Park your social conscience for a minute, we’re here to make money.
I’ve been Dunover many times by financial advice so became a self investor. Maybe I did get lucky but I made enough money from my stock market investments to pay off my 25 year mortgage 15 years early. Since then we have developed and diversified as a family. We have done well self investing and I wanted to share how we have done it. It’s hard work and not always easy but not beyond anyone prepared to work at it regardless of the scale of cash you have available. Much can be grown from small beginnings.
Below are my rules, my keys to success. I don’t invest in tobacco, well you have to draw the line somewhere:
“All you have to do is put as much effort into picking your stocks as you do into buying your groceries.”
Peter Lynch – Fidelity
1) You have to be enjoying business and enjoying making money. Otherwise have a break, put your money in the bank for a while and do something else, life is too short
2) Be prepared to lose money because some days you will. If you have money you can’t afford to lose then put it in the Bank and sleep easily.
3) Invest to make money. You buy at x and sell at y and y has to be bigger than x. If you lose faith in that ever happening then just swallow your pride and sell up.
4) Keep focused only on tomorrow, don’t get emotionally attached to yesterdays decisions. Celebrate wins briefly, learn lessons quickly and keep moving on.
5) You will never meet an investment guru who knows what the market will do. But you will come across many who claim to. You have to act on your own judgement accepting over a period of time investments will go up and down unless something illegal is being done. Or you just got lucky for a while.
6) Get consistently lucky by researching thoroughly before investing a penny. Fortune favours those who work hard.
7) Review often what your strategy is in each investment. Be very clear what that is and when you might exit.
8) Invest in what you know. If you don’t understand it find someone who does or keep out.
9) Be patient and hold your nerve. Stock market dealing can be expensive. It’s not just the £11.50 flat transaction fee. Watch the bid/offer spread as that can screw you.
10) If the stock price is rising act quickly. If the stock price is falling go take a walk. If the stock price is rising and falling with high volatility then have a night out at the casino instead.