Friday, March 23, 2007

My A – Z to Successful Investing

A for Approach
Commence with the right approach, and you can’t be wrong. Never approach a horse from the back; a golfer from the side, or a fool in any direction.

B for Bulls and Bears
These are the creatures we really need. Without them the cats and the dogs (rubbish shares) will be as quiet as the mouse.

C for Charts
Charts are designed to track smart money. If you don’t like them, you don’t belong to Wall Street.

D for a) Discipline, b) Discretion
a) You need discipline to implement your plan.
b) Discretion is the better part of valor. (Better to think carefully; don’t do anything that may cause problems later)

E for a) Entry/Exit, b) Emotion
a) The entry is as important as the exit. Both must be right to yield maximum profits.
b) Don’t be emotional with stocks. Sell everything when they are greatly overvalued.

F for Fundamental
Fundamental analysis is a must. Know what you buy and buy what you know.

G for Go
Go the extra mile. Be prepared to work harder than others.

H for Haste
More haste less speed; haste makes waste. So, plan you trade carefully.

I for Intelligent
Intelligent investing is value investing. Follow Benjamin Graham.

J for Jump
Jump the gun, you must not.

K for Knowledge
Knowledge is power. Know your onions.

L for Leaders
Go for the leaders rather than the laggards. Look for the genuine leader in its particular field.

M for Money
Money makes money, and the money money makes, makes more money. Maximize your gains and minimize your losses.

N for News
News, good or bad affects the market. Know what is happening locally and globally.

O for a) Online, b) Opportunity, c) Odds
a) Go for online trade. You save a lot on commission.
b) Opportunity neglected, seldom returns; don’t miss it when it is there.
c) Professionals look for the most odds. Follow them.

P for a) Profits, b) Patience
a) Profits are the life blood of a company. A company without profit is somebody’s problem.
b) Good things go to those who wait. Be patient.

Q for Quality
Buy only quality companies with quality management.

R for Remember
Remember, remember. Don’t make the same mistakes again and again.

S for a) Safety, b) Strategy
a) Safety of principal is your first priority.
b) A good strategy is one that can attack and defend as well.

T for a) Timing, b) Trend
a) When to buy is as important as what to buy. Timing is crucial.
b) Price moves in trends. A trend in motion is likely to continue. Follow it to the end.

U for Useful
Whatever tools you find useful, use them to your benefits.

V for Value
Value for money you must insist.

W for Wisdom
Wisdom is the right use of knowledge. You cannot succeed without it.

X for X-Dates
Check the x-dates of entitlements before you buy.

Y for Yield
Good dividend-yield is important.

Z for Zest
Be zestful. Life without zest is meaningless. Enjoy!