Seven Habits of Highly Profitable Investor 1: Be Proactive

To be a highly profitable investor, we must be proactive in every aspect in our investing life.

Firstly, we must be proactive in learning how to invest by yourself rather than dependent on other. The worst thing to do is to let people invest for you as people will not be responsible for your losses. Also you must not ask for tips from your relative, friend, colleague or even your broker. Remember no one is to be trusted. All the investment must be based on your own decision and own your analysis.

Secondly, we must be proactive in learning how to select your stocks based on the fundamental of the companies. Don’t invest in anything that you never hear or have little knowledge in it. Spend some time understand the company financial status by reading the annual report. Remember, don’t ever invest in companies that have been losing money or facing bankruptcy.

Thirdly, we must be proactive to derive your own way to calculate the buying price and selling price for stocks that you are interested in. This is to prevent you to buy at a high price or sell at a low price. As for me, I will normally base on yield of the stocks and basic Technical Analysis (TA) to determine the buying price and selling price. For others, they may have other way to doing the calculation.