Sunday

Investment Hype vs. Investment Help

mutual fundWith the Internet as a huge part of our daily life, many investors have access to a wide range of instant investment information.
Whether you are in equities, bonds, mutual funds, futures or options, there are tons of investments offer electronic newsletter to keep your little game in a huge asset. All you have to do is subscribe and watch your portfolio rise.
Yeah, right!
As a practicing investment consultant specializing in no load mutual funds, I have had my share of e-mails from disappointed subscribers want to know how to better assess newsletter services.
There is no absolute, I can give you some hints that may help you make a better decision:
1st Stay away from the obvious hype. Ads promising to turn in 10000 $ 1 $ 2 million a year through the purchase of this incredible hot stock or goods are not the promotion of the plant - they are sold, gambling. Follow the "If it sounds too good to be true, it is usually" rule.
2nd Most mutual fund newsletter will not make such absurd claims, but some of them are still pushing the truth as far as they can. Also try a free issue or two. If you have a sample to determine whether a trial period? How about a money-back guarantee? If not, pay with your credit card. In these days you're fairly well protected by this payment method even if the newsletter does not offer a guarantee.
3rd Consider the editor and the waiver notes. Is he or she is the only publication of a newsletter? Or is he also an investment consultant with a practice?
Why should that last point? I may be biased, but I believe that we have far better advice from a writer who is also in the trenches every day their own investments and their customer portfolio. They would have much better insight about what works and what does not as someone who has the theory down, but no practical experience.
4th Look at the investment recommendations. Are they buy what you in a certain alignment as mid-cap, small or large cap value? Or are they picking specific investments based on a variety of technical indicators?
In my no-load mutual fund shares practice I use specific recommendations, even for my free newsletter subscribers. They are initially on the basis of my trend tracking indicator gives us the green light and in second place in the selection of investment funds is based on swing analysis.
The more specific recommendations, the better, because you can either follow along only on paper (which you should do at first) or with your current portfolio.
5th Are they too, if you sell an investment fund, either because the profit or limit your losses? This is for me the most important issue. If there is no plan in place to get, how will you ever know when to sell? This was the largest decline of most publishers (and investors), the bear market since 2000 - not sell, even if market conditions dictate it would be in your best interest to do so.
The advice of most intelligence services can be money in bull markets. But with the continuation of the bear market remains a significant opportunity to be sure that each investment advisory newsletter since 2000.
For many people investing is an emotional issue. The pendulum swinging between fear of the loss and the greed for more yield. If a complete method for buying and selling is offered in a newsletter, as I an advocate, be sure that it fits your emotional.
It makes no sense, following an investment approach, the benefits can have if it means sleepless nights for you. You will not stay for the long-term and long-term investment is essential for your portfolio grows and thrives.
So, the bottom line is about for a newsletter that:
• not promise the moon,
• has a track record through up and down markets and
• recommends, a concept that not only is compatible for your investment style, but also has an exit strategy, so you can capitalize on your gains - in the bank, not only on paper.
According to these guidelines can not make you rich, but it will help some ill-advised.