ADVICE for the INVESTOR

Want to be a stock investor? Here’s some great advice. 1_ DO NOT “PLAY” THE STOCK MARKET. As you know from my other articles, I am do not advocate “playing the stock market.” Rather, buying stocks should be seen as investing in companies you believe enough to make you want to own part of them. This is what owning a “share” of a company is all about.

2_ ONLY INVEST IN COMPANIES YOU UNDERSTAND, and preferably use. For example, a few years ago, early investors who used and believed in a company called Netflix to get their movies have seen the value of this stock rise over 14,000% over the years.

3_ INVEST FOR THE LONG TERM. It is almost impossible to time the market, so again, buy stocks in good companies that you feel will grow over the years.

4_ CONSIDER MUTUAL FUNDS AND ETFs. For small investors it may be too risky to have a large portion of your portfolio in individual stocks. Investing in funds may protect you from exposure, since your investment is spread across many companies.