Learn To Invest With A Financial Strategy

By Jane Calhoun

Everyone now knows that buy and hold is probably not the best investing strategy, if that's the only plan you have as an investor. Achieving gains over time means more involvement in choosing investments, but even more important is to learn to invest money using a defined iunvesmttnet strategy. This gives you a map for investing money regardless of market situations. It's almost like playing a game; you only see results when the game is finished, and the winner appears. The use of an investing strategy, and a plan, is what eventually will separate the winners, over time, from the losers.

It's not difficult to put together an investment strategy, but it does take time and thought. It encompasses your personal financial goals, as well as gives you a road map to achieve those goals. With this plan in front of you, you will then know what investments will be the best fit for your strategy as you go forward. When you decide on a specific investment vehicle, for example bonds, stock, or mutual funds, you can then determine what choices within those categories will be the best fit as well. You will have a template for choosing individula stocks, or bonds or funds, instead of going with your gut - never a good strategy!

When you are trying to determine how to invest your money, if you haven't spent the time on doing research, your choices can quickly become very confusing, if for no other reason than because there are so many different investment vehicles and individual investments to choose from. This is why having a strategy is key, because it helps you decide which instruments will help you reach your objectives, and which are not a fit.

For investors who are not very experienced in choosing stocks, a financial planner might be a good choice to work with. Working with a professional can help you put a finer point on what you need to accomplish your financial goals and complete your plan. For exmaple, they can help you identify your risk tolerance, your resources for investing, and the time horizon over which your investments can grow.

Before investing, be sure to complete your strategy and trade from your plan, not from the gut. Over time, investors wihtout an investment strategy clearly do far worse than those who have goals and steer a course using their plan. When you learn to invest money and apply your strategy, your financial goals will begin to materialize. - 23204

About the Author:

Looking for the best way to invest money in a down market? Jane Calhoun writes about how to learn to invest money and more in today's investment climate.