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Three "Open Source" Investing Strategies to Start Using Today

More and more tech companies are building their success by going "open source."

By that, I mean they're using open-source tech platforms like Linux and Hadoop – which are free and open to the public to use – to write code, create cloud storage, and develop Big Data applications. With these platforms, they're saving money, running their business more efficiently… and raking in the profits.

I thought of open-source platforms recently – on New Year's Eve.

For more than a decade now, my wife and I close each year with a powerful ritual that has helped us live a life most people only dream about. We sit down in front of the fire and go over the annual report we've written – celebrating our accomplishments and planning for the year ahead.

This year, I realized that our annual report is built on open-source platforms. In fact, there are three open-source investing strategies that I use every day to improve my skill set, find winning stocks, know when to cut my losses – and enjoy peace of mind.

The Dow Jones Industrial Average dropped 400 points intraday Friday, making 2016 look more like a "stock-picker's" market than ever.

With these three free platforms, you can build your picker's "muscles" – improving your odds of crushing the market not just this year, but for many years to come.

Take a look…

Open-Source Investing Strategy No. 1: The Action Plan

tech-social-mediaNo matter which life "guru" you might follow, you'll find that each and every one of them hammers away at the importance of a written blueprint for success.

I couldn't agree more.

You've heard me say this many times – "the road to wealth is paved with tech." The thing is, you'll get to your destination a lot faster if you have a good road map.

An action plan, in essence, is that road map. Here are three elements your plan ought to have.

  • Overall Goals and Objectives: This is where you write down what you ultimately hope to accomplish over several years. It might read something like: "I intend to have a net worth of at least $2 million in 20 years by investing in the stock market with a focus on high tech and the biosciences."
  • Specific Action Steps: Here, put down what you really want to do for 2016. It might read something like "invest in quality technology and beat the market by 20%." Or it may include a complete review of all the stocks you own. This also may mean improving your portfolio-management tools, such as making better use of trailing stops and/or staggered entries.
  • Investment Focus: Specify the areas where you are already invested – and where you want to go. Your investment focus will give you a bird's-eye view of how you intend to blend investments like real estate, bonds, precious metals, retirement accounts and, of course, tech stocks.

You can find open source action plans all over the web. I like the one from Google Docs – which you can customize for an investment focus.

Open-Source Investing Strategy No. 2: The Trading Journal

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About the Author

Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.

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  1. Daniel Scott | January 18, 2016

    Well, if you ask me, the most critical part of structuring your finances and optimizing savings is just having a plan. Whether you use a spreadsheet or a tool like OnTrajectory or some other website — you have to get everything out if front of you so you can make smarter decisions. Once you do that, then implementing your disciplined savings strategy becomes critical.

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