Getting Started
It might be the hardest part, but it’s worth the time and efforts to develop an investment strategy or plan before placing your first trade. Investing strategy is a powerful way to grow your investment portfolio. But without an effective investment strategy behind it, your portfolio will never take off at the right foot. Sadly, many investors never bother with a strategy. They start investing without much thought and certainly no profit target and stop loss on their trades.
Start creating your strategy as you read the following steps.
Step 1: Start with Your Goals
Step 2: Choose Your Investment Types
Step 3: Create a Schedule with Potential Investment Ideas
Step 4: Measure Your Results
A strategy is no good if you don’t measure its results, so it is critical to evaluate your portfolio’s performance regularly. Only then can you optimize to improve your future investment.
Take-away: Investing strategies can be as simple as following your heart or as complicated as following a mathematical formula. The key is to find the strategy that works for you and stick with it.
Make sure to create a plan, follow a process, and measure your results. It’s okay to make adjustments on your plan after seeing how your portfolio performs.