Investing 201: Investing Advice and Strategy
So you want the very best investing advice there is to be had, eh? You've come to the right place. -And we are not being egotistical in saying so, we promise. Building on what we've learned on the last section, (Investment types) our investing advice will now show you how to use those major investment vehicles in your investing strategy very wisely.
The principles found on these pages are not something we thought up ourselves, and we do not presume to take credit for their success. These are all some of the very most successful methods of investing advice for long term investing according to world class Universities such as Oxford University and the London School of Economics, as well as the very top financial institutions such as Morgan Stanley, UBS Paine Webber, and Merrill Lynch. There is no secret, it's all in textbooks and manuals, however we have never before come across a publicly-available resource for this knowledge to trickle down to the people who seem to need it the most. We hope you find it useful.
The first and most important decision you must make, is simply to ask yourself if you are an investor, or a trader. If there is one thing we teach you on this whole website, please let it be this: Investing is ALL ABOUT YOUR GOALS! Please don't ever consider in investing in something just to make a profit, without thinking about your overall goals. That is the sure way to be disappointed, one way or the other.
This decision is paramount because the strategies you use are all dictated by this one decision. So please think about it carefully, as it really will affect all of the investing you do for the rest of your life. It will also dictate which websites you will frequent, so think hard!
Just so you're sure about the terms; Traders are those who are more concerned with what they are buying now than following a plan to achieve their goal in the long run. Making short term money guides most of their investing actions. For example, Traders will likely have the following attitudes:
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I like Microsoft and I want some of it.
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Now the market is up, it's a good time to make money.
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I think this stock/fund is better than that one so I want some.
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Prove to me why I should buy this stock or fund.
Goals | Time Horizon | Tax Advantages | Risk Tolerance | Self or Pro Managed | Diversify & Asset Allocation | Decide on investments | Market Timing | Stay invested | Rebalancing & Reallocation
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