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How to Position yourself for Stock Investment

2010-05-01 02:58
Every man on earth has been given the law of multiplication: Go into the world and multiply. Multiplication cannot take place until investment is applied. Investment is like a seed; when planted it germinates to produce fruits. You will always bear the consequences of not delivering this potential to the society. Everyone has been given ability to invest no matter how small their income is. Even the poorest man has this ability. And your status in life is rated by your ability to do investment.

INVESTMENT STATUS Investment status is the capacity of an investor at a particular point in time to invest. It can be measured financially in terms of cash or in terms of information available to the investor; or in terms of the zeal possessed by such investor whatever the case, it is a proven fact that nothing else can improve your status in life except investment. As long as earth remains, seed time and harvest shall not cease.

Types of investment Definitely there are different classes of investors and the type you belong is a determining factor in your position, in the wealth hierarchy, in the stock market. The types are:

Active Investors These are the people who trade with their investments. These types of investors are capable of raking in 100% returns from their investments. This is the millionaire group and only few have been able to tap into this wealth resource.

Passive Investors These are the people who put their money in stocks or investments and expect excessive interests in terms of dividends and bonuses. Many small and medium scale investors (SMSI) belong to this group.

Portfolio Builders These are the people who build their investments gradually for the sake of the future, not minding whether there is dividend or not. Call them pensioners but their generations will never beg in life.

Poverty Victims These are the people who store their money in investments that yield little or not profit. These sets of investors are characterized by: (1) Fears of loss (2) Feeling of “I don’t have enough to invest” (3) Slothfulness (4) Wickedness, blaming the economy, blaming their present predicaments on their past misfortunes etc.

The Best Investors The first two kinds of investors are short-term investors and most times, they are involved in stock trading. The third kind of investor is a long term and he looks to the future.

The fourth kind of person will not always get returns on investment, rather, he gets punishments like inability to train wards in higher institutions, suffering at old age (Retirement), and as the bible puts it, “the little they have will be taken from them and given to those who already have.” That is why the saying that, the rich will continue to get richer and the poor will continue to get poorer, may just keep a date with you until you change your mindset in the right direction.

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