Investment Method

What Investment Method Gives You the Best Return?

There is one method out there that will give you the bet return on your investments, but it requires a bit of detective work to find.  For some people, it may only take five minutes to discover, for others, it could take weeks, 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.

Safe Diversification

Safe Investing & Diversification

Fundamental analysis and technical analysis – with or without charts – one of these methods can form the foundation of how you develop your best method of investment so you can generate your best returns.  In other words, there is not one method that is a do-it-all for every investor.

To discover the keys to finding your best return method start by writing down:

Your Personality

Time – How much time are you willing to spend each day or each week making your investment decisions?

Are you interested in long-term investments? – Those investments that take many years to realize profits that you can convert to cash, or do you needs to make money quickly and 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 down to how you screen them to meet you objectives, and you screen based on how you answered these thee key questions.  The answers to some of the questions may not have worked with the answers to other questions.  For example, if you only have an hour or so a week, rapid stock trading isn’t going to work for you as it requires at least 30 minutes a day spent managing your portfolio.  If, on the other hand, you re willing to let your profits accumulate over long periods of time, perhaps even for years, then you may need to trade no more than once or twice a month.

Long-term investing can be accomplished with either technical or fundamental investing.  Short- and medium-term trading (where you own a stock, or an ETF for days, weeks, or months instead of many, many years) are best accomplished with technical analysis.

So, what is the best method for you?

If you only want to spend an hour or two a month on medium to long term investments, then look to:

Technical Analysis

Stocks, ETFs, Mutual Funds

If you can spend many hours at a time, but only a few times a year on long term investments, then look to:

Fundamental or Technical Analysis

Stocks, ETFs, Mutual Funds

If you can spend an hour a week on medium- or long-term investments, then look to:

Technical Analysis

Stocks, ETFs, Mutual Funds

If you can spend an hour or more almost every day for short-, medium-, or long-term investments, then look to:

Technical Analysis

Stocks, ETFs, some Mutual Funds

The key here is using a methodology that fits your trading pattern.  Software programs are designed either for investors who trade during the day, or  investors that trade based on the end-of-day pricing either daily, weekly, monthly, or even less frequently.  Most chart programs can be used for both of these technical investment methods, but they tend to be aimed at day or frequent traders.

Investment programs can be found online, from an online broker, or you can purchase them separately.  Some are easy to learn, others may take weeks or months.  Some programs 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 methods, and you objectives; others have a particular set method and you must make your objectives compatible with their methods.

 

 

Raymond M.F. Dominick is the author of “Invest Safely and Profitably” (Your Success Guide), available from Amazon.

 

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