Thursday, February 28, 2008
Stock Information To Make You A Great Investor!!!
Trading and buying stock doesn't have to be complicated. Here are a few basics rule of thumb for a making a great investment. 1) Always do your due diligence (a.k.a. research) on the company before investing your hard earned dollars in their stock! Time and time again people buy on emotion based on trends in the market. Don't let that be you! Warren Buffet, probably the smartest investor of our time said "Be fearful, when everyone else is greedy. Be greedy, when everyone else is fearful." 2) Look where everyone else isn't looking. About two years ago, companies in China were experiencing over a 200% return in just one year! Some of these companies were American based that happened to be heavily involved in the Western Industrialization taking place there. Can you imagine how you would feel with a 200% return in just one year! 3) Always let logic rule over emotion. People are driven by two emotions when it comes to investing: Fear and Greed. The fear of losing it all, and the greed of never having enough.
Stock Tips For The Smart Investor
The smart investor is one that buys low and sells high! This is everyone's goal with investing, right? Well the problem is most people buy a stock after its biggest gain! That's right, after its already made its biggest return. Hindsight is always 20/20. It's easy to read about or see on tv, the performance of an allstar stock that has dominated the market with its return. This causes people to feel if they get in now they can some how share in the return. This hype causes people to buy a stock because of the its previous performance. Then what happens in most cases is the stock decreases in value and the frustrated investor sells the stock before he/she loses anymore money. They ultimately buy high and sell low! Chances are you may have experienced this, I know I have! So, don't buy into the hype you see and read about. Invest in educating yourself before investing your hard earned money.
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