This is someone who works to repair and maintain vehicles, from small cars to large transports.
Mechanical investing is any one of a number of ways of buying and selling stocks according to pre-set criteria or triggers. A systematic investment plan can be partly based on factors that an active investment manager applies, but it is mostly intended to be implemented on autopilot.
How Mechanical Investing Works Mechanical investing can take many forms. It can be as simple as a set dollar or paycheck percentage amount into a k account, for instance, or a commitment to buy a stock when its valuation falls to a certain price-to-earnings ratio and sell it when the valuation hits a higher predetermined level.
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Valuation markers are mechanic trading in mechanical investing, but technical analysis may also inform an automated approach to investing. Whatever criteria is used by the investor, the idea is to remove subjective feelings and second-guessing from trading of stocks or other securities and stick with a disciplined approach.
Should you go to College or Trade School to be a Mechanic
This strategy involves buying the 10 stocks on the Dow Jones Industrial Average with the highest dividend yield at the beginning of each year. These high dividend yields generally result from poor or lagging investment performance from the prior year.
The expectation is mechanic trading the stocks will show mean-reversion over the coming year. The portfolio is adjusted each year to only include the 10 highest yielding stocks. Compare Accounts.