Saturday, January 24, 2009

Is Your Choice Maximum Returns Or Simple Contentment?

By Rahn Naro

Depending on the individual there are many different methods of investing, some risky others designed for long-term investing. There are thsoe of us who are risk takers, (somewhat of a gambler) who enjoy riskier investments with high upside potential. You might find this type of person labeled as a "day trader", moving quickly in and out of various positions as the market moves. Others invest conservatively, letting their money sit for the long term. We feel a blend of these two, depending on your personality, will allow the greatest opportunity to increase your nest egg.

While it is not the intention of this article to pass judgment, we feel a blend of the two is the best way to increase your holdings over time.

All of us desire to be winners in the market, increasing our nest egg, and achieving our financial goals and dreams, however it's important to take action so your dreams can become a reality.

Our positions will rise and fall based on the economic and global climate, or possibly because of a small investment mistake such as jumping onto a "Buying Frenzy" too late, then watching it tank. Rather than beating a dead horse, learne from your mistakes and live to invest another day.

There may be a day when we put careful thought and analysis into a particular stock, only to find it tanking leaving us wondering where we did wrong. In many cases you've done nothing wrong, you're simply a victim of the economic climate. If you find you did make an investment mistake, (something we've all done at least once), don't let it define you, learn from it and move on.

Will you need your money back quickly or are you investing for retirement? No matter the type of investor, we're all hoping for increase over time, but many would like that increase to happen rapidly. In order to experience a rapid ROI, it's mandatory you get into the market at the right time with the greatest opporutnity for upside potential. That might seem obvious but not surprisingly many investors get blindsided by the market.

Will you need your money back quickly, or will you let it sit for the long-term? If you're someone who needs your money quickly, do you have the proper mentality to watch the markets rise and fall on a daily basis? It will often be necessary to jump in and out of a position as trends change, are you prepared for this? If not you might be better suited to buy established stocks and hold for long-term gains?

PENNY STOCKS OFFER GREAT UPSIDE POTENTIAL: The term penny stocks is actually a misnomer, since the price of the stock's range from fractions of a penny, up to $4.99 per share. Since these stocks are initially priced low, they have the greatest opportunity for quick upside potential.

The world of investing need not be difficult, but it will always be challenging. Before you invest your first penny, take the time to determine your own investment personality, your financial goals, and whether or not you plan to do your own research or be aligned with those who have proven research methods in place.

Once you've taken the time to take a good look at your own investment personality, we'd suggest you subscribe to a quality investment newsletters, seeking to learn as much as possible about your area of interest.

Once you've taken the time to decide on your investment strategy, personality, and goals, the first step is to establish and fund your brokerage account. By having this step in place, when the timing is right, you be perfectly positioned to move quickly and decisively.

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