Smart Investment Strategy
August 30, 2010
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Posted by admin
The placement of investment funds as a process of planning long-term goal can be done through various ways, either by doing it yourself or through a securities company or other financial / investment services companies. Involved in this way is as important as investing itself. Investing independently through a securities company (for example, shares transaction) requires not only adequate knowledge and information but also our time. If we have access to information but do not know how to use it, then that information does not provide any benefit.
Most people in the productive ages have insufficient time to invest by themselves for being too busy with work. If you insist to invest independently, without having knowledge, information, and sufficient time, then maybe you will get losses instead of having benefits. For that matter, we see the importance for individuals to recognize various investment strategies that are already known widely.
Buy and hold versus market timing, we generally recognize two ways for investing, which are buy-and-hold and market timing. The first way is to buy some alternative investment means and keep them for a long time. The wish is so that the magic of compound interest can be realized, thus providing an opportunity to give a big advantage in the long term. The key is consistency and long-term perspective.
On the other side, followers of market timing (MT) did not agree with the argument for buy-and-hold (BAH). According to the MT side, the investors may suffer if they do not take the advantage of price fluctuations (volatility). MT followers suggest taking advantage of the price changes in the market. For example, when the prices are declining then you buy it and you sell them when the prices are rise. Or shortly, buy low and sell high. That way the investors will get maximum benefit from their investment.
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Categories: Financial Information
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Tags: Financial Investment
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