There are hundreds of investment ideas that can be used by anyone. It is up to you, the investor, to identify these ideas and choose the ones that make sense for you. Investing techniques and investment strategies form the foundation for most investing decisions made by individual investors. Many individual investors will often seek assistance from an investment coach to help them develop long and short-term investment strategies. An investment coach will be able to help you take stock of your own personal investments and determine which of the investment ideas and methods may be right for you.
An important part of your investment ideas will be your portfolio. Your portfolio is a list of investments that you have bought over time, as well as those that you have recommended. In general, you want to have about two to five percent of your total investments in cash and short term investments such as CDs. You also want to invest a small percentage of your portfolio in long term assets like stocks, bonds, and mutual funds.
Modern portfolio theory suggests that most investors follow a strategy for their investments that is made up of at least two investment plans that are similar to the investment ideas they previously had. The reason for this is that most investors will tend to move money from their short term investments to their long term investments. By following two or more similar investment plans, your risk and reward factors are much more similar to the average portfolio. This makes your investment plans less volatile, making your portfolio much more reliable.