Sunday, 12 July 2009

Keep Your Investing Head Clear!

The hardest thing I found about buying stocks and shares is keeping your head when everyone else around you is loosing theirs! It can be quite easy to get caught up with the herd and acting in the same way they do. When I first started trading I was obsessed with checking my stocks every day. Well that's a lie, it was all day every day. Having that little ticker in my browser at work became natural, a point here and point there would affect my mood. In the end it's not a big deal.

This is one thing that beginners in the stock market have a real hard time with. Warren Buffett has always said that the best time to sell stocks is....never! Forget about the 1 or 2 point gains. If you do your research properly in the first place you're buying into a good company. You just have to realize that buying stocks is a long term investment. To buy and sell constantly is foolish. You'd end up loosing more in commission to the stock brokers than you'd actually make in the sale.

So in summary, do your investment research properly at the start. Buy your stocks and hold...unless of course the business model changes...

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