Investment Success
The last few weeks in May 2006 reminded investors all around the world that when it comes to the Stockmarket, shares can fall in value as well as rise. This is the number one reason why most people stay out of the investment game.
But for experienced investors, this is not an issue. Because they know that staying invested in volatile times as well as keeping sight of their long-term goals are important factors in achieving investment success.
Sudden downturns in the market are only factors of particular importance to the short-term investor.
Volatility, which is the ups and downs of the Stockmarket, is the price we pay for our expectation of investment gain. This is part of the investment process. The investor who is able to weather the storm lives to enjoy the sunshine. To avoid volatility is to avoid the reward.
If share prices drop instead of rise, this can be an opportunity instead of a concern as it means that you can buy more shares. Providing you do not need your money immediately, you will now be able to purchase more shares at a lower price.
With time, the share value will recover and your overall value well benefit from the rise as well. It is much like buying retail items on sale. According to Warren Buffet, his favourite holding period for stocks is forever!
A sound strategy to buffer some of the market volatility out of investing is to settle for regular investing as opposed to lump-sum investments. This is when you invest a fixed amount of money at fixed intervals of time regardless of the price of the shares.
This is what is referred to as Fixed Cost Averaging. This is a sensible approach and it takes a lot of the worry and stress out of investing.
If you have a lump sum of money to invest, you can phase your investment into six or twelve equal parts to effectively achieve the average price of your chosen investment over the period.
When the share price is up, you buy fewer shares, when the price is down you buy more shares. Fixed cost averaging does not guarantee the best results, however it provides the greatest opportunity to get the best price on shares over the long term.
It results in lowering the average cost slightly, presuming that the fund fluctuates up and down. Buying shares this way proves far more effective than buying a fixed number of shares each month. It also eliminates reliance on market timing and stock selection saving you time to focus on other activities in life.
No one in the investment world can consistently out-perform and beat the market.
The good news is that you do not need to! All you need is a fully diversified portfolio of investments, which is the best defence against market volatility.
Do not listen to the ability of the media or financial advisors to keep people in constant fear and hope. Remember: they are not in the business of educating people.
The primary focus of financial advisors is their own profit and
But for experienced investors, this is not an issue. Because they know that staying invested in volatile times as well as keeping sight of their long-term goals are important factors in achieving investment success.
Sudden downturns in the market are only factors of particular importance to the short-term investor.
Volatility, which is the ups and downs of the Stockmarket, is the price we pay for our expectation of investment gain. This is part of the investment process. The investor who is able to weather the storm lives to enjoy the sunshine. To avoid volatility is to avoid the reward.
If share prices drop instead of rise, this can be an opportunity instead of a concern as it means that you can buy more shares. Providing you do not need your money immediately, you will now be able to purchase more shares at a lower price.
With time, the share value will recover and your overall value well benefit from the rise as well. It is much like buying retail items on sale. According to Warren Buffet, his favourite holding period for stocks is forever!
A sound strategy to buffer some of the market volatility out of investing is to settle for regular investing as opposed to lump-sum investments. This is when you invest a fixed amount of money at fixed intervals of time regardless of the price of the shares.
This is what is referred to as Fixed Cost Averaging. This is a sensible approach and it takes a lot of the worry and stress out of investing.
If you have a lump sum of money to invest, you can phase your investment into six or twelve equal parts to effectively achieve the average price of your chosen investment over the period.
When the share price is up, you buy fewer shares, when the price is down you buy more shares. Fixed cost averaging does not guarantee the best results, however it provides the greatest opportunity to get the best price on shares over the long term.
It results in lowering the average cost slightly, presuming that the fund fluctuates up and down. Buying shares this way proves far more effective than buying a fixed number of shares each month. It also eliminates reliance on market timing and stock selection saving you time to focus on other activities in life.
No one in the investment world can consistently out-perform and beat the market.
The good news is that you do not need to! All you need is a fully diversified portfolio of investments, which is the best defence against market volatility.
Do not listen to the ability of the media or financial advisors to keep people in constant fear and hope. Remember: they are not in the business of educating people.
