Active Investing

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Active Investing.

A hands-on approach requiring an individual to act in the role of the portfolio manager.  The goal of active investing is to beat the average returns a trader would expect if they simply invested and left the investments alone.  This involves a far deeper level of analysis, as to get these returns, one must be aware of short-term price fluctuations and react correctly to them in a timely manner.  This requires the portfolio manager to know exactly the right times to buy or sell (and be correct more than 50% of the time).