Stock Investing - How To Make Money as an Investor
February 13th, 2008 by admin
The secret to making money as an investor is to buy money at a discount. You need to be buying a dollar for ninety cents. It’s impossible to lose money if you buy it at a discount. The problem the discounted money isn’t screaming at you. You have to find it.
And really, when it comes down to it, you don’t need to be a slave of the fundamentals. That’s not really where the discounted money hides. You see, stock prices aren’t driven by the fundamentals. They are driven by the perception of the fundamentals.
Let me ask you this. Let’s say that all of Ford’s factories burnt to the ground last night. How do you think that would affect the price of the stock? What would happen to Ford’s stock?
The correct answer you don’t have enough information.
You need to know if people know about this. If no one knows about it, then there will be no change in the price.
You see, it’s all about perception. Not necessarily about what is. Sure if a company is solid, it will probably be a good investment. But the thing is, it’s not because it’s a good company, it’s because it’s perceived as a good company.
So what does all this mean? It means that to become a complete investor, you need to be able to read people. Learn the psychology of what motivates them. What makes people want to buy this or sell that.
Then you are a complete investor (who will make even more money).
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called “How To Pick Winning Stocks - The Secret Formula”
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