making an investing strategy for investing in the stock marketinvesting strategy and investing ideas Many people that I have talked to get very stressed and worried about their investments. They have to look at how their stock is going every 5 minutes. You can tell a smart investor can be stressed and worried when they talk about it all the time. When you hear them talk about it all the time with friends while at a meal or if they admit they are worried you know something is wrong. The only way to stop the stress is to have a plan NO MATTER WHAT HAPPENS. That's right you need to think of a plan when you invest your money so no matter what happens you won't get stressed but simply react. Remember there are two kinds of people in the world actors and reactors. Actors get upset, blame someone else, or quit and yell at you. corporate publicity Reactors say okay such and such a thing has happened to me and here is what I am going to do about it. So here is how your thinking should go. First and foremost never invest money that would seriously harm you or your family if you lost it. That's right never invest ANYTHING even in the safest of all investments if losing it would harm you or your family badly-money that you can't live without. After you make a promise to yourself to do that we will invent an investing strategy. An investing strategy for investing in stocksWhen you develop a plan nothing that comes in your way so long as it is in the plan and no surprise will come to haunt you. So here you go pretend you put your money in XYZ stock. Here is a plan that I made up off the top of my head. I have 10 thousand in my investment account, and I will invest NO MORE than 3 thousand of it in this one stock. I will start by investing 15 hundred in it, and at 30 dollars a share. If in the next few weeks it falls to bellow 25 dollars a share then I will buy another 500 dollars more of the stock until it dips bellow 20. If it does that and goes bellow 20 I will buy another 500 dollars of stock in it and unless it falls bellow 8 bucks. short selling stocksIf that happens I will buy another 500 dollars of stock and leave it in there until it at least goes up enough that I make 20% on my total money invested no matter how much is put in. This is a worst case scenario but now you have a plan that you can go by no matter what. It can either go up and you will make money or 20% on the 1500 or it will go down and you have a plan. It doesn't matter if it falls 20% the first day you buy it we have a plan and we aren't asking questions and getting stressed we know that in the long run if we diversify and use a plan we will come out ahead. We also aren't using silly technical patterns to try and figure out when to buy it becasue they don't usually work. An investing strategy for a smart investorsNow all of a sudden our investing strategy works and the stock shoots way up to 35 bucks in one week. We say okay I will SELL 500 dollars worth of stock and only buy more of it again if it falls to 29 dollars a share. It if goes to 40 I am selling all my stock and following the old rule of take the money and run. This is just a stress free example of showing you that your plan will make the decisions for you instead of asking yourself stressful questions. You won't have to ask yourself should I take the profits now? Should I cut my losses? You have a PLAN and like a computer would invest, it doesn't ask questions it just does what it was programmed to do before it started. Your plan might be different but be sure that you have one as a market strategy. You can use limit and stop order to help you through your brokerage. Good luck and create a wise good risk vs. return market strategy-investing strategy! finding good stocks |