Investing habits …….Good and Bad…..

Any investor who is a smart investor follows three basic rules, patience, tried and tested and avoidable risk management.

What makes an investor smart? A smart investor is the one that can hold on its own; can discern good advice from the bad and read and predict trends…………… sounds really easy …………… IS IT?

Becoming a smart investor is not a small, inexpensive process…………. and it is as easy as climbing a treacherous mountain…….. however if you train well you might become sturdy enough to rock climb……….

1. Train well and by good teachers – Patience is require to cultivate good connections which are important so that you can learn to identify how the markets usually turn……… practice helps…………therefore, start investing in very small amounts…………..and build your confidence.

2. Avoidable risk management- Get rid of people who give bad advice – There are tons of con artists who are ready to take advantage of naive and innocent investors…………… stick to those who have given good advice for  over a along period of time………..

3. Invest only part of your investments into highly risky ventures………… Most often than not this is the money that you are almost guaranteed to lose…………… you might even hit a pot of gold, if you are really really lucky………..

Good Habits all around………….

Lets come to bad investors part……….

1. Recognize the con artists- Most people who lose money in bad investments are the people who take advice from bad people or websites or TV (BOGGLES MY MIND). Con artists are the people who have produced a very consistent track record for a relatively short period of time; they want your investment and they look very attractive.  No matter how much you are tempted, never invest more than a 10th of your investment budget on these…….. wait and have patience….. you might lose some money if they make it big, but you will have less sleepless nights if they don’t…..

2. Recognize, who in your inner circle of information is costing you good investments or blocking good information flow to you……….. Cut these people loose sooner rather than later……..

Remember: Cut your losses and maximize your benefits and you are well on your way to be a good investor.

 

 

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2 thoughts on “Investing habits …….Good and Bad…..

  1. I would recommend to make all investment decisions only on the basis of your knowledge. If you are sure that you know the trend you must invest un the most effective vehicle. For example, if you know that Russell 2000 going down you should invest in TZA.

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    • Yes I wholeheartedly recommend that if one is an experienced investor………… I still need a devil’s advocate someone who could spar with me about the decisions I am making but that is just me……..

      For the novices or those with paranoia thrumming though their veins, I recommend experts that they can rely on (tried and tested over a period of time with small investments)….
      No two investors have similar risk profiles….

      Like

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