Simple Tips to successful Investing

There are two emotions that are prevalent with every investor and can easily govern how they invest – fear and greed. Since the objective of investing is to make money, how does one ensure that you avoid either extreme?

You have to be very clear about which stocks you want to buy, which ones to avoid and how to protect what you’ve earned.

Here is a list of simple tips that will help you stay on track in regards to these three essentials of investing:

#1: Never transact on anyone else’s market predictions

As soon as you turn on your television set, you’ll find several “experts” who are willing to share their market predictions especially if they’ve been able to predict the latest crash and so on and so forth. Just keep following the individual stocks that you are trading on while watching profit margins, sales forecasts and stock-price gyrations for clues as to whether the stock is a safe bet or not.

#2: Stay away from stocks that are filing for or in danger of bankruptcy

This is one of the most tempting pitfalls for investors because of the manner in which the price of the shares drop from being valued at hundreds of dollars to pennies. Of course, this means that the company is going bankrupt, and unbeknownst to its shareholders, the process of coming out of bankruptcy will wipe out old shares – leaving those who bought these shares with nothing.

#3: Always look for companies producing something new

For the most part, buying stock of companies who have something new to offer is a good idea because there is a greater chance of a return on investment in the future.