This person asked me what to Invest In on the market, and how to go about It. Please feel free to tell me If you think that I am wrong In what I told him to give a broader outlook on how to go about It for a complete novice. I said Do It all on paper for twelve months first and learn from your mistakes. Always be aware that what you get told Is utter rubbish until proved otherwise.
Take Into account the brokers fee for buying and selling, and If you are trading then It Is all taxable.
The market cant work If we all thought the same, so devise a method that suits you that beats the market. Some people do It with charts mathematical fashion, others pour over company records and still others do a bit of both.
This Is my method that works for me.
1 divide the market Into different sectors ex {retail, property, service, farm related.} and so on.
2 Select the best two companies In each sector
3 When a sector Is on the rise buy and visa versa
4 Stay as long as the ride lasts and get out when Its time, {better early than late}.
5 If you want to buy then buy half with a 10pc stop loss If it goes up 2pc then buy more with a 15pc stop loss
6 Let your gut feeling tell you when to sell that Is as Important as buying
7 Keep your Investments five or six maximum which means do your homework and your finger on the button
8 use charts graphs and whatever you are happy with to beat the market but most of all Its the homework that counts.
9 Never ever think your way Is the best that Is a closed mind there Is always a better way for everything.
10 People that sell systems get rich quick schemes and so on most If not all Is complete rubbish
That Is what I told the man and I am still In Investment primary school so perhaps some of the more senior pupils would like to pass on a few hints that I missed or don't know about
cheers macdunk |
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