Andre, Run Your Investments Like a Business

Adam Khoo

to me
Hi Andre,

I have found that people who have made money consistently through
their investments are able to do so because they treat it with same
seriousness as they would in building a business or a second career.

If you treat investing as just a 'by-the-way' activity that you
spend time on now and then, you will never be able to succeed. So,
how can you run your investing activity professionally like a home
business?

Decide On The Investment Strategies You Will Use

Just as an entrepreneur has to decide on the mix of products that
his business will sell, you have to decide on the type of
investment strategies you will use to generate the profits that you
aim for. You also have to decide how you are going to allocate your
investment funds between them.

There are a whole range of investing strategies to make money. Some
of them are short-term and some of them are long-term. Some of them
require daily monitoring while others require monthly monitoring.

The kind of strategies you should employ depends on your targeted
rate of return as well as the amount of time you have to spend. For
example, being a full time trader who is able to monitor the
markets for 5-6 hours a day, Conrad focuses 100% of his money into
very short-term momentum trades that make him quick gains within a
few days. Because of his smaller investment capital (which he first
started with), he solely uses Call & Put Options that give him the
highest possible return of 100%-200% on his money. His strength in
Technical analysis gives him an advantage in picking the best
momentum trades.

As a person who has full time businesses to run and relatively less
time to trade on a daily basis, I (Adam Khoo) allocate 80% of my
money into medium-term value stocks as well as buying ETFs that
track the overall market and its sectors. My strength in
fundamental analysis and business strategy also gives me an
advantage as a value investor. I would only focus the remaining 20%
of my funds into short-term momentum trades to give my returns an
added boost.

Whatever investment you decide to use, always remember that you
need to diversify your money adequately into at least 8-10
different stocks or options at any one time. No matter how much
research you do and no matter how good a company's stock can look,
things can turn against you with a single piece of negative
financial news.

Be prepared to make losses on a few trades, it is only natural.
However, if you stick to the rules and cut your losses, the profits
you make on your winning trades would be enough to build a small
fortune.

To your investing success,
Adam
www.SecretsOfMillionaireInvestors.com/index1.htm