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It's Not Monopoly Money, Don't Risk Your House On It
By Bruce Nelkin
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What's the difference between an amateur and a professional?
An amateur practices until he can get it right, a professional
practices until he can't get it wrong. So, where are you going
to get your investment information - from an amateur or a
professional?
A good investment decision is based on knowledge: What does this
company do? How do they do it? How well do they do it? What's
their market position? Who are the competitors? What new
products are they planning? (And about a thousand other
questions.)
Professionals have the answers. They are experts. They spend
years studying this stuff, their income depends on knowing
what's happening and making the right decisions. Whereas, the
amateurs don't have the time and resources to gather and analyze
all that data. So, many people get hot tips from a "friend of a
friend" or follow "hunches." That means most people just keep
living from paycheck to paycheck and hope Social Security is
still around when you're 65!
CHANGE THE TREND! - You don't need an MBA to be an effective
investor. You can learn where to find good info, then learn to
use it: Take a continuing education class on financial
management at your local college or university. Attend a
'how-to' seminar given by an investment company. Join an
investment club, like The Wall Street Prophet, and learn from
successful professionals.
And, get on the web. The Internet has become the most powerful
learning tool in the world. Newspapers, trade magazines and
investment magazines have websites. Companies and investment
firms have websites. With an Internet connection, you have
access to more data than the most seasoned professional had a
decade ago. It's there, it's instant and (a lot of) it's FREE!
Read it!
So, where to start? "Paper trading" - do the research, pick a
stock, watch it. Do more research, pick another stock, watch it.
After three or four months, you'll begin to get a feel for how
stocks move, which info sources give you useful info, and
whether or not your investment instincts are profitable to you.
Then comes the time to start buying. Remember, the key to
successful investing is patience and knowledge. Investors who
try to get-rich-quick usually get-poor-quicker.
Start small. Work your way up. Learn on paper, then by doing. By
practicing now - you'll make less errors and more money later.
Finally, make friends with a professional investment counselor
or financial advisor. You need expert help to make big moves.
They're also a good source of advice and guidance.
Some professionals may not want you to do any trading on your
own, but a true professional will work to make you an educated
investor, and help you use the information and the technology to
leverage your money into a position where it's really working
for you.
"The only thing more expensive than education is ignorance"
About the author:
Bruce Nelkin is a veteran investment pro and educator whose goal
is to see your financial dreams come true. With knowledge comes
the power for creating a better future. Check out their advice
and your opportunities with them at http://www.cbroftx.com/gonow
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