Next, what is the business about? How much do I need to invest? What is my return? What is my risk and what is my reward? These questions are sure to cross your mind. Unless you are fully convinced that the business is viable and in good hands, you will not join the venture even if it means RM5000 to start with.
In the stock market, before you buy a share, did you consider these things?
Probably not. Why? It’s because you do not know what intelligent investing is all about and the best way to go about it. Actually, the questions mentioned above are the very ones you must look into before you buy the stock. When you buy a share, you become a shareholder; a partner of the company. Do not overlook this fact.
Housewives especially, will take the trouble to go bargain hunting in the supermarkets for their necessities. They will look for the best bargains. But when it comes to the stock market, there are not so choosy. Upon a tip they will buy. They will not bother to evaluate the tip. Here is definitely a case of penny-wise-pound-foolish syndrome.
Intelligent investing is value investing, you must know what you buy and why you buy.
Beginners like to buy all the way down because of the Anti-Change Concept (posted in June, 2006). Professionals do it the other way round. They buy all the way up and distribute at the top.
If you wish to turn your 10k to 10m, you must invest intelligently. Discipline, patience, knowledge, wisdom, and the will to succeed are the very essentials for your success. Know them well. They are your indispensable generals.
Do not forget to join us at Blisswind. All are welcome.