An investment can mean many things to many people. For some it means a professional trader who uses his or her expertise to make investment decisions on behalf of corporate investment funds. For others, it means putting time into a project in anticipation of a future return 鈥?financial or otherwise. Either way, there is a psychology that all investors should adopt if they want to improve their chances of success. Do research. The great majority of successful investors do not leave things to chance. It is true that you could strike lucky in making an investment but if you are a serious investor then you need to have done your homework. This can be from reading relevant articles to simply talking to the right people. As always, the amount of time that you put into this research will usually match your level s of success. What a return! If an investment sounds too good to be true then it probably is! Investigations into Ponzi schemes have shown that many people succumb to greed and make reckless investments. If thing s don 鈥檛 stack up then think again 鈥?very carefully! High risk means high return (and vice versa). It can be perfectly acceptable to invest when the odds are stacked against you so long as you get a high return. Similarly, low return on an investment is to be expected so long as the risks are low. Whatever your preference, it makes sense to combine a mix of both low and high risk projects with the returns for each project being commensurate with the risk. Don 鈥檛 gamble what you can 鈥檛 afford to lose. Who 鈥檇 have thought that the Titanic would sink on its maiden voyage? Even the best investors get it wrong from time to time. No matter how confident you are about an investment, remember that things can and do go wrong. It is for this reason that you should seriously consider the consequences of failure before going ahead. John Bellamy has worked with various small companies before becoming involved with learn from home courses including psychology home study courses.
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