1) Behind every stock there is a company and you should always find out what it isdoing. If you can describe about the company in just 500 words your have done yourjob.
2) You should place confidence in what you own and why you own rather than makinghue & cry that it should have gone up.
3) Having gone through few income statement and balance sheet you should find thatthey only speaks something available in the market but you should always try to findflaws in those reports. You should never invest without understanding the finance ofthe company.
4) You should invest in the things you understand.
5) Investing without a research is just like playing a blind game; you should avoidplaying blind games.
6) You should study facts, annual reports, financial conditions, value the company futureoutlook and then make a decision.
7) You should apply relatively simple methods and trust the company on the basis ofvalue and never on the popularity.
8) You should keep away for the bells to ring i.e. to signal you about the end of recessionor the beginning of the bull run market because bells never go off. Therefore youshould avoid forecasting recession, interest rates, inflation etc.
9) You should study for opportunities that have not yet been discovered by the market orcompanies that are “Off the Radar Scopeâ€.
10) If fundamentals are not strong for the companies you should avoid altogether and should wait for the better opportunities
11) You should always feel that bad management will never give good return in goodtimes but good management will fell the gaps when better times arrives.
12) You should always think differently for different company.
13) You should always believe that success comes by hard work, patience, persistence,flexibility, willingness to do research and equal willingness to admit to mistakes andability to ignore general panic.
14) You should consider that these eight steps of success would grow your livelihood.
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