My heart crushed when the head prefect said,“The school principal wants to see you in her office now.”
Fear filled my mind. I was thinking hard for answers for her possible questions.
It began about three months ago.
I was the ‘go-to guy’ for my batch mates. If they needed help with homework or answers for quizzes or tests, they’d turn to me.
One day, the subject teacher told us that there’d be a surprise test. The score would carry an enormous weight to the final marks.
One by one. Classmates began to approach me for ‘help.’
After they paid for my services, I sprang to action.
I sneaked into the teacher's’ office cubicle and copied the solutions to the list of questions.
After sharing the answers to my circle of friends, I gave away free tips as a form of goodwill.
They hailed me as their absolute savior. I felt like a hero.
But when teachers released the test results, we felt betrayed.
Everyone got fat zeroes on their papers.
I suspected that I copied the wrong set of answers. It was my first and the last grave mistake.
Whatever it is, my friends felt hurt.
Soon, words reached to the principal about me as the prime suspect behind that failed attempt.
My school experience is akin to stock investments.
When you’re a novice, lack free time or plain lazy to study the stock market, you’ll want a quick fix to your problem.
One of the proven ways that’ll fail is taking hot tips from so-called experts.
And here’s a fact. This mistake repeats itself since the Great Depression in the late 1920s.
I’m going to share what I’ve learned from my past and how I dealt with them well.
So, continue reading.
FOUR REASONS TO DITCH GURUS
FIVE THINGS YOU SHOULD DO
1. Do adequate research.
It’s the first thing you should do before you invest. Look at the stock’s history and see how it performed in the last week, month, or year. Search for any news on how the company is doing in sales and earnings. Observe what thousands of other investors have to say about it. Google it. Stocktwit it. Finviz it.
2. Don’t gamble.
Putting money into the stock market is risky. You don’t know if you’ll end up with significant returns or sustained losses. While investing in stocks involves risk, there are far more dangerous things to put your money in. One example will be penny stocks. Google it, and you’ll know why people lose money from investing.
3. Look at the whole story.
Treat an analyst's report as part of a bigger picture. Do not make it the sole basis for your investment decision. Analysts cannot predict future events with absolute certainty any better than you can.
4. Be reactive, not predictive.
Learn to react to what is happening by using charts only. To be specific, you should care only about the price. It’ll be wise to stay away from the market during major news events. Yes. Instead, wait to battle again after the new trend has established itself.
5. Power is within you.
You may not be able to control the future. But you can take steer things to reduce your risk investments. They are entry-exit points, stop losses, position sizing, stocks selection and market direction. By doing this, you will cut 95% chance of taking losses.
When you’re informed, you can make careful, calculated choices about what to invest and what to avoid.
Never make a reckless investment. Every dollar you risk should come with research and credible analysis. When you make careful choices as an investor, you’re a lot less likely to make bad investments.
Okay. Your friends could be correct on their stock tips. Make sure you study first before you decide to make the same investments as them. Also, don’t succumb to any peer pressure to invest in something you don’t know.
But you should also listen too. Opinions, advice, information are data. The more data you have, the better.
Consider the advice, the information, or the opinion based on its merits.
The more you listen, the more data you have at your disposal to make smart decisions.
Do you enjoy what you read?
Hit the LIKE button and SHARE with your friends so more can benefit from this post.
Leave a COMMENT and tell me one lesson that you'll take away from here.