Secret Principles Essential to Successful Stock Buying and Investing

?As to methods there may be a million and then some, but principles are few. The man who grasps the principles can successful select his own methods. The man who tries the methods, ignoring principles, is sure to have trouble.? Ralph Waldo Emerson

This is the advice that some of the most successful investors in the world apply. First, we will address the difference in an investor that spends his time investing with methods. Then we will address the investor that spends his time investing in principles. Lastly, I will let you decide which is best for you.

Methods Investor

Warren Buffett was asked if someone wanted to make a lot of money fast where would he go? Buffett replied, ?I would hold my nose and point to Wall Street? People can make money as a methods investor and fast. However, most of the time there is a vicious cycle that is repeated as a methods investor. The investors goal is to make as much money as possible as quickly as possible. What happens then is the investor is willing to do anything to make money including letting their ethics slide here and there. Eventually, this becomes a bad habit and pretty soon they will be filled with a large bank account and an emptiness inside of them. I know this because I have been there. Not on Wall Street, working with Wall Street selling mortgages. It is an emptiness that makes a person lost and looking for vices for fulfill them. Many people look for fulfillment in drugs, alcohol, or sex. Anything to cover up their emptiness. My justification way alcohol and girls. Pretty soon I was a lost cause and needed help. Not, all methods investors fall into an empty hole of vices. Some live great lives?.they live by themselves working 90 hours a week chasing method after method after method. Trying to always find a better one, wondering why they cannot hang onto a relationship and slipping on the edge of a mental breakdown. This is a scary way to spend a life.

Principles Investor

Remember principles are few. Warren Buffett quoted Mark Twain saying ?It is foolish to spread you eggs out into may baskets, put all your eggs into one basket and WATCH THAT BASKET!? In 1998 I was a senior in high school. I was assigned to pick a stock for class and watch that stock for a month. This was the best financial education that the United State could offer their youth. So I did. I was confident we were in the Dot-Com boom and I was sure that American Online (AOL) would rise in the month. It didn?t and I was baffled. I had no idea how an internet company?s stock could drop when the internet was so huge. It is because I had no idea on how a business works, how money flows and how the economy affects both. I was speculating and this is exactly what most people do when it comes to investing. These also happen to be the basic principles that are required to understand and succeed in investing. One must understand how a business works?.truly know how a business works, how to see the signs of the economy, where it is, where it is going and how money flows through an economy and a business.

Stock Buying and investing is a learnable skill. no different than riding a bike. The author invites you to learn more about the principles of stock buying and investing. Also it is good to understand where stocks originate. They come from unique business idea and if you have an idea for a business you deserve to check this out. Happy Investing!!!

Source: http://pennystocks-fordummies.org/secret-principles-essential-to-successful-stock-buying-and-investing/

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