Are you looking for an investment strategy that offers new perspectives, alternate chances for making money, and easy to follow guidelines? If so, consider some of the fresh approaches that many have discovered, like social tracking and short selling stocks. While most of these non-conventional techniques have been around for decades, they’re getting a second look from home-based entrepreneurs who buy and sell securities for their own accounts. You can choose to follow one method or combine several into a profit-making strategy that makes sense for you. Here’s a bit more about each of the systems.
The new kid on the block among investing approaches, social tracking uses the commonsense of a large group to make buy and sell decisions for particular stocks, bonds, and other instruments. How does it work? Choose any of hundreds of websites, some free and others fee-based, that reveal what stocks others are buying. You can decide to follow the crowd or go your own contrarian way. The power is in the numbers. Some sites boast thousands of users across multiple demographics, so you have a clear idea what the social consensus is with regard to investing behavior. You can even buy smartphone apps that make this process easier by showing you how many others are purchasing or unloading a given security at any time.
The idea of short selling stocks, which allows you to make a profit when the price of shares goes down, is more than a century old. Fortunately, it’s now simpler than ever and even individual speculators can get in on the action. The basic idea is that you enter a contract to deliver X number of shares to a seller for a fixed price at some future date. You need not own the shares when you make the agreement, but you’ll have to purchase them to complete the transaction. That way, if share prices go down, you can buy them at the new low price, but your buyer is obligated to pay you the old, higher amount for them.
The My Life Philosophy
Perhaps the simplest of all stock picking strategies, my life method is based on products and services you currently use in your daily life, hence the name. Make note of the kind of car you drive, the toothpaste you use, the food brands you purchase at the grocery store, your preferred soft drinks, and other products around your house. Then, buy stock in those companies. The idea is that you know and trust these companies, so you’re merely putting your money into organizations that have already won your stamp of approval.
The Blue Only Strategy
For those who prefer long-term methods, it can make sense to buy nothing but blue-chip offerings. The concept is glaringly simple in that most of these firms have been around and have long track records of financial success and stability. Plus, it’s easy to track corporate behavior because they’re in the news virtually every day. Young people who want at least a part of their retirement portfolio to be market-based opt for a slow accumulation of blue chips.