INVESTING 101:

 

One of the best ways to earn and secure long term wealth is to invest.  Investing is not without it's risks, however.  If one does not have a good strategy, if one is not disciplined, if one is forced to sell at the wrong time or if the market takes an unexpected turn you CAN LOSE MONEY.

 

Here are some rules to follow that will minimize your chances of losing money:

 

1. DO NOT invest any money you may need to live off in the next few months.

 

2. Think long term. Yes, it is possible to earn profits quickly (daytraders), however, especially for the beginner, invest for the long haul.  Not only is this safer, it improves your tax position.

3. Be a diversified investor. Do not put all your money into one company.  Spread it out.  Buy stock in several companies at least, preferably in different sectors.

4. Have a plan.  For instance you can sell 1/2 of your holdings in a company each time it doubles; this way you reap your profits as the company grows and you keep some of it invested, growing.

5. Educate yourself. Learn about the sectors you will invest in, and the specific companies. Be disciplined, follow your stocks and the industry and keep abreast of geo-political  and economic events and trends.