One of the easiest ways to lose money on the stock market and other investments is to take advice from others.So listen carefully!!
The road to wealth is littered with the corpses of investors who have taken advice from friends, acquaintances, lift attendants, taxi drivers and probably worst of all stockbrokers and financial advisers.
Other people, especially financial advisers, mostly have their own agendas and interests at heart. That is just natural human behaviour.
The best way to keep your hard earned capital is to do your own research, that way if things do go pear shaped you have only yourself to blame.
Quite often though brokers and those in the industry have more information at their fingertips than the average investor. Those on the "inside" are privy to information from company management and get access to CEO's and directors thinking and business direction, all the things that are important when making an investment decision.
You think this info is going to be parleyed to you and me? Not on your nelly kimosab'e.
Any information the general investing public get from financial "insiders" is filtered and spun so much before it gets to us the stuff left over is almost as useless as Britney Spears as a spokesman for fruit of the loom knickers.
The garden variety stock market investor certainly has it better since the introduction of the internet and the various bits and pieces of information that can be found at the touch of a button on the Google search box but even then he must be aware that much of this must be taken with a grain of salt as well.
Get more than one independent source for your research on a particular company or investment.
You must also read company reports closely and if it is too hard to understand the language used or there is a tome the size of the bible that explains the financial data then move on.
If management have to explain their company reports then they just could be hiding something.
Some companies that might be on your investment radar will accept calls from investors wanting to ask questions. Give it a go, they can only say no.
If after you have done your research and you find an investment that fits your criteria, assuming you have one, then you are almost ready to plunk down some shekels.
Before that if you have any doubt at all, then don't push the buy button. Go back and start the process over again until the doubts are gone.
Remember, it was hard work earning the money to invest in the first place so don't make it easy to lose it.
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How the Stock Market Works: A Beginner's Guide to Investment by Michael Ivan H. Becket
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c Share Investor 2007
Thats one of my rules, never listen to anyone about trading advice.
ReplyDeleteIt took me a while to learn this though.
ReplyDeleteI guess it is having the confidence to make your own choices and proper research gives me that confidence.