Best ways to invest money
in stock market
How to find best stock investment
Investors are often looking for best ways to invest money and contact me with question regarding this issue. My reply is based on my style how to invest my money in stock market.
Avoid totally passive investing
The main recommendation is to
avoid very passive investing.
Even you think about long term horizon for your investment results, your individual investments should last months or about one year as maximum. From my point of view stock investment is long term trade. You have to consider investing as your business and therefore you have to take care of it. Few hours in a month to check situation and make decision will improve your result.
Stock market crash chart
and
stock market history chart
can provide some valuable lessons for passive investors.
Morningstar ratings
should be also accepted only very carefully.
Finally there is possible to
beat professional money managers
and generate very good performance every year.
Do not invest without plan
Investing or trading is not only about answer to question "
How do I buy stocks online
". Your investing, i.e. long term or midterm trading, should be based on your
investing plan
covering issues like: Selection of stocks, Trade setup = risk management and
money management
, investment/trade management when you already have position opened. Using of stop loss and risk management rules is critical if you want to
avoid big losses
The
broker, investment time frame and stock selection
should be also parts of your stock trading business plan.
ETF Investing
Even you think about using
index ETF
as vehicle for your investing purposes, be little bit active. Do not buy and hold for years. You can find
good alternative
to vanguard index funds
Bond ETF
shares could be also part of your portfolio. They offer additional set of ETF investing and trading opportunities.
It include also international bond ETF shares and
municipal bond ETF
There are also opportunities to use
dividend etf
shares and place them into portfolio.
How to invest into commodity ETFs ?
Commodities are moving in huge price swings during current decade. There are publicly discussed and ideas how to invest in commodities are published in magazines or online. Some believe that they are one of the best ways to invest money.My opinion about long term
investing into commodity ETF
shares is negative. But I like to use commodities etf for short and mid term trades. These short and mid term trades you can do with
Natural gas ETF
to realize one of our Global macro strategy we follow up in my portfolio and which we also apply to
portfolios of our clients.
Another
list of examples
for developing of commodity ETF investing strategy are described for
ishares gold ETF and ishares silver ETF shares.
Here are several notes about
best ways to invest money in silver
or how to find
best silver stocks.
If you are looking for ways to invest in gold then you can look for
best gold stocks
including gold miners ETF or simply check options for pure
gold exchange traded funds.
Technical analysis
I recommend learning basics of technical analysis like
support and resistance
and
trend
. It will help you to make better entries for your long term trades / investments. Risk management & Trade management of your investments will be much better using basic tools of technical analysis.Technical analysis could be also one source of
good stock picks
for you portolio.
Fundamental analysis
There are two best ways to invest money in stock market. One is using technical analysis and another using fundamental analysis. Fundamental analysis could be time consuming job so learn my
tips how to use it wisely
for online trading and investing activities.
Introduction to online currency trading
Today's investors or traders are active and use also international stock exchanges. They buy and sell shares priced in different currencies. The foreign exchange rates are moving every day and it is wise to know how to protect against these movements (to hedge) or how to use these movements for
currency online trading.
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