Sep
16
2011
16
2011
Active Money Management: The New Normal for Long Term Investing
An article by 
It’s a sheer misunderstanding about the concept of long term investing when people think that they can buy and hold a basket of stocks and achieve their financial goals. You are lucky if you haven’t experienced the brunt of recent recession, which proved that “buy and hold” is no longer a foolproof strategy.
Modern day investing is not as simple as buying few good quality names in your portfolio, you need to keep a careful watch on your investments as they are made to serve a special purpose to fulfill in your life.
Buy and hold is possibly a dead long term investing approach and you are more prone to suffer losses than minting profits, so get proactive and manage yourportfolio like a professional investor.
Taking Control of your Portfolio
Those who actively manage money might be at higher risk of making mistakes, but at the same time they stand a better chance of enhancing returnsby minimizing risks, given they have developed professional skills required todo so. Building sustainable wealth should be your primary objective and you should never try to time markets even as you follow an active investment approach.
Taking control of your portfolio isn’t going to be easy, youwill need to research and analyze investments on a regular basis. This includes reviewing quarterly reports and keeping a track over any substantial change in the reasons which made you invest in a particular stock at the first place. There is no need to be emotionally attached to a particular stock if it is not performing.If the initial factors that made you buy it are no longer present then it mightjust be the apt time to switch to a better company.
Don’t even call yourself a long term investor if you cannot hold on to an investment for more than three years. If the trend goes againstyou it takes time for a new trend to emerge and show you some returns.
I Recommend Reading:-
Staying out Of Debt- A skill you need to master before you start Investing
How to Identify Stable Return Stocks?
Tags: Brokerage Special
Did you enjoy this article? Share it!
Related Posts
Which IRA is more Flexible and Profitable? Discussing Roth IRA and Traditional IRA
Is TradeKing a Suitable Brokerage Firm for You? And a Fine-Print View of their Current Promotions
TD Ameritrade Pricing Structure Review: Do they really keep it Plain and Simple?
A Winning Combination for Traders: Are you tired of Loss Making Trades?
About the Author: Compare Brokers
CompareBroker an affiliate of best online brokerage firms helps consumers compare and search various online brokerage firms, futures trading brokers, low cost discount brokers, top mutual fund companies, investing stocks and bonds in terms of maintenance fees, stocks purchase fees, minimum deposits required etc
1 Comment + Add Comment
Leave a comment
Best for Long Term Investing
Investor Subscription Services
Recent Posts
- Current State of US Economy: Key Highlights from the Fed Meet
- Apple (AAPL) Earnings Update: Blowout Results and Disappointing Forecast
- Apple (AAPL) Stock Price Levels to Watch on Earnings: Trading Strategy
- Apple (AAPL) Stock Ahead of Earnings: Buy, Sell or Hold?
- Leveraged Trading: How to avoid going Bankrupt Buying Stocks on Margin?
Recent Comments
- John on Is EZTrader – Online Binary Options Trading Brokerage – a Scam
- John on Is EZTrader – Online Binary Options Trading Brokerage – a Scam
- Zachary Canwell on Toyota: How does it feel to fall from the top position?
- John on Is EZTrader – Online Binary Options Trading Brokerage – a Scam
- Oil Containment Boom on Top Alternate ways to Invest Money and Manage Financial Risks
Read More