User talk:Unin1749
Why Settle For 5%-10% Return On Investment From Diversified Investments When 100%-200% Is Easily, Safely Available Annually?
Diversified investments absolutely underachieve. Why? Because they are merely a buy-and-hold-long strategy. So? Buy-and-hold means that the stock only makes a return on investment if the market price goes up.
However, every market and every stock always have downturns or times of price slump. Diversified investments never will participate in the gains that are definitely lowest risk and readily accessible in the downturns.
To maximize return on investment the investor must post gains from both sides of the stock market - upward and downside moves in the price.
To make money from falling price movements, diversified investments must make use of technical analysis to initiate short selling, utilizing the following varieties of investment approaches:
- day trading and also intraday trading - swing trading and also scalping - foreign exchange trading (forex) - stock futures put together with call options - short term micro cap equities - autopilot stock trading robots - computerized stock picking platforms
Each of the above stock investing strategies produce a return on investment significantly in excess of typical diversified investments in passive investor portfolios. Hence, diversified investments are invariably missing out on the exceptional profit margins obtainable in the stock market.
All of the above-listed active trading strategies also mean much less risk than typical diversified investments for three reasons.
- they are simply in-and-out investments, never held long enough to encounter large losses - they rely on automated technical analysis successful at selecting winning stocks even more than 2/3 of the time - the falling markets feared by conventional diversified investments become substantial income generators
Bottom line: to make the maximum return on investment in the stock market, an investor must trade both the uptrend (buying and holding) as well as the downside (selling short) conditions in the market. Selling short means you sell a stock first without owning it, and then purchase it when the price declines and thus take possession of the stock at a less expensive price. Hence a short sale only means you sold a stock before you bought it, but still the sales price was greater than the purchase price and thus you made a profit.
Because a conventional diversified investments portfolio consists of stocks for the long term, they invariably miss the return on investment which is readily accessible from computerized technical analysis and investing in the downside of the market. A variety of computerized software programs to participate in the highest profit segment of investing can be acquired at the macho market web site. Numerous automated programs to trade both the positive side and downside of the market are available at Mach Market.
