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.
A more simple approach and one that is more natural in both planning and execution might suit you better. By stepping too far outside of your comfort zone with an investment you waste a lot of time. When you first find out about an opportunity it is going to take time to research the market, company or type of investment. You could just jump in with both feet but often this is a foolish move and money is lost. Researching and becoming knowledgeable about a certain type of investment wastes time and often once you are comfortable with the investment, that opportunity has passed.
To simplify investing, find a niche or market that you have some interest in. This will cut the learning curve and as you spend some time in the market, your knowledge of the nuances of that which you are investing in will grow. Investing is much easier when you are spending your time researching and deciding upon different options if you actually enjoy what you are investing in.
For instance, there is no sense in putting your hard earned money into collectible art if you have no passion for art. Likewise, it will be torture for you to pick stocks if you hate looking at numbers, charts, and reading news about the company that you're thinking of investing in if you have no faith in that company. While it's good to remove some of the emotion from your decisions, if you have no interest or desire to obtain knowledge about what you're putting your hard earned money into, you will likely lose interest and be off to chase after the next shiny object that promises to make you money. It is sometimes necessary to look at investing as a long term plan. Think of it like a hobby that helps you to earn money.
Getting into a market that you know has value and making investments that you know will hold their value or increase in value is the whole basis of investing. Understanding why a market is flat or what the true value of an investment is will be one way that you can use your knowledge to profit in the long run. Being an expert or at least very knowledgeable about your market is where you are different than your typical investor.
Finding a rare antique at a flea market or a rare collectible car advertised in the newspaper are two examples of where you might have information that most people lack. If you follow gold prices or if you have an interest in a particular company that you have been watching for some time, you are more qualified to make a decision about investing in these vehicles than other people might be. You'll know things and see trends that might be hidden from someone that isn't interested in these things.
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.
Finding that perfect time to sell an investment is every bit as important as knowing what to buy and when to buy it. Having your ear to the ground and keeping yourself informed about what is going on with your investments is every bit as important as picking the right vehicle for your money. Again, this is why it is so important that you have an interest in the topic, niche or market. If checking on your investments is too much like work then you're going to avoid it. On the other hand, if you are always reading and checking the news as it relates to your interest then this isn't work at all.
Simplifying investing is all about finding a subject that interests you and placing your money there. Feed your passion and surround yourself with those things that interest you and allow them to make money for you every day. If you understand yourself and what you love then you will have the best of both worlds. Investing isn't always simply about acquiring wealth. Even a bad investment in something that you love, such as a piece of art or a classic car, winds up being a good investment in the end even if you never get your money out of it.
A more simple approach and one that is more natural in both planning and execution might suit you better. By stepping too far outside of your comfort zone with an investment you waste a lot of time. When you first find out about an opportunity it is going to take time to research the market, company or type of investment. You could just jump in with both feet but often this is a foolish move and money is lost. Researching and becoming knowledgeable about a certain type of investment wastes time and often once you are comfortable with the investment, that opportunity has passed.
To simplify investing, find a niche or market that you have some interest in. This will cut the learning curve and as you spend some time in the market, your knowledge of the nuances of that which you are investing in will grow. Investing is much easier when you are spending your time researching and deciding upon different options if you actually enjoy what you are investing in.
For instance, there is no sense in putting your hard earned money into collectible art if you have no passion for art. Likewise, it will be torture for you to pick stocks if you hate looking at numbers, charts, and reading news about the company that you're thinking of investing in if you have no faith in that company. While it's good to remove some of the emotion from your decisions, if you have no interest or desire to obtain knowledge about what you're putting your hard earned money into, you will likely lose interest and be off to chase after the next shiny object that promises to make you money. It is sometimes necessary to look at investing as a long term plan. Think of it like a hobby that helps you to earn money.
Getting into a market that you know has value and making investments that you know will hold their value or increase in value is the whole basis of investing. Understanding why a market is flat or what the true value of an investment is will be one way that you can use your knowledge to profit in the long run. Being an expert or at least very knowledgeable about your market is where you are different than your typical investor.
Finding a rare antique at a flea market or a rare collectible car advertised in the newspaper are two examples of where you might have information that most people lack. If you follow gold prices or if you have an interest in a particular company that you have been watching for some time, you are more qualified to make a decision about investing in these vehicles than other people might be. You'll know things and see trends that might be hidden from someone that isn't interested in these things.
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.
Finding that perfect time to sell an investment is every bit as important as knowing what to buy and when to buy it. Having your ear to the ground and keeping yourself informed about what is going on with your investments is every bit as important as picking the right vehicle for your money. Again, this is why it is so important that you have an interest in the topic, niche or market. If checking on your investments is too much like work then you're going to avoid it. On the other hand, if you are always reading and checking the news as it relates to your interest then this isn't work at all.
Simplifying investing is all about finding a subject that interests you and placing your money there. Feed your passion and surround yourself with those things that interest you and allow them to make money for you every day. If you understand yourself and what you love then you will have the best of both worlds. Investing isn't always simply about acquiring wealth. Even a bad investment in something that you love, such as a piece of art or a classic car, winds up being a good investment in the end even if you never get your money out of it.
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