What is the Best Investment Trades for the Fourth Quarter of 2010?
"Galaxies
NASA reports that galaxies are speeding away from Earth at 90,000 miles a second. What do you suppose they know that we don't?" From Bob Phillips', "The Best of the Good Clean Jokes."
What is the best investment mix for the last quarter of 2010? This article reveals the best stock strategy for you. Historically, the stock market goes down in September and October during a midterm election year. Move investment money from cash and bonds back into the stock market gradually over this period of time. Historically once elections are over, the stock market rallies from November into the first or second quarter of the following year. Your goal is to have a majority of money in the stock market by the end of October 2010. At the latest, you want your investment move in place before 2011.
In order to maximize your stock market investment returns, place your investment money in companies that shall appreciate faster than the general stock market. Personally, I use a momentum trading strategy. I pick a basket of seven stocks that have the best 26-week total return (stock appreciation). Stocks in this class are statistically proven to move higher over a short period of time, a month or two. Once these stocks fall from the top of the list to position 15 or lower, replace them with others at the top of the list. Do this investment rotation every month. You must execute this strategy with fanatical obedience to the rules. This takes the emotion out of your investment decisions. There are many other types of momentum trading strategies. Try the one I use as well as others.
I caution investors with no momentum-trading experience, that this investment strategy is a financial roller coaster ride. However, once a momentum trading strategy is discovered and mastered, it is a lucrative way to make money. To be successful with momentum trading, you must first develop an appetite for risk but not gambling. Next you hedge your investment by balancing your portfolio's stock and cash positions. Use changes in the S&P 500 stock index to know when to do this, see
The S&P 500 Yardstick.
If you are new to momentum trading, start off with a few promising investment strategies as a financially tiny part of your portfolio. Of course, you can trade the strategies on paper without any investment. Personally, I pay much more attention when I have real money invested. Check each investment strategy against the other. Next, check the best strategies against the S&P 500 index. Look for strategies that lose less money than the S&P 500 on downtrends and make more money than the S&P 500 on up trends. At the very least, the up trend minus the downtrend must be better than the S&P 500 movement over the same time to justify the effort. As you gain confidence in a strategy, increase its size proportionately in your portfolio.
Finally, take action immediately. The Bulls are already pushing the market higher in anticipation for a year-end rally. Balanced against this is economic uncertainty. History is only a rough guide for the future. The best way to handle the situation is by moving small amounts of money every week until you hit your target percentages and date well before the end of 2010. Make each investment move the same amount and do not try to guess the stock market ups and downs. Investors call this investment technique "dollar cost averaging". This goes a long way in taking the gambling out of investing!
"Enough Said
A certain man had a great reputation for always catching his limit of fish. Everyone wanted to know his secret. One day the game warden asked to go along to see where he was fishing.
The man and the game warden got into a boat and rowed to the middle of a nearby lake. The fishermen threw over an anchor, and then reached into a paper bag he pulled out a stick of dynamite, lit a match to the fuse, and tossed it into the lake. There was a huge explosion and several fish floated to the surface.
The game warden was irate. He yelled, "You can't do that! It's against the law!"
The fisherman then reached into the sack and pulled out another stick of dynamite. He lit the fuse and then threw it into the lap of the game warden. As he did this he asked, "Are you going to talk or fish?" - From Bob Phillips', "The Best of the Good Clean Jokes"
What is the Best Investment Trades for the Fourth Quarter of 2010?
By: Mark Elliot
Experience: Making Money Online With Pay Attention To Teach You How To Open Clothing Online Shop Buying The Best Glass Jewelry Making Supplies Online Fushigi Magic Gravity Ball Review - Buy Fushigi Balls Online Go To A Wholesale Fashion Jewelry Online Store For A Wider Selection Benefits Of Using An Online Florist Things To Consider When You Select An Online Florist Free Online Coupons Code | Online Discount Promo Coupon Codes | Promotional Coupon Codes How Do You Obtain A Nursing Degree Online How To Generate Money Online With Private Label Rights The Importance Of Passion In Online Success Online Degree Benefits Online Distance Learning - Solution for Human Capacity Development in the 21st Century Finding The Best Fishing Lures Online