Investment Ideas in the Stock Market
Investing isn’t about beating others at their game and beating the market. It’s about controlling yourself at your own game.
Control and Follow:
Never follow the market or trend like: if the price is going high never buy stock and if price going down never sell your stock
· Your brokerage cost, by trading rarely, patiently, and cheaply
· Your ownership costs, by refusing to buy mutual funds with excessive annual expenses
· Your expectations, by using realism, not fantasy, to forecast your returns
· Your risk, by deciding how much of your total assets to put at hazard in the stock market, by diversifying, and by rebalancing
· Your tax bills, by holding stocks for at least one year and, whenever possible, for at least five years, to lower your capital-gains liability
· And, more of all, your own behavior.
Always prevent yourself from being your own worst enemy – from buying high just because Mr. Market says “Buy!” and from selling low just because Mr. Market says “Sell!” NEVER DO THIS!
~ From THE INTELLIGENT INVESTOR