To have a good understanding of what investing is about, we first have to know what investing is NOT. When we talk about investing in the stock market, many would relate that to speculative actions, such as trading a stock for the short term or buying into a stock because it is “HOT” now. Here are the key differences between what is true investing and what is speculation. It is important for you to know where is the line in order to position ourselves as successful investors in the future.

Invest With Logic

Investor: An investor will work through a possible investment with logic. He (She) would think through the reasons of what makes a stock a good investment. For example, he might invest in a company that has good growth potential in the future and was valued relatively cheaply by the market compared to his estimation. ......