If you hate fluctuations and want to invest in long term products like Corporate/Foreign Bonds. Here is a good and basic way to be RICH in the future.
It doesn't take too much knowledge and technical stuffs to get into or out of the markets. This is a reliable guideline, NOT the best, but a good thing to follow if you hate huge fluctuations in the market.
We all know, European Crisis will not end so soon, and people now withraw money and move them into safe assets. Well this is one of my personal recommendation, and its up to my followers if they wish to follow or copy this easy reliable long term investment knowledge.
In my example, we only require a few things, or things to be assumed in order to start with the "Plan":
1. On a yearly basis, we earn some money, put some asside, to "ADDITIONALLY" invest in bonds/assets
2. This money is for long term savings or investment, and not to be withdrawn unless emergency (as may take some loss during fluctations in early entry points)
3. Check on a weekly basis at least how market is going. Every 2 weeks is OK. (this is to grab opportunities when it's there)
4. Learn how to see the basic Technical indicator = RSI (can go to www.stockcharts.com for easy availability)
5. Check DOW and SPX alternately for more view of the market.
6. Find a "SAFE" fund or bank who sell Foreign/Corporate Funds (you may select your own location), which gives monthly,quarterly or semi-annual Dividend or Interest rates (BETTER with dividends/interests which are computed pro-ratedly)
7. Remember: BUY on Daily RSI at 30.0 or below, and SELL on Daily RSI at 70.0 or above.
8. Bear Markets usually always hit RSI 30.0 and rarely hits 70.0 and vice versa for Bull Markets.
Things to DO if all above are within your means,you can now start using these guidelines when to BUY/SELL into markets:
1. Assuming you started with 100% Cash. You can segragate your entry points, some entry points are months/years time, so weigh your options and time-related needs. Example is BUY 50% when RSI hits 30.0, and BUY 50% when it hits next (You can select DOW for indication, or SPX for indication, or you can weigh both DOW and SPX for your entry points). You can also select 33%,33%,33% on your entry points.
2. Then we assume you are 100% into Bonds or any dividend yielding assets. We SELL 50% when RSI hits 70.0, or SELL 25%, depending on your risk appetite.
3. Then when we are able to SELL, we again wait again for RSI to dip to 30.0, and re-enter the market.
4. Its an endless cycle, just wait for good indicators for ENTRY-EXIT points. Be selective on good-fitch rated funds at BB or above, to be safe from Default issue related problems. Just be patient when Bear Markets occur, as assets tend to lose a lot of value, but then stabilizes when resumption of Bull Market.
When RSI is at 30.0, Bond/assets usually decline in value about 3-8%, and when RSI is at 70.0, Bonds usually are slightly overpriced at 3-8% gain.
So when luck is there, and opportunities strike, you may gain 3-8% or more plus the dividends/yields you are getting.
Be selective and segregate the funds, there are a lot of opportunities in the markets. Some funds usually give Monthly dividends yielding 6-7.5% per annum, good option to start with, or maybe Corporate Bonds yielding 5-7% per annum.
Good Luck!
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