Lucrative Investment Strategy: A Good Plan to Grow On
Tuesday, November 22, 2011
The whole idea behind making financial investments is to get a good return on your investment. Making smart investments should be your goal. Not researching your options can possibly be the biggest mistake you can make. You want to learn as much as you can understand. Taking the time to find the most lucrative investment strategy can make the difference between you losing or winning.
How you choose to invest your money will most likely be based on how much risk you're willing to take. As with all investment endeavors, there is a loss risk. Having a good financial plan from the start is essential. Researching the various investment strategies can help you figure out what you feel safest with.
Buy Long
Buying stock long is not a lucrative investment strategy. With this particular strategy, you can only lose what you have put into it. It may sound good to know that it offers minimal risk; it also offers the least return.
Buy short, sell long
This strategy has a little bit of risk attached to it but can be lucrative if it's used properly. With this particular type of investment, the assets or securities that are being sold have been borrowed from a third party; intending on buying the same assets later on. The seller unloads the assets at a higher price. When the price of the assets drops, is when they pay the original owner. The seller is simply profiting from the drop in price. This strategy is profitable as long as the drop in price is substantial enough.
Buy and Hold
A passive technique, the "buy and hold" can be considered a lucrative investment strategy. The investor buys the stock and holds onto it, no matter what happens with the market. Equities to yield a higher return than assets do. This strategy is also beneficial tax wise because long term investments are taxed at a lower rate than short term investments.
Set triggers
This is not an investment technique but can also be considered a lucrative investment strategy. Set triggers for yourself. For example, a downturn in the market can be used as a trigger to buy stock that may have been too rich for your blood before. This strategy can aid in you acquiring very lucrative assets. However, you should set guidelines and limits and be sure to stick to them.
These are only four investment strategies among many. Only a professional truly understands how any of them work. Before you make any investment decisions, it would be wise to seek counsel. Let them guide you on how to make your money grow. Keep in mind however, that it is your money being invested. Just because they recommend it, doesn't mean you have to do it if you're uncomfortable with their suggestions.
Finding a lucrative investment strategy is a key factor in making your investments worth anything. The idea is to yield a return that is noticeable. As was stated before, with any investment there is risk. The right strategy should decrease the risk factor for you.
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Labels: Investment, Lucrative, Strategy
