1.Getting Started
2. Know What Works
3. Know Yourself
4. Know Your Friends and Enemies
5. Find the Right Path
The most successful investors were not made in one day. Learning the ins and outs of the financial world and your personality as an investor, takes time and patience, not to mention trial and error. In this article, we'll lead you through the first seven steps of your expedition into investing and show you what to look out for along the way.more find....
Successful investors know that there are always two sides to an investment. They know that the future is unpredictable so they prepare in advance for it. Average investors try to predict the future of their investments. Successful investors do the opposite; they prepare for the best while still preparing for the worst. “Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental.”
1. Invest for real returns: "The true objective for any long-term investor is maximum total real return after taxes."
2. Keep an open mind: "Never adopt permanently any type of asset or any selection method. Try to stay flexible, open minded and skeptical. Long term top results are achieved only by changing from popular to unpopular the types of securities you favour and your methods of selection."
3. Never follow the crowd: "If you buy the same securities as other people, you will have the same results as other people. It is impossible to produce superior performance unless you do something different from the majority. Buying when others are despondently selling and selling when others are greedily buying requires the greatest fortitude and pays the greatest reward."
4. Everything changes: "Bear markets have always been temporary. And so have bull markets."
5. Avoid the popular: "When any method for selecting stocks becomes popular, you will need to switch to unpopular methods."
6. Learn from your mistakes: "'This time is different' are among the most costly four words in market history."
7. Buy during times of pessimism: "Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell."
8. Search worldwide: "To avoid having all your eggs in the wrong basket at the wrong time, you should diversify. When you search worldwide, you find more better bargains than when you monitor only one nation. You also benefit from more safety thanks to diversification."
9. Hunt for value and bargains: "Too many investors focus on outlook and trend. Therefore, more profit is made by focusing on value. In the stock market the only way to get a bargain is to buy what most investors are selling."
10. No-one knows everything: "An investor who has all of the answers doesn't even understand the questions."
A successful investor maximizes gain and minimizes loss.here are six basic principles that may help you invest more successfully.
Long-term compounding can help your nest egg grow
Endure short-term pain for the long-term gain
Spread you wealth through asset allocation
Consider liquidity in you investment choices
Dollar cost averaging:investing consistently and often
Buy and hold, Don't buy and forget
Im 20 years old student of law. Recently I realised that investing is something that really interests me and I want to be succcessful at it. Im reading a lot about it. Can you please give me some advice how to start? Im interested in capital market, But Im still trying to absorb the basic knowledge - types of markets, types of investments, tools, strategies , Im just a newbie still but Im trying to learn a lot - but can you tell me how to "get into it" ? How to really know a lot more about it?
And one thing I really am wondering is HOW to start? Im a student, I have some money saved but really just little. How am I supposed to start investing? How can I buy an asset, or stock or commodity? It seems to me like I already have to be rich if I want to be an investor, is it true? How is the beginning like? What can I do now to start and be very successfull in the future?
I would say invest in a company that you know won't die
