"Making money entails a lot more than predicting which way the stock or bond markets are heading or trying to figure which stock or fund will double over the next few years.
For the great majority of investors, making money requires a plan, self-discipline and desire. I say, "for the great majority of people" because if you're a Steven Spielberg or a Bill Gates you don't have to know about the Dow or the markets or about yields or price/earnings ratios. You're a phenomenon in your own field, and you're going to make big money as a by-product of your talent and ability. But this kind of genius is rare.
For the average investor, you and me, we're not geniuses so we have to have a financial plan. In view of this, I offer below a few items that we must be aware of if we are serious about making money."
If you are interested, please refer to:
and read "Rich Man, Poor Man" by Richard Russell which contains four rules for making money summarised as follow:
Rule 1: Compounding (learn how an investment of $14,000 can outstrip an investment of $80,000 through the power of compounding)
Rule 2: Don't Lose Money (avoid losing money as it can drain off what you are earning or hope to earn)
Rule 3: Rich Man, Poor Man (do not be pressured to "make money" or "do something"; do not overpay; wait till outstanding values are available)
Rule 4: Values (look for investment which offers safety, attractive return and likelihood of appreciating)
Disclaimer: Please note that the above blurb is for general information only and does not constitute any form of investment advice, recommendation or offer to buy, sell or issue, or invest in any securities or fund or managed account or subscribe for any product or service.
