You can recognize the regular, ordinary, mediocre investors in a minute. They make money when the economy grows. They sell their shirts when the recession starts.
Photo by thinkpanama at Flickr
Wanna be one of them?
I bet no. You beg to differ too. How to be a different, successful investor no matter on the current economical situation?
1. Buy at low times. I’ll keep saying this again and again. When everyone sells, you should buy. When the prices are falling, you should buy.
2. Borrow money. If you don’t have money to buy now, borrow them. A good deal is always a good deal – a good deal beats the loan interests. So don’t miss the good deals just because you can’t afford them.
3. Save regularly. The successful investors always spend less than they make. The key reason for the rest of people to live in the rat race is that they spend more than they make.
4. Sell at high times. When the prices are growing and everyone is buying like crazy, it’s your time to capitalize these profits. You may miss some further price increase? Possible. But when the prices of anything (example: houses) are so high that they don’t make sense, chances are the prices will drop (example: houses).
5. Don’t do what the masses do. When everyone buys gold, you look for something else. When everyone takes loans, you get out of debt.
6. Use the banks. The banks are your friends. They’ll lend you money and good price when you need to make a good deal.
7. Follow the other sharks. There are always people who are ahead of the others in their investments. Why reinvent the wheel when you can just follow them. Some of them even have blogs *sigh*
8. Be creative. Investing is an art. Don’t expect to find the coolest investment in the newspapers. Be creative. Think what will be hot next year, next two years or ten years ahead – and reserve your “ticket” to it from now. (Don’t you wish that few years ago you invested in petrol? Was it so hard to predict the huge raise in price?)
9. Ideas are the best investment. That’s true, not gold, not properties, but ideas. One guy made an ugly web page and earned a million. Wouldn’t it be nice if you bought his idea for $1,000?
10. When there are no good deals, invest in yourself. When you don’t know where to invest, don’t forget your mind is your most valuable asset. Educate yourself, buy books, go to seminars, subscribe to membership services. You never know which one of them will significantly change your life – usually for few hundred bucks.
I hope I gave you some good food for thought. Do you have some more?