Wednesday, July 2, 2008

Investment strategy for Beginner

I aware that, a lot of people steps into shares investment. Firstly, they will buy a lot of theory books to study. It seems like hidden in the hole without knowing the neighbour.

In my investment strategy, practical is very important. Usually I will apply daily trading record to refer the theory. It may help you easy understand the actual situation in the market.
The second important is, you always must involved in the real bear run environment. It will help you know more the basic theory of investment.

Example, if market heavily adjustment on the particular day, you can understand which is the main factor to impact the market adjust lower. The book can not teach you and tell you today what is happening. It is better than you have study 20 years or 20 thousand books in your lifetime.

Of course, you can not totally ignore the investment book written by someone who experience. It consists of history and basic guide, its assist you understand more about basic/necessary theory. But in the current economic environment, rapid change or fluctuation is one of the important factor or issue in the monetary market. Without changes in the every second means no profit or gain. If you continue apply one theory or one book, it will bring you to continue registered losses in you investment profile.

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