Hi, straight into it.
What principles should you abide by to increase your chances at success in the stock market?
Today we will get into some of the principles which will help you understand how you can be a better long term investor.
- A good business is not necessarily a good investment, to understand: realize that the quality of the business will increase the price of the asset. You should find undervalued securities, which have been overlooked by other investors.
- Invest only in what you understand, if you can only understand a few investment options- stay in your circle, buy what you understand and only that.
- Be patient, it takes time to create wealth in investing, it does not happen overnight- the more patient you are, the more you can earn.
- Don’t sell because of a price drop, market fluctuations are inevitable- stick to your intuition.
- Invest based on logic and reasoning and leave your emotions out of it.
- Take your time when selecting an investment, say no to as many securities as possible- the gems are found when you are willing to put in the time and effort to seek them out.
- Ignore the crowd, stick to your own facts and reasoning and invest in what you know will be worth more with time.
- Invest in your knowledge and understanding, allowing you to select better investments for yourself.
9. Read and study a lot, the more you learn- the more you can earn.
10. Don’t speculate, never guess or gamble- investing is a game of logic and reasoning, get your facts right and you will make money.
11. Invest in quality, buy what you find attractive- not what others think is a good investment, find quality investments by doing the work.
12. Invest in things that are of interest to you personally, the more passion you have for the investments you are searching for- the more energy you can put into finding the best ones.
Thank you for reading,