{"id":1758,"date":"2010-01-07T15:54:58","date_gmt":"2010-01-07T10:24:58","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=1758"},"modified":"2010-01-07T15:54:58","modified_gmt":"2010-01-07T10:24:58","slug":"what-is-the-logic-to-investing","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/what-is-the-logic-to-investing\/","title":{"rendered":"What is the Logic to Investing ?"},"content":{"rendered":"
Everyone tries to find the golden magical spell to get unlimited profit when investing or to maximize the return as far as possible One of the things I have noticed during the 20 years I have spent either actively investing in various strategies,or trialling them, is that the ones which make logical sense usually are the ones which work best in real life.<\/div>\n
Lets face it, you could spend 2 life times trialling all the investment strategies people offer you. \u00a0There are somany out there, and I am sure most of them have merit. WhatI have found though (and this in no way passes judgement onthe merits of any investment strategy) is that if I reallythink logically about many of the investment strategieswhich have come my way, there often are holes in them… big ones at that too.<\/div>\n
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Its quite possible that these strategies, in their wholeness work quite well. \u00a0But the problem is that if you are trading a strategy which has holes in the logic, at some stage you’ll come up against a real life situation where the strategy has no answer. \u00a0Then you’ll be on your own and you’ll need to make a decision.<\/div>\n
When I am in this situation, where I have to make a decision about a strategy I am trading, because the strategydoes not offer me guidance, I believe I am gambling. \u00a0Thisis not good. \u00a0I may make the right decision, but then again, I may lose my money. In all good investment strategies, you should not have to do this. \u00a0You should simply plan the trade, and then trade the plan. \u00a0There should not be room for guess work.<\/div>\n
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We have found 2 investmentstrategies, the logic of which is as close to flawless as youare likely to find. \u00a0This is why we like these strategies,this is why we trade these strategies successfully, and this is why we recommend these strategies. \u00a0Here is a summary of what they offer:<\/div>\n
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Foreign Exchange Trading<\/strong>: Our FX Trading Strategy can be summarised by the following points:<\/div>\n
Our holdings are always counter-active. \u00a0Therefore, our overall position is insulated against short term adverseswings in the market, in any particular currency.<\/div>\n
We admit to not knowing for sure, whether our currencieswill go up or down, so we set our trades to take advantage of both directional swings<\/div>\n
We ensure we make large positive interest income on ourpositions, everytime we enter the market, on our entireleveraged holdings. \u00a0This is additional income to our trading proifits.<\/div>\n
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Stock Market Trading<\/strong><\/div>\n
We choose only the top 150 companies in the stock market,as these tend to be the more safe and stable companies.<\/div>\n
Every month, we place a trade which will pay us some additional cash, just because we own those stocks (No, thiscash is not a dividend payment, and it happens monthly)<\/div>\n
As we get paid this cash, per stock we own, every month,we actually reduce the risk of our holding, while earningmore money (Ie. if we buy some stocks at $20.00, and getpaid $0.50 per share in the first month, we have a lowerrisk on this blue chip stock as our “break even” point isnow $19.50.<\/div>\n
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Everyone tries to find the golden magical spell to get unlimited profit when investing or to maximize the return as far as possible One of the things I have noticed during the 20 years I have spent either actively investing in various strategies,or trialling them, is that the ones which make logical sense usually are […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[1682,1832,1668,5073,918],"class_list":{"0":"post-1758","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-forex-market","8":"tag-investing","9":"tag-investing-in-stocks","10":"tag-returns-on-investment","11":"tag-stock-market","12":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=1758"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/1758\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=1758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=1758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=1758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}