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One of the most overlooked yet effective investing strategies is to invest your money where you already spend your money.
In fact, it is common to overcomplicate investing and get stuck by spending weeks researching for a super stock that beats the market consistently. On the contrary, placing your trades on what you know well can be a winning strategy for the long term.
In fact, many investors and traders include in their portfolio shares of companies that people love. One of the main supporters of this strategy is the investing legend Warren Buffet, who often resisted investing in wild exciting projects to stick to businesses that he could understand thoroughly.
Why investing in brands, you know
There are 2 reasons for adopting this strategy.
First, you know quite well the product and the business of the company you are including in your portfolio. In fact, although you might not know the nitty gritty of their business you know their strengths and weaknesses.
This provides you with the most important knowledge for allocating your capital.
Secondly, this strategy is easy to implement and sustain. Since you already know the critical elements of the business, you do not need to start from zero to build your knowledge.
If instead you like the idea of exploring the market for the next Microsoft, investing your money where you spend your money can be an alternative strategy for composing your portfolio.
How to invest in the brands you love?
To get started with this strategy you must look at your lifestyle and the products and services that you make use of everyday.
Think of Google, Amazon, and Apple for your activities online. Facebook, Twitter, and Match Group (the company behind most dating apps) for your social interactions.
Alternatively, you can consider other markets and industries. You can trade Ford or Volkswagen, or Tesla if you are a car enthusiast, or Hilton, Lufthansa, and Boeing if you believe in the travel industry.
However, to implement this strategy you also need a platform that can suit your plan.
Choose a broker that lists the stocks you love
Regardless of your investing strategy, you need to have access to a broker with plenty of stocks, and other assets. At CedarFX we list 190+ instruments comprehending stocks such as Amazon, Google, Netflix, Tesla, Apple and more. You can trade companies in different industries with leverage of up to 1:100.
Additionally, if you want to diversify your portfolio with other types of assets, on CedarFX you will find indices, precious metals, and cryptocurrencies. Each of them to trade with leverage and starting from a minimum deposit of $10.
