Focus Your Investments on the Long Term

"All human power is a compound of time and patience!" Honore de Balzac (1799 - 1850)

Long term investing or "Buy and Hold" is not about hunches, emotions, stock tips, market timing or making quick profits! It's about using proven long-term strategies to accumulate wealth over time!

A large part of the daily volume on the exchanges is due to traders who hope to make a small profit by taking advantage of small discrepancies in the pricing of securities, or who are able to buy a stock as soon a favorable analysts report is issued and who hope to profit before the inevitable runup.

The instantaneous access to information that financial institutions have gives them an enormous advantage over the individual investor when it comes to short-term trading.

How can an individual compete?

Most people don't have the time necessary to be a trader, watching the market every second, able to react instantly to changes in the market.

Analysts use their computers to chart a stock's price and volume over a period of time, in an effort to find patterns that indicate when to buy and when to sell a stock.

Sometimes, though, it seems that interpretation of these charts is more of an art than a science, and sometimes the patterns are more easily discernible in hindsight rather than in real time.

Diligence is also required to know when the signals are right to sell a holding. Some investors rely on tips or they buy and sell merely on hunches. This is usually one of the fastest ways to lose in the market.

The average investor just doesn't have time to devote hours a day to following the market. Fortunately, they have an alternative. By spending just a few hours a month, investors can build a successful stock portfolio, one that will stand up over the long term and deliver excellent returns.

Over the history of the modern stock market, one trend is clear: the overall market keeps growing and growing! The setbacks have been relatively minor and short-lived, compared to the tendency of the market to grow year after year.

Statistics have shown that even if you invest at the peak of the market year after year, you would still show a decent return on your investment, much higher than nearly every other kind of asset.

That's why most individual investors should focus on growth for the long-term, and concentrate on fundamental analysis in building a portfolio of stocks. Fundamental analysis is simply buying hot companies, instead of hot stocks!

Using fundamental analysis, and with a long-term perspective, it's possible for any individual to identify a diversified and balanced portfolio consisting of the stocks of quality companies.

Once selected, these stocks can be held year after year, and any downturn in the market would likely signal a buying opportunity. Maintaining a portfolio like this would only require a few hours a month.

Here are some guidelines for long-term growth stock investors:

Buy good, strong growth companies with proven track records.

Don't buy concept stocks, but select quality stocks, and always keep your portfolio diversified.

Keep on investing regularly and don't try to make a quick profit, slow money is worth just as much!

Invest with a long-term perspective and reinvest any dividends you receive.

Don't place your trust on tips, do your homework and find out all the facts you can before you buy a stock! Above all, invest, don't speculate ...

And don't try to compete with the professionals!

Copyright © 2005 I.E.C. Haramis
haramis@greekshares.com
http://www.greekshares.com

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.

---

Hedge Fund 101 - Make Money with Hedge Funds

Investors are always looking for the best investments that will... Read More

When Its Too Late to Save for Retirement

You are 55 years old (or somewhere around there) and... Read More

Angel Investors: Who They Are & When Are They Appropriate

Angel investors are individuals who invest in emerging business ventures.... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really... Read More

Moving Average Convergence Divergence ( MACD ) Charts

The Moving Average Convergence Divergence charts, or MACD charts for... Read More

Approaches to Investing

Here is a small summary of the three major approaches... Read More

Why You Need To Buy and Sell Gold Coins (Part 5)

Grading coinsThe condition of a coin is commonly summarized by... Read More

Dont Catch a Falling Knife

One of the most common mistakes made by inexperienced investors... Read More

Trading Tips No 7: Developing a Casino Mentality for the Day Trader

I submit that the successful day trader would profit well... Read More

Online Trading Options Strategies - Rolling

Rolling is defined in options online trading as moving a... Read More

The Biggest Oil Opportunity in the World ? And How You Can Profit From It

Where is the second biggest deposit of oil reserves in... Read More

An Economical Retirement Investment Plan

The practice of economy, directed toward a retirement investment plan... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be... Read More

Investing in New Zealand - Learn how to Find Unique Investment Opportunities

Investing in New Zealand might be much easier than investing... Read More

Focus Your Investments on the Long Term

"All human power is a compound of time and patience!"... Read More

Are You An Investment Dummy Like Me?

I am good at a few things. I can certainly... Read More

It Is Never Too Early To Start A Roth IRA!

The Roth is kind of weird until you get used... Read More

Use this Simple Trick its to Buy $100 Bills Direct from your Bank for only $97

Most People just don't understand the power of using their... Read More

Keeping It Interesting

Some lines from a movie never leave your mind; I... Read More

Why You Need To Buy and Sell Gold Coins (Part 6)

Pre-1933 Gold Outperforms Today's Gold Bullion...Since 1970, an investment strategy... Read More

Fundamentals of Option Pricing

When one begins to consider an option, it is very... Read More

Top Ten Investment Mistakes

1. Lacking an investment plan a/k/a/ "Don't take a trip... Read More

Inflation Proof Your Investment Portfolio with ETF?s

Even though inflation has been relatively quiet in the U.S.... Read More

How To Create Wealth In The Stock Market

First and foremost, an opportunistic strategy for creating wealth in... Read More

The Key Ingredient To Increase Preconstruction Profits By Over $20,000

One of the greatest preconstruction investing issues that I hear... Read More

Consolidation Period

The economic data reported Fri showed continued above trend growth... Read More

The High Price of Oil

In less than four years, the price of oil has... Read More

Investigate Before You Invest

"Through wisdom is a house built. And by understanding it... Read More

Direcway & Wildblue Set to Square Off this Fall?

There is a cat fight brewing between Direcway LLC, Starband... Read More

The Conflict of Interest Game

Disgruntled investors are going after Wall Street once again, this... Read More

Why have Investment Plans for the Stock Market

If you do not have an investment plan in the... Read More

Gold and Silver Maple Leafs Get New Packaging

Gold Maple Leafs and Silver Maple Leafs are receiving packaging... Read More

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in... Read More