How Do You React To The Stock Market?

Investing Strategies


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Learn different investing styles and strategies for the stock market. For more free lessons, stock discussions and to earn 0 for getting educated.

Investment Strategy

Dan Caplinger of Motley Fool says:

“You don't have to have a strategy in order to invest. But with the right strategy, you can make investing a whole lot easier — and more profitable.

The problem is that everywhere you turn, you see someone telling you that their strategy is the best one — and in some cases, the only one that will make you successful. With so many different ways to profit from stocks, how do you decide which one is right for you?”

While Larry Stein writing for Market Watch says that

“Long-term capital gains represent one of the best bargains in the U.S. tax code. For example, suppose an investor in the 35% tax bracket bought IBM IBM +0.00%  for $100,000 and sold it for $110,000, reaping a $10,000 (or 10%) gain.”

And also discusses ETFs”

“Exchange-traded funds, or ETFs, make it easy to consistently generate long-term capital gains. No clever indicators are needed: Just invest in broad-based index funds.”

Investing

Bankrate.com says to look at these types of investing:

  • Top-down or bottom-up investing

  • Fundamental or technical analysis

  • Contrarian investing

  • Dividend investing

Things to consider however when investing is long term capital gains, and capital gains tax treatment.  The tax codes are heavily in favor of long term investing it seems.  So building a portfolio laden with tax incentive holding could bode well in your later years.

Buy and Hold

When building out that golden egg scenario in your long term portfolio, it would probably be wise to study up on where you money goes.  While this is why fund managers, at least the good ones, make a lot of money, its a good habit to practice.  Understand where you money is being placed and why.  There are lots of investors who have self built their retirement funds with the aid of research and due diligence.  Most people will do more research on their next TV purchase then on their next investment.

Stock Market

The stock market is there to make money.  That is the point of it from and investors view.  However, many lose their money, because they just aren't savvy enough or educated enough.  Trust of Wall Street with the main street investors has fallen drastically. Why?  Because many have been taken advantage of.  They only time you get taken advantage of is when you don't know any better.   So get informed, stay informed!  It's your money!