The Stock Machine

Post on: 16 Март, 2015 No Comment

The Stock Machine

1 .  Procrastinating

2. Speculating Instead of Investing

A young investor is at an advantage in his or her investing life. Holding the level of wealth constant, an investors age affects how much risk an he or she can take on. So, a young investor can seek out bigger returns by taking bigger risks. This is because if a young investor loses money, he or she has time to recover the losses through income generation. This may seem like an argument for a young investor to speculate, but it is not.

3.  Using Too Much Leverage

Leverage has its benefits and its pitfalls. If there is ever a time when investors have the ability to add leverage to their portfolios, it is when they are young. As mentioned earlier, young investors have a greater ability to recover from losses through future income generation. However, similar to speculation, leverage can shatter even a good portfolio.

4.  N ot  Asking Enough Questions

If a stock drops a lot, a young investor might expect it to bounce right back, but more often than not, it is down for good reason. One of the most important factors in forming investment decisions is asking why. If an asset is trading at half of an investors perceived value, there is a reason and it is the investors responsibility to find it.

5 . N ot Investing

Young people also tend to be less experienced with having money. As a result, they are often tempted to focus on how money can benefit them in the present, without focusing on any long-term goals (such as retirement).

pending money now instead of saving and investing can create bad habits and contribute to a lack of savings and retirement funds

For more on this read click on the title above ( 10 comm..)

Guaranteed income certificates (GIC)  

10 Things to consider before Investing

Investing is a great way to achieve financial success for your needs and wants. Investing is also useful for your long term growth of your saving. This is because by keeping your money in your pocket will not benefit your saving in anyway. Through investing your money will gain interest on how much you put in and eventually generate more money. Yes investing is one of the quickest ways to generate money, but their are rules for every game. Without following these rules you can end up losing your investment.

What Does the Company Do?

How Clean Is the Companys Balance Sheet?

Have You Read the Companys 10-K and 10-Q Annual Reports?


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