The 5 main benefits of using the relative power of an investment boost are often overlooked wanting to just buy and make money through stocks, ETFs or mutual funds. This, as well as the fact that the name “relative momentum of power” sounds scary, and many people just don’t realize it.
As I wrote earlier, “Avoiding Relative Investment Power Mistakes,” an RSM-based analysis makes momentum analysis a step further by performing a comparative analysis of how strong a stock or fund’s momentum is and even better if properly tuned how strong a particular ETF is or fund compared to others. Thus, this compelling RSM analysis focuses on ticker characters that are strong and have the potential to not only stay strong but also continue to grow; and when they falter, the analysis signals that it is time to sell. ”
This is one of the most proven technical analysis methods for finding stable winning investments.
Many books have been written about RSM, including the final guide by Michael J. Punishment: smarter investment in any economy (currently sold out, but hopefully will be reissued soon).
RSM works for all types of investment:
- Mutual funds
The formulas that provide the best results can be implemented even if you are not technically savvy or do not have math because they are an integral part of readily available investment software.
The various formulas, all related to each other, allow you to decide which method of RSM analysis gives you a method of investing relative momentum strength that fits your goals and individuals.
Kar tests seven different formulas of relative strength:
- Normalized rate of change (ROC)
- Rear weight ROC
- Frant-weighted ROC
- Price / moving average ratio
- Diets of several moving averages
- Different time periods are averaged
Advantage № 4:
Investment analysis using alpha or any other RSM method can be easily combined with other buying and selling rules in both personal investment software and investment advisor software.
These buying and selling rules include:
- How long to hold a position
- Ranking to be sure the position is high among your character group
Advantage № 5:
You can do easy technical analysis with or without standard deviation (SD). By adding SD to the analysis, you can, in fact, automatically be more conservative.
In fact, with or without SD you can optimize any RSM calculations, such as alpha, to achieve your conservative, moderate, or even aggressive investment goals with the right investment software.
While the relative power of investing sounds daunting, the benefits can lead to long-term growth in your portfolio, especially if you find personal investment software that transforms RSM into a few clicks and allows you to compare potential returns and risks.