The best investing strategy is easy to state: Buy low and sell high. It sounds so simple, but it seems people have a lot of problems figuring out how to really apply this to their own life. Unfortunately, many people will buy the hot stocks of the day and then sell if they believe they are losing money. Here are some tips on how to apply the best investing strategy to your own personal investment plan.
Take emotions out of the investment process. Just because an investment might drop overnight does not mean you should panic and sell. Likewise, if you attend an investment seminar, do not get your checkbook caught up in the rah-rah of emotions. Before making an investment decision, make sure you check your emotions to verify they are not getting in the way. Investment decisions should be made upon facts.
Buy what you know. World-famous investor Warren Buffet offers this advice over and over again. It seems to work for him, so apply it to your own life. If you are a fashion consultant, learn more about the industry trends. You will feel more comfortable investing in what you know because you can apply your own experience to the decision.
Invest for the long term. Investments can peak and dip sometimes in a span of hours. If you try to capitalize on every peak and dip, you will drive yourself crazy watching the market and trying to react in time. Instead, make decisions that you believe are going to net you results over a larger period of time.
Budget, plan and know. The best investment strategy is to stay knowledgeable. You need to understand your own budget, how much you can invest, how much you can afford to lose, how long you have to invest and more. Put some effort into planning your financial future by first understanding where you are now.
Almost all investment choices have some risk, but also have some great possible rewards. Understanding your own tolerance for risk will help you select the investments that are best for you. Keep up to date on what your investments are doing to make sure they still fit your own personal preferences.
The best investing strategy will be different for every person. But keeping in mind that some of the best tips for selection involve understanding your own personality and your own situation will help you get a great start to building your wealth.
Take emotions out of the investment process. Just because an investment might drop overnight does not mean you should panic and sell. Likewise, if you attend an investment seminar, do not get your checkbook caught up in the rah-rah of emotions. Before making an investment decision, make sure you check your emotions to verify they are not getting in the way. Investment decisions should be made upon facts.
Buy what you know. World-famous investor Warren Buffet offers this advice over and over again. It seems to work for him, so apply it to your own life. If you are a fashion consultant, learn more about the industry trends. You will feel more comfortable investing in what you know because you can apply your own experience to the decision.
Invest for the long term. Investments can peak and dip sometimes in a span of hours. If you try to capitalize on every peak and dip, you will drive yourself crazy watching the market and trying to react in time. Instead, make decisions that you believe are going to net you results over a larger period of time.
Budget, plan and know. The best investment strategy is to stay knowledgeable. You need to understand your own budget, how much you can invest, how much you can afford to lose, how long you have to invest and more. Put some effort into planning your financial future by first understanding where you are now.
Almost all investment choices have some risk, but also have some great possible rewards. Understanding your own tolerance for risk will help you select the investments that are best for you. Keep up to date on what your investments are doing to make sure they still fit your own personal preferences.
The best investing strategy will be different for every person. But keeping in mind that some of the best tips for selection involve understanding your own personality and your own situation will help you get a great start to building your wealth.
Caterina Christakos is an experienced investor and instructor with World Capital Institute. Ever imagined yourself as a stock or commodities broker? Check this out:http://www.worldcapitalinstitute.com
4 comments:
Interesting post. Since I plan on running a business soon, I'll have to keep this in mind. I know it'll be tough, so I can use all the financial advice I can find. Lately though, I've been thinking about buying a business instead of starting one from scratch. Any suggestions? Advice? Thank.
I don't know that there is an absolute answer to that question.
Certainly, buying a functioning business removes all the startup headaches associated with a new business. But make sure you are investing in a growth company, and not one that is slowly fading.
The only way to know for sure is to look their financial books, and maybe hire an accountant to review the health!
@Beckmen – For additional advice and help, I suggest checking out BizTrader.com. It's an online global marketplace where you can buy or sell a business. You can also use it to find a lender, broker, accountant, or any other type of professional help. It's a good resource and place to find a small business online.
Then there are always those small business groups in your area that are also very helpful, as well as books that are worth reading.
Good luck!
Thanks for the help guys. I really appreciate it. I'll just have to keep doing my research to prepare myself. I'm looking forward to everything.
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