6/27/2013

Long-term investment ideas

Long-term investment ideas

It is said that if you make a long-term investment, there is no need to worry about the day-to-day price movements and timing to invest in general. However, in the case of the market environment, such as now, the market if hit by plunge the historic or the next day, and next week the investment, it means that you can not count on the eye. People who are not as self-possessed that it "does not matter because it's a long-term investment" would be a minority. In such a case, if you distribute the time to invest, risk can be reduced. But instead of spend all assets at once, invest a certain amount each month, you can spread the risk over time. 

Long-term investment ideas

To make the assets of a lifetime, such as your pension, the concept of risk diversification as well as asset class, in the time axis becomes important. If the investment fund, from ever-increasing rate, towards the market that sandwich the time of drops at a time, will be made ​​great profits in the end from the beginning. If you practice the funded investment to understand properly the risk, market even if bad, you can watch someone with room to spare. 

Long-term investment ideas 2013
Let's look at a simple example in the case of the stock of dollar-cost averaging. By investing a certain amount of money to continue, it is possible to suppress the average purchase price than keep buying shares of constant in dollar-cost averaging. Small number of shares, since you are now going to buy a large number of shares when stock prices are low when a high degree of stock price, you will want to lower the purchase average unit price in the long run. And it may be said that it is one of the investment technique that is suitable for investors who worry about buying and selling timing. average purchase price becomes 987 dollars65 sen if the stock price has moved as described above, when you buy one by $ 10,000 per month, this means you are bought undervalued significantly from 1012 yen 50 sen when I bought each 10 shares each month. By long-lasting this, you can lower the purchase price significantly. A variety of patterns can be considered by the movement of the market, investors are at the start of the funding is even higher temporarily, depending on the price action subsequent profit price even if you do not have back up to start in the dollar-cost averaging 

There is what someone turn positive. However, in order to produce results similar to the above, "that is not to stop on the way" is important. Some individual investors, there are many people who would stop funding from fear for investment at the time you come down. Response at the time of the fall is key in order to not the case. In order to continue not stop the investment, it will be necessary also devised "I do not overload," "it is not too take the risk" and "to continue to fund forces as automatic withdrawal".

No comments:

Post a Comment