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Sunday, January 18, 2009

SMART EARNINGS VS INVESTMENTS

Read about the fundamentals of the stocks and the market, attend a seminar or take a class on investing and review online financial sites. Set your goals based on your financial position and a stock-picking strategy. Don't ever buy a stock without first learning about its business and who its competition is. You want to focus on the leaders in an industry. Invest in what you know. Consider the stocks of local companies with which you are familiar and in which you have confidence. Check out the past of the stock that you are going to buy. Invest in more than one or two stock so that lose in one stock can recover from the profit in the another one. Buy stocks that you will feel comfortable holding. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance...

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