One of the things I have noticed during the 20 years I have spent either actively investing in various strategies, or trialing them, is that the ones which make logical sense usually are the ones which work best in real life.

There are so many strategies I’ve tried, I have lost count. And there are at least as many which I’ve let go without trying. There are just too many. I found a quick fire way though which helps disregard the strategies which are useless, so you can trial the ones which are worth trialing. Its logic. Look at the logic of your trading strategy and see if there are holes in it. You’ll be amazed by the number of strategies with big logical holes.

Its quite possible that these strategies, in their wholeness work quite well. But the problem is that if you are trading a strategy which has holes in it, at some stage you’ll come up against a real life situation where the strategy has no answer. Then you’ll be on your own and you’ll need to make a decision outside the strategy. This can be an educated guess, to an intuitive judgment call, to a flip of a coin.

Personally I think that making decisions like this, decisions which are outside the logic of an investment or trading strategy, is gambling. Its not a good situation. Sure you may make money with this gamble, but you could lose it too. Its no different than blackjack. A robust and complete trading strategy should take these gambles away from you. There should be no guesses. You should just plan the trade and then trade the plan.

Also, the point about trialing a strategy is that you are finding out whether it will make consistent returns over the fullness of time. The point about trading a strategy is that you know it makes consistent returns over the fullness of time. If you have had a guess mid way through the strategy, you cannot be confident its the strategy or your guess which is making the money. You will need to start again.

So if you have a new strategy which looks promising, apply your logic to it first. Try to understand all the trading scenarios you may face and ensure the strategy stands up to all of them and deals with them. This simple piece of advice could save you thousands.

And once you have covered off every situation you can think of, always remember to execute a preliminary trading exercise without putting money down. Spend a few months running the strategy in spreadsheets before you trade with money. You’ll be amazed at the real life situations which come your way which you’d never have dreamed of. And you will thank your stars you resolved these issues when you had nothing on the line.

Lets face it, 2008 has been a disasterous year for all investment markets.  There was nowhere to hide.  So lets hope 2009 will be better.  On our part, we are going to focus on the following topics

• Our FX Trading Strategy -  We are going to start a small portfolio from scratch, trade it solidly for 6 months and offer you the statements for viewing so you can see how it works and the results.
• Stock Market Trading – How do you rebuild your portfolio
• Internet Based Business – Now is a great time to put some extra effort in, bring some extra cash in when you need it most.  We’ll review old startegies and bring you the latest new ones.

Have a great Christmas though, and we look forward to seeing you in the new year.  Its going to be a big one, we fully intend on really working this blog, a minimum of 3 posts a week.  So put it in your favorites

Is There Ever A Perfect Time To Invest?

Generally, investment advisors suggest you do not try and pick the market. Rather you invest for the long term and in doing so, you gradually build up your investment portfolio over time, regardless of the market conditions pertaining to those times. If you spread your investments out over time, you will tend to always end up on top, despite the peaks and troughs. Every now and then though, the investment markets give us an opportunity to get in “at the bottom”, or close enough to, and therefore the opportunity to ride the market all the way up to the top. Buying during these times is a great way to build value and enhance the returns of your portfolio.

You can get the rest of the article at the following link, we hope you enjoy it:

The Perfect Time To Invest

Lets face it, you could spend 2 life times trialling all the investment strategies people offer you. There are so many out there, and I am sure most of them have merit. What I have found though (and this in no way passes judgement on the merits of any investment strategy) is that if I really think logically about many of the investment strategies which have come my way, there often are holes in them… big ones at that too.

Its quite possible that these strategies, in their wholeness work quite well. But the problem is that if you are trading a strategy which has holes in the logic, at some stage you’ll come up against a real life situation where the strategy has no answer. Then you’ll be on your own and you’ll need to make a decision.

When I am in this situation, where I have to make a decision about a strategy I am trading, because the strategy does not offer me guidance, I believe I am gambling. This is not good. I may make the right decision, but then again, I may lose my money. In all good investment strategies, you should not have to do this. You should simply plan the trade, and then trade the plan. There should not be room for guess work.

At The Only Way, we have found 2 investment strategies, the logic of which is as close to flawless as you are likely to find. This is why we like these strategies, this is why we trade these strategies successfully, and this is why we recommend these strategies. Here is a summary of what they offer:

Foreign Exchange Trading: Our FX Trading Strategy can be summarised by the following points:

• Our holdings are always counter-active. Therefore, our overall position is insulated against short term adverse swings in the market, in any particular currency.
• We admit to not knowing for sure, whether our currencies will go up or down, so we set our trades to take advantage of both directional swings
• We ensure we make large positive interest income on our positions, everytime we enter the market, on our entire leveraged holdings. This is additional income to our trading proifits.

For more information, click through here: Foreign Exchange Trading Strategy

Stock Market Trading: Our Stock Trading Strategy can be summarised by the following points:

• We choose only the top 150 companies in the stock market, as these tend to be the more safe and stable companies.
• Every month, we place a trade which will pay us some additional cash, just because we own those stocks (No, this cash is not a dividend payment, and it happens monthly)
• As we get paid this cash, per stock we own, every month, we actually reduce the risk of our holding, while earning more money (Ie. if we buy some stocks at $20.00, and get paid $0.50 per share in the first month, we have a lower risk on this blue chip stock as our “break even” point is now $19.50.

Here is some more detail on our Stock Market Trading Strategy

Remember, at TheOnlyWay.com.au, we are actively trading these strategies today. Its all in our promise to you which is detailed here: Our Promise To You

So if you have any real life questions about these strategies, or any other on our website, contact us today.
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TheOnlyWay.com.au – Learn the only way to live the dream. Make some more money and let that money make you.

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