I’m wanting to learn about investing, its something that I feel comfortable learning now even though I’m not quite ready to delve in deeper into the world of investing.  I’ve lost a large chunk of money in the past and so I need to learn more.  However, here are the things that I do know:

1. Don’t invest emotionally.  There is nothing that you’re attachment to emotions will help with when it comes to investing.  If you’re emotionally attached to money or an investment then you need to paper trade.  Paper trading is make-believe and is risk-free.
2. Don’t invest money you can’t afford to lose.  I’ve seen people ask if they should take money out in a loan or buy stocks on margin.  Don’t do it.  Don’t invest money that you may need in three weeks due to a car breaking down.
3. Don’t invest in something you don’t know.  I’ve written about this before.  If you’re investing in something you don’t know, you’re taking risks that are just plain stupid.  There are smarter moves you could make, sometimes not investing is smartest!
4. Don’t respond to spam emails that are sent out to hundreds, thousands or millions of recipients in hopes to prime the stock price for some sort of downward move.  It has been tracked that some spammers actually buy options on the stocks they’re priming: one bunch going up so that when people respond to the email their calls gain value, and one bunch going down when the foolish masses sell because the stock doesn’t move up as much as they expected.   The spammer won twice

If you want to learn more about investing with me I’ll be writing more and sticking it away into the investment category of this blog.  What questions do you have about investing?  I’d like to be a resource of sorts do research some of those very questions and learn the answers myself.

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This entry was posted on Friday, August 3rd, 2007 at 5:42 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.