| Despite some intensive searching online, I have been | | | | investments and companies of interest very closely. |
| unable to locate a fact that I remember reading | | | | If you need to sell out at a moments notice, the |
| some months ago. | | | | discipline to do so is required immediately. Failure can |
| The fact was this: 80 percent of private investors | | | | cost you your profits and potentially your initial |
| lose money in their direct investments. | | | | investment as well. |
| This is the secret that Wall Street does not want | | | | As prices change, so must your goals. Using a stop |
| you to know. I guess it could be worse. I remember | | | | loss or some variant can help your selling strategy, |
| reading some years ago that 97 percent of all | | | | but when it is time to sell, you must. |
| gamblers in the UK lose over time. | | | | Before you start on your own private stock |
| There are several reasons for why the majority of | | | | exchange odyssey, you need to invest time and |
| investors lose money. The main one is almost | | | | effort to learn the basic (and some more advanced) |
| certainly due to knowledge. Whilst it is not my | | | | skills. These will help you for years to come. You |
| intention to suggest that insider knowledge is used, it | | | | then need to commit to continual improvement in |
| is hard to imagine that some unscrupulous traders are | | | | your knowledge and skills. This is what will keep you |
| not involved. | | | | up with 'the game'. |
| What is more important is that many or most private | | | | You may also find that you need some form of |
| investors simply do not conduct enough research into | | | | computer monitoring software. Many of the services |
| the firms in which they plan to invest. Company | | | | allow real time price data. This will help you to |
| accounts are not looked at or only briefly. | | | | accuately track your performance over time and |
| Competitors are not assessed thoroughly. | | | | alert you to any important news about your |
| The stock exchange is a very competitive place to | | | | companies. For medium to large investors, such |
| make money. All those red braces wearing | | | | software is worth its weight in gold. |
| investment banker types take the game very | | | | As time passes, you will need to understand the |
| seriously and so should we private investors if we | | | | basics of asset allocation. This will help to prevent |
| plan to win. | | | | you from having all of your net worth tied up in |
| In fact, the stock exchange is so competitive that at | | | | company stocks and thus will help to provide more |
| times even some of these investment banks fail to | | | | stability to your personal finances. As your net worth |
| make a profit, despite all the advantages they hold | | | | grows, it becomes ever more important to be |
| over the rest of us. | | | | diversified so that your future is tied less and less to |
| Therefore, we private investors need to work very | | | | the results of the stock exchange. |
| hard to compete. It is possible. The markets are so | | | | In conclusion, the stock exchange is a place where |
| large that many private investors can earn a | | | | fortunes can be made and lost, but only the hard |
| comfortable living online. | | | | working are likely to prosper. Good luck. |
| It is also vital to be disciplined and to follow | | | | |