I have played the margin, short-traded, and purchased call and put options - and been successful. However, I prefer going long across a wide range of investments. I find that, with patience and luck, you never have to lose (unless you pick a Bre-ex). It may just take a little longer to gain. Once you have established a good base, built up by profits, you can wait out any market trend. Reduce your risk, and also increase your gains at the same time.
I use a very simple strategy. Purchase deep in a promising stock, wait for a good increase, and then sell off 1/2. Do not buy back any more of this stock until you feel that it has reached peak potential. Then sell off. Using this approach across a wide range of stocks and indices at the same time, will magnify your portfolio with as minimum a risk as you will find on the market. Also, try not to get the "greedies" in your investment approach. This is the killer. |
