Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Categories
Tip of the Day

Tip of the Day Pay Off High Interest Debts Before You Start Saving

Pay Off High Interest Debts Before You Start Saving - A lot of people feel they should start saving while still paying high interest payments on their debts. This...

read entire tip

Recently Added
Other Great Sites
 

Simple Rules of Investing in Stock Market

 

Oracle of Omaha - Warren Buffett stated two rules:  Rule number 1: Do Not Lose Money.  Rule number 2: Check Rule number 1.  I would like to add another rule, do not get greedy or too attached to the stocks.  Market gives us feedback all the time, as smart investor, we should examine those feedback and act accordingly.  

 

Investing in stock market  is easy, the simple gist of is to buy low and sale high.  Easy said than done.  Using S&P 500 as benchmark, most money manager will not be able to beat S&P 500 performance continuously long term.  The average investors like us seem to be out of luck.  However, I would argue that it is possible to beat the market by investing smartly by using the best asset we have on our side, which is time.  Investment fund or mutual fund managers have to constantly trading to hit their quota by the day, which means they have to take unnecessary risks, but for the average investor, we should wait and invest at the right time.  Please if you want to get serious with investing, you have to read “The Intelligent Investor”  by Benjamin Graham.  The book outlines the basics in pick value stocks at the right price.  Warren Buffet followed most of the ideas of the book except he tends to concentrate his portfolios on few stocks, not distributed like Graham championed in the book.  Warren Buffett's ideas are rather simple:  he only invest in companies he understand, with the right managers that have the best interests of the companies at heart, and with good financials, and at the right price.  

 

The rule I like to add about not get too greedy is that I’ve noticed especially with option trading, many times I have sometimes double or triple my investment, I want to make more so I waited instead selling or take some profit by selling part of the contracts.  It is a mistake that I regret over and over because option is time constrained and when the stock fell after a good run, sometimes it might not have time to recover before the option expires.  Another rule about not getting too attached is that we sometimes have this picture in our mind on how the company should perform, so even when the stock price is not going our way, we tend to want to rationalize that somehow the company will be able to weather the storm.  That’s a big No No in investing.  You as an investor should always set a limit on your sell price, especially when the stock is not going your way.  Because even if you sell at a loss, you might avoided a catastrophe where you might lose most of your investment cash.  You get to live and fight another day, you can buy in when the stock is turning back to your favor, or invest in another company altogether.  Never get emotionally attached, at the end of the day, it’s just a number on the screen.  

 

Investing is like learning to play poker or chess, it takes only a few hours to learn the basics, but it takes a whole lifetime to perfect the skill.  Please contact us if you have any comments or questions.  Happy Investing!

 

Discuss It!
1 2 >

cartoon hd apk said:

cartoon hd app cartoon hd apk download cartoon hd app download cartoon hd apk for android

replica watches said:

A big thumbs up for that, as it makes adjusting the watch more convenient and the case overall more aesthetically pleasing.

MSQRD For PC said:

In this modern era, we are the part of a generation that grew up with computers in our homes grew up with the âmind foulingâ internet.

medical billing outsourcing companies said:

There are many factors to be considered while investing money in the stock market. From this blog I understood about the rules that we should follow before investing the money in the stock market. Expecting more informative blogs like this

benefits of maca said:

We must be very careful in investing money. Detailed studies are necessary to invest money in different fields. The tips and tricks shared here to invest money is very good, helps me a lot. Keep sharing more and more useful information like this.

college student hacks said:

People who can invest their money into Share market for a long time only suggested to move ahead. as per the up and downs of market i don't think that short terms plans can be profitable now.

assignment writing service said:

In this modern era, we are the part of a generation that grew up with computers in our homes grew up with the âmind foulingâ internet.

honeymoon packages in Brazil said:

What a wonderful defines this topic and engage with the readers. I find very great things that important to contribute to the good formation.

directv choice package said:

I am very much interested to know about stock market and I would like to invest money in it to gain more profit but I donât know much about this. From this article I got some important points about marketing.

battlestar galactica jacket buckles said:

I am especially intrigued to think about securities exchange and I might want to put cash in it to acquire benefit however I don't know much about this. From this article I got some vital focuses about fashion advertising.

cheap air jordan 12 said:

I am really pleased to read this I would like to give special thanks to share this article with us

how to find blog commenting sites said:

I simply want to tell you that I am new to weblog and definitely liked this blog site. I have been meaning to write something like this on my website and you have given me an idea.

best internet service said:

There are many rules that we should keep in mind before investing in the stock market. I got the complete details about the factors involved in it from this article and it is very useful to me.Expecting more blogs like this

Contact Helpline said:

yes now!

All Phone Numbers said:

I am really pleased to read this I would like to give special thanks to share this article with us perfect!

Asbestos Removal Cost said:

uk asbestos removal experts like this post. thanks.

emil kovac said:

This current season's utility look was stripped back and negligible. Group a basic khaki dress like these from River Island with a couple of boho.

8th anniversary gifts for married people said:

I simply want to tell you that I am new to weblog and definitely liked this blog site. I have been meaning to write something like this on my website and you have given me an idea.

Happy New Year 2017 Quotes said:

Happy New Year 2017 Countdown Wallpapers / Happy New Year 2017 Latest Countdown Images & Pictures First of all we wish you a very ...

free movie apps said:

Movie Box is not just a movies application, but itâs also an excellent service for the people who love to enjoy their time with the films. Yes, now you donât have to worry about watching movies on your iOS or Android. Iâm going to suggest you an application for this purpose, which is Moviebox application

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Attribute Bias

Attribute Bias - An attribute bias is the tendency of a valuation model that attempts to estimate the present value of all future payments from dividends to that of preferred stocks, which have alike characteristics and might include high dividend returns, high book values, lower P/E ratios, and other similar...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com