How to Invest Successfully

Everyone can invest in stocks, mutual funds, index funds, ETFs, or even real estate. But how many know what they’re doing? Successful investing requires an understanding of the next six principles:

Ignore the Noise

Ignore the noise in the media. Ignore the so-called “experts”, the internet, television, and magazines are filled with “advice” which can lead you down the wrong investment path. Remember the media are companies that exist to make gains, and gains come from increasing viewership and advertising. The media’s best interest won’t be your very best interest. Educate yourself on how to invest and then implement what you’ve learned.

Seek Quality

Seek out quality companies to invest in that:

• have a history of profitability
• have a history of paying increasing dividends
• have low debt
• are recession-proof
• have a competitive advantage in the marketplace

Buy Low (Undervalue)

As soon as you’ve found quality companies to invest in, you need to make sure that the stock is priced low or on sale (undervalue). Why? Because purchasing low (undervalue) will help you to maximize your return. If a stock is undervalued at $20 and overvalued at $50, there is no use in buying the stocks at $48, $49 or even $50 since the price is too high; there’s very little space for its stock price to go higher. On the other hand, purchasing the stock at $20 or near it guarantees the maximum profitability for you.

Fees

Eliminate or reduce the fees you pay for investing. No one cares about your money than you. You owe it to yourself and your loved ones to take ownership of your money. Do not give away your money to somebody else to invest on your behalf otherwise, you will pay thousands in charges.

Courage

You have to have the guts to buy quality stocks when they are undervalued. Stock become undervalued because they’re temporarily out of favour by investors. Thus you have to have the courage to purchase an undervalued stock once the bulk is staying far from it.

Patience

You should have the patience to hold on to a stock even when the stock market declines. Additionally, stock prices go up and down all the time, and you must have the patience to stay with your investment. Your patience will be rewarded with increasing dividends over time. As the dividend goes up over time so will the stock price, but occasionally this may take years, therefore patience is key.

Everything starts with knowledge, the understanding of how to locate quality stocks that are undervalued. Then successful investment is as straightforward as buying quality stocks when they are undervalued and holding for the rising dividend and stock price.

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