solid and profitable investment strateges

Lots of books exist about trading, and many programs are
advised to use for socalled 'technical analysis' (chart
reading), and assist the trader in investment decisions.
All such methods are aimed at short term gains, and are
quite risky in the longer term; it is known for example that
about 90% of stock traders in the end are losing their money,
a risky business indeed; offical economic science even
strongly doubts that 'technical analysis' can work due to
the 'efficient market hypothesis'(where the future
expectations are discounted in the present stock prices).

So on the other hand, some -often better educated- people
try to find undervalued stocks (eg the Wareen Buffet strategy)
and use a buy and hold strategy; while this could work, it
is not easy, and also risky nowadays with the highly
fluctuating economy. Also quite common is use of the modern
portfolio theory, with a mix of stocks, bonds, and real
estate and/or mutual funds. All these strategies don't use
the concept of trend following, especially not when the trend
is *down* (like during 2008).

So, instead of gambling with options, swingtrading with
pennystocks and technical analysis or the opposite, namely a
buy and hold strategy, here is our 'best' investment
strategy, which we will discuss later more in detail on
this blog, or on our new website about trend-investing:
www.stockmarket-trends.com
(in development)

Basically the strategy will use two methods, trend following
(with a proprietary computer program, with a very robust
long term indicator), and index funds. Leveraging will
be possible if people choose to use futures, sprinters,
turbo's or whatever, but in general we won't recommend it.
And for value investing, people can look at sector
funds, which we might advise in due course,
after sufficient (trend-)analysis.

current advise(31 July 2009):
Hangseng index (TraHK): upward trend , advise = 'buy'
Nasdaq index(QQQQ): upward trend, advise = buy
S&P 500 index (SPY): upward trend, advise = buy
TraHK, QQQQ, SPY are the symbols of the respective index tracker
funds; more info about such funds, and our trading method soon.
Note: a small correction coming weeks seems likely, after that,
eg. mid August many indices, also Aex, Dax, etc. could get a 'buy'
recommendation.

NB this is not a buy and hold strategy, as for certain funds
or in certain times we can advise to go neutral, and even
-instead of holding cash- can advise to go 'short', which
would mean profiting from a downtrend; such a strategy not
only makes optimal use of the socalled business cycles, but
also avoids risks as result of socalled investment 'bubbles'
(like the internet bubble in 1999, or the credit/subprime
bubble in 2007). Example: famous American investor Jesse
Livermoore made about 100 million by going short during the
crash of 1929; and Goldman Sachs, the investment bank,
continued to make profits during the credit crash of 2008,
probably by going short with a large number of assets.

Disclaimer: investing is a risky business:
advise given on this blog is for own risk,
we are not responsible for any investment
decisions the reader may have taken as
result of the advise given on this blog.