Advanced tips
Hedge
It is counter-intuitive to invest simultaneously in two securities that might move in the
opposite direction. However, hedging can be a very powerful means of protecting
yourself. At least, when one security goes down, the other will likely cover the loss from
the first security and generate profit on top of that.
Invest long-term
The media portrays the stock market as the way to go to make fast and easy money.
While this might be true, once in a while, for a lucky gambler, it is not for the common
and wise people. In fact, with the day-trading and short-term investing, you will face
difficulties predicting the market. You will also have to pay more fees because of the
daily transactions.
Again, expert Buffet: says, “If you are not willing to own a stock for ten years, do not
even think about owning it for ten minutes. Put together a portfolio of companies
whose aggregate earning march upward over the years, and so also will the portfolio’s
market value.”
“If you are not
willing to own a
stock for ten years,
do not even think
about owing it for
ten minutes.”