What’s the trick to great investing? The trick is that there really is not any secret. By the conclusion of this information you are going to learn how to invest in a way that will actually allow you to money.
If you know anything about investing you know that the common part-time investor does not earn money on the long term. Because many people don’t invest to earn money for just today, we need to switch our focus to the long run and look at just how to invest in a way that won’t take a lot of time, won’t take a lot of maintenance, and will make you loads of money.
There’s no secret. First, you have to select the stocks. You’re going to need 5 stocks that you probably believe is likely to make money in the medium term. That’s normally 1 to 5 years. It is actually a little less but stay away from your own time frame being 1 wee as well as one month.
Needless to say the toughest part is picking your stocks. You are going to want larger companies that pay a dividend. They might be a little bit undervalued but still a great company. It’s best to really have a stock that’s a lot of room to grow. You never want one that’s valued at the high side of where people think it’ll go. There are plenty of books out there to help you with this evaluation but when you would rather not do this technique yourself, I’ve another answer.
If you aren’t confident in your stock picking abilities, consider subscribing to a service like Action Alerts Plus where a specialist like best selling author and CNBC commentator Jim Cramer is performing your research for you and all you need to complete is buy and sell when he lets you know to execute the trade. My secret is that I don’t have sufficient time to complete all my research so I let Action Alert Plus get it done for me.
As soon as you make your pick, be disciplined. Once you start earning money, don’t sell right away. Hold on to it for some time and watch it grow invest to make money. Once a few months or years pass by and you have made 20% or maybe more, sell a few of it. Don’t sell the whole thing like that the residual part could still comes up in value.
As you can see, it’s fairly simple to learn how to invest. The main element is one of two options: Do enough research to make your own personal stock picks or let somebody like Jim Cramer and his staff get it done for you.