Cheap Online Trading Tips

If you are looking for a new and exciting hobby that you can possibly make some money on the side with, it could be as simple as starting a cheap online trading account. There are literally thousands upon thousands of possible trading partners that you can hook up with on the Internet. This broadens your chances of finding a good match and trade of shares or stocks that you may own or be looking for. The websites that you will find the trades on are very easy to find and more sites are popping up seemingly each and every day.

Cheap online trading has become one of the biggest draws for those looking to get into money making chance game, yet have no interest in simply gambling. Managing what you have invested in, is just as important as acquiring the stock or share assets in the first place.

Minimal Fees

One of the best aspects about cheap online trading is that you can actually find minimal shares associated with the websites that you will be trading on. Some sites will give you so many trades per month before you start to be charged a small trading fee. Other websites will have a specific membership entitlement that can allow for no fees whatsoever provided you pay an annual or monthly membership fee. These sites are always a hot spot and can be one of the busiest trading type websites on the market during the weekends. This is when people actually have the time to scout and scour the Internet for the right cheap trades that are going to better their portfolio. You can still enlist the help from a broker to help you understand what would work best for you, yet with this type of trading it is not an absolute necessity.

The broker that you enlist will however help you see what is going to make your profile the strongest when you are dealing with cheap online trading. They can alert you to an issue that may be arising in advance, so you can make provision by selling or trading prior to a drop.

Challenging

Cheap online trading can actually be a challenging endeavor. You will see that there are many other people that are looking to get ahead with their profile just like you. While it is not entirely out of the question that someone will try to pass off a shady trade or two, usually everyone that you encounter is mature and responsible on the virtual trading floor. The entire premise of the game is to acquire and build assets, doing this though shrewd and crafty trading pitches is what is going to bring you to your goal. This is how you will be managing your small yet actual monopoly.

Cheap online trading is something that just about anyone with a decent credit score and a bit of money to invest can get into today. You can get a small portfolio going in as little as an hour from there you will be able to watch the growth as you spend time on the Internet trading floor.

Financial Advice For a 401k Loan

If you are in the situation whereby you are in need of money fast, your 401K may be looking pretty good right about now. After all, it is possible to take out a loan against your 401K. There are some rules and tips you need to remember, however. Here is some financial advice for a 401K loan.

The first point to make is: if at all possible, avoid taking out a loan against your retirement savings. Reason: this is your financial future, and there will come a day when you want every penny you can get. Remember the effects of compound interest: the larger the amount in your retirement account and the longer you keep it in there, the more money you will have when it comes time to retire.

Of course, you can choose to skip a loan and just withdraw money from your plan. However, the tax penalty you have to pay in this case will make this a very unattractive option.

Fortunately, taking out a loan against your retirement savings requires that you pay no tax penalty. However, there are limitations and restrictions for taking out this type of loan. The restrictions vary by plan, so check with your plan administrator. For most plans, the following are acceptable reasons to take out a loan against your 401K:

1. Pay for college
2. Pay your mortgage when facing possible eviction or other hardship
3. Pay medical expenses
4. You are purchasing a home for the first time

Here are some of the regulations and constraints you will most likely face when considering this type of loan:

1. There will be a minimum loan amount: usually around a thousand dollars
2. Your loan will have a prescribed length at the outset, such as 5 years or less
3. There is a maximum you can borrow, which is usually around half of your account’s value at the time of the loan
4. Depending upon your plan, you may incur loan fees for taking out a 401K loan.

If you are considering taking out this type of loan, make sure you have exhausted all of your other options first. If you have poor credit but need money fast, you may want to consider a short term personal loan instead.

Specific Financial Advice for Doctors So Important

The challenges faced by doctors at every stage of their careers differ to those faced by individuals not working in the medical profession. For this reason financial advice which has been specifically tailored to the requirements of doctors is essential as a one size fits all approach will not offer the degree of service required.

