Realities of Stock Investing

Your plan must lay the foundation for your investment goals. You will have to decide why you want to invest? What are your short term and long term goals? How much risk are you willing to take in order to achieve your goals? How much money do you have to start? How much can you continue to invest? What industry are you most familiar with? How much financial knowledge do you have? Will you need a full service broker or are you comfortable making your own investment decisions? You will need to answer all of these questions while developing your investment plan.

Once you have developed your plan, now it is time to execute it. This is where you will either make money or lose money. A well developed investment plan is useless if not executed correctly.

Maintaining emotional control is very important. Don't let your emotions cause you not to stick to your plan. Don't plan to be a buy and hold investor and then start to daytrade.

All successful investors have very simple methods. The hard work is having the discipline to stick to those methods.

Find what works for you. Don't worry about what works for your friends. Stick to what works for you. You will be successful in the end.

Don't ever fall for hot stock tip, b.s. con men that promise to make you rich for $49. You can forget about the quote machine and the stock market. The financial news really doesn't matter on a daily basis.

Everyone has an opinion on every stock. Don't bother listening to that crap. An opinion is like an a**hole, every body has one.

Never get frustrated and give up on your plan.

Above all else remember that when you invest in common stocks, you are buying part ownership of a business. When you do the proper research and buy your share of the business at a fair price, you will not go wrong. Don't concentrate on daily price ups and downs. Don't sell your business because everyone else is selling.

Develop your investment plan like a business plan. Many people become successful investors. Find out what works and stick to it.

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