| However, there's still a learning curve, and as it's | | | | take a riskier day trading approach. Day trading |
| investing with your money, making that learning | | | | approaches take considerably greater due diligence |
| curve easier to deal with is important. Getting up to | | | | and research to pull off. Become a sponge for |
| speed quickly helps improve your return on time | | | | information that relates to the companies you hold, |
| invested in investing. | | | | so that you know when to sit out a round of buying. |
| First, decide what time horizon you're investing for. A | | | | Under no circumstances should you berate yourself |
| long time horizon is "buy and hold" - you're expecting | | | | for not selling at the maximum price - very few |
| the value of the stock to increase over time, or | | | | people can do this reliably. Nor should you berate |
| you're expecting dividends to earn out in your favor. | | | | yourself for buying a stock that drops in value - a lot |
| A short time horizon means you're looking for sharp, | | | | of companies are hyping stock prices more than they |
| immediate gains. Different people have different | | | | are their own products, and that's one of the risks |
| levels of acceptable risk and temperaments; for | | | | you take as an invester. |
| some, the adrenaline rush of a buy-and-sell strategy | | | | Always diversify your holdings, and whenever you |
| is a drug. For others, the security of buying stocks | | | | make a gain, put at least half of it into a long time |
| for the long term allows them to plan. | | | | horizon investment package, to hold on to it. Think of |
| In the long run, the safest payout is the long time | | | | it as pocketing your winnings at the table rather than |
| horizon; on average, the stock market returns an | | | | doubling down every time. Never rely too much on |
| inflation adjusted rate of return of about 8-9%, | | | | one sector, but do hold on to stocks that match the |
| compared to bonds which return at 2-4% after | | | | pace of the index funds. |
| inflation adjustment. Most stocks are held in portfolio | | | | Check your ego and your emotions at the door. This |
| accounts for 401(k) plans, which allow investment | | | | is a business, these are your savings, and as John |
| brokers to leverage large amounts of money to | | | | Wayne said, "Life ain't for sissies" You're going to |
| make big purchases...and these tend to be | | | | lose some. Learn from them. Take time to have a life |
| conservative, and fairly safe. | | | | - it doesn't matter how your stocks are doing if |
| If you need to immediately convert a small amount | | | | you're just plotting charts and reading investment |
| of cash into a larger amount of cash, you have to | | | | business daily every day. |