Making an Intelligent stock market investment is not rocket science. But, it is generally happening when using common sense than emotion. Emotion doesn’t have any space to value investing world. To be a right value investor, a person should learn to control his emotions first, prior to taking any investing decisions, But, he highly required to think about the possible results that can follow by any action that he is planning to make. Thinking in advance obviously prevent a person from taking wrong decisions lead by emotions than common sense.
Do not follow public’ is a well tested, well proclaimed ‘Don’t’ in the value investors world. If you think a little, you can see people always thinking to make money as faster as they can. Due to this, stock market filled with traders, same as gamblers, than real value investors. While seeing tips and analyst reports, the first thought in your mind should be, all they focused to traders than value investors. There are very, yes, a very few resources are available for value investors and very difficult to find such.For a trader, the word ‘Value investing’ is for laugh. In my investing life, I have found lots of traders who always laughing on value investors and considering them as worlds biggest fools. Never mind if you have such experience as a value investor. If you visit any stock market forums, you will be able to find the forums generally filled with self acting gurus frequently recommending stocks for public. Most of such recommendations coming with attracting promises to ger fast money withing hours or in a day. If you sit back and think calm, you can identify the foolishness inside such behavior as a trap for innocent investors to lose money. If you come to the article subject, avoid following public activities because of the stupidity associated with such action. People always think differently and have different views on similar things depends on how they are thinking and their mind working. Each person might have his own view on any action he may made to attract others to it. In this context, by following public or anyone’s activity, a value investor converting him as the slave of someone’s mind or thoughts. Capacity to have independent thoughts are the first door to success. If you know this point, you will never follow public and it will be difficult for you to act as per any public activity. Instead, you will come to a position to think or analyze deeply to identify the advantages and disadvantages from committing any action, prior to really commit to it.
Read, Read, Read
Read maximum as possible. Consider buying and reading good reference guides as your first source to learn value investing. There are excellent reference guides available on value investing and explaining successful investment strategies of legend investors. Read it, understand it and create your own investing practice as per the good points from there. I am not saying to blindly follow all the strategies mentioned in these guides but, be very choosy to selected ideas and strategies upon your capacity.Creating your own investment strategies helpful to improve investing skills time to time. Any happening mistakes can be identified intermediately and can take appropriate measures to avoid such mistakes in the future. There is no legend value investor in this world without committing any mistakes in their past. The best part is, they all have learned well from any happening mistakes and always took care to not happen the same in their entire career.Always be an intelligent investor by thinking a lot on the advantages and disadvantages of any forthcoming actions to avoid mistakes. Make a practice of analyzing both sides of any planned action to avoid unnecessary mistakes and errors.