$SFOR Investing need not be complex. I always keep it simple. As a rule of thumb, make a list of criteria to buy a stock, and stick to it. Just remember that stock price should not be the only criteria. Buy only those stocks which match your investing criteria. If no companies fit the bill, then stay in cash.
Once you buy the stock, do not follow the stock’s price movement on a day to day basis. You will just lose your sleep over it. Follow it at a regular interval which you are comfortable with, and see that the set of criteria still matches. If the stock no longer matches your criteria, sell the stock. Don’t makes excuses to stay in the investment. Remove emotion out of the equation.
As an investor it is very important to stick to what one knows. It is impossible for one to know everything about every company. I don't invest in companies whose business I don't understand.
Most investors cannot resist the temptation to constantly buy and sell. Also a trading mind-set means reacting to market news, and market sentiment at the moment. There are chances of making profits in the short-term, but it is always wiser to ignore short-term fluctuations and invest in a company and hold it in spite of news which could have driven its price down temporarily.
G/L
Once you buy the stock, do not follow the stock’s price movement on a day to day basis. You will just lose your sleep over it. Follow it at a regular interval which you are comfortable with, and see that the set of criteria still matches. If the stock no longer matches your criteria, sell the stock. Don’t makes excuses to stay in the investment. Remove emotion out of the equation.
As an investor it is very important to stick to what one knows. It is impossible for one to know everything about every company. I don't invest in companies whose business I don't understand.
Most investors cannot resist the temptation to constantly buy and sell. Also a trading mind-set means reacting to market news, and market sentiment at the moment. There are chances of making profits in the short-term, but it is always wiser to ignore short-term fluctuations and invest in a company and hold it in spite of news which could have driven its price down temporarily.
G/L
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