Investing is a lot like making a Bloody Mary. It’s fairly easy to make but if it’s not made well, can taste very badly. It can require a lot of different, exotic ingredients, or can be made pretty simply and still taste great. Just like a great Bloody Mary, investing requires preparation and planning in order to be great.
Here is my take on how you can approach investing.
Independence — When you invest in a company, don’t get too emotionally involved and keep an open mind. If you invest in a company and it’s not performing as well as you hoped, cut your losses and move on.
Know Your Numbers — for stocks or funds you want to own, always set goals and limits as to how much you want to invest in.
View — after researching and tracking an investment opportunity, always create and find your own view. Don’t ever buy a stock just because a friend told you about it, do your own research and determine for yourself if it’s a good investment for you.
Exposure — know how each investment you own relates to one another and impact with domestic and global economies.
Strategy — always research, track, and strategize each investment you make. Think about the overall portfolio you want to invest in.
Time — make sure to spend at least 5 minutes a day to scan headlines, review companies you’re interested in or are already invested in.