| If you are considering trading strategies, you are | | | | also dabble in stocks and shares. Effectively, it means |
| thinking about the kind of investments you want in | | | | they have a little kept aside to play with, while at the |
| your portfolio. Your strategy will probably vary | | | | same time ensuring that their family and home is |
| depending on your personal situation in the stock | | | | looked after. |
| market today. You may be more of a risk taker or | | | | When talking to an advisor, it is important to have a |
| keen to play it safe. If you have a family to look | | | | long term strategy. For example, in recent years, |
| after, you are probably keen to make sure the | | | | people may have thought investing in the banks was |
| money is safe and secure before getting involved | | | | a good long term idea. However, recent events have |
| with trading stocks. | | | | proved this is not always the case. |
| Broadly speaking, trading strategies can be divided | | | | There are sometimes new investments that come |
| into two basic categories. You have passive | | | | along that were previously unheard of. Five years |
| strategies that are designed to minimise costs. These | | | | ago, social networking was a relatively unheard of |
| would be items like a tax free ISA or bonds. The | | | | concept, but now some of the biggest companies |
| idea is that the money is kept safe. While this may | | | | are involved with it. However it should also be |
| mean you get less returns on the money, it is more | | | | pointed out that some major companies have also |
| likely to hold its value. These are what are often | | | | lost money investing at the wrong time, just as a |
| known as the buy and hold investments, the sort | | | | social networking site has dipped in popularity. |
| that people hang on to and get the most value from | | | | This is why it is always important to monitor events |
| their stock picks. | | | | through technical analysis and stock charts in order to |
| By contrast, active trading strategies is about | | | | keep an eye on your portfolio. Interest rates can go |
| maximising returns. This could mean speculating on | | | | up as well as down, and a good advisor should be |
| the stock exchange or dealing in the futures market. | | | | able to help you find the best returns, whether in the |
| In this case, it is more about taking the gamble and | | | | short term or the long term. If you want more |
| coming out on top. | | | | information, you should speak to a free independent |
| There is a third way. This is when people spread the | | | | financial advisory service in your local area and ask |
| risk. They may have a secure account or bonds, but | | | | about the best trading strategies available. |