August 28, 2007 at 1:00 am by Tom Lydon
When investing in exchange traded funds (ETFs) or other investment vehicles, we can’t stress enough how important it is to create an investment strategy. An investment strategy helps investors stay on target for their individual financial goals. It also helps protect investors from making emotional, and sometimes irrational decisions during volatile markets. Another benefit is that it helps investors make decisions, re-allocate funds and analyze their investments’ performance, says Ryan Barnes for Investopedia. He reminds investors to ask themselves when creating their investment strategies: How will I judge the effectiveness of my holding and whether my assumptions are right or wrong?
Perhaps an even more important question to add to Barnes’ suggestion is: What are my stop-loss points?
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