To me, how to think like a investor is the key to success in stock investment. The investor mindset has lead me to where I am today and I am sharing my methodology and experience in my online stock investment course with an aim provide practical and workable methods for successful stock investment. In this post, I would like to share with you about the right attitudes you should have when come to stock investment:
- Do not gamble in stock market: Whenever you invest your hard earn money into stock market, please do necessary homework beforehand. Bear in mind that stock investment is not buying 4D and bet on your luck. Look around you, how much time do these speculators spend in front of monitor to spot buy and sell opportunity. At the end of the day, how many speculators do you know are actually making money. To me, I yet to see any, unfortunately.
- Don't waste your time: You initial investment may be small. But time and mathematical multiplication impact will create fortune for you. Do you know that with $12,000 initial investment with 6% return compounded annually will give you $9,490 return in 10 years or $56,921 return in 30 years. The amount might looks small, but let us look at the return percentage. This example is actually giving you a annual return of 79% and 374% respectively. So, time will make your money grow.
- Pay attention to your rate of return: Another important key in the previous example is how to ensure you obtain the rate of return you want in order to achieve your financial objectives. If you expect to get high rate of return, you have to learn and practice continuously. To further enhance your success rate, learn from expert and ask him to become your mentor is a way. Sooner or later, you may realize that the risk on having high rate of return is actually not high. Why? Simply because you know what you are doing.
- avoid short term buy and sell but focus on long term gain
- avoid following the crowd or else you will end up the same ending as the crowd, especially when market crashes
- avoid buying IPOs but those public listed companies which are listed with solid historical financial performance and my course is sharing with you my unique stock evaluation system to identify quality counters
- avoid speculative investment tools like warrants, options etc. When I say speculative, it means these vehicles are traded without any basis but purely on market expectation and no one can forecast what the other speculators are expecting
- avoid listening to tips and rumors or you will loss your focus
- avoid over diversification or you will again loss your focus. If you are using my evaluation methods, you will realize that those few counters you hold are actually giving very impressive return and do not need more on those inferior counters to dilute your investment return
I hope this post you make you to start to kick-off the correct attitudes you should have for your stock investment. What you need to do now is to practice to sharpen your mindset and investment skill.
Happy learning :)
No comments:
Post a Comment
Comments