Well, the answer is that people like Warren Buffet are the living proof that one can not only survive in the stock market but actually make a lot of money. After all, to rank among the top 10 richest people in the world, year after year and this is no joke or coincidence.
Here are some essential tips or lessons if you want to become rich by investing in stocks :
Don’t be greedy :
Invest in the intrinsic value of the company. Warren Buffett says, “When forced to choose, I will not trade even a night’s sleep for the chance of extra profits.” He takes minimal risk rather than high risk and potentially higher profit option.
Have patience :
Our greed and impatience sometimes make us set unrealistic targets which are not achievable. Therefore, you need to set goals wisely. Warren Buffett says, “Only buy something that you’d be perfectly happy to hold if the market shut down for ten years.”
Acquire lots of knowledge :
You must acquire a thorough knowledge in the areas of Fundamental Analysis and Technical Analysis of Companies, their Stocks before trading in their Shares. Also, keep in mind that knowledge will not come quickly; it has to be acquired from various sources. Secondly, the knowledge needs to be regularly updated too.
Use your own money :
This is basically to save you from increasing the size of your total loss if you were trading on margin (using leverage). Leverage is the sure way to wipe out your capital fast.
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