Specialist financial advice for doctors should be delivered by individuals with intricate knowledge of all the financial issues which doctors face, from medical pensions right on through to mortgages. It is also important for financial advisors to possess an intricate knowledge of NHS remuneration, benefits and pension packages.

As they progress through their careers doctors encounter very different financial challenges. Tailored financial advice for doctors helps medical professionals to prepare and flourish at every stage.

When doctors are newly qualified money is likely to be tight and significant student debts will need to be repaid. However, earnings potential is significant, so whether the aim is to buy a house or enjoy holidays, specialised financial planning for doctors can help to pave the road to a secure financial future.

As a young doctor matures they will likely look to start a family. With the hectic home life which is part and parcel of a young family and a work life to match, it is important the right financial planning for doctors is received. This will make the most of your finances and ensure a comfortable start to family life.

As children grow up, doctors will be reaching the peak of their earning capabilities. At this stage of life many will be looking to work hard and play hard, enjoying the fruits of their labour. Specialised financial planning for doctors will help them to do exactly that.

The final stage of a doctor’s career will be approaching retirement. At this time making the most of the financial opportunities available is likely to be high on the lists of priorities to ease them into a comfortable and enjoyable retirement.

So whatever the chosen career path, private practice, general practice or hospital based, dedicated financial advice for doctors can help to pre-empt financial concerns and make the most of the opportunities. Whether it’s supplementing an NHS pension or finding tax efficient methods of funding premises, tailored financial planning for doctors can help to make the most of your hard work.

Stock Trading Strategies

Stock trading is a lucrative alternative to earning extra income for all sorts of people. Increasingly, people are getting into trading as a full time occupation and sometimes, as in the case of online trading, stock brokers are not needed to do so. The fact is once you master the tricks of the trade, then you are able to clearly discern the direction that you ought to go with regard to your portfolio. The best stock trading strategies are those that advise the investor to keep the risk low and learn as they trade.

To make the most of the best stock trading strategies it is important that one decides whether they will use an online trading platform or if they will use a stock broker. The former option is much preferred by most investors today due to the fact that it is less costly in terms of commissions and trading costs. Even for amateurs, it is possible to learn how to trade online in an effective and profitable way. On the contrary, there are investors who prefers to use the service of a broker as they may be in a better position to advise on when and how to sell various stocks. Having a grip on any of these choices will ensure that you are able to calculate and establish your trading costs well in hand.

Choose your trading procedures and options very carefully. This is one of the best stock trading strategies that are applicable in the stock market industry. The logic of the market is that the trader who makes the most decisive choices on how and what stocks to buy and sell is the one who will be rewarded the most. Reward in this context means that a decisive trader will not only suffer the least losses but will also enjoy the highest gains possible. There are an overwhelming number of companies that are listed on both the online stock trading platforms as well as the physical markets around the world. This means that there is a temptation to buy stocks from many sources without giving special consideration to the company whose stocks your are buying.

To ensure that you enjoy the best stock trading strategies, the best trading tip to take to heart is to thoroughly research the companies whose shares you would like to invest in. This will give you an understanding of the profitability of any given company that is listed on the stock market.

The Best Way to Maximize Your Profits

Stock trading strategies will take on various forms that investors will use when making technical analysis of the markets. These strategies are at the heart of any stock trading system that is used in the stock market. Whatever strategy you employ it should look at the specifics that are necessary for entering and exiting any trades and at the same time include risk and money management as well.

With careful study of the stock market investors can implement a strategy and a trading plan that will work for them. With this kind of market research the investor can make educated trades and at the same time keep emotions in check as these can sometimes get in the way of successful decisions. As time goes by it is possible to fine tune your strategy as the markets change but it is always a good idea to hold with your tried and trusted strategies and plans as much as you possibly can.

