At a particular time like this year so many users have asked me for strategies to protect their money, it could be a solution to invest through a saving plan.
What is a saving plan and what is it for?
I don’t know if I can call it a real investment strategy, but it’s a solution that allows you to invest regularly in financial markets by reducing the risk of doing so at once.
I’ll explain better, so many people for example have 10000 dollars and buy stocks the same day or a few days later, once the capital is sold out they wait.
And if the market is in a storm and the shares of an “x” company lose 25% what do you do? Let’s forget about money management talk (too many people don’t follow it), how long will you have to wait before it returns to the purchase price?
Days, months, years we can’t know, so a saving plan helps in these situations.
It is very interesting for those who can constantly save, dividing purchases over a longer period of time, I emphasize this particular because financial markets have bull and bear phases, or, are affected by cataclysms or world pandemics causing a collapse.
Let me give you an example, if a saver had invested all his savings in February 2020, what would his trading account look like?
If central banks had not helped during Covid 19 it would be a disastrous account, if it had made a monthly saving plan it would have suffered less also because in 3 months the markets recovered and would have mediated stocks’s price purchased.
A saving plan simply means constantly investing where the goal is to distribute purchases and risk across all market conditions.
There is no duration (if you do by your own) established, usually the number of years to have a return on investment are 3/5 years, then everything varies depending on how financial markets move.
I know you will ask me which is the best saving plan and the bank that had the best returns, my answer is as always I do not advertise financial products, my site is 100% independent and I do not offer advice.
My advice is to study some technical analysis (books by Martin Pring or John Murphy), read my website and build a portfolio yourself. If you do not want to study or do not have time, you will have to turn to investment companies paying attention to commission costs and time constraints and if there is a minimum amount to be paid.
I end this article, hoping to have been helpful and have clarified the ideas, I wish you happy holidays and always use the mask to protect you and those around you.
|Investitori che hanno un piccolo capitale a disposizione
|Operating costs through intermediaries
|Investors who have a small capital available
|Incorrect technical analysis if you have no experience
|Saves indirectly every month
|If you do by your own no commissions