| It is safe to assume that all first-time stock | | | | will override management competence 9 times |
| investors will be at a loss as to the what, when, | | | | out of 10. |
| why and how of the stock market. As such, you | | | | Still, if the management component has been |
| will want stock investing tips to follow in order to | | | | known to turn things around, you might want to |
| ensure success. Of course, nothing beats | | | | reconsider. This is the exception to the rule, |
| education for success as a stock investor but | | | | however, since past trends in the company have |
| these tips should help. | | | | a way of repeating themselves in the future. Just |
| The first rule of success, whether it is trading or | | | | try to balance the economic side with the |
| investing in shares of stocks, is to buy low and | | | | management aspect. |
| sell high. Basically, you buy stocks that are on its | | | | You should not also be engrossed in complicated |
| downward trend but yet you foresee will rise in | | | | investment strategies. Try to keep things as |
| value in the future. Keep in mind that you will be | | | | simple as possible - invest in companies with good |
| holding on to the stocks in the long-term period, | | | | track records and economies, impose a margin of |
| so knowing market trends and the factors that | | | | safety for all your investment options, and invest |
| affect them is very important. | | | | with the long-term period in mind. As Warren |
| When the stock values have risen to your | | | | Buffett, the wizard of investment likes to say, if |
| pre-set price, you might want to consider selling | | | | you cannot hold on to an investment for 10 |
| them. Do not wait for the stocks to rise any | | | | minutes, then don't think that you can do so for |
| higher than your pre-set criterion as it may not | | | | 10 years. |
| do so but instead move in the opposite direction. | | | | The most important of all stock investing tips is |
| Yet another of the common stock investing tips | | | | to set your expectations in the right manner. |
| is to choose the company with the best | | | | Many naïve stock investors come into the |
| economics. Look at its financial statements, | | | | stock market thinking that the billions of Warren |
| market share and other economic aspects before | | | | Buffett can be theirs in a few short months. |
| deciding to buy into the company. | | | | Take note that the stock market is as volatile as |
| If your analysis yields good economics but | | | | can be especially during times of economic |
| mediocre management, then it can be a good | | | | recessions, like we have now. If you can keep |
| investment. In contrast, if your research points to | | | | reasonable expectations, then you will not be |
| bad economics but brilliant management, think | | | | frustrated with the average return of |
| two, even three, times before investing in the | | | | investments at 10-12 percent per annum, less |
| stock issuance. As they say, economics can and | | | | time than a year, if you play your cards right. |