Many people thought investment is very complicated, only for smart people. Actually, there are only 2 simple steps of investment to bridge between knowledge and fortune. Let’s learn together here.
1) Set the Right Direction
Knowing the right direction to go is very important for any investment. One could be very hardworking but running in opposite direction, will be further away from the goal.
In investment, we need to know what are the good businesses which are profitable, sustainable for a long term. We could simply buy their stocks to have a share of this wonderful business. If one knows how to buy a portfolio of giant stocks, the undervalued or growing business with help to support the uptrend share price over the time. However, if one partners with a losing business, buying their stock, the direction will be wrong, share prices will be declining as well.
Share prices could be emotional but they follow the mega trend of businesses. If we could understand the fundamental of business, we could control the wild horse of share prices.
2) Take Action
Knowing the direction but if one does not take action to move, the goal cannot be reached. Some may take smaller steps, some may walk faster, so the pace will vary for each person to achieve the goal, just sooner or later.
In investment, we need to learn to take one of the actions: Buy, Hold, Sell, Wait or Shorting, eg. for stocks. Ideally, the choice of actions could be aligned with investment clock and personalities for best results.
However, even the simple action of “Buy” stock now and hold permanently could make money, if one knows how to set the direction correctly, buying a portfolio of giant stocks which could overcome all the cyclic stock market. If one still hesitates without any action, despite hundreds of excellent plans with so much investment knowledge learned, there will be no fortune.
Still considering? Don’t be just a knowledge collector. Practice these 2 simple steps of investment: set the right direction and start your investment journey now through free stock investment courses by Dr Tee!