The obvious goals when setting your strategies and plans in place is to maximize your profit whilst at the same time minimize your risks. You have to know what the risk tolerance each of your investors finds acceptable. With this knowledge the investor is then able to determine the most favorable number of shares with which to trade at any given time, and also the best entry and exit points. Investors have to be made aware that the higher risk investments bring about the biggest profits yet those with a lower risk element may only turn a small profit but this will for the long term. Only the individual investor can make the decision on what works best for them.

Any successful trader will have one rule to which there is no exception in their stock trading strategies, and that rule is to have their portfolio divided up in three different ways. The portfolio will be divided into percentages that will seek a predetermined percentage for high risk, high return stocks, the same will stand for medium and low risk investments. This percentage will vary from investor to investor always bear in mind though, that if an investor has the bulk of their available funds in high risk stocks they should seriously consider spreading their investment as this is seen as very risky.

Another type of stock trading strategy is known as stock screening. This is when the person trading will screen the whole world of securities looking for favorable stocks in which to trade. A lot of traders use what is known as moving averages in their screening technique, this very simple technique is best suited to markets and stocks that trend well. Other traders may look for stocks that are ready to make a breakout after a pullback.

Stock market strategies need to take in a lot of considerations before being implemented and there are just too many to cover in just this one article. Continued education and research on stock market trends is a must if you want to stay successful, there are very many different tools and resources you can choose from it’s just a matter of finding the one that works best for you and your clients.

One Financial Advisor At a Time

The financial industry must continue to ask itself, “Why does the public needs us?”

I know this question makes many financial advisors feel uncomfortable. But if we do not continue to ask ourselves this question, we could find ourselves out of a job. Why?

Whether we ask ourselves this question or not, others are asking it.

This perennial question of, “Why does the public need stockbrokers and financial advisors” has been raised again by three professors in their paper, “Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry.”

In this paper, professors Bergstresser, Tufano, and Chalmers uncovered why consumers pay advisors to choose mutual funds for them. What they found does not reflect well upon the financial advisor community.

Do Financial Advisors Help Clients Choose Better or Better Performing Mutual Funds?

Most financial advisors tell clients that their chosen funds will perform better than direct purchase mutual funds. Unfortunately, Bergstresser, Tufano and Chalmers found the reverse to be true.

They found that investors suffer by paying on average 3.6 percentage points in front-end load fees, as well as higher annual marketing costs in the form of 12b-1 fees. They also found that the financial advisor recommended funds underachieved as compared to the direct purchase mutual funds.

In a recent year, not only did investors pay about $15 billion in sales charges and 12b-1 fees, but they spent an additional $24 billion on management fees. Think about this, these investors spent nearly as much paying advisors to find the funds as they did to the money managers to manage the funds. With this being the case, financial advisors had better do a great job finding funds for their clients.

Did they?

Investors who bought directly from the mutual funds earned almost a half a percent higher than those that had advisor recommended funds. If you took out index funds, the gap was almost two thirds of a point.

But wait there’s more!

These differences were calculated before accounting for 12b-1 fees. When included, funds bought directly beat advisor recommended funds by almost a full one point.

So Why Do Investors Use Financial Advisors to Pick Their Mutual Funds and Investments?

The average mutual fund investor is higher educated and wealthier than the average consumer. So it can’t be because they don’t think they’re capable of doing it themselves.

I believe one of the authors of the study to be charitable when he hypothesized that advisors bring a service to their clients by taking the emotion out of investing. Though when you look at the data, it appears that investors using advisors chase short-term returns as much a self-directed investors. And yes, it was found that advisors are as likely to chase short-term returns as anyone.

This study uncovered yet more unflattering details. It found evidence that brokers usually recommend funds with higher loads. So not only do advisors generally not pick the best mutual funds, they also recommend underperforming funds with a preference to higher sales loads. It doesn’t take a rocket scientist to figure out why too many advisors do this.

The question is, what as an industry are we going to do about it?

What You Can Do as a Financial Advisor to Change How People Perceive You

Every change starts with one person.

How much research are you doing for your clients?
Whether consciously or unconsciously, are you recommending funds with higher fees? Are you providing service equal to the amount of extra fees a client pays for the funds you recommend?

