The Logic of Investing
Title: The Logic Of Investing
Author: Damian Papworth
One of the things I have noticed during the 20 years I have spent either actively investing in various strategies, or trialling them, is that the ones which make logical sense usually are the ones which work best in real life.
Lets face it, you could spend 2 life times trialling all the investment strategies people offer you. There are so many out there, and I am sure most of them have merit. What I have found though (and this in no way passes judgement on the merits of any investment strategy) is that if I really think logically about many of the investment strategies which have come my way, there often are holes in them… big ones at that too.
Its quite possible that these strategies, in their wholeness work quite well. But the problem is that if you are trading a strategy which has holes in the logic, at some stage you’ll come up against a real life situation where the strategy has no answer. Then you’ll be on your own and you’ll need to make a decision.
When I am in this situation, where I have to make a decision about a strategy I am trading, because the strategy does not offer me guidance, I believe I am gambling. This is not good. I may make the right decision, but then again, I may lose my money. In all good investment strategies, you should not have to do this. You should simply plan the trade, and then trade the plan. There should not be room for guess work.
At TheOnlyWay.com.au, we have found 2 investment strategies, the logic of which is as close to flawless as you are likely to find. This is why we like these strategies, this is why we trade these strategies successfully, and this is why we recommend these strategies. Here is a summary of what they offer:
– Our holdings are always counter-active. Therefore, our overall position is insulated against short term adverse swings in the market, in any particular currency.
– We admit to not knowing for sure, whether our currencies will go up or down, so we set our trades to take advantage of both directional swings
– we ensure we make large positive interest income on our positions, everytime we enter the market, on our entire leveraged holdings. This is additional income to our trading proifits.
– We choose only the top 150 companies in the stock market, as these tend to be the more safe and stable companies.
– Every month, we place a trade which will pay us some additional cash, just because we own those stocks (No, this cash is not a dividend payment, and it happens monthly)
– As we get paid this cash, per stock we own, every month, we actually reduce the risk of our holding, while earning more money (Ie. if we buy some stocks at $20.00, and get paid $0.50 per share in the first month, we have a lower risk on this blue chip stock as our “break even” point is now $19.50.
Here is some more detail on our Stock Market Trading strategy: Stock Market Trading Strategy
So if you have any real life questions about these strategies, or any other on our website, contact us today.
About the author:
Damian Papworth, B.Ec. A.S.I.A. is the owner and editor of the only wealth creation website that promises you every strategy listed on it, is being actively used successfully by the team today TheOnlyWay.com.au
Copyright Damian Papworth / Jayde Online, Inc. 2007. This article is courtesy of GoArticles.com.