Smart Stock Investing 101
How in the world can we distinguish profitable and smart stock investing strategies from not-so-smart (i.e. dumb) investing strategies?
It’s a question I’ve been tackling for nearly a decade. I’ve..
- read piles of books, magazines, and newspapers.
- spent thousands of dollars on subscription websites, seminars, softwares, you name it.
- worked in the business, mingling with, and interviewing some of the biggest players.
- made a ton of money in a short period of time, and I’ve
- lost a ton in an even shorter period of time.
Make a long story short, I’ve been there, done that. And it was not only exhilarating, but highly educational. At the same time, though, it sucked quite a bit at points.
I want you to learn from my mistakes, leap-frog over the parts that suck, and go straight to the good parts, using a set of simple, smart stock investing rules.
Sounds good? Alright, let’s get to it.
4 Key Principles For Smart Stock Investing
- Buy What You Know. One of the smartest decisions you can make in investing is deciding to only buy stocks of companies whose business you understand well. . This is one of Warren Buffett’s rules. If you’ve been living under a rock and don’t know who Warren Buffett is, you have a lot of reading to do.
- Do Your Time. Knowledge in investing is like an umbrella in a rain storm..Without it, you’re screwed. Gaining knowledge takes time and effort. But smart stock investing doesn’t take as much research as you might think.
- Check Emotions At The Door. Most people don’t realize how much psychology affects their investing. Emotion and money go hand-in-hand in our world. But you have to, have to, have to consciously separate money and emotion. It’s very important, and rather difficult if you’ve never tried.
- Don’t Listen To Everybody Else. Investing is not a team sport. In fact, you’re competing directly with other investors any time you buy or sell. Collaboration can be beneficial, but you should trust your own judgment over other people’s.