Only you can answer these questions

We are in the information age.

Studies like “Why does the public need stockbrokers and financial advisors” are going to come around, become distributed and get publicized more often. You might as well get used to it.

As financial advisors we need to step up to the plate and start doing the right thing by our clients or we’re going to find ourselves out of business, one advisor at a time.

The public does not mind paying fees. What they do mind is an advisor not disclosing the fees. If we think we are worth the fees, then as financial advisors we should feel no need to hide the fees. Instead, we should fully disclose them and explain to our clients why our advice is worth it.

The public knows that we do not have a crystal ball that enables us to find the best performing mutual funds going forward. But the public does become suspicious when all the funds we choose have higher than average expense and sales charges.

There is an ever so slowly growing trend toward full disclosure vs. casual disclosure by advisors in the financial industry. Another movement gaining speed is that of formal fiduciary relationships with clients. Both these movements assure a long and profitable partnership between advisors and their investor clients.

I hope you join me as part of this trend of full disclosure and fiduciary responsibility, for everybody’s sake.

Planning Your Financial Future

I am privileged to have had great bosses and a job that doesn’t require me to go into the office everyday. I am also lucky to have had a mother teach me how important it is to save money. Reports are showing that there won’t be any social security available for my generation, ‘Gen Y’. While this unfortunate, if you have been following the economy at all, you would know it’s wise to invest your money. I just don’t know how smart it is to invest in a 401k when by the time I reach retirement age; the factors will be the same. Since I am not currently a full-time employee receiving benefits, I have thoroughly thought about opening an IRA, individual retirement account. If I had a 401K, I would be able to potentially set aside a certain percentage of my paycheck that may be matched by my employer. Since I’m not yet at that stage yet, financial planning seems the wisest move for me and the majority of my generation.

Seeking a financial advisor, will allow me to sort the best options. Should I invest in the stock market? If so, what shares should I buy? How much of my paycheck should I invest? And so on. Retirement planning isn’t to be taken lightly; however, when you’re fresh out of college, it’s not exactly a main priority for all graduates. Kalamazoo financial advisors help educated working Americans on their investment options. If you are self-employed or plan to be, there are also options for retirement. I have only recently started researching my potential options. So far I have read that about 3-5% is a good amount to invest from each paycheck. At the same time, it’s how much you make that determines that percentage.

Wealth management isn’t a skill that everyone possesses. I have plenty of friends who don’t spend money wisely or think about the future of their finances. Financial counseling of any sorts is a good idea when you get your first “big kid job” or if you’re beginning to realize it’s time to start saving or investing. This will help you setup a plan that works for you and your income. Retirement planning is only one step in planning your financial future. What are you future goals? Do you want to buy a house or pay for your children’s college? These are important goals that most workers strive to meet. Educating yourself on your financial position will help you save for the future.

Advice for Men

I call on men everywhere to stop rewarding bad female behavior. You know what I mean–immature, mentally ill and downright evil. Do everyone a favor and boycott women who habitually display these traits, no matter how hot they are.

Dangling Carrot

Most of us get sucked into these hurricanes for the same reason. They dangle that carrot. Sometimes they give us a nibble. Sometimes they give us the whole thing. Smart guys take the carrot and run. Really smart guys ignore the carrot, altogether.

Those of us with less than a modicum of sexual intelligence stick around for a meal. We wait for them to grow up:

  • to consider other people’s feelings before indulging their own
  • to learn how to give and receive equal portions of love
  • to develop that old fashioned trait known as character

Meanwhile, our assets are plundered. We’re under the delusion that it’s an investment. But it’s not. It’s casting our pearl necklaces onto the throats of swine.

“Oink!”

I divide these pigs into three categories:

  • Immature
  • Mentally Ill
  • Evil

There is often overlap between these categories.

