Monday, March 28, 2011
Following An Investing Strategy
The Need For A Strategy
The first thing is we need to admit to ourselves that we are human, which means sometimes our decision making process is flawed. Knowing that, we need to find a strategy that takes a certain amount of the emotion out of our buying and selling decisions. This strategy needs to be one with which we are comfortable, and one that works over a longer period of time. Not having a strategy, or not having a valid strategy (no, using horoscopes to pick stocks is not a good idea) is one of the single largest reasons people fail to do well in the stock markets. For that matter, it is one of the single largest reasons people fail to be successful in life, itself!
Notice I described it as a plan that works for you. There are almost as many strategies out there as there are people. Look for a strategy that meets your personal objectives. If you have enough money, and interest returns are sufficient, a fixed income strategy could be best. However, few of us are that financially well off.