| Where should a novice really start off? | | | | knockers? So, there's not only no fast road to |
| First of all, I believe it should be with this realization. | | | | investment riches, there's no easy road too. That's the |
| The stock exchange is not the place for 'get rich quick' | | | | second rule to realize, for every beginner out there. |
| ambitions. If riches can be acquired in a flash, it's not in | | | | The third rule to realize in this online investing guide for |
| the investment field, despite appearances. While you | | | | beginner: though you can treat your investments as |
| may hear some home run stories, in the end, most | | | | 'hobby', it can never be a 'fun' thing. The world of |
| averagely financed people hardly ever get rich from | | | | investments is ruled by the investment banks and their |
| stock investments. Even if share value doubles in a | | | | executives. They handle all the big deals like floating |
| year (a highly unlikely event), you will still need to have | | | | companies, issue bonds, trade stocks, bonds, |
| invested a fortune to gain an extra fortune. If you | | | | currencies and commodities. They do make huge |
| cannot invest that much to begin with, would a 100 | | | | amounts of money. They also employ armies of |
| percent return make you wealthy? Right, it's Not so | | | | MBAs to give them an edge to win the investment |
| fast. First rule: to be a good investor, It's better to put | | | | games. It's their business to go all out to make money. |
| away any desperation for quick riches. | | | | They are not playing around. It is serious business. |
| To be sure, there are ways for an investor can make | | | | So, if you want to succeed, you need to buckle up and |
| an obscene amount of profits. But these almost | | | | be businesslike. How do you adopt this non-intuitive |
| always involve gigantic risks. Options and futures are | | | | approach to investing? A good place to learn is to look |
| such avenues. For a beginner investor with limited | | | | up for books by Benjamin Graham. Digest them in |
| mileage, you do yourself a huge favor to steer away | | | | earnest. This will take you a while and it's the right |
| from such investment vehicles. First, you will knock | | | | place to start your education. You will be learning from |
| your brains out to learn them. Next, total bang-up | | | | Ben Graham, the father of successful businesslike |
| losses can come so swiftly. Worse still, potential losses | | | | investment methodology. |
| can be more than the sum invested, if you dabble in | | | | With all the above rules, it may sound overly difficult |
| futures and are not careful. Markets often move | | | | for the little guy to make money. But I can tell you it's |
| quickly and you cannot turn your attention to other | | | | still possible because I know I do make money as a |
| urgent matters. There are better ways to start as an | | | | little guy. What gives us an edge is, big money funds |
| investor than do options or futures, which are more like | | | | find it quite impossible to invest in smaller companies. |
| gambling to me. I may sound traditional here but I | | | | So if you are able to spot any of these companies' |
| believe a prudent investor always look for solid and | | | | products doing well in the malls or supermarkets, that |
| proven companies to invest. Companies that are | | | | should give you a head start over the big-time analysts |
| quoted in the stock exchange, companies that are | | | | of investment banks. This is another successful |
| trusted to have a predictably brighter future. Such | | | | investing approach you can learn through the books by |
| investments are better for beginners to pick, and | | | | Peter Lynch. He will show you how to pick winners |
| relatively safer to invest with their money. | | | | that he called 'tenbaggers'. |
| Nonetheless, it must be bear strong emphasis that | | | | Investing in the stock exchange, to do well you need to |
| beginners will not find it easy to make money at the | | | | treat it like running a business. Maybe a part-time online |
| stock exchange. If it were easy, who then would be | | | | business. Still, it's a no-nonsense business. |
| Warren Buffet? Everybody who's an investor would | | | | As a beginner's guide to investing, I cannot stress |
| be a billionaire. The path to investing success takes | | | | enough that it is extremely difficult to make a second |
| time, serious study, disciplined efforts and most | | | | income from the stock exchange. It can be done and |
| importantly, independent thinking. Only a few has the | | | | you will learn the skills, but it will take time. That's not all, |
| will and endurance to sustain this journey. I have | | | | you will need to put in serious study, consistent effort, |
| certainly faltered time and again. But then, tell me who | | | | and independent thought, to end up doing really well. |
| should be spared from setbacks and confidence | | | | |