Before you invest in any company, you owe it to yourself to conduct some due diligence.
Any investor who analyzes a company's profile can better judge the value of a stock and make more profit from buying and selling it.
Your greatest asset in stock investing is you.
The next best thing is knowledge, a little common sense, and even a bit of luck.
To become a successful stock investor, keep these ten tips in mind: 1.
Know Yourself.
What are you trying to accomplish with your investments? What are your specific investment Goals? 2.
Understand your Goals.
Are you after capital gains (appreciation) or dividends (income).
3.
Information.
Know where to get useful information.
Knowledge is the key to your success.
The decisions you make about the stocks and where to invest your money require quality, up to date information.
4.
Research.
Do your research.
Make sure the company that you are considering investing in is a profitable company worthy of putting your money into.
5.
Understand how the world affects your stock.
The environment in which a stock operates can often determine whether or not the stock succeeds or fails.
Politics and economics make the world turn, you should be aware of how they both might affect the company and its stock.
6.
Winning stocks are found in winning industries.
You will often see stocks of mediocre companies in 'hot' markets outperforming solid stocks of quality companies in a 'cold' or floundering sector.
7.
Understand and Identify Trends.
Jumping on the band wagon of a hot industry can often lead to significant returns on your investment.
However, you must also realize when the ship is sinking and when to get out.
8.
Keep more of the money you earn.
Get smart on taxes.
Make sure you are knowledgeable on all the tax implications of buying and selling stocks.
This will allow you to keep more of the fruits of your labor.
9.
Learn to use investment strategies.
Study and learn from the pros.
How you go about investing your dollars is just as important as how you pick the companies to invest in.
10.
Insider buying and selling.
Sometimes, what people tell you to do with investments is not as revealing as what they are actually doing with their investments.
Check out the company's officers and find out if they are buying or selling.
Successful investing isn't necessarily just about what you invest in, its also the way you invest.
Your whole investment program should be multi-faceted.
The best thing you can do for yourself is to get smart on investing.
Read everything and put it to work.
Never jump in on a 'sure thing' and always do your due diligence before committing any of your funds.