.16 Jan 2021 10:54
Here's a lower risk approach to potentially making 5% to 10% or more on a fairly regular basis..
By following this plan, I believe it may be possible to potentially make 25% to 50% (or more) gains per year.
Rule number one: forget high risk shares and forget penny stocks. If you want to make an overnight AIM fortune and are prepared to risk it all to get there, this plan isn't for you. If you lack patience and aren't prepared to hold a stock for several months if necessary, then again this plan isn't for you.
Rule number two: ALWAYS sell at a profit, however small, and ALWAYS reinvest 100% of that money into your next investment in order to keep your investment money growing.
Rule number three: Remember to take your profit. Remember the saying "Greed is the enemy of profit"
Step 1: Google "FTSE 100 components" or "FTSE 100 list of companies"
Step 2: On your smartphone, open a new window for every company on the FTSE 100.
Google the share price for each company - this plan is about trading the dips so analyse the share price movement over the last day, week, month, year etc for each company and identify any short term trading opportunities.
Consider downloading a share tracker app to help keep track of share price movement and notify you automatically when a share price hits your target buy-in price.
Consider setting a sell order for your investments - ie when your target sell price is reached, the sell order activates
Even on the FTSE 100 there are regular short term trading opportunities to be had. This approach is about making regular 5% to 10% gains. It's about ALWAYS reinvesting your money each time so that your investment money keeps growing. It's about sticking ONLY to the biggest, most financially resilient, lowest risk companies in the UK - those listed on the FTSE 100. It's about staying away as much as possible from unnecessary risk. It's about taking a different approach - winning long term by making hundreds of small gains and always reinvesting 100% of your money each time to keep it growing.
You could, if you wish, choose to focus on the FTSE 350 however there are always trading opportunities on the FTSE 100
Good luck to all whatever your investment strategy and here's wishing us all a happy and prosperous 2021
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