The primary focus of financial advisors is their own profit and
The last few weeks in May 2006 reminded investors all around the world that when it comes to the Stockmarket, shares can fall in value as well as rise. This is the number one reason why most people stay out of the investment game.
But for experienced investors, this is not an issue. Because they know that staying invested in volatile times as well as keeping sight of their long-term goals are important factors in achieving investment success.
Sudden downturns in the market are only factors of particular importance to the short-term investor.
Volatility, which is the ups and downs of the Stockmarket, is the price we pay for our expectation of investment gain. This is part of the investment process. The investor who is able to weather the storm lives to enjoy the sunshine. To avoid volatility is to avoid the reward.
If share prices drop instead of rise, this can be an opportunity instead of a concern as it means that you can buy more shares. Providing you do not need your money immediately, you will now be able to purchase more shares at a lower price.
With time, the share value will recover and your overall value well benefit from the rise as well. It is much like buying retail items on sale. According to Warren Buffet, his favourite holding period for stocks is forever!
A sound strategy to buffer some of the market volatility out of investing is to settle for regular investing as opposed to lump-sum investments. This is when you invest a fixed amount of money at fixed intervals of time regardless of the price of the shares.
This is what is referred to as Fixed Cost Averaging. This is a sensible approach and it takes a lot of the worry and stress out of investing.
If you have a lump sum of money to invest, you can phase your investment into six or twelve equal parts to effectively achieve the average price of your chosen investment over the period.
When the share price is up, you buy fewer shares, when the price is down you buy more shares. Fixed cost averaging does not guarantee the best results, however it provides the greatest opportunity to get the best price on shares over the long term.
It results in lowering the average cost slightly, presuming that the fund fluctuates up and down. Buying shares this way proves far more effective than buying a fixed number of shares each month. It also eliminates reliance on market timing and stock selection saving you time to focus on other activities in life.
No one in the investment world can consistently out-perform and beat the market.
The good news is that you do not need to! All you need is a fully diversified portfolio of investments, which is the best defence against market volatility.
Do not listen to the ability of the media or financial advisors to keep people in constant fear and hope. Remember: they are not in the business of educating people.
The primary focus of financial advisors is their own profit and
But for experienced investors, this is not an issue. Because they know that staying invested in volatile times as well as keeping sight of their long-term goals are important factors in achieving investment success.
Sudden downturns in the market are only factors of particular importance to the short-term investor.
Volatility, which is the ups and downs of the Stockmarket, is the price we pay for our expectation of investment gain. This is part of the investment process. The investor who is able to weather the storm lives to enjoy the sunshine. To avoid volatility is to avoid the reward.
If share prices drop instead of rise, this can be an opportunity instead of a concern as it means that you can buy more shares. Providing you do not need your money immediately, you will now be able to purchase more shares at a lower price.
With time, the share value will recover and your overall value well benefit from the rise as well. It is much like buying retail items on sale. According to Warren Buffet, his favourite holding period for stocks is forever!
A sound strategy to buffer some of the market volatility out of investing is to settle for regular investing as opposed to lump-sum investments. This is when you invest a fixed amount of money at fixed intervals of time regardless of the price of the shares.
This is what is referred to as Fixed Cost Averaging. This is a sensible approach and it takes a lot of the worry and stress out of investing.
If you have a lump sum of money to invest, you can phase your investment into six or twelve equal parts to effectively achieve the average price of your chosen investment over the period.
When the share price is up, you buy fewer shares, when the price is down you buy more shares. Fixed cost averaging does not guarantee the best results, however it provides the greatest opportunity to get the best price on shares over the long term.
It results in lowering the average cost slightly, presuming that the fund fluctuates up and down. Buying shares this way proves far more effective than buying a fixed number of shares each month. It also eliminates reliance on market timing and stock selection saving you time to focus on other activities in life.
No one in the investment world can consistently out-perform and beat the market.
The good news is that you do not need to! All you need is a fully diversified portfolio of investments, which is the best defence against market volatility.
Do not listen to the ability of the media or financial advisors to keep people in constant fear and hope. Remember: they are not in the business of educating people.
The primary focus of financial advisors is their own profit and
posted by zzzzzzzzzzz at
11:45 PM
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