Saturday, November 04, 2006

You Invest, I Invest

Does this sound familiar? “You jump, I jump” from the movie of "Titanic". In financial, this is suicide. You can’t practice this in investment.

