User talk:Mautsik1604

-- Mautsik1604 23:33, 2 January 2012 (UTC)
Why Should You Settle For 5%-10% Return On Investment From Diversified Investments While 100%-200% Is Easily, Safely Available Annually?

Diversified investments absolutely lose out. Why? Because they are really just a buy-and-hold-long approach. So? Buy-and-hold means that the stock can only make a return on investment when the price goes up.

However, every market and also each and every stock always have downturns or instances of price decline. Diversified investments never participate in the profits that are always risk-free and readily available in the downturns.

To maximize return on investment the investor must make profit from both sides of the market swings - upward and downward movement in the market price.

To make money from falling price moves, diversified investments have to rely on technical analysis to initiate short selling, applying the following types of investment methods:

- day trading and intraday trading - swing trading and also scalping - foreign exchange trading (forex) - stock futures put together with call options - short-term micro cap stock - automated stock trading robots - automated stock picking programs

All of the above investment techniques generate a return on investment exponentially in excess of typical diversified investments in passive investor portfolios. Therefore, diversified investments are always missing out on the phenomenal profit margins obtainable in the stock market.

Each of the above-listed active investing strategies also enjoy lower risk than traditional diversified investments for three reasons.

- they are in-and-out investments, never invested long enough to incur sizable losses - they utilize automated technical analysis validated for picking winning stocks in excess of 2/3 of the time - the declining markets dreaded by traditional diversified investments become significant income producers

Bottom line: to generate the maximum return on investment in the stock market, investors must trade both the uptrend (buying and holding) as well as the declining (selling short) scenarios in the market. Selling short means you sell a stock first without possessing it, and then purchase it when the price drops and thus gain possession of the stock at a less expensive price. Therefore a short sale only means you sold it before you bought it, but still the selling price was higher than the purchase price and thus you made a profit.

Because a conventional diversified investments portfolio is made up of stocks for the long term, they necessarily overlook the return on investment which is readily available from automated technical analysis and trading the downside of the market. A number of different electronic software programs to take part in the highest profit segment of investing can be acquired at the macho market web site. Numerous automated programs to trade both the positive side and downside the market are available at Mach Market.