The goal of short term investment strategies is to
make as much money as possible in the shortest period of time. There is a host of strategies
that are out there. Each financial guru has their own special formula.
Some formulas are lower risk than others. Largely, the goal
with any type of investment whether it is the long or short term is to protect the capital
and receive the largest gains with the least amount of risks.
It is just a simple truth to finance, making money requires risk, the more risk
the more potential. Of course risk should always be peppered with a bit of common sense. If this is something
you are setting to do on your own, than you should absolutely consider gathering as much information as
possible. Review as many strategies as possible to get a broader view of the possibilities. Knowledge is
certainly power especially when it comes to investment.
There are some investment vehicles that are much safer than others when it
comes to the short term. A lot of short term investment strategies revolve around bonds or other treasury
notes. Short term bonds combined with other investment vehicles
will give you opportunities to collect higher yields within a low risk environment.
Short term investment in government debt is a favored short term investment strategy because the risk
is so low. In almost every instance of this kind of investment the returns will be decent and the risk is very
close to zero. Now with this strategy it is important to understand that the yields are not going to be through
the roof but they will be decent and your principal will be well protected.
Other short term investment strategies include diversifying in equities of
course this will come with much greater risks. The capital investment will be at risk with any stocks,
indexes or other equity vehicles. Of course with greater risks there will come higher yields. Some folks are
much more ready to lose their principal if it means they may be on the winning side of things and gain higher
Of course other strategies point toward
conservation by using an allocation that includes money market funds, bonds and other indexes, after all
diversity normally equals lower risk.
Largely you have to have a clear understanding or your investment objectives
and allow those short term goals to be met.
Knowing Your Goals
Typically short term investment strategies are not the right way to invest for
the long run. If you are trying to meet some short term financial goals than following one of these
strategies is a perfect way to help you meet your short term goals. Short term investment strategies should
be used as part of a bigger plan, using these strategies to meet your short term goals will put you in a much
better position for the long haul.
Using good common sense, having clear goals in mind and using those goals to
set out a plan is the best idea when it comes to short term investment