| Many people who think they can become a | | | | 5) Choosing a successful industry is more important |
| successful investor rely on having a "hunch" that a | | | | than a successful company - Finding a mediocre |
| certain company's shares will increase in value. They | | | | company in a hot industry can be a lot more |
| tend to do minimal research and analysis, and this will | | | | profitable than a solid company in a declining industry. |
| lead to failure eventually. By analyzing a company you | | | | 6) Understand fundamentals on a world scale - being |
| are thinking of investing in, you can make a better | | | | able to understand how world economies and world |
| judge of the value of the stock and hopefully make | | | | events can affect your stocks can make or break an |
| a profit by buying and selling. The greatest asset a | | | | investor. Many an investor has failed to heed what |
| successful investor can have is knowledge (also called | | | | the world economy was trying to tell them and went |
| common sense!). However, there are some other | | | | bankrupt. Economics and politics run the world, so a |
| success factors that can be of assistance to you. | | | | knowledge of both can be an advantage over the |
| Here's a list of them: | | | | long run! |
| 1) Self analysis - What are your investment goals? | | | | 7) Monkey see Monkey do! If successful professional |
| Saying "to make a huge amount of money" is too | | | | investors use certain investing techniques, why not |
| simplistic. You need to think more carefully about | | | | do the same? Chances are, if it worked for them, it |
| what you want to accomplish with your stock | | | | can potentially work for you too. |
| investing. | | | | 8) Keep more of the money you earn - When you |
| 2) Knowing where to find the best information - | | | | make some profits, it's a good idea to take some of |
| When you need to make important investment | | | | the profits and divert it into something less risky. It is |
| decisions, such as which stocks to invest in, requires | | | | also a good idea to know about the tax implications |
| the best quality information. Knowing where to find it | | | | as well so you can keep as much money as possible. |
| is a great skill to develop! | | | | So simply having a "hunch" in investing does not |
| 3) Why do you want to invest in shares? There are | | | | make someone a successful investor. Besides doing |
| two possibilities with investing. You can invest for | | | | your homework and analysis, there are numerous |
| capital gains (ie appreciation) or for a regular income | | | | other factors that can turn you from an average |
| in terms of dividends. | | | | investor into an investor that people will envy! By |
| 4) Research is vital - Finding the information is one | | | | following the factors I've listed above, you can be on |
| thing, but being able to do the rest of the research is | | | | your way to a successful investment portfolio. |
| important. | | | | |