Diversified investments absolutely lose out. Why? Because diversified investments are really just a buy-and-hold-long technique. So? Buy-and-hold means that the stock will only make a return on investment if the market price increases.
However, the equities markets as well as every stock repeatedly have downturns or instances of price decline. Diversified investments never will participate in the profits that are definitely lowest risk and easily obtainable in the downturns.
To maximize return on investment you must make profit from both sides of the investment strategy - upward and downward actions in the price.
To make profit from declining price movements, diversified investments have to rely on technical analysis to initiate short selling, employing the following varieties of investment techniques:
- day trading and intraday trading
- swing trading and also scalping
- foreign exchange trading (forex)
- stock futures put as well as call options
- short term micro cap stock
- automated stock trading robots
- autopilot stock picking software programs
Each of the above stock trading techniques generate a return on investment far in excess of traditional diversified investments in passive investor portfolios. Hence, diversified investments will always be losing out on the exceptional profit margins possible in the stock market.
Each of the above-listed active stock trading strategies also mean lower risk than conventional diversified investments for three reasons.
- they are in-and-out investments, never owned long enough to encounter sizable losses
- they perform automated technical analysis, proven for selecting winning stocks in excess of 2/3 of the time
- the down markets dreaded by conventional diversified investments become substantial income generators
Conclusion: to generate the maximum return on investment in the equity markets, stock traders must trade both the upside (buying and holding) along with the downside (selling short) situations in the market. Selling short by definition means you sell a stock first without acquiring it, and later buy it as soon as the price declines and thus gain possession of the stock at a less expensive price. Hence a short sale means you sold it before you bought it, but yet the sales price was greater than the purchase price and hence you made a profit.
Because a conventional diversified investments portfolio is comprised of stocks for the long-term, they invariably avoid the return on investment which is readily available from computerized technical analysis and investing in the downside of the market. An assortment of automated software programs to engage in the highest profit sector of investing can be acquired at the macho market web site. Numerous computerized programs to trade both the positive side and downside of the market are offered at Mach Market.
Why Would You Settle For 5%-10% Return On Investment With Diversified Investments While 100%-200% Is Easily, Safely Available Annually?Traditional financial advisors try to keep clients safe from losses by having them invest long term diversified investments. This strategy causes investors to miss major profit-making opportunities from trading both the upside and downside of the stock market. High ROI from short selling has less risk than diversified investments.
Automated Stock Trading Systems Dramatically Reduce Investment Risk And Conclusively Increase Return On InvestmentInvestors hide from astronomical return on investment because they assume it must involve high risk. Fear of risk arises from a long history of losses from high-yield investments before the days of computerized stock analysis. The latest stock-trading automation increases return on investment with minimal risk of loss.
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