Defining Common Approaches to Stock Investing

Read this article carefully. Millions of investors are at risk because the market sees as much misinvesting activity in stocks as it does investing. I know it sounds weird, but the situation is similar to your crazy Uncle Bill punching the accelerator rather than the brakes when heading right toward the Grand Canyon — he knows that he needs to do something, but he chooses the wrong mechanism. Stocks are tools you can use to build your wealth. When used wisely, for the right purpose, and in the right environment, they do a great job. But when improperly applied, they can lead to disaster.
In this Blog, I show you how to choose the right investments, based on your short and long-term financial goals. I also show you how to decide on your purpose for investing (growth or income investing) and the style of investing conservative or aggressive — that you need to take.

Matching Stocks and Strategies with Your Goals
Various stocks are out there, as well as various investment approaches. The key to success in the stock market is matching the right kind of stock with the right kind of investment situation. You have to choose the stock and the approach that match your goals.
Before investing in a stock, ask yourself, “When do I want to reach my financial goal?” Stocks are a means to an end. Your job is to figure out what that end is — or, more importantly, when it is. Do you want to retire in ten years or next year? Must you pay for your kid’s college education next year or 18 years from now? The length of time you have before you need the money you hope to earn from stock investing determines what stocks you should buy.