Your Investments Should be Bigger than a Benchmark_1
Post on: 16 Март, 2015 No Comment

One good thing about being an investor is that you do not have to invest by another persons rules and regulations. You should invest according to your own rules and your own expectations. This is important because in the investment world, you should aim to make as money as you can within reason. It therefore follows that if you want to enjoy the fruits of your labors, you should look beyond the benchmark set by market analysts, investment advisors and other self-appointed experts. In fact, your investments should be bigger than a benchmark because your needs and your plans may not necessarily be in sync with the benchmark set by other people.
In this article, the aim is to make it clear that you can outperform the market. If you invest well, you will definitely get better returns on investment than the guy who wants to be limited by the so-called benchmark. Understand this simple fact and you are on your way to financial freedom. Now, let us understand a few things about the benchmark and how it can limit your potential.
Let us assume that you are investing in the S&P 500. Let us also assume that this index has a benchmark of 10.7% pa. This means that if you invest a thousand dollars in this index, you will make a profit of just $170 in a whole year. This is quite low but the problem is that some stocks offer you a lower return than the 10.7% you can get from this fund. There are instances where investors buy stocks and lose all their capital. Compared to this unfortunate scenario, the 10.7% seems like a sensible deal. The point is that you do not have to look at investments from the narrow perspective of any benchmark. There are many investment options out there and you can make a lot of money if you invest in the right markets.
For instance, you can stay away from index funds and invest in binary options. Depending on the options you buy, it is possible to make 5-10% profit every day in the binary options market. You can also invest in the forex market if you have trading skills. The forex market is highly liquid and it is a very lucrative market. If you trade as a scalper, you can easily make 2-4% profit every day you trade. Multiply this by 22 trading days per month and you are looking at a lot of cash. There is plenty of money to be made in the commodities market too. If you learn the simple secret of market prediction, you will make big money from commodities like gold, oil and gas.
As you can see, your investments should be bigger than a benchmark. There are no limits in the investment world so do not impose any on yourself. There are many opportunities out there so keep your eyes open and you will see these opportunities. Make as much money as you can and do not tie your profits to any benchmark.