1. Research, Research And More Research
There is no substitute for research. Hot tips are useful but you should not be putting money down on these alone. If you have a hot tip then use this as a spring board for research.
2. Work Out Your Strategy
Careful investors always know their strategy before they part with their money. The three main strategy categories are growth, value and contrarian investing.
Growth investing is about buying shares with a long term view. With this strategy you should expect to hold onto your share for quite a while and for them to increase as the industry strengthens with the economy. This is different to value investing. In value investing you are looking for shares which you believe are currently undervalued.
You would sell them when they caught up with other comparable shares. Finally, contrarian investing is about not necessarily always going with the market trends.
3. If You Need It - Don't Trade It
It is difficult to trade and stick with your investment strategy if you are constantly worrying about your bottom line portfolio value.
Remember that shares go up and down and sometimes it is worth sitting out a short lull in order to make greater gains. If you are desperate for the money to be realised this is difficult to do.
Principally, if you disregard any of the over there is a potential likelihood that you will lose money. As important as these three tips is a belief that you are feeling self-assured about investing if this is not the case along with following these three tips the it is definitely not a good time to start investing in shares.
Reg_Maudling
0 comments:
Post a Comment