Create Your Own Hedge Fund
Chapter One
Modern
Portfolio Theory
People invest money in the stock market with one primary goal in
mind: to earn a satisfactory return on that investment. Some consider
investing to be a full-time occupation with the goal of earning
enough to provide for their day-to-day living expenses on a continuing
basis. Some will be retiring soon and must plan to begin using their investment
nest egg to meet expenses. Others have a much longer time horizon
and are planning 30 or 40 years into the future.
With such a variety of time frames and purposes, there is no single investment
strategy that suits all investors. There is no single "best" portfolio
of investments to own.
INDIVIDUAL INVESTORS
Many individual investors decide for themselves which specific stocks to
own. Whether the buying decision is based on sound research into the fundamentals,
including a thorough reading of the various financial reports issued
by the company, or whether price history charts are studied in an
effort to perform a thorough technical analysis, or whether an investment
decision is based on a tip received from a stockbroker, bartender, chat
room, ... read full excerpt from Create Your Own Hedge Fund: Increase Profits and Reduce Risks with ETFs and Options ebook
