Monday, April 9, 2007

The 5 Worst Stock Investment Strategies

Most investors approach the stock market with the wrong
frame of mind. But it's not their fault. They've been
conditioned to follow investment strategies that simply lead
them in the wrong direction towards financial disaster.

So to prevent YOU from making the same mistakes, I'm
going to lay out all the horrible investment strategies for
you so that you don't make the same mistakes as everyone
else, and start on the correct path to wealth in the market.

You're Not Going to Get Rich Quick

Nearly all beginning investors, along with a great number of
"veterans," have the mentality that they're going to strike it
rich. Well that's great, that's optimistic, but they expect it to
happen right away. This is probably the worst investment
strategy you can have¡­because it isn't an investment
strategy!

They're assuming that they can beat the system and crack
the code of the stock market that investors have been
struggling to find for years! The tortoise is going to runs
laps around the hare in this one, guys. What you need to
do is develop an investment strategy that can work for you
over the long run.

Don't Gamble

The majority of investors don't know when to buy low and
sell high. This is one of the basics, but people continue to
follow hot "investment strategies" and "trends" to strike it
rich. In gambling, it's not about the big take. Good poker
players, for example, make the most with their good hands
and lose the least with their bad ones. Here's an
investment strategy: play big, but play smart.

What's So Great About Your "Insider" Tip?

So many investment strategies are abandoned for the
"insider tip" that guarantees millions. But here are some
questions to think about¡­How many people have heard
this tip before you? Has the investment strategy been
circulating for long? And who did you hear it from? If this
insider information was given to you by a friend instead of a
listed company director, you're not going to have that great
of an edge. If this hot and quick investment strategy has
been around for a while¡­it's not going to be very quick any
more and has probably lost its magic.

The Suicidal "Set and Forget" Investment Strategy

Holding onto your stocks for extended periods of time is
just going to bring trouble. Stashing stocks away so that
they can grow and mature into some rewarding fund later
in life is NOT going to bring profit. There are too many
things that can go wrong, with the company or the actual
market, to create beneficial odds for yourself by using this
old investment strategy.

Do You Really Know When to Buy or Sell?

Not knowing what to do, being unsure of yourself, and
investing blindly will kick you out of the market before you
know what hit you. This is an information age. There are
investment strategies, techniques, and dozens of ways to
analyze EVERYTHING. Use them. Study up. Don't just sit
there with your eyes closed making the best guess you can
come up with. Create an investment strategy that works for
you. Stay on top of your game and more importantly¡­your
money.

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