Investment Guru Stock Tips – Learn From The Pros
The world of investment is one of the constant challenges. The brave investor is always searching for new obstacles to tackle and assessing all the variables of risk and gain in each of their steps in this quest for improvement and of course: Profit.
Knowledge is power and, if used well, knowledge is money. Short or long term stock market investment is not an easy or simple career, it requires way more than a mere gut feeling, you need to understand what’s going on in the market, you need to know what to do with what’s happening, and seek out what’s best for you and take the best opportunities through technical analysis.
It is said that nearly 80% of investors fail to become a successful and active part in the financial market and that companies do not let this information in the open so as to not scare away new clients.
Naturally, nobody desires to be a part of that 80% and beginner investors often ignore these risks as they forget doing fundamental analysis and are instead driven by the initial rush of adrenaline and excitement of entering a new world which could have them earning enough to live comfortably from their personal computer at home. But these feelings are what can get an investor down the track to failure.
Having said this, how does one improve the odds and become a successful AND clever investor?
As said at the beginning, knowledge is money. Fundamental analysis of your actions and studying can completely define how high you will fly. And what best way to learn about success than from successful people?
Survive and take advantage of the volatility of the market through bull and bear impulses. Learn how to be the best of the best who have done it.
Trading Tips from the Guru Investors
If you want the best stock market investment advice, you need to listen to the best investors. Here are top trading tips from some of the best guru investors around today:
Paul Tudor Jones – Risk Management
“…at the end of the day, the most important thing is how good you are at risk control. 90% of any great trader is going to be the risk control.” –PTJ
In his second year of starting as a broker, he earned over $1 million in commission he was known as one of the Market Wizards and built his reputation for an almost flawless career of over 25 years without having a losing year.
This all was done by knowing one fact: you must manage risk. Paul learned this the hard way by experiencing painful loss and making mistakes in his early stages, through those experiences he forged his top-notch abilities.
“I’d say that my investment philosophy is that I don’t take a lot of risks, I look for opportunities with tremendously skewed reward-risk opportunities.”
PTJ advises on establishing a strategy of taking small risks in such a way that it doesn’t matter what you do, you will always make a profit in the end. Take small risks for small but good rewards that will inevitably amount to great numbers.
Most of Paul Tudor Jones investment advice and philosophy ties into not putting all of your eggs in one basket, having a diverse portfolio and taking calculated risks as an investment strategy.
Learn more about his strategies and tips here.
George Soros – Have discipline and keep it simple
- “If investing is entertaining and if you’re having fun, you’re probably not making any money. Good investing is boring and personal emotions have no place in investing. If you want to be successful in the long-run, base your investment decisions on rationality and discipline.” –George Soros, the man who broke the Bank of England and made $1 billion.
The path to knowledge and success takes discipline, you must keep in mind that business is not meant to be fun and for a good trade you must take educated steps towards profit. In the investment world, it is also important to be cold and unfeeling to an extent. Investing large amounts of money in family or friends endeavors can be a dangerous game that results in resentment and hurt feelings.
Always study all the possibilities following solid rational thinking. This will help you devise your own working strategy—one that produces important profit rather than exciting profit. A man like George Soros would likely preach the importance of savings, investing in lower risk investments such as mutual funds, and a sound investment strategy. It is important to view personal finance as a long-term commitment and not hope to win the Wall Street lottery with one risky investment.
- “The more complex the system, the greater the room for error. A simple but effective investing system will always beat the crap out of a complex system that doesn’t work.”
It is sometimes easy to get tangled in complex strategies that ultimately lead nowhere near what you want to do. Finding or devising a simple strategy that fits your style will make your life easier and your profits higher.
Learn more about George Soro and his techniques here.
Stanley Druckenmiller – Take the chance and hit a home run
- “It is not whether you are right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong” –Stanley Druckenmiller
Being one of the best Forex traders of all times and Hedge fund managers, Stanley Druckenmiller is known for hitting the ball when the time is right. Knowing when to bet big is as important as managing risks.
When your cards are on the table and you have set up your strategy, studied all the possibilities, and just simply know you are at the right place and at the right moment, then make it count. Opportunities don’t come often, and the size of them can be defined by your choices.
Druckenmiller knew how to go big. Learn more about his strategies and history.
Warren Buffet – Understand your business
- “Individual investors ought to think about what he or she understands. Let’s just say they were going to put their whole family’s net worth in a single business. Would that be a business they would consider? Or, would they say, “Gee, I don’t know enough about that business to go into it?” If so, they should go on to something else…” -Warren Buffet
Once the richest men on Earth and still one of the richest, Warren Buffet advises on knowing and understanding what you are investing in.
Understand what you are buying. Do not invest in something you don’t entirely know; being the market as volatile as it is, not having the complete grasp of what you are buying into can account for big losses. It is also important not to allow people to force your hand or influence you to put money towards investments you don’t understand or feel uncomfortable with. It is easier to plan for something you know, pick your area, constantly learn of it and from it and be prepared for a long-term career.
Buffet also preaches not to negotiate when it comes to quality of a business. Don’t invest in a shady business or one that simply doesn’t perform. Penny stocks are a dangerous investment. Penny stocks occasionally yield a profit, but for the most part, they lose much of the small sums of money put into them. This is because most of these businesses are untried and untested. On this same note, Buffet advises not to buy into the hype. Don’t sink large sums of money into a new company that seems like it will be ground-breaking but may crash and burn. Bitcoin is a fantastic example of this type of poor investment strategy.
Learn more about Warren Buffet’s strategies and some of his greatest advice.
Remember to keep your knowledge up to date and follow advice. Try, fail, try again, and build your own strategy on your way up to greatness.
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