| If investing in the stock market seems like something | | | | that it's popular to diversify and in order to diversify |
| that is beyond your grasp then I've got just the advice | | | | properly you have to own many different stocks in |
| for you! The fact of the matter is, investing doesn't | | | | many different companies but if you spread yourself |
| have to be as difficult as you may think and today I | | | | too thinly then you may not be able to do the proper |
| want to discuss my ten golden rules of investing. | | | | analysis on each stock that is necessary. |
| The first rule is to not be intimidated by professional | | | | Seventh, don't try to predict the future, especially of |
| investors. Many people think that it's impossible to win | | | | macroeconomic events like interest rates and |
| when you're investing against professionals who do it | | | | government policies. Nobody knows what can happen |
| every single day but the fact of the matter remains | | | | in the future and to try and time the market is just not |
| that individual investors have a better chance than | | | | going to work in most cases over the long run. |
| ever because the pros tend to act with a herd | | | | Eighth, don't worry over the weekend. Stock markets |
| mentality that can get them into trouble. | | | | are closed over the weekend which leaves you a lot |
| My second rule is to invest in what you know. Look | | | | of free time to think about the choices you've made |
| around you at the things that you experience every | | | | during the last week and begin to second-guess |
| day in your daily life. What products do you use, what | | | | yourself. When Monday rolls around you'll often have |
| services do you use, and what companies do you run | | | | talked yourself out of that stock you just bought last |
| up against on a daily basis? Invest in things that you're | | | | week. |
| familiar with and you'll have better luck. | | | | Ninth don't ever invest in a company unless you |
| Third, don't invest in anything you can't explain to your | | | | understand all of the figures from its balance sheet |
| 12-year-old child. | | | | and income statement. Analyzing a company's |
| Fourth make sure you have the right temperament for | | | | financials takes more time but is absolutely necessary |
| investing. Stocks go up and stocks go down and if | | | | in order to get the whole picture of how sound a |
| you're worried about the swings in price, you may sell | | | | company really is. |
| when the stock is down and miss out on the upside. | | | | Finally don't expect too much too soon. Investing in the |
| Fifth, stay away from hot trends in hot new industries. | | | | stock market should be a long-term thing for you. If |
| It's always tempting to jump on the bandwagon and | | | | you focus on daily or weekly gains you may be |
| chase the newest coolest thing but this may not be | | | | disappointed which may cause you to sell, which may |
| the best bet for the long run. And you may not be on | | | | cause you to miss out on longer-term gains. |
| the inside track to know when the fad has ended! | | | | So there you have my top 10 Golden rules for |
| Six, don't buy more stocks than you can handle. I know | | | | investing! |