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Many of us who dabble in stocks either have mediocre results or lost money because of lack of knowledge, but no one has the intention to lose money! Include myself! You can learn to invest wisely.

• Start small - if you are typical working person like me, or a beginning investor, it doesn’t take a lot of money to start. I started with as little as $500 and added on as I earned and save more money.

• Do you homework - There is no easy way out in anything we are going to master. Learn from the experts by reading their books, read financial magazines, understand the share market trading mechanism, understand macro and micro economy of the country and the world

• Pick the right stock - There is no one formula to pick the winner stock. However, you can learned and find out some of the characteristics of the successful stocks, by the price patterns and trend, understand the fundamental and linking all these to world economy, study their company performance, management team etc. In short, this is what investors called fundamental analysis

• Set your Target and adhere to it - Most people loss money in share market is not because the share they picked was not appreciate in price, but they were too greedy and without any target returns. Hence, end up miss the opportunity.

• Decide Your Tolerance Level - I was hold on to the shares during the financial crisis few years ago, without decided on my tolerance level. Hence, suffered some financial loss that few years. Decide on the tolerance level, cut loss if the price is reach your tolerance level. The beauty is you can always buy back at lower price at later stage.

• Focus on Your Core - There are so many stocks out there, and there is limited resources (money) within us. Hence, focus on few shares that you are comfortable with, ie. you have done enough homework with.

• Put Up Your Strategic Hat - Whatever financial instruments that you are going to invest, you must always put up your strategic hat, ie. think like Warren Buffett, follow the world economy trend, look and think beyond 3 years.

   

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