How to Invest

[dbelov275 11]

There are two general ways to successful investing:

1) Buying primarily value - understand the business, the people behind it and it's real value. If the asking price is less, buy. The more the gap, the better the investment. Set clear limits and stick with them. Existing value is usually overcharged, so this will be harder to get and require much more capital to buy into. There were much more of those deals available in the past, when the general appetite for investment was less.

2) Buying primarily potential - this one is tricky and more risky. You must understand why businesses fail and test and track accordingly. You must understand and intuitively predict what markets want, how to give it to them and who can give it, on top of previous requirements. You should limit this kind of investment in your portfolio, until you get some relevant experience. Start small and always have a team of domain experts around.

[hantt 10]

Thanks for the advice

[vladtitov151 10]

Thanks for that thoughtful article. be sure you helped someone, cos it really helped me. thanks mate. good luck in your subsequent investments..

[CrazyCzarina 17]

Post has so many points which needs to be discuss more in trading. Hope there will be new article for those important points also.

[aimhi 10]

I guess we can discuss these points here to elaborate this thread for new traders.