A Safe Investment Strategy

What's Your Strategy? As a non-professional investor, I began my investment with "word-of-mouth" - that is buy whatever my friends or colleagues talk about. However after few years of unforgetable lessons, from dot com bust to Enron, I realized that I need to invest with some strategies. Well unfortunately, I am not a pro like those who got paid about a million dollars per year to implement sophisticated investment model. Neither I am like those who can always get the first hand information before it goes public.

I am just like you who gets the information only from the newspaper and finance website. Nothing more. So I really couldn't cash in on big news such as robust earning report. Because by the time I noticed the stock it's already on the top performer list gaining already 50%. Despite that I still do want to implement some investment strategy based on the information available. Because if the strategy works that means you, not just the top Wall Street analyst, can also implement strategies based on the information available.

For the past few months I began to implement some strategies and see how they work. The very first one I tried is the buzz word investing where stocks were picked based on popular topics which I believe are going to or are attracting money. This strategy, although doesn't involve any technical or financial analysis, somehow works as some successful sectors such as Taiwan related stocks have gained 50% so far and Brazil related stocks have gained 30% since coverage initiated. Other successful sectors include GPS stocks(+20%), India stocks(+20%), Russia stocks(+17%) and Hydrogen Cell stocks(11%). Remember this is not just individual stock performance but the return of a group of stocks so you should really compare them with mutual fund or indices. And speaking of individual stock there is GIGM which has hit a homerun with 280% return in five month. Well, not bad.