How to Beat the Pros at Investing
Most people will probably have neither the time nor the inclination to go through with this. And while the five items below are not all that earth-shattering, if you do have the time and if you will stick with these five important things to do, then you can beat practically everyone when it comes to investing!
The Five Keys To Beating Everyone At Investing:
1. Commitment. The key here is that among two equally skilled competitors, the one with deeper commitment usually wins.
2. Homework. You need to know more than your competition. This means educating yourself by reading, and by crunching the numbers yourself.
3. Experience. Even with all the skills and commitment, you're not going to win big your first year as an investor. But you at least need to be in the game initially. All the reading about investing isn't going to make you a good investor if you're not in the game. But if you keep paying your dues by investing, by taking personal responsibility for any losses, and trying to learn from your mistakes, then eventually the big profits will come.
4. Thinking for yourself. It's amazing to realize that there are only a very few investors who really think for themselves. Names like Warren Buffett, Bill Gross, Peter Lynch, and John Templeton come to mind. But it is an amazingly short list. So in order to succeed as an investor, you must be able to think for yourself. And thinking is the toughest task you could ever undertake, which is why so few persons choose to do so!
5. Avoiding major mistakes. The "catastrophic loss" is what kills you. You cannot afford to lose it all, so cut your losses early. Use trailing stops, or do whatever it takes to keep your downside limited and your upside unlimited. And one day that unlimited upside will show up in your account.
There are ways to do okay in 30 minutes a year. There are even ways to do well in just 30 minutes per week. But what I've been talking about here is becoming a superstar - the best full-time investor possible.
* * * * *
The Five Keys To Beating Everyone At Investing:
1. Commitment. The key here is that among two equally skilled competitors, the one with deeper commitment usually wins.
2. Homework. You need to know more than your competition. This means educating yourself by reading, and by crunching the numbers yourself.
3. Experience. Even with all the skills and commitment, you're not going to win big your first year as an investor. But you at least need to be in the game initially. All the reading about investing isn't going to make you a good investor if you're not in the game. But if you keep paying your dues by investing, by taking personal responsibility for any losses, and trying to learn from your mistakes, then eventually the big profits will come.
4. Thinking for yourself. It's amazing to realize that there are only a very few investors who really think for themselves. Names like Warren Buffett, Bill Gross, Peter Lynch, and John Templeton come to mind. But it is an amazingly short list. So in order to succeed as an investor, you must be able to think for yourself. And thinking is the toughest task you could ever undertake, which is why so few persons choose to do so!
5. Avoiding major mistakes. The "catastrophic loss" is what kills you. You cannot afford to lose it all, so cut your losses early. Use trailing stops, or do whatever it takes to keep your downside limited and your upside unlimited. And one day that unlimited upside will show up in your account.
There are ways to do okay in 30 minutes a year. There are even ways to do well in just 30 minutes per week. But what I've been talking about here is becoming a superstar - the best full-time investor possible.
* * * * *
posted by Bob Moser at
2:33 PM
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