Investing shouldn't be like work. Investing should be simple and uncomplicated. Many investors who fail very well might become more successful if they avoided chasing after the latest, greatest trend and instead headed in a different direction with their portfolio. It is natural to want to be successful and to desire to follow the success that others are having in the market but often this attitude leads to emotional investing filled with desperation and greed as you search for that opportunity that is about to become breaking news.
Investing doesn't have to be difficult. Long term investments may require you to spend a lot of time keeping track of trends and big news in the marketplace. Keeping abreast of news and researching a potential opportunity requires a lot of our spare time. If you aren't already familiar with a niche, market or mode of investing then you're going to wind up having to learn from the ground up. This means lost time which means lost opportunities. Making a decision about something that you really don't know a whole lot about very well might end poorly and your investment choices wind up being more like a fantasy football team that was on automatic pilot.
In order to find more success and have more fun you might want to pick investments that interests you. Find a niche or market that you already enjoy learning about and which you are already knowledgeable about. The amount of time spent researching a certain company, trend or investment will be reduced and you might already have some information on what the market is doing without even having to dig too deeply. Being somewhat of an expert already in a certain market or at least having a working understanding of trends, predictions and worth are all skills that you already posses.
As an example, let's just say that someone tells you that it's a great time to buy gold. You know nothing about the gold market. Unless you have always had a desire to invest in gold then you're going to be slow to make a decision and you're going to hate all the work involved in this one simple decision. Looking at charts and trends and forecasts will bore you to death and you will lose interest rather quickly. Even though it is often recommended that you invest without emotion, the decision to go in or pass on the investment is where the emotion should be absent. You should still have some passion and desire to learn more and become knowledgeable about those things that you are putting your money into. If the knowledge and interest is already there then that is great. Your portfolio will reflect your interests and passions.
While investing in a hobby or something that you're interested in is all well and good, ensuring that your interest has some monetary value is important. Also, knowing the market and being able to spot a bargain is where you can capitalize on your passion and interest in the particular market or object. Being an expert or at least more knowledgeable than your typical investor is your edge. It enables you to spot an opportunity more quickly than the general public and act decisively while others either can't see the potential value or they are wrapped up in researching and making a decision.
Finding a painting by a famous artist or a collectible car parked outside a barn in the countryside are examples of having knowledge that most people don't have. Seeing a trend in the stock market or understanding the dynamics behind gold investing are a few other ways that having an understanding for these markets can benefit you.
In the end, your goal needs to be to buy low and sell high. Everybody knows this. With your interest in the market and your knowledge about what is going on and what very well may happen in the future, you can find bargains and sell at a later date when you feel that you have turned a profit. Whether it be liking the work of a new artist and seeing the potential in that artist's work or following a small company from its formation through to becoming profitable, your interest and knowledge can pay you big dividends. Having a feel for the market or niche is something that many people struggle with because they don't have a true interest in the market. Their only concern is making a buck. You are emotionally attached to this market but not so attached that you ride out bad investment or throw good money after bad.
Knowing when to get out of the market or when to sell is equally as important as knowing when to get in. This is where your interest in the market plays a role. Reading the news, knowing the potential of an investment and executing a sale when you have received the profit that you were hoping for are both ways that being a knowledgeable and wise investor comes into play. Again, remove your emotions, avoid being greedy and once you feel that your opportunity has reached its peak you will sell without reservation. The money earned will be put into other investments as they come along and you will accrue wealth. If you didn't have a true interest in the market you very well might miss a piece of new or a trend that could cause you to lose your profit and your opportunity to get out of the market before things head south.
Putting your interests, likes, dislikes and temperament into your investment portfolio is a wise move. It makes the entire process easier, more fun and often highly profitable. Investing in companies, product or vehicles that you use, believe in and enjoy just makes sense. You will be more likely to keep a watchful eye on your portfolio and finding new opportunities won't be like work. It will be like fun. Also, when you're investing based upon what you like there often isn't a bad investment. That piece of art or antique car that you bought can be enjoyed both during the time that you're waiting for the opportunity to sell but also if you never sell it, you will always have that material possession to enjoy. This is called a winning investment either way.
