User talk:Anyl1509
Add topicWhy Would You Accept 5%-10% Return On Investment With Diversified Investments When 100%-200% Is Easily, Safely Available Annually?
Diversified investments invariably lose out. Why? Because they are merely a buy-and-hold-long trading strategy. So? Buy-and-hold means that the stock only makes a return on investment when the market price goes up.
However, every market as well as every stock consistently have downturns or instances of price drop. Diversified investments never participate in the earnings that are continuously risk-free and easily available in the downturns.
To maximize return on investment a trader must post gains from both sides of the investment strategy - upside and downward actions in the stock price.
To generate profit from negative price movement, diversified investments must depend on technical analysis to generate short selling, employing the following forms of investment methods:
- day trading or intraday trading - swing trading and also scalping - foreign exchange trading (forex) - stock futures put and call options - short term micro cap equities - autopilot stock trading robots - autopilot stock picking platforms
Each of the above trading strategies generate a return on investment far in excess of typical diversified investments in passive investor portfolios. Consequently, diversified investments are continually losing out on the remarkable profit margins possible in the stock market.
All of the above-listed active investing strategies also represent less risk than conventional diversified investments for three reasons.
- these are in-and-out investments, never owned long enough to sustain large losses - they use automated technical analysis successful at recommending winning stocks even more than 2/3 of the time - the falling markets dreaded by typical diversified investments become significant income generators
Bottom line: to earn the maximum return on investment in the equity markets, an investor must trade both the upside (buying and holding) as well as the downtrend (selling short) situations in the market. Selling short means you sell a stock first without acquiring it, and then buy it after the price falls and thus take ownership of the stock at a less costly price. Thus a short sale only means you sold the shares before you bought it, but still the selling price was higher than the purchase price and hence you gained a profit.
Because a typical diversified investments portfolio is made up of stocks for the long term, they always neglect the return on investment that is easily available from electronic technical analysis and trading the downside of the equities markets. A variety of automated software programs to take part in the highest profit segment of investing is available at the macho market internet site. Numerous electronic programs to trade both the upside and downside of the market are featured at Mach Market.
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