My use of the word “pig” may seem harsh. But these women are truly glutinous with our resources. Besides, men are often called pigs; and I see no good reason to spare women that moniker when they work so hard to deserve it.

By “resources”, I don’t mean money, only. I mean, also, time, energy and, yes, sperm! Every now and then, one of the last slips by the goalie and, voila, we’ve fathered a child with the girl of our nightmares.

More often than not, these women are not equipped to be good mothers. Thus, we have to work twice as hard to make sure our spawn doesn’t grow up to worship Satan; or worse, join the Tea Party.

We all know these types. They are celebrated, even admired, in pulp fiction and its cousin, reality TV.

Immature

The immature will charm the pants off of us with their little girl personae. We remind them of their fathers, in good ways and in bad. Instead of requiring us to treat them as equals, as mature women might, they encourage us to take control of their lives.

By the way, I’m not talking here about young women. There’s nothing wrong with being young and immature.

I’m talking about adolescent women over 30; lost little girls who haven’t a clue unless a man gives them one. We’re always there for them in a crisis. And they have a lot of them. When we are in crisis mode, however, they are often too busy to be bothered. They come to us for advice, which we love giving. Finally, we think, a woman who values our wisdom! They pick our brains, endlessly, for help with their tumultuous friendships, families and careers until we have no more time and energy to put out our own fires. Our lives become about theirs.

Mentally Ill

The same thing happens with the mentally ill. I’m talking here about addicts and depressives who refuse to get help. They can suck up our means faster than they can suck down a cosmo and a line. And that’s pretty fast!

They become a drug for us, as well. When they’re up, they want to party all the time. And that means hot, kinky sex; sometimes, even, threesomes and foursomes with their drunken friends. We become intoxicated by their free spirit; until we realize that it’s not free, at all. Their compulsions have them by the throat. By participating in their madness, we inadvertently tighten the grip.

Invariably, there are parties to which we are not invited. Our party girls may come to us, then, with tearful confessions. And we may forgive them. But, from then on, every time they don’t answer the phone, we envision them with their legs over another guy’s shoulders. Sex is a sedative for these types. When they apologize for their promiscuity by saying, “It didn’t mean anything to me,” they’re telling the truth.

The last three paragraphs describe mentally ill hotties at their best. When they crash and burn, as all addicts and depressives do, we may be summoned for suicide watch. They call us in the middle of the night because they can’t get to sleep and they don’t want to go on living. When we arrive at their stinky abodes at ungodly hours, they may intone the addict’s solemn oath: “I will never again do [drug of choice], as long as I live, so help me God!” When we suggest that they get help, they insist that they can do it on their own. They may, in fact, muscle through these dark periods, replacing their drugs of choice with substitutes, like food, TV or us.

Recovering addicts will tell you that their insanity didn’t cease because they stopped getting high. Sobriety came as a result of a spiritual awakening, which came as a byproduct of working with other recovering addicts. Most will tell you that they could not do it on their own.

As for the clinically depressed, they, too, are often averse to asking for help. They are as stubborn as dogs and cats are about not wanting to swallow their medicine. “I don’t need a shrink,” they may say. “I just need [a better job; a better boyfriend; a vacation; or anything else that’s just over the rainbow]!”

Fellas, it’s not worth it! No matter how fun-loving these types are when they’re up, or how vulnerable they are when they’re down, the end result for us will always be heartbreak. Not to mention the strain on our livelihoods, including our own self-esteem and well-being.

Evil

The most insidious of these loser chicks are the evil ones. By evil, I mean sociopaths, with a sense of entitlement like the Grand Canyon and a conscience like a scorpion at the basin. They have no problem with lying, cheating, stealing and, sometimes, killing to claim our booty.

You may think I’m exaggerating about killing. I once went on a date with a woman who let me know that, whenever her boyfriends got out of line, she got her mobster uncle to “take care” of them. I laughed; she didn’t. She was deadly serious.

