Your Wealth, Health, And Lifestyle Newsletter

How To Invest Like A Pro – Quick Tips

Investing in the stock market can intimidate a lot of different people but it doesn’t have to if you know a few sound fundamental basics. When it comes right down to it, all you really need are just a few simple tips that will give you an edge over everybody else and that is exactly what I’m going to give you in this article today.

First I should mention that the title of this article is “how to invest like a pro” but the fact of the matter is, you don’t always WANT to invest like a professional and here’s why…

Many professionals invest with a sort of heard mentality. They figure that if everybody else is doing something it must be good, and sometimes that is correct because when it comes to the stock market; if everybody is buying a stock it will obviously increase in value. In fact one sort of professional investing is what you might call “trend spotting”.

The problem with this sort of thing should be obvious. Yes if everybody buys a stock it will go up but what happens if everybody stops buying? What happens if everybody starts selling? You guessed it, the bottom can quickly drop out of the market which means it doesn’t always pay to follow the herd when it comes to investing in the stock market and therefore investing like a pro may not be the best strategy!

In fact it’s never been better or easier to invest as an amateur or an individual. The prices of computers have dropped so low and at the same time the processor speeds of those computers has shot up so high, and high-speed Internet connections to the home have become so common that it really makes sense in this day and age to invest from your own home on your own computer in a way that the ordinary individual investor couldn’t have done even five years ago.

Even an ordinary stockbroker account at your average online stockbroker such as E*TRADE or Charles Schwab will give you an amazing array of tools to use as well as massively in-depth research that’s available with just a few clicks of your mouse. So I say now is the time to be an individual investor, and in fact… that’s my first tip; invest like an individual!

My next tip is sort of related to the first tip about herd mentality. Stay away from hot stocks and stay away from hot industries or sexy industries that you may not quite understand. Everybody wants to invest in technology but if you don’t really understand the underlying engineering that goes into that technology at least at a basic level, investing in those companies becomes nothing more than a blind guess. Investing shouldn’t be based on pure speculation and when you invest in those hot companies, often times that’s exactly what you’re doing, just speculating.

My last tip is to only invest in companies that you can explain to your 10-year-old child or your idiot best friend ;-) this ties in with the first two tips in that if it’s too complicated to understand you really shouldn’t invest in it.

So there you have several tips to help you become better than a professional investor in no time at all.

Written By Jason Markum

You May Find These Links Interesting:

    No items matching your keywords were found.