have a clear plan to follow, then investing is pretty much the same as grabbing a random stranger, stuffing your money in their hand, and saying "take this and make me more". You really think you'll get that back? Not a chance! Always begin ANY investment with a clear goal in mind, and a clear strategy to achieve it.
This means planning ahead, and deciding how you are going to get the best value from the huge number of investment opportunities available. A book store sells hundreds of books, and if you don't want to get lost when you go in, you need to know whether you are looking for a book on cooking or gardening. Similarly, with investments, there are hundreds of possibilities available, so you need to know what you are looking for going in. This means knowing your financial goals, in terms of money, risk, and time. Buying an investment is not quite the same as buying a book, but there are some things that apply in both cases.
Thinking through your options in advance can be overwhelming, as there are just so many to choose from. That's why you need a method of sorting the good from the bad, and that method is your financial strategy. Know what your goal is, have it totally clear in your mind, so that you can immediately spot the investments that won't help you and ignore them. That way you can concentrate on examining the investment possibilities that do meet your goals, and finding the best one - or combination - to help you achieve them. In particular, pay attention to your own tolerances. If you only want a safe, secure investment, then you can cross off the riskier ones; but if you are less worried about risk, you might want to focus on other aspects. In any case, the important thing is to know what you want, what you are looking for.
If you have not previously done any investing, it might be best to begin by talking to a professional financial planner. These are experts, who have seen it all, and done it all, before, and they can advise you as to the best strategy to pursue. You need to take every aspect of your situation into account, including your personal preferences as well as your goals.
Make sure you don't invest anything can't afford to lose, either. Some people are just lucky, and breeze through life with no problems, but for others... well, it's best not to take the chance. If you don't have a clear plan to follow, then investing is pretty much the same as grabbing a random stranger, stuffing your money in their hand, and saying "take this and make me more". You really think you'll get that back? Not a chance! Always begin ANY investment with a clear goal in mind, and a clear strategy to achieve it.
About the Author:
This article written by Stephen Hauptman, expert trader of many years experience. If you're looking for the best share advice, you could do worse then check out his site - click here for the top share advice
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