The problem with a lot of get-rich-quick schemes is that they can make you poor even faster.

A get-rich-slow strategy, on the other hand, is likely to pay off. Don't try to time the market

That's because if you're patient with your investments, you can ride out any short-term volatility and get a boost from the powerful effect of compounding -- especially if you can stave off that sneaky thief, inflation. Calculator: The magic of compounding

Understanding how the timing of your decisions affects investment risks may well be your single most important lesson as an investor. It can make a huge difference in your long-term results -- putting you in position to spend your later years on a golf course or a tropical island (if you want) instead of flipping burgers at the local fast-food place.

The pros look at two factors with timing. One is "time value," or the rate at which an asset is expected to appreciate. Another is "time horizon," which relates to the investor's willingness to hold on for the long term. A 5-second time horizon

"We look at time horizon more than time value," says Steven M. Ricchio, a senior vice president at Whitnell, an investment advisory firm in Oak Brook, Ill. In plain English, Ricchio believes in a buy-and-hold strategy. He impresses upon clients that, over several years, the ups and the downs in the price of a security are going to average out. (The technical term is "reversion to the mean.")

What that means: The longer you hold an investment, the more likely you are to receive the return you expected at the start.

One sure way to lose money with investments is to continually buy and sell for the short term. A team of researchers at the University of California, Berkeley, found that 80% of day traders -- investors who try to profit from short-term movements in securities prices -- lose money each year.

"There's certainly the opportunity to lose an incremental 5% or 10% of new money if your time horizon is very short," says Leo Harmon, a senior director at Fiduciary Management Associates in Chicago.

Harmon advises clients to size up their own appetite for volatility before committing to a new investment. If the investment you have in mind has shown a lot of volatility, make sure you are prepared to ride it out. If you can't handle the volatility, or need to cash out of the investment within five years, stick to lower-risk, lower-volatility assets.

After all, while buying low and selling at the peak of every market bump seems like the surest strategy, market pros warn that it's extremely difficult. Most who

try end up buying high and selling low, missing out on all of the good things that come to those who can wait through a market cycle or two. The best investing strategy

"You can't time the market. That I'm sure of," says Ricchio.

The pros talk about nervous, quick-on-the-trigger traders as the "weak hands" in the market. But the nervousness is really just human nature. It isn't easy to hold on to an investment that's down, even if it was up for several years. When the markets are roiling, many investors panic and sell. And that's exactly the wrong approach.

When the same professionals mention "strong hands," they are talking about investors with a longer time horizon. These savvy investors swoop in when everything is beaten down, acquiring shares at bargain prices. They ignore short declines and stick around to enjoy the above-average returns that will follow eventually.

"Cooler heads will prevail, and you'll go from weak hands to strong hands," says financial planner Edward Gjertsen of Mack Investment Securities in Glenview, Ill. "That's the nature of the markets."

The power of compounding makes patience paramount. All experienced investors understand this, but let's go over the arithmetic just to make sure it's clear:

Let's say you invest $100 and earn 8% -- or $8 -- on your money. This means you have $108 at the end of the year. If you make 8% the second year, you don't make $8 -- you make $8.64. That extra $0.64 comes from compounding: You're now earning the same 8% rate, but on a larger pool of money. It's not a lot, but in the long term, it matters. The third year, you'll make $9.33 instead of $8. And the process snowballs from there. Calculator: The magic of compounding

Although patience can reduce your risk and add to your return, it's not a blueprint for success all by itself. It works only if you get enough of a return to beat inflation. Chart: Can you beat inflation

Gjertsen emphasizes the importance of inflation by encouraging his clients to keep a close eye on their cost of living. And recently, he says, they've been coming back to him with bad news: "Groceries really spiked up. Restaurants really spiked up." Inflation: "The biggest unknown"

Many professionals think the only way to ensure an inflation-beating return on your investments, while holding risk at a reasonable level, is to diversify -- not only the kinds of investments you hold but also the currency base of those investments. Certainly diversification outside the U.S. has been helpful over

the past few years, as the dollar has weakened.

With a portfolio that includes not only U.S. stocks but also U.S. bonds, international stocks, international bonds, real estate and venture funds, you can be assured that your returns will be healthy. You can sit back and enjoy the advantages of compounding, year after year, with little concern about risk.

With that strategy, time becomes your friend.

Published April 16, 2008