So You Think You Can Beat The Stockmarket?
Over the last decade we have seen massive movements in worldwide stockmarkets, including the technology boom, the Iraq war and various other major incidents around the world. These have all shaped what has been perhaps one of the most volatile periods of recent times. So you think you can still beat the stockmarket?
While a lot of investors will have done very well over the period, there are also a lot who have seen their investments rise to massive heights in the technology boom, only to come crashing back down to earth. So what makes a good stockmarket investor?
To be able to out perform the stockmarkets on a short, medium and longer term basis you need to have some of the following characteristics :-
· Focus. This is essential as you need to stay in touch with news, views and trends.
· Lack Of Feeling. A share is just an investment to be bought and sold, do not get attached to individual shares or sectors - this will cloud your judgement.
· Speed. You need to react to changes in the market at a quick speed, in order to beat your competitors to the punch.
· Forward Thinking. A clever investor will know both when to go into a particular sector (prior to other investors catching on) and when to leave a sector (before the top). There is a great saying in the investment world, “Always leave something for the next manâ€. You will only ever become really wealthy by selling too early - banking a profit and avoiding the inevitable change in sector valuations, shocks, etc.
To many people investment is not game, it is their livelihood and while many have the potential to be successful, it is essential that decisions are made on cold hard facts and research - there is no place for human emotions.
“Run your winners and cut your losers†and you will not go far wrong!
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