| The Truth About Winning Edge Trading |
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Why do you invest money? This may seem like an obvious question, but it’s very important to understand your motivation for investing money in order to be successful. For some people, it’s the thrill of the game, but for most, it’s to grow your portfolio value and eventually provide you passive income. What to do with this passive income is where most people differ. Some people are motivated to increase their portfolio values in order to acquire things, like a second home or a new boat; others might want to pay for a college education; and still others might want to grow passive income to the point where it covers all living expenses, which can lead to financial freedom and early retirement.
Whatever your motivation is for investing money, it’s important to set clear, definable goals supported by a written plan of action with status updates on a regular basis. Having clearly focused goals and plans is a pre-requisite to choosing the investment vehicles that are appropriate for you. Once your plan is in place, you can follow it through to achieve success. Investment Choices There are many different investment vehicles to choose from. The key to making the right choice is to select an investment vehicle along with an investment methodology that has the potential to deliver the financial returns necessary to meet your goals. For example, if your goal requires a 20% per year rate of return, buying high grade bonds yielding 6% per year would not be appropriate. On the other hand, if low risk is more important to achieving your goal than high returns, high grade bonds may be just the thing for you. Real estate has proven to be an excellent long term investment capable of producing passive income along the way. Through rental properties, rehabbing, and land development, there are a variety of ways to invest in real estate, but these are only good choices if they align with your investment goals. Then there are stocks: small caps, mid caps, large caps, techs, etc. With stocks, you can tailor your investment strategy to align with your goals – a diversified portfolio of high to low risk stocks, a short-term oriented stock trading portfolio, or a buy and hold long-term mutual fund portfolio just to name a few. There are probably as many strategies to investing in the stock market as there are stocks to invest in. Whether your investment choices include bonds, real estate, or stocks, in order to be successful in the long run you must have a Winning Edge that you can leverage over and over again. In this article, you’ll learn in detail what it means to have a Winning Edge, including a comprehensive definition, the implications of returns versus risk, and its key components. The discussion will focus on the Winning Edge as it applies to stock investing, and hopefully will assist you in determining if you currently have a Winning Edge in your own personal stock investing strategy. To read the rest of this article, check out Instant Profits or the Super Divergence Blueprint, where this entire article is included as a FREE bonus. |
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