Monday, September 19, 2011

Should you invest in stocks?

Stock investing can be very rewarding and very risky , its not for everyone , before you decide to invest in stocks you should find out
what it takes to succeed , here are some basic rules that you should follow :

Rule # 1 - Discipline - Make sure that you have a plan and that you would stick into that plan . Dont buy when prices go up sell when prices go down, that leads to the next rule.

Rule # 2 - Control your emotions . Dont worry about the market , if the market goes down do not fear , if the market goes up dont be greedy , if you pick a company with strong fundamentals , good earnings ,  good management you will make money most of the time.

Rule # 3 - Be patient . Long term investments requires patience. If you buy a stock in a bull market most likely you are going to loose
money , search for bargains , undervalued stocks with a good track record , that's the way to reap generous profits.

Rule # 4 - Measure Risk . Start investing very little money until you learn the business , make sure to risk a very small porcentage of your net worth.

Study the history of the markets , read books from investment masters like Benhamin Graham , understand their philosophies ,
learn their strategies and you will find a way to become an expert investor , develop your on tactics and strategies and once you feel
confident that stock investing is for you , start small and leverage your way to success.

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