| Tips for buying stocks | | | | - Avoid frequent traiding: I have met lots of day |
| As I invested my money across the world, I met | | | | traders but I never met someone who realized any |
| people from different cultural and educational | | | | gains over the period of five years. I've seen some |
| backgrounds; most of these people were losing | | | | make 50% gains in few months and few years later |
| money in the stock market except for few who had | | | | they went broke. Day trading is gambling, frequent |
| almost the same way of thinking even though they | | | | trading is like coin tossing so make sure you avoid |
| lived in different continents and never met each | | | | both. |
| other before. | | | | - Buy and hold: When you find a good opportunity |
| I came to realize the fact that making money from | | | | hold on to it, most people who trade sell their stocks |
| stocks is not a skill but rather a way of thinking or a | | | | when they gain 5% or more while if they had waited |
| mindset. Any person with average intelligence and | | | | for few months they could have sold it with 40% |
| moderate background about investing can make | | | | and 50% gains. When you buy a good stock allow it |
| good profits from the stock market by just having | | | | to move up in price by holding on to it at least for |
| this mindset. | | | | few months. By selling before the stock reaches its |
| This article intends to give you tips for buying stocks | | | | potential price you will be wasting your time and |
| so that you end up having the mentality of those | | | | minimizing your profits. |
| who make lots of money from stocks. | | | | - Avoid over diversification:Warren buffet, the richest |
| Tips for making money from stocks | | | | man in the world who made his money from |
| - Buy what you know: Never buy a stock because | | | | investment once said that diversification is only good |
| you heard that its price will go up, parents, friends | | | | for those who don’t know what they are doing, |
| and even brokers are good people but most of them | | | | If you are sure that you know five good stocks |
| will give you incorrect advices thus resulting in | | | | then have faith in yourself and distribute your money |
| wasting your money. | | | | among them instead of buying thirty random |
| - Don’t worship charts: Technical analysis is only | | | | companies that you know nothing about. |
| useful for determine the timing to buy something | | | | Diversification can scientifically reduce your returns |
| that you already intended to buy, depend on | | | | especially when you believe that few stocks will go |
| technical analysis alone and you are ruined. | | | | up in price by a good percentage. |