3 Things you should know before Investing

Many questions posted to successful investors may include

• How much did you earn?
• What stocks did you buy?
• When will the market recover?
• Do you have any tips for me?
• If i give you my money can you double it?
• Is this XYZ stock at this $XYZ a good buy?

and eventually concludes with said person asking for a treat.

What they really want to know is when will they make money in the stock market.

There is a very thin line between investing and gambling and below are the top 3 reasons why I think investing is similar to gambling.

1. No one can predict the market unless you are Warren Buffet. (PS if he really could he would be gazillionaire, not a billionaire).
2. Gambling evokes certain emotional responses such as excitement, fear and greed. Buying shares have a similar effect. A wise person once said, fear is the path to the dark side.
3. You are placing your money in the hands of others (Company Executives) under the mercy of 10,000,000++ other people just like you trying to be the next Warren Buffet.

Can investing ever be safe and easy? Probably in a world where Prince Charles has more hair and declares me Master of the Universe. Until then, we all have to start somewhere.

The internet is filled with awesome information and bloggers that are kind enough to share their investment journey with you. While no investment is 100% safe, steps can be taken to minimize risk.

Its a long journey but better late than never.