Learn To Invest, Start With An Investment 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.

An investment strategy is simply a detailed plan for how you plan to invest your money using various types of instruments to help you achieve your defined financial goals in a specific amount of time. When you choose a particular type of investment, such as stock, or mutual funds, within that category are multiple options for individual investments for you to choose from. It's similar to the way in which a clothing store sells clothes ? but the items for sale include of pants, shirts, skirts, dresses, accessories, and so on.

When you spend the time to learn to invest money methodically, in the beginning you can become overwhelmed by the variety of options for investing money. When the market is in a downturn, it becomes especially stressful, and hard to focus on what is the right choice. A strategy becomes critical, as a well as a way to stay on course and pick the right investment for your financial goals.

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.

Build a strategy first, and then trade from your plan, never from your gut. In the long term, it is the investor who does not have a plan who fares worse regardless of market sentiment. Use your plan to steer your course to financial wealth, and by applying your strategy, you'll begin to achieve your financial goals. - 23222

About the Author:

Trying to figure out the best investment for today's economy? Jane Calhoun is a blogger who writes about how to invest in stocks even in a shaky market.