Stock Trend Investing

Have you thought through well enough how you want to invest your money in the stock market? Stock investing is a very personal thing when you invest your own money. How you invest depends on the choices you make. It is easy to make these choices undeliberate and end up investing your money in a way that carries different risks than you would like to.

To help us to make our investing choices in a deliberate way, at Stock Trend Investing we ask ourselves 7 important but basic questions on a regular basis. By answering these questions and acting accordingly, we ensure that we invest the way we want to invest.

The answers to these questions are personal. But the questions can be universal.

Here we go with our 7 basic questions that we ask ourselves regularly. See which you ask yourself as well and which questions that are important to you are not in this list.

1)    How much of our savings do we want to invest maximum in the stock market at this moment, provided it would be a good time to invest in the stock market?
(This assumes one understands the risks with investing in the stock market.)
 

2)    How much of our savings, that we want to invest as a maximum in the stock market, do we want to invest at this moment given the current market situation and the amount that we have already invested in the market? (This also takes into account when we made these investments in the stock market.)
 

3)    How much time can we personally spend or do we want to spend on our investments every day, week or month during the coming 6 months?
 

4)    Following our answers to the previous 2 questions: how much of the money that we want to invest at this moment in the stock market do we want to invest in such a way that we only need to review the investments once per month and how much of it, if any, do we want to use for more frequent daily or weekly trading?

5)    Given the current market situation and trends in the different regions of the world and our preference for which percentage of our stock investments we want to do in our “home” currency, how much investment do we want to have and make in the US, UK, Europe and/or Asia markets?
 

6)    Which specific index funds and mutual funds do we want to use for each of the regions that we want to invest in now?
 

7)    How shall we spread out the investments we want to make over the coming period?

By answering these questions for ourselves and acting accordingly we ensure that we keep investing in a way that we want to invest.

Which other questions do you ask yourself when making your choices on how you invest in the stock market?

Please share your thoughts here as a comment to this blog post.