An Investment Strategy That Can Make You Millions
If you are learning how to invest stock all by yourself and doing it all by yourself, then you are going to have to look at some strategies to choose your shares. There is only one thing that you are actually certain about when looking to make money via stocks and shares, and that is the certainty of losing money by choosing your shares by random choice and emotions. In this day and age, there is absolutely no need to guess and pick your shares, we have the resources and data that can lead us to the decision. Sure it will take much longer this way, but you can bet yourself you are going to make much more money that way.
Being able to choose shares that are going to be winners by a gut feeling is an incredibly hard (and probably stupid) thing to do, even the legends of the investment market do not go about this kind of action, so there is absolutely no reason for a new investor to take such a hazardous step. We are in the process of learning how to invest stock, so we would rather set up a bunch of rules and a guide for ourselves to follow each and every time we go to make an investment and achieve a much better set of results at a consistent pace. Here are some key things to consider to no how to invest stock:
Have independent values and goals
For a new investor the market can be a petrifying sight. When you look into a company as a beginner it is very easy to become overloaded with information. So much information can eventually lead to the wrong decisions if we do not follow a persistent game plan that has been put in place.
A clear strategy and planned investment decisions can lead to excellent results. In order to be a successful investor you must stick to your own philosophy and develop it further while you learn how to invest stock.
What strategy should you follow?
When learning how to invest stock you will find that every investor has different investment strategies. Knowing your strategy is good will depend on you building on your strengths and weaknesses through your career. You will most certainly fail a few times before learning your strategy, but remember that in order to become a successful investor you must first learn how to fail. This is key for learning how to invest stock. Make sure you do not get negative through the process either, because failure is just a evil word for learning. That does not mean you just keep failing though, because when you do you must understand what it is you have done wrong. So keep fine-tuning your strategy until you are happy with the results you can produce. This industry is all about educating yourself and being smart.
There are several strategies you can take, it is just a matter of learning how to invest stock for your personal style. Everyone will be different. One method is value investing, which is simply buying the shares when they are cheap. This is a fantastic method because it is almost a known fact that over time share prices will increase. So if you buy at a low price, you are almost telling yourself that you are going to earn loads more in the future.
Another strategy is when you can focus in on one particular sector of the market that you yourself feel comfortable with and know very well. The basic concept is similar to the 80/20 rule. You put in 100% effort into learning about one particular section of the market and become a master in the field, which will provide you with an immediate edge over the other investors. This is hard work but the rewards pay off very well and failure is never really in your way.
A similar method to this in the investment industry is known as 'top down investing'. With this you are picking up on what you think is going to be a massive social trend, and then pick the best companies in that sector. For example back when the DVD player was just an invention, if you had faith in this device and invested into major companies like 'Sony' and 'Samsung', you can be sure that you would of made a killing. Do not worry though, opportunities like these will always come up, that is the importance of educating yourself on how to invest stock.
So make sure while you learn how to invest stock you can find your investment style and strategy, and make sure you stick with it until you perfect it to the maximum for the best results. Good luck with your ventures.
By Ajay Sahota
Being able to choose shares that are going to be winners by a gut feeling is an incredibly hard (and probably stupid) thing to do, even the legends of the investment market do not go about this kind of action, so there is absolutely no reason for a new investor to take such a hazardous step. We are in the process of learning how to invest stock, so we would rather set up a bunch of rules and a guide for ourselves to follow each and every time we go to make an investment and achieve a much better set of results at a consistent pace. Here are some key things to consider to no how to invest stock:
Have independent values and goals
For a new investor the market can be a petrifying sight. When you look into a company as a beginner it is very easy to become overloaded with information. So much information can eventually lead to the wrong decisions if we do not follow a persistent game plan that has been put in place.
A clear strategy and planned investment decisions can lead to excellent results. In order to be a successful investor you must stick to your own philosophy and develop it further while you learn how to invest stock.
What strategy should you follow?
When learning how to invest stock you will find that every investor has different investment strategies. Knowing your strategy is good will depend on you building on your strengths and weaknesses through your career. You will most certainly fail a few times before learning your strategy, but remember that in order to become a successful investor you must first learn how to fail. This is key for learning how to invest stock. Make sure you do not get negative through the process either, because failure is just a evil word for learning. That does not mean you just keep failing though, because when you do you must understand what it is you have done wrong. So keep fine-tuning your strategy until you are happy with the results you can produce. This industry is all about educating yourself and being smart.
There are several strategies you can take, it is just a matter of learning how to invest stock for your personal style. Everyone will be different. One method is value investing, which is simply buying the shares when they are cheap. This is a fantastic method because it is almost a known fact that over time share prices will increase. So if you buy at a low price, you are almost telling yourself that you are going to earn loads more in the future.
Another strategy is when you can focus in on one particular sector of the market that you yourself feel comfortable with and know very well. The basic concept is similar to the 80/20 rule. You put in 100% effort into learning about one particular section of the market and become a master in the field, which will provide you with an immediate edge over the other investors. This is hard work but the rewards pay off very well and failure is never really in your way.
A similar method to this in the investment industry is known as 'top down investing'. With this you are picking up on what you think is going to be a massive social trend, and then pick the best companies in that sector. For example back when the DVD player was just an invention, if you had faith in this device and invested into major companies like 'Sony' and 'Samsung', you can be sure that you would of made a killing. Do not worry though, opportunities like these will always come up, that is the importance of educating yourself on how to invest stock.
So make sure while you learn how to invest stock you can find your investment style and strategy, and make sure you stick with it until you perfect it to the maximum for the best results. Good luck with your ventures.
By Ajay Sahota
posted by John Efetobor - Stock Trading Strategist at
9:37 AM
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