Good investment strategy to make money from investing

Whether it’s 2011, 2012 or 2020 – here’s a good investment strategy to make money investing without the crystal ball. Any good investment plan takes into account the choice and timing of the investment. If you can’t make money by investing with this simple strategy, rest assured that only the few and the lucky ones make money.

Before you stress on putting together a good 2011 investment strategy moving forward, ask yourself the obvious question. Where do most successful people invest (or where have they been in the past) to make money from investing over the long term? The answer before the financial crisis was bonds, stocks and real estate. Today, for the average investor, the answer is the same and takes the simple form of bond funds, equity funds, and real estate equity funds. In the final analysis, if all three of these investment areas are in conflict – we are likely to be in a recession and only a few lucky people or smart speculators will be able to make money from investing.

A good investment strategy is not based on speculation or trying to time the markets. No matter what you hear, no one has a consistent and consistent track record of market timing that significantly outperforms the markets in the long run. If they do, they will make a lot of money through investing, and they will hide their secrets, not share them. So why not accept a good investment strategy that makes one major assumption: that the United States will grow and prosper over the long term?

Investing money in the three areas mentioned above is simple with mutual funds. To reduce risk and add flexibility to your investment strategy, add a fourth type of fund called a money market fund. At current interest rates, this may not seem like a good investment, but it is safe and earns the benefit of tracking current rates. More specifically, by owning only 4 different funds, you can put together a good investment strategy for 2011 and beyond and make money by investing in America’s future. In order to go from high security to high risk and greater profit potential: all you need to own is a money market, medium-term bond, large capital income, and real estate equity fund.

A good investment strategy for getting your feet wet is simply to invest equal money in all four funds. The timing strategy does not require any judgment calls or guesswork. After one year and once after a year, you can simply move the money to make all four funds equal in value again. This automatically forces you to withdraw some money from your better performing money – and transfer more money to funds that didn’t, too. The net result over time is that you buy more shares when prices fall, and sell shares that are relatively expensive.

This is also a good way to make money from investing in the long term while keeping a lid on the risks. Simply buying and holding money is not a good investment strategy, and it has gotten many ordinary investors into trouble in the past. For example, real estate funds were good investments for several years until they were called by the financial crisis. Had you just owned it and kept it, by 2009 you could have had a huge amount of money accumulating and at risk there… leading to huge losses as a result of the financial crisis.

There is more than just simplicity in what I call a good investment strategy for 2011 and beyond. This strategy uses two of the only time-tested investment tools: balance, credit, and dollar average cost. The first tool keeps you on track while keeping a lid on risk, and the second is the tool that lowers the average cost of investing by making you buy more shares when prices are lower and less when they are high.

You can make a good investment strategy along with moderate risk only by owning 4 different mutual funds. People earn money from long-term investing in bonds, stocks, and real estate; And smart people keep some money in a safe investment as well as being flexible. In the past years, some people were simply lucky and made money investing without a strategy. With a good investment strategy, you do not need to cross your fingers and rely on luck. If America thrives in 2011 and beyond – you should.