Building up Investment Knowledge
To me, this is the most tedious and tiring part. I was not educated in the field of finance and accounting. So, I have to learn everything by myself from scratch.
I need to create my own personalized winning plan. In order to do it, I need to know what I want, specifically my investment objectives and risk profile. This should be the first step before I start to invest.
I am only investing in stocks but note that there are other products available such as commodities, FOREX and derivatives (Options, Futures, Contract for Difference). Many of these products, however, are riskier than stocks and often involve trading with leverage. I believe that we should not invest in something which we do not have enough knowledge in. So, I avoid these.
There are two main approaches when it comes to the analysis of stocks. They ......