Thursday, March 3, 2011

Successful Investment Strategies


It seems that nearly everyone in the universe who manages investments these days seems to be looking for any and every advantage. Let’s be honest about our desire to be profitable in our current financial world, it is a tough environment out there. Like during the Old West gun fights where the participants would look for every advantage from having the sun at their backs to how they positioned themselves to limit target size in an attempt to insure their survival, so too is the world of investments.

Sometimes we are looking so hard for those advantages that we miss out on the very information we are searching for. In reality, it isn’t that hard if we look at the financial decisions that were made over the past decade in the investment arena. But some would remind you that the majority of those decisions were not good choices and that is true. The point being that they were choices where a direction had to be determined and acted upon. Sometimes our investing choices are not a certain stock is going to be a moneymaker but this particular stock cannot produce with the changes in market forces coming down the path over the next two years.

It is the colloquial glass half full vs. glass is half empty. This old saying, like investing, must be taken in context. For example, if you have half a glass of water and are running a marathon, the glass is half empty but if you are standing over your computer and about to spill the water then the glass is half full. So it goes with investing. Having stated this, at times it is as important (if not more so) to know when to get out of an investment than it is to get in.

So as investors we don’t necessarily need to know intricate details about every law and policy that come from Washington and your state capitol but understand the basics of how it will affect the market place and be able to apply free market principles to any given investment to get an idea of its long term value.

Things such as the supply and demand principle are important if you are looking at the situation in Egypt while considering commodities market and oil or investing in a renewable energy investment knowing oil prices are going up.

Perhaps we should save the best for last when it comes to strategies. Do your homework and be informed on the subject matter at hand but also live with personal dignity or gravitas each day. Yes, investing is important beyond words of description but you must also know or remember who you are and enjoy the things that life brings us. It helps to remember that long after we are gone, the world will go forward with great investment opportunities but you will be a better investor and person if you can appreciate the things in life that bring you joy.

Article by Lena Hunt of Celebritize You

Readers, please be aware that you are reading this blog of your own free will and that you are taking the information provided at your own risk. The information provided on these blogs are for entertainment purposes only and are not providing professional investing, finance, and legal advice. You are reading and/or using any of the information that you glean from this blog at your own risk.