How to Buy Shares - 3 Tips on How to Avoid Investment Pitfalls

There is a mass of information available on how toYou would sell them when they caught up with other
buy shares. Here are three simple tips which I believecomparable shares. Finally, contrarian investing is
will help you to avoid some of the pitfalls.about not necessarily always going with the market
1. Research, Research And More Researchtrends.
There is no substitute for research. Hot tips are3. If You Need It - Don't Trade It
useful but you should not be putting money down onIt is difficult to trade and stick with your investment
these alone. If you have a hot tip then use this as astrategy if you are constantly worrying about your
spring board for research.bottom line portfolio value.
2. Work Out Your StrategyRemember that shares go up and down and
Careful investors always know their strategy beforesometimes it is worth sitting out a short lull in order
they part with their money. The three main strategyto make greater gains. If you are desperate for the
categories are growth, value and contrarian investing.money to be realised this is difficult to do.
Growth investing is about buying shares with a longPrincipally, if you disregard any of the over there is a
term view. With this strategy you should expect topotential likelihood that you will lose money. As
hold onto your share for quite a while and for themimportant as these three tips is a belief that you are
to increase as the industry strengthens with thefeeling self-assured about investing if this is not the
economy. This is different to value investing. In valuecase along with following these three tips the it is
investing you are looking for shares which youdefinitely not a good time to start investing in shares.
believe are currently undervalued.