There is a method that will give you the best return on investment but it requires a bit of homework to discover. It may only take you five minutes or it may take you a week, but there is one particular method that will give you the best return on your investments. The method you like will be specific to you.
In previous articles I have written about fundamental analysis and technical analysis with and without charts. One of these methods will form the foundation for how you develop your best method of investment to get the best returns. In other words, there is not one do-it-all for everyone.
The keys to finding your best return method are to first write down:
• Time - how much time are you willing to spend each day or week on making your investment decisions.
• Are you interested in long-term (many years) to cash in your profits or do you need to make money quickly or rapidly or in substantial amounts?
• Are you willing to take risks or do you want to play it safe?
Mutual funds, stocks and ETFs can work for almost all investors. The difference comes in how you screen them to meet your objectives based on how you answered those three key questions. The answers to some questions may not work with the answer to another question. For example, if you only have an hour of so a week, rapid stock trading isn't going to work as that requires at least 30 minutes a day. If you are willing to let your profits accumulate over long periods of time, even years, then you may only need to trade once or twice a month at the most.
Long term investing can be accomplished with either technical or fundamental investing. Short and medium term trading (where you own a stock or ETF for days, weeks or months instead of many, many years) is best accomplished with technical analysis.
So, what is the best method for you?
Only want to spend an hour or two a month on medium to longer term investments?
• Technical analysis
• Stocks, ETFs, funds
Can spend many hours at a time but only a few times a year on long term investments?
• Fundamental or technical analysis
• Stocks, ETFs, funds
Can spend an hour a week on medium or long term investments?
• Technical analysis
• Stocks, ETFs, funds
You have an hour or more most days for short, medium or long term investments?
• Technical analysis
• Stocks, ETFs, some funds
The key to these methods is using a methodology that fits your trading pattern. Software programs are designed for investors who trade during the day, or investors who trade based on the end-of-day pricing either daily, weekly, monthly or even less frequently. Most chart programs can be used for any of these technical investment methods but they tend to be aimed at day or frequent traders.
Investment programs can be online, from an online broker or one you purchase separately. Some are easy to learn, others may take weeks or months. Some offer free, quick customer service, others charge after a certain time period. Some can be customized to work with your answers to the three key questions, your method and objectives; others have a particular set method that must be compatible with your objectives.
In previous articles I have written about fundamental analysis and technical analysis with and without charts. One of these methods will form the foundation for how you develop your best method of investment to get the best returns. In other words, there is not one do-it-all for everyone.
The keys to finding your best return method are to first write down:
• Time - how much time are you willing to spend each day or week on making your investment decisions.
• Are you interested in long-term (many years) to cash in your profits or do you need to make money quickly or rapidly or in substantial amounts?
• Are you willing to take risks or do you want to play it safe?
Mutual funds, stocks and ETFs can work for almost all investors. The difference comes in how you screen them to meet your objectives based on how you answered those three key questions. The answers to some questions may not work with the answer to another question. For example, if you only have an hour of so a week, rapid stock trading isn't going to work as that requires at least 30 minutes a day. If you are willing to let your profits accumulate over long periods of time, even years, then you may only need to trade once or twice a month at the most.
Long term investing can be accomplished with either technical or fundamental investing. Short and medium term trading (where you own a stock or ETF for days, weeks or months instead of many, many years) is best accomplished with technical analysis.
So, what is the best method for you?
Only want to spend an hour or two a month on medium to longer term investments?
• Technical analysis
• Stocks, ETFs, funds
Can spend many hours at a time but only a few times a year on long term investments?
• Fundamental or technical analysis
• Stocks, ETFs, funds
Can spend an hour a week on medium or long term investments?
• Technical analysis
• Stocks, ETFs, funds
You have an hour or more most days for short, medium or long term investments?
• Technical analysis
• Stocks, ETFs, some funds
The key to these methods is using a methodology that fits your trading pattern. Software programs are designed for investors who trade during the day, or investors who trade based on the end-of-day pricing either daily, weekly, monthly or even less frequently. Most chart programs can be used for any of these technical investment methods but they tend to be aimed at day or frequent traders.
Investment programs can be online, from an online broker or one you purchase separately. Some are easy to learn, others may take weeks or months. Some offer free, quick customer service, others charge after a certain time period. Some can be customized to work with your answers to the three key questions, your method and objectives; others have a particular set method that must be compatible with your objectives.
Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana.
View his software at: http://www.dynamicinvestorpro.com
View his software at: http://www.dynamicinvestorpro.com
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