Fake Rabbit

Why do these women succeed in siphoning our nut? Because we let them. A beautiful woman hints that we might have a chance at having sex with her, and we’re off!–like greyhounds chasing a fake rabbit.

There is a simple test to determine whether or not the rabbit is real. However, it requires diligence on our part in valuing behavior over appearance.

What’s the first rule of gambling? Never bet more than you can afford to lose. Right? Okay… bad girls, like race tracks, rely on men not living by that rule. Before offering any woman more than a trifle of your time, energy, money or semen, ask yourself this question: What has she done to support my mission?

Mission Control

What is your mission? Simply put, it’s the activity or cause about which you are most passionate. It may be, but probably isn’t, your job. More likely, it’s what fuels your ability to endure a soul-deadening job.

Music, science, philosophy, politics, sports, travel–you name it. Hours pass unnoticed when we’re engaged in our mission. According to the great relationship teacher, Dr. Paul, it’s half of what makes us men.

The other half, of course, is our desire for women. But I would argue that our mission must take priority over our search for women; because a man without a mission is a diamond ring without a diamond. He may be able to attract women with the promise of a diamond. But he won’t be able to keep them interested for very long.

Bad girls, believe it or not, are not interested in these types of diamonds. They are too self-absorbed to recognize, let alone appreciate, any man’s defining qualities. Good women will not only recognize our diamond’s worth, they will also increase its value.

Test

We must keep our wits about us, when interacting with hot women. They are used to having their way with us. And so we must put them to the test, to differentiate the good from the bad. And we do that by remaining mindful of their intentions as we interact with them.

Remember, the question you should always have in the back of your mind is: What is she doing (or, has she done) to support my mission? At the start of a relationship, this usually takes the form of questions about the driving forces in your life.

If she’s a good woman (meaning, good for you) and she’s into you, then she will try to find out more about you than your source of income. She may inquire about your job, and she may very well not have gold digging motives in mind. But she will also ask about your hobbies, or recent vacations, or about what you wanted to be when you were a kid, or about your opinion on a current event. In short, she will show interest in (and approval for) you as a person.

On the contrary, if she demands that you buy her a drink, and then answers your questions while looking around the room, but doesn’t ask you a darn thing, then, no matter how hot or famous she is, she’s a bad girl (at least as far as you’re concerned). That’s not to say that good women won’t turn around, after showing that they believe in you, and play hard-to-get. But under no circumstances should you ever put up with, or continue to pursue, a woman who acts like a shrew without first cheering your mission!

Call To Action

And that brings me back to the boycott. You’re not doing anyone any favors by giving these delinquents access to your valuables; at least, not in the long run. They may be better off in the short run; the way that sweaty addicts are better off when you give them a fix. But how much better off are they, and society as a whole, when addicts are forced to mend their ways?

There are a few men out there for whom this isn’t even an issue. They see through wily females, as any adult might see through a child’s lies. But most of us acquire this kind of X-ray vision only after many misadventures.

I still, sometimes, get swept away by a woman’s physical beauty. When this happens, I use a simple affirmation, something that Forrest Gump might have said, to keep my head above water: Pretty is, as pretty does!

Financial Advice for College Graduates

It is always a good idea to invest in education. A college diploma opens up a lot of opportunities, but you have to know how to take advantage of them. Since you have spent most of your life in a safe environment (family, school), the real world may shock you. From now on you are responsible for all your actions and every mistake will cost you. It is important to learn how to be financially responsible, because the loans that you take when you are young will haunt you forever!

Save now, party later!

After graduation it’s time to get a job! Few have the luck of finding a job in their field that pays well in the first year. Chances are that you will work for some time on a low or medium paid job. But since you have been broke through college, the paycheck will seem like a fountain of wealth and you will be tempted to spend the money on unnecessary expenses. Although having a beer from time to time with your friends is OK, spending your entire monthly salary is not! You should try to save as little as you can.

Stay away from debt!

