Not everyone wants to actively trade or invest and there is always scope for a more passive investment strategy. Passive strategies might not necessarily be set and forget strategies, but by their nature they involve less active management and are focused on the long term.

Passive strategies can include:

  • a focus on income or dividend yield
  • following an index

Trades are generally taken from weekly charts, however some fundamental analysis should also be involved in any long term passive strategy. The following is an example of a passive investment:

(chart coming soon)

Passive strategies might suit people who:

  • are retired and want to spend less time focusing on charts and their investing activities
  • want a reliable income stream
  • don't mind the volatility of short term price action or that their portfolio loses value

Let's take a closer look at a possible passive investing strategy and how to develop a trading plan to capture these trades.

Trading Premise
Setup
Entry
Stop
Target
Trade management

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