For all investors, success in personal finance inevitably derives from two factors: asset diversification and decisive response to the unforeseen. While this may come across as blatantly amateurish and broad to the astute stock watcher, consider the following:
Countless repeats of some kind of economic bubble bursting illustrate that fortunes are made and lost without mankind truly understanding what happened in between. From the tulip madness, to the tech boom, to the housing bubble, hindsight always reveals what should have been so obviously caught. The savvy individuals can weather the storm, but the majority is at the mercy of cyclical forces beyond their control. Worse yet, talking heads constantly preach investment gospel in good times but fail to sufficiently answer for deep declines in job growth and capital development.
Why are we seemingly so unaware of financial catastrophes of the past? Why are we so surprised when a natural disaster, market disruption, or geopolitical event adversely affects us? Further, why don’t we correct mistakes to protect ourselves?
It’s the opinion of this author that commonly accepted investing strategy is largely inadequate for today’s average individual. New techniques must emerge if people hope to change the habitual ambivalence toward the past.
Without a doubt, the underlying pillars of modern finance and commerce have already been established over numerous centuries. Great minds have set about to refine financial doctrine on a level that few could ever comprehend. Yet, the typical investor still feels at odds with how to actually manage assets effectively and proactively.
This situation seems very similar to the brainiac teacher we’ve all had. Clearly, they understand their chosen topic in great depth. But when it comes time to explain the big picture and how it actually applies in the real world, students are left scratching their heads in confusion.
It’s Benzinga’s mission to provide actionable trading ideas for our readers. Over the next four days, this series will look to provide a refreshing outlook on trading and investment strategy. We hope you take this time to take inventory on your assumptions, goals, and alternatives. Maintain an open mind frame, and you might be surprised with the degree of flexibility modern trading affords.
Agenda: Monday: Introduction; Tuesday: Basics; Wednesday: Cash Flows; Thursday: Reaction Strategies; Friday: Advanced Options
— Nick Smith