Treat Your Investments Like a Cash Machine and Not a Slot Machine

Treat Your Investments
Like a Cash Machine
and Not a Slot Machine
www.ProfitableInvestingTips.com

http://profitableinvestingtips.com/investing-trading/treat-your-investments-like-a-cash-machine-and-not-a-slot-machine
How do you make money with your
investments?

There are two basic strategies. One is to
pick a solid investment based on
strong intrinsic value and hold for the long
term.

The other is always to follow the old adage
to buy low and sell high.

The first approach assumes that timing the
market is difficult and not worth the risk.

The second approach uses a lot of technical
analysis in an attempt to time the market.

Our suggestion is that for the long haul you
should follow the first approach for the
majority of your investments.

You should treat your investments like a
cash machine and not a slot machine.

That is to say, stick with what you know,
repeat what is profitable, and do not gamble.

Treat Your Investments Like a
Cash Machine and Not a Slot
Machine: Long Term Value
Investing

On the average, money invested in the US
stock market has accumulated value decade
after decade for more than a century.

Individual stocks rise and fall but the overall
market goes up.

Successful long term investors pick stocks
and stay with them.

We wrote about how many years are
required to make an investment long
term?

The answer is that to take advantage of the
long term appreciation of the US stock
market you need to stay with your
investments for 5 and 10 years or longer.

The point is that well-chosen stocks
represent well-run companies with strong
products.

These companies will make money year
after year.

And they typically have a margin of safety in
the form of property and cash in the bank
instead of excessive debt.

When you pick solid stocks for the long term
you treat your investments like a cash
machine and not a slot machine.

Treat Your Investments Like a
Cash Machine and Not a Slot
Machine: Market Timing and
Best Approaches

The short term approach to making money
in the stock market assumes that you can
time the market.

And it assumes that you will enter and leave
the market instead of staying for years.

Short term investment requires more work
in the short term but offers potentially bigger
profits.

There are two things a person may be
looking for in a short term investment.

One is a place to park their money that is
safe and pays better than a bank savings
account.

The other is a way to profit from the ups and
downs of the stock market.

The first just has to do with checking out
interest rates on T Bills, CD’s, and other
short term debt instruments.

The second is where technical analysis tools
such as Candlestick pattern formations can
help a person to trade stocks and make a
substantially better profit than the bank
offers or even what one can gain from long
term investing.

The point here is that stocks do not grow in
value on a smooth upward course.

Their prices go up and down even while the
long term trend may be upward.

So, there are profits to be made in shorting
a stock or in buying put options.

But to make money in this realm you need to
pay attention, stick with what you know and
treat your investments like a cash machine
and not a slot machine.

Treat Your Investments Like a Cash Machine and Not a Slot Machine

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Treat Your Investments Like a Cash Machine and Not a Slot Machine