Posts Tagged ‘diversification’

Magic Bullet Investing

Monday, January 12th, 2009

You might have heard about people who made a mint by investing just once. Well, these people are like the people who visit a casino and play a slot machine and hit the jackpot. The best way to characterize these investors is just plain old lucky. I don’t even think that calling them investors is the best thing either.

An investor is someone who makes decisions based on information, calculates risk and acts on analysis with the intent of seeing results in the long term. The above example suits a day trader more than it does an investor. In order to be successful with investing you need to think long term. Unless you have a million or two to invest you wont be seeing substantial returns for your investments for a while. The best investments are those that are proven over time. They are the best because the risk is less and with a bit of patience your investments will be growing constantly. (more…)