Unfortunately, very few finish college without any debt. College loans are the main cause graduates are in debt. Keeping debt under control is a must! Use a part of your paycheck to clear you debt little by little.

Credit card debt is a never-ending cycle and you should only borrow if you really need to buy something. Piling up interest rates just so that you can have nice things is not recommended.

Of course borrowing money is not all bad! Loans which you invest into something profitable are good because they return the investment and a profit! Don’t take loans to spend on fancy things. Instead, borrow and invest!

You need life insurance

Spending your own money is perfectly normal and it doesn’t hurt anyone. However, death is expensive and painful for your remaining family. A life insurance policy will give coverage for funeral costs and expenses. The death benefit will help your remaining family members to live a better life. It is recommended to buy life insurance when you are young, because you get cheaper premiums and higher coverage.

Graduation is a wonderful thing and the freedom you experience is something you should treasure. However, with freedom comes responsibilities and if you do not take your role of an adult seriously and make financial mistake, you can ruin your life before it even starts!

Best Stock Investment Strategy For Beginners

The best stock investment strategy for beginners focuses on stock funds as the best stock investment to keep it simple, and emphasizes investment strategy over stock picking. You don’t need to pick the best stock or even the best stock funds to do well if you have an investment strategy that keeps you out of trouble. Here’s how to keep it simple and make money, with less risk.

Funds that invest in stocks are often called equity funds and they come in two popular varieties: mutual funds and exchange traded funds (ETFs). You can best get started on your own in one of two different ways: by opening a mutual fund account with a major no-load fund company, or by opening a brokerage account with a discount broker. Either way, you can put the best stock investment strategy for beginners that I know of to work for you.

Earmark this account as your stock investment account. All of your money will be either in stocks (equity funds) or in cash in the form of a money market fund that is safe and pays interest in the form of dividends. The key to our best investment strategy is that you are never 100% invested in equity funds or stocks, and never 100% invested on the safe side. Instead, you pick your target allocation and stick with it. I’ll give you an example.

You don’t want to be too aggressive, so you pick 50% as your target allocation to stocks. This means that no matter what happens in the market, you will keep half of your money in equity funds and half in the safety of a money market fund earning interest. This is your investment strategy, and it takes the need to make micro decisions out of the picture. You have a plan and you intend to stick with it to avoid major mistakes and the major losses that can result from emotional decisions.

Now let’s take a look at how this simple investment strategy works to keep you out of trouble. Bad news hits the market and stocks go into a nose dive. What do you do? Since your equity funds will fall as well, if you fall below your 50% target you move money from your safe money market fund into equity funds. In other words, you buy stocks when they are getting cheaper. On the other hand, if stocks go to extremes on the up side, what do you do?

If your equity funds represent 60% or more of the total, you cut back to 50%. In other words, you take some money off of the table. How often should you move money back and forth? This best investment strategy is meant to be simple and not time consuming. When your asset allocation gets to 60-40 or 40-60, it’s definitely time to move money. If you want to be more active, use 55-45 or 45-55 as your guidelines.

This stock investment strategy makes the buy and sell decisions for you so you can relax. Consider the bear market of 2008 when the market fell by over 50% by March of 2009. Stocks then went up about 70% over the next 12 months. Did most investors make money? Quite the contrary. They made poor decisions because they got scared and lacked a sound investment strategy. With this simple plan, you would be doing just fine in 2010. Plus, there would be no reason to fear a market reversal, because you have an investment strategy.

It’s easy to move money back and forth between mutual funds, but be a bit careful. Don’t do it any more often then is necessary. Second, to keep the tax issue simple do this in an account that is tax deferred or tax qualified… like an IRA or 401k. You can roll your existing IRA into an IRA with a no-load mutual fund company. Then your buy and sell transactions are not reportable for income tax purposes.

Do not go into the stock investing game as a beginner trying to pick the best stock investment. You’ll never do it. Instead, go with a few equity funds, and include international equity funds as well. Then concentrate on the best stock investment strategy and sleep well at night.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.