Principles for Successful Investing

Managing your own investments can be challenging and at the same time extremely rewarding.  We urge you to keep the following investment principles in mind as you invest to secure your financial future:

  1. Seek to buy stocks at prices representing a significant discount to their intrinsic value.  Through this strategy, you will not only increase your opportunities for high returns, but minimize the downside risk of any investment.
  2. Do the opposite of the investment herd. Learn the practices of wealthy investors and follow them instead.
  3. Patience is everything. There’s always a right time to enter and exit your trades.
  4. Don’t delay getting started building your investment nest egg. The sooner you begin putting your money away, the more time you will spend reaping the benefits of compound interest.
  5. Don’t put your money into a stock before doing your research and due diligence. If you don’t have the time, find a trusted and experienced market specialist to help you.
  6. From little acorns giant oaks grow. Find the best-potential opportunities in the micro and small cap sectors.
  7. Follow trends. Trends that span extended periods of time in business practices, product sales, social behaviour and elsewhere often beget trends in stock prices. Pay attention and look for the investment opportunities that result.
  8. Avoid fads. If trend suggests longer term, fad suggests here today gone tomorrow. Be wary of buying  a market top that occurs as interest in a product or company peaks and quickly dies away.
  9. If you borrow to invest, be extra cautious. Remember, your investments can go up and down over time, but the money you borrowed has to be paid back in full on the due date.
  10. Put your eggs in several baskets. Your money is safer when your portfolio is spread across a number different companies, market sectors and asset classes.
  11. Create a personal investment plan that encompasses your short and long-term goals. To invest successfully, you need to know what your objectives are.
  12. Trade according to your investment plan, cut your losses and let your winners run.

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