Tuesday, September 4, 2007

Strategies for investing

Some strategies for investing:

  1. Understand what your tolerance is for risk or your investment style
  2. Invest for medium and long term, not for the next few months. Take advantage of the magic of compound interest.
  3. Allow for market cycles - the ups and down of the market. We are all human and are affected by optimism and pessimism that is what affects cycles. REMEMBER. Three strategies for market cycles:
    1. Invest in gloom, sell in boom
    2. Invest in gloom and hold - like Warren Buffett
    3. Invest for the medium and long term and ignore the cycles.
  4. Diversify - 'don't put all your eggs in one basket'.
  5. Seek good advice.
  6. Avoid fads - or if you do buy them, get in early and get out early e.g. dot com.
  7. Beware of being overly influenced by the media. Their job is to report the sensational. They're happy to report the negative and ignore the positive. It sells more papers.

1 comment:

devid mark said...

Very well said. These tips are really amazing. I appreciate it for sharing them.
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