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Tuesday, July 22, 2008

Business ideas for distant investors: Technique will grow your money quickly

As a follow up to my previous article, today we start to examine the various business and investment ideas that a distant investor can consider.

There are quite a number of Kenyans who have made a killing on the Nairobi stock exchange in recent years. Oh yes, I am well aware that the cases you most frequently hear about are those of people losing money. However what you may not know about is a technique used fairly successfully by many people all over the world that virtually guarantees a rapidly growing portfolio and huge profits from investing in any stock exchange.

The stock exchange obviously has several attractions for distant investors, the first being that you do not have any overheads or staff to worry about.

Let me try and explain in simple non-technical language about this amazing technique. It is really simple. What you need to do is carefully study the movements of a particular company share. Usually they all have their highs and lows and tend to oscillate between the two. So what you simply do is buy the share when it hits it’s low and then wait for it to climb only slightly and sell. The point at which you sell is very important because the reason why people lose money on stock exchanges is greed. They wait for the share to appreciate as much as possible so as to maximize on their profits. Remember that when a stock approaches its’ high point, selling it becomes very difficult. The whole idea is to aim to make only tiny small margins from the shares you buy and sell but tend to do it much more frequently and spread over as many different stocks as possible.

With the advent of wonderful computer technology these days it is very easy to issue sell instructions so that the second a share hits the desired price your shares are automatically put up for sale.

Using this technique your losses would be very minimal if anything went wrong or even if the market collapsed altogether as opposed to those who invest over much longer periods of time.

It is very important to remember that if you intend to be a regular and heavy investor in stocks it is prudent that you do your homework just as you would have done if you were entering any other business. Read up a lot and use the valuable World Wide Web as much as you can.

Tomorrow: Yet another idea for you to consider.

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