I would like to share some good investment habits in this post. Sorry for not posting for quite some time as I went to Kuala Lumpur for personal reason.
1. Invest with your own money
Always invest with your own money, and not from borrowed money. This also apply to margin account. In the event of losing money, you just lose your money.
2. Invest only in business that you know well
There are lots of company listed in the share market. Choose only those companies that you know well. The best is you are working in related industry as you will know the happening in the industry.
3. Have a portfolio or record of your investment
This can be a simple notebook or Microsoft Excel record of your investment. This record can be use to trace back all your transaction and the money you have earned/lost.
4. Buy when the price is right
I learnt this concept by reading Phil Town's Rule #1 book. This concept is actually used by Mr Warren Buffett. You need to do your homework by calculating all the key figures (P/E Ratio, EPS, intrinsic value, and much more) before deciding the value that is fair for you. I will touch on this in my later post.
5. Never let emotion rule over your conscious decision
Lots of investor out there let emotion rule their decision. If you are sure that the particular stock is definitely good, don't let the market rumour or big guys out there to change your decision.
1. Invest with your own money
Always invest with your own money, and not from borrowed money. This also apply to margin account. In the event of losing money, you just lose your money.
2. Invest only in business that you know well
There are lots of company listed in the share market. Choose only those companies that you know well. The best is you are working in related industry as you will know the happening in the industry.
3. Have a portfolio or record of your investment
This can be a simple notebook or Microsoft Excel record of your investment. This record can be use to trace back all your transaction and the money you have earned/lost.
4. Buy when the price is right
I learnt this concept by reading Phil Town's Rule #1 book. This concept is actually used by Mr Warren Buffett. You need to do your homework by calculating all the key figures (P/E Ratio, EPS, intrinsic value, and much more) before deciding the value that is fair for you. I will touch on this in my later post.
5. Never let emotion rule over your conscious decision
Lots of investor out there let emotion rule their decision. If you are sure that the particular stock is definitely good, don't let the market rumour or big guys out there to change your decision.
I have read the book Rule No 1 by Phil Town.
to rachel,
That is a good book, I believe every investor should read the book first to get a good investment basic.
In my opinion, for number 1, if one invests borrowed money, one can still succeed. Just that, he or she needs really strict risk/capital management. But really, with borrowed money, we're looking at an exponential amount of risk.