Transform your daily workflows and Annotate Investment Plan

Aug 6th, 2022
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How to Annotate Investment Plan

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An investing plan is a set of rules and guidelines that defines how you invest. An investing plan helps you decide in advance what youll do and how youll do it. This creates a repeatable process that can take the guesswork out of investing and make the investing process much easier. Each plan includes six important components. The investments objective, watch list criteria, entry rules, money management rules, exit rules, and routines. In this video, well briefly examine each component. Lets begin with objective, which represents the specific goal of your investing plan. Once you have this in place, youll set rules based on your desired outcome. An objective can vary from the goal of an individual trade to the goal of your entire portfolio. Because each objective has a different scope, investors may implement multiple objectives simultaneously. For example, you may use one investing plan with an objective that concerns your overall portfolio such as asset allocation among stocks,

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The Four Key Components of Investment Performance Stocks. Bonds. Cash/Cds/Money Market. Alternatives (i.e. real estate, commodities, venture capital, etc)
Types of investment analysis include bottom-up, top-down, fundamental, and technical.
There are three main types of investments: Stocks. Bonds. Cash equivalent.
There are three key factors that determine which investment strategy is right for you. Risk tolerance. Expected returns. Effort required to implement the strategy.
5 steps to creating your plan Set specific and realistic goals. Calculate how much you need to save each month. Choose your investment strategy. Develop an investment policy statement with your adviser. Review your plan regularly.
Basic Investment Objectives: An Overview Any investment can be characterized by three factors: safety, income, and capital growth. Every investor has to pick an appropriate mix of these three factors. One will be preeminent. The appropriate mix for you will change over time as your life circumstances and needs change.
You dont need to take an economics or finance course to learn how to invest, but it is important to understand these basic investment concepts. Risk and return. Return and risk always go together. Risk diversification. Any investment involves risk. Dollar-cost averaging. Compound Interest. Inflation.

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