Often people are confused not sure which way to go, what to invest. I hope the following tips would help you.
Here are some investment tips:
1. Stay focus and invested
No matter what you do, you must always understand what is it that you are doing. If you have already bought an undervalued stock or any unit trust or any other investing tool that does not have any threat of being closed down, keep them. Never sell them away during bad times and buy at good times! You are supposed to buy more at bad times and sell at super good times so that it's buy low and sell high!
2. Right Company, Right Management and Right Price
Ensure that you've bought the right company with the right management at the right price. The right company with the right management is one that everyone dreams of becoming their boss, such as companies like SMRT, Singpost etc, one that will always be in business and continue to make money no matter what market condition it is. The right price means that when you buy the stock, you know that you'll definitely make money as the price you paid for is about at least 20-50% below the price that company is worth.
3. Diversify your exposure
Buy a few companies from different industries that you know of and understands. Try not to put all your eggs into 1 basket unless you are 100% sure that it's the best basket to put and you will definitely make more money that way. Otherwise, it's best to spread it over a 5-8 baskets. Try not to go beyond that as it's hard to managed that way.
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