Fear of losing your money to such an extent that you don’t invest in the stock market or manage your retirement account can actually be worse than investing. Just watching or hoping your retirement account will grow is like watching the weather or predicting who is going to win the World Series in two years.
The right tools are required for safe investing. It’s natural that human will be afraid of losing, no one wants to lose anything, much less money or even a life’s savings. But money under the mattress will be worth half if that much after 20 or 40 years. The answer is to invest safely and profitably. And no this is not easier said than done, but it is not that extremely difficult also.
The first key to successful, safe and profitable investing is you need to know that anyone can do it.
The second key is getting and using the right tools. Thanksgiving dinner requires the right tools, ingredients and recipes. Remodeling a home requires tools, materials and know-how. The same is required for successful investing.
The tools for safe profitable investing are:
- A computer
- An online broker account
- Investment software
Computer – you need a computer to connect to the internet because it will enable you to manage your investments. Most investment software, however, works on PC’s although they can run on Mac’s.
Online Broker Account – there are many easy to use online brokers like Fidelity, Schwab, TD Ameritrade that can let you to open an account easily and with almost any amount of money. Then you can easily move accounts from one broker to another.
Investment Software – for the software, you have many choices to choose the software which will be very helpful for you, I recommend software that is comprehensive, yet easy to learn and that doesn’t require hours of time.
By comprehensive that I mean:
- Let’s you work with all types – stocks, ETFs, mutual funds, bonds
- Gives precise buy-sell recommendations
- Provides charts to show individual analysis or progress
- Provides charts to show how a strategy is performing
- Provides a Market Exit signal that says is now the time to exit or enter the markets.
- Gives you the option of examining individual ticker symbol data and comparing the data with other tickers.
- Let’s you set buy-sell rules that work best for you
- Gives you an easy to read screen or report of all your investment positions
- Provides the opportunity to back test different investment models or strategies to find what works best for your or the ticker symbols available to you in your retirement account.
Investment software that lets you analyze based on different types of relative strength investing is critical. Many books have been published and studies conducted that have proved relative strength momentum investing to provide successful profitable investing results for all types of investors.