Investing has to be a serious business, not
entertainment, not gambling.
If you are putting your hard-earned savings in the
financial markets, it is important that you participate as a serious investor,
not as a speculator. You must make sure that you know the difference between
the two.
Many speculators have learnt that luck can only help
them a few times but they will soon discover that they are losers in the long
run. Without the correct mindset, the cost of not being able to distinguish
between a good and a bad investment is just too high to bear.
So, resist the temptations to listen to the tips
from your colleagues and friends. Spend enough time to understand deeply the
risk vs reward of the proposed investment or give it a miss totally.
All markets work in cycles. Emotional investors
inevitably lose money. By contrast, investors who take advantage of the market
periodic irrationality have a good chance of enjoying sustained success.
Superphang
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