Diversified Investments Are The Culprit Killing ROI In The Accounts Of Unsuspecting Investors
The majority of professional stock or financial advisors have one great phobia - losing customers. They have learned that the number one reason clients change advisors is when unsatisfactory losses occur in the client's stock account.
So it is only reasonable that to protect their customer base, professional stock advisors attempt to minimize their client's stock losses. Consequently, they have devised a means to "spread the risk" across several sectors of the stock market and they call it diversified investments.
The hope with diversified investments is that not all market sectors will lose as badly as the one or two worst. Therefore, if a client possesses diversified investments there will hopefully be a greater part of the portfolio that will not suffer losses, even though one or two groups of stock may sustain extreme setbacks. The better stocks will cover for the losses in the losing stocks, and the portfolio will not suffer the full impact of the losses of the few stocks with decreased return on investment.
The challenge with this approach of safety through diversified investments is that it absolutely avoids the sector of the market that generates the most profit. Clients consequently are restrained in the profit they can earn because of the limitations of their diversified investments which were picked for their purported security from loss.
Diversified investments ignore the following verified exceptional profit-making investment mechanisms:
- day trading based on technical analysis
- swing trading both the long and short sides of the market
- higher leverage currency trading
- skyrocketing penny stocks
- stock futures trading
- autopilot hand-free stock-trading robots
If an investor were to ask their professional stock advisor why their diversified investments don't include any of these higher ROI investments, it will launch a lecture on risk. But this is how the great fallacy is perpetuated.
The fact of the matter is that these techniques above that produce high return on investment are less risky than most conventional diversified investments. The reason the human professional will allege these profit-making methods are riskier is because the stock advisor overlooks one fresh development that changes everything - computers.
Consider only one aspect of producing a return on investment in the stock market - technical analysis. Totally computerized stock-trading programs perform technical analysis on every listed stock, analyze more variables, calculate with lightening speed, calculate mistake-free, calculate consistently, calculate non-stop without breaks for lunch or meetings and produce trades without any human sentiment.
How could basically manual stock research or technical analysis in any way compete with the totally automated systems that are generating huge, extraordinary earnings in the so-called risky portions of the investment arena? Semi-manual research and analysis is partially computer-assisted, but concentrated on the ordinary majority of listed stocks.
One more reality clarifies the investor's predicament. If a client were to employ the profit-making software for these types of high yield investments, they would not want commercial advisors. The automation provides hands-free, do-it-yourself investing based on programmed technical analysis. What market advisor is going to suggest such a system to a customer so they could become self-reliant traders?
Electronic stock-trading software to maximize return on investment can be found by following the links on this page. The web site at Macho Market features a variety of investor resources and computerized stock systems. These hands-free high ROI investor tools are items a stock advisor would not want his clients to discover and use. For investors who are trying to find exceptional profits in an average market, the philosophy of diversified investments is not the solution.
Diversified Investments Are The Culprit Killing ROI In The Accounts Of Unsuspecting InvestorsCompletely automated stock-trading programs perform technical analysis on every listed stock, analyze more factors, calculate with lightening speed, calculate error-free, calculate consistently, calculate 24 hours a day with no breaks for lunch or meetings and produce trades without any human emotion. Hence automation is more profitable than humans.
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