Has anyone found a foolproof investment strategy.?

Question

I am interested in stock market strategies. Any other ways of making money too are welcome.

Answer 1

The most fool proof is t-bills. About 5% return. But with inflation running at 4%, it is not much of a return. Then after taxes, you will probably find yourself in the hole. That is one of the best money making strategies of the U S government, tax inflation.

Answer 2

The answer depends on what you mean by "foolproof" and what you think of as "investment." If you are risk-averse and satisfied with a very modest return, you can purchase U.S. Treasury I-bonds. Their terms guarantee that their value will at least match the rate of inflation, and perhaps will exceed it. To some people, this does not deserve to be called "investment." If your aim is to have your capital produce a handsome profit, you must put the money at risk. That means you can lose it. That means such an investment strategy is not foolproof. The risk/reward equation is inescapable. There are no "sure things," regardless of what the broker/promoter/card sharp or horseplayer may tell you.

Answer 3

I don't think there is a foolproof way to always make/never lose money with stocks. Any fund company will state "past history does not guarantee gains or protect against loss," or something to that effect. Your best bet is to do as most financial advisors, fund companies, etc, and that is to diversify your holdings. I was trying to find the answer to the same question a few weeks ago, but everything I found led me to what I just suggested. Look at my "questions asked" and see people's responses to my personal finance. People offered a lot of good reading material and resources to get to help me out. Hope this helps you.

Answer 4

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Answer 5

MVD34 is right. Leveraged ETFs track moves in the index on a daily basis, and not over any longer period. Yes, if there is a sustained move in one direction, the correlation would be reasonably good. However, here is an extreme example for illustrative purposes: Day 1, index is at 1000, 3X leveraged ETF is at 100. Day 2, index is at 800 (loss of 20%), 3X leveraged ETF is at 40 (loss of 60% from 100). Day 3, index is at 1000 (25% gain), 3X leveraged ETF is at 70 (75% gain on 40). This is how these ETFs work - the change is based on the daily change in the index. So you can see how the index in this case is unchanged after 2 days, but the ETF is down 30%. For the record, I'm an active trader in TNA and TZA, which are 3X ETFs on the Russell 2000 index.

Answer 6

After you read a bunch of books on the stock market, you will find that there is no one perfect strategy. The best strategy that you will find involves proper money management. In other words when do you buy, when do you sell, not letting your emotions control you, etc. That may not be what you want to hear, but it is the main strategy that separates the winners from the losers.

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http://www.best-stock-trading-systems.com/trading_for_beginners_review.html

Have a look at the videos on this page:
http://www.best-stock-trading-systems.com/marketclub_review.html

Answer 7

There is no diamond in the rough for investing. I just think the younger you are, the more aggressive and high risk you should be, and the older you get play it safe. If you have someone investing your money, then be VERY proactive and ask questions why your money is here or there. My invester and I meet once a month, and talk at least one time a week. I want to know where my money is going and for him to justify his reasons. After that, put your head between your knees, and hope things down come tumbling in around you. There are no sure things, case in point, Enron, Adelphia, and the numerous others who screwed the public.

Answer 8

Only a fool would think he had. Invest; don't speculate. Money can be made slowly but surely. Forget strategies & sytems. If don't know market must buy index funds & etf. IAU, the gold etf, likely to make good money in 2007. DJIA was 700 in 1980.

Answer 9

It depends on what you mean by fool proof. There are many systems which will make good money.

(1) Understand the trend and invest along with the trend is the age old strategy which has stood the test of time.
(2) Understand risk and mitigate it with proper techniques.
(3) Understand money management techniques
(4) Understand position management
(5) Finally understand yourself and have reasonable financial goals.

Answer 10

Do asset allocation based on your risk tolerance analysis. Then set you strategy and manage the investments to the recommended percentages. If you can't or don't want to do that find a good balanced fund manager who has an allocation strategy based on your risk tolerance and let them manage your investments.