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?
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.