The famous investor Warren Buffet also has one of his most important quotes: “Do not invest in something that you do not understand”. This is of course logical. Many invest in something they don’t really do what the company does from the market. If you do not know this, it is not wise to invest anything at all. So never invest in something that doesn’t understand!
This tip is crucial. To be able to analyze a share, you must also be in the company and the sector in which the company is located. If steel and nothing interests, it is wise to do with the ASML aandelen in Nederland.
2. Make a distinction between investment methods
Many investors do not understand the difference between short-term investing and long-term investing. It is crucial to understand this! For short-term investments, technical analysis is the most important! Fundamental analysis is the most important thing for long-term investments! Go to the common pages and make sure that you can make this distinction!
By knowing what the difference is, you have ensured that large returns can be achieved. Is the outstanding amount that the exit credit, the actual amount of the outstanding amount, any contribution abroad. If we look at the short term, it can be concluded that the price can show large fluctuations. These fluctuations are less important over a somewhat longer period. This is also the reason that there is a distinction between short and long-term investments.
3. Act as an interested party
Shares between an ownership interest in a company. If you buy a share it is also important to behave a company to be the company. For long-term investments you ensure that you analyze the annual financial reports, assess the competitive position of the company and make predictions about trends. It is also important to remain your beliefs and not to act impulsively! This is completely different for short-term investments (see tip 2).