Over-thinking an Investment
Investing money can both be hard and easy. It's difficulty will be based on your approach to the business, really. To me, the best way to approach it is to make decisions that are free from one's ego. Sometimes, our desire to be the perfect investor will tend to make us over-think decisions before we make them.
One fundamental truth that applies to the world of investing: Everyone thinks differently from each other. No two people will think the same strategy with investing in stocks. So, as an individual, you'll need to know your strengths and weaknesses. Try to improve on the areas wherein you need the most improvement, but use your strong points to invest.
Basically, choose your playing field with care. If you are in a game show with multiple categories, for example, you will most likely pick categories you have knowledge in. If you're a Star Wars fan, you'll most likely pick the Star Wars category. The same goes for stocks, go for what you know.
In contrast, if you find that you're trying to convince yourself into buying a particular stock, then it is probably not worth investing in at all. Don't try to be real smart by envisioning elaborate scenarios that will result in those stocks becoming big gainers. If you don't know about the niche of the stock, then you don't know how it'll grow.
There will also be situations wherein you'll find yourself in the opposite direction; you have done something right, but have gotten scared off and talked yourself out of it. You've probably heard of the stories of people selling too soon, and missing out on a 100% gain. Or maybe those people who, because of a sudden drop, sold their stocks only to see the same stocks soar after. If you think you know the niche of your stock, don't be so jittery about it.
All the advice I'm giving out is centered on one principle; do not over-think your investments. You could avoid making stupid decisions, yes, but don't be a know-it-all by looking at every possible problem that your investment may or may not even encounter. - 23196
One fundamental truth that applies to the world of investing: Everyone thinks differently from each other. No two people will think the same strategy with investing in stocks. So, as an individual, you'll need to know your strengths and weaknesses. Try to improve on the areas wherein you need the most improvement, but use your strong points to invest.
Basically, choose your playing field with care. If you are in a game show with multiple categories, for example, you will most likely pick categories you have knowledge in. If you're a Star Wars fan, you'll most likely pick the Star Wars category. The same goes for stocks, go for what you know.
In contrast, if you find that you're trying to convince yourself into buying a particular stock, then it is probably not worth investing in at all. Don't try to be real smart by envisioning elaborate scenarios that will result in those stocks becoming big gainers. If you don't know about the niche of the stock, then you don't know how it'll grow.
There will also be situations wherein you'll find yourself in the opposite direction; you have done something right, but have gotten scared off and talked yourself out of it. You've probably heard of the stories of people selling too soon, and missing out on a 100% gain. Or maybe those people who, because of a sudden drop, sold their stocks only to see the same stocks soar after. If you think you know the niche of your stock, don't be so jittery about it.
All the advice I'm giving out is centered on one principle; do not over-think your investments. You could avoid making stupid decisions, yes, but don't be a know-it-all by looking at every possible problem that your investment may or may not even encounter. - 23196
About the Author:
Rick Amorey believes that shortcuts to success are a joke, and instead suggests the comprehensive program of Emini Trading. Be an educated trader with the help of Emini Trading System, and secure your future at a consistent pace.
posted by X - Men @ 4:09 AM
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