| nvestor, whether in stocks, options, futures, | | | | tracking down and networking with others who |
| property, business or any other form of investment, | | | | know what you don't know. |
| has the same three enemies. These enemies have | | | | The first skill to learn is how to know when you |
| caused more investment loss than all other reasons | | | | know and when you don't. If you think being aware |
| put together. I will identify these enemies for you | | | | of what you know and what you don't know is easy |
| and give you some tips for defeating them. | | | | and obvious then look at almost any teenager. They |
| The first enemy is fear. | | | | know virtually nothing about life, yet they are so |
| Everyone needs a certain amount of fear in order to | | | | totally unaware of this simple fact, that they come |
| function effectively in the world. If you were totally | | | | to the conclusion that they know everything. Don't |
| without fear then you may be prone to taking crazy | | | | be a teenager when it comes to investing. |
| risks. However once fear gets beyond the healthy | | | | The third enemy is greed. |
| amount it can be devastating for the investor. | | | | If you addressed a seminar room full of people and |
| Fear of making a mistake has kept many a would be | | | | told them that you could put them into an |
| investor from entering into a sound opportunity. You | | | | investment that would give them a guaranteed |
| can't win the game if you never enter the game. | | | | return of 10% on their money each and every |
| Fear of taking a loss has caused many investors to | | | | month and all they had to do was invest $100,000 |
| stay in an investment long after wisdom would have | | | | then you would find a large number of those people |
| told them to cut their losses and move on. This | | | | running to the bank to mortgage their house so they |
| often leads to huge losses. | | | | could get you the $100,000. |
| The best cure for this type of exaggerated fear is | | | | Why are so many people so gullible? Why are |
| to embrace risk management. Study all you can | | | | conmen stealing people's money every day? Because |
| about risk management and make risk assessment | | | | of greed! |
| and risk management planning two habits so well | | | | Greed drives people to look at the possible profit |
| practiced that they become part of your nature. | | | | without assessing the probable risks. |
| The second enemy is ignorance. | | | | Most investors have a degree of greed and it is a |
| It always amazes me how many people are so keen | | | | constant battle to keep this greed in check. |
| to collect investment profit that they don't take the | | | | Professional stock market traders control greed by |
| time to learn the skills of the game. If you don't | | | | developing a set of trading rules and then also |
| know what you are doing then the market will soon | | | | developing the self discipline to stick to them. |
| chew you up and spit you out broke. | | | | If you are a serious investor then it would be wise |
| As an investor you need to develop a passion for | | | | to step outside yourself and take a solid, realistic |
| learning everything you can about your field of | | | | assessment of where you currently stand in relation |
| investment and you need to develop the skills of | | | | to fear, ignorance and greed. |