entrepreneurship · sales motivation · wealth creation · networking
Three Questions
By Nate Monroe 6 months ago
Most people invest with little foresight or, worse, pure hindsight. Just because a particular security has had a run in value does not mean it will continue to do so in the future. Conversely, stocks that have had drastic declines may not in the future. Too few people ‘throw darts at a board’ when investing in stocks and other securities and, should they make some good gains relative to the general market, too often do they attribute their gains to their stock picking savvy when, in fact, it is sheer random luck. When investing in stocks, it is very important to have a methodology. [Potential] stock investors should be able to answer these three basic questions when investing in stocks and do so in a methodical, systematic way – anything else is ‘throwing darts at a board’:
1. What to buy?2. When to sell?3. What to buy with the proceeds of the sale? The first question is the most obvious and perhaps the easiest. There is many ways to identify potential opportunities. Unfortunately, most investors get caught up in this question perpetually and have no rhyme or reason to when they sell a stock which leads us to our next question… The decision to sell a stock is one of the most critical as any stock investor will tell you. ‘Buy low and sell high’ is the adage – however, you must be able to identify what low is and then, perhaps more importantly, identify what high is. A gut feeling is again, nothing more than ‘throwing darts at a board’. Buying something after a sale again poses a question, how can we best utilize this resource (money)? A methodology provides a platform to be able to readily answer this question and always have your money working for you. The goal of investing is to perpetually reallocate to have the most optimal portfolio while minimizing risk. If you can answer those three questions (and put it into practice), you are taking the first steps towards successful stock investing.
Please email Nate Monroe with any questions or comments that you might have. Moneypetenate@gmail.com
