Friday, December 24, 2010

Investment Strategy by Ravinder Tulsiani

Investment Strategy by Ravinder Tulsiani

Because investing is not a sure thing in most cases, it is much like a
game – you don’t know the outcome until the game has been played and a
winner has been declared. Anytime you play almost any type of game,
you have a strategy. Investing isn’t any different – you need an
investment strategy.

An investment strategy is basically a plan for investing your money in
various types of investments that will help you meet your financial
goals in a specific amount of time. Each type of investment contains
individual investments that you must choose from. A clothing store
sells clothes – but those clothes consist of shirts, pants, dresses,
skirts, undergarments, etc. The stock market is a type of investment,
but it contains different types of stocks, which all contain different
companies that you can invest in.

If you haven’t done your research, it can quickly become very
confusing – simply because there are so many different types of
investments and individual investments to choose from. This is where
your strategy, combined with your risk tolerance and investment style
all come into play.

If you are new to investments, work closely with a financial planner
before making any investments. They will help you develop an
investment strategy that will not only fall within the bounds of your
risk tolerance and your investment style, but will also help you
achieve your financial goals.

Never invest money without having a goal and a strategy for reaching
that goal! This is essential. Nobody hands their money over to anyone
without knowing what that money is being used for and when they will
get it back! If you don’t have a goal, a plan, or a strategy, that is
essentially what you are doing! Always start with a goal and a
strategy for reaching that goal!

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online