Investing doesn't have to be difficult. Long term investments may require you to spend a lot of time keeping track of trends and big news in the marketplace. Keeping abreast of news and researching a potential opportunity requires a lot of our spare time. If you aren't already familiar with a niche, market or mode of investing then you're going to wind up having to learn from the ground up. This means lost time which means lost opportunities. Making a decision about something that you really don't know a whole lot about very well might end poorly and your investment choices wind up being more like a fantasy football team that was on automatic pilot.
In order to find more success and have more fun you might want to pick investments that interests you. Find a niche or market that you already enjoy learning about and which you are already knowledgeable about. The amount of time spent researching a certain company, trend or investment will be reduced and you might already have some information on what the market is doing without even having to dig too deeply. Being somewhat of an expert already in a certain market or at least having a working understanding of trends, predictions and worth are all skills that you already posses.
As an example, let's just say that someone tells you that it's a great time to buy gold. You know nothing about the gold market. Unless you have always had a desire to invest in gold then you're going to be slow to make a decision and you're going to hate all the work involved in this one simple decision. Looking at charts and trends and forecasts will bore you to death and you will lose interest rather quickly. Even though it is often recommended that you invest without emotion, the decision to go in or pass on the investment is where the emotion should be absent. You should still have some passion and desire to learn more and become knowledgeable about those things that you are putting your money into. If the knowledge and interest is already there then that is great. Your portfolio will reflect your interests and passions.
While investing in a hobby or something that you're interested in is all well and good, ensuring that your interest has some monetary value is important. Also, knowing the market and being able to spot a bargain is where you can capitalize on your passion and interest in the particular market or object. Being an expert or at least more knowledgeable than your typical investor is your edge. It enables you to spot an opportunity more quickly than the general public and act decisively while others either can't see the potential value or they are wrapped up in researching and making a decision.
Finding a painting by a famous artist or a collectible car parked outside a barn in the countryside are examples of having knowledge that most people don't have. Seeing a trend in the stock market or understanding the dynamics behind gold investing are a few other ways that having an understanding for these markets can benefit you.
In the end, your goal needs to be to buy low and sell high. Everybody knows this. With your interest in the market and your knowledge about what is going on and what very well may happen in the future, you can find bargains and sell at a later date when you feel that you have turned a profit. Whether it be liking the work of a new artist and seeing the potential in that artist's work or following a small company from its formation through to becoming profitable, your interest and knowledge can pay you big dividends. Having a feel for the market or niche is something that many people struggle with because they don't have a true interest in the market. Their only concern is making a buck. You are emotionally attached to this market but not so attached that you ride out bad investment or throw good money after bad.
Knowing when to get out of the market or when to sell is equally as important as knowing when to get in. This is where your interest in the market plays a role. Reading the news, knowing the potential of an investment and executing a sale when you have received the profit that you were hoping for are both ways that being a knowledgeable and wise investor comes into play. Again, remove your emotions, avoid being greedy and once you feel that your opportunity has reached its peak you will sell without reservation. The money earned will be put into other investments as they come along and you will accrue wealth. If you didn't have a true interest in the market you very well might miss a piece of new or a trend that could cause you to lose your profit and your opportunity to get out of the market before things head south.
Putting your interests, likes, dislikes and temperament into your investment portfolio is a wise move. It makes the entire process easier, more fun and often highly profitable. Investing in companies, product or vehicles that you use, believe in and enjoy just makes sense. You will be more likely to keep a watchful eye on your portfolio and finding new opportunities won't be like work. It will be like fun. Also, when you're investing based upon what you like there often isn't a bad investment. That piece of art or antique car that you bought can be enjoyed both during the time that you're waiting for the opportunity to sell but also if you never sell it, you will always have that material possession to enjoy. This is called a winning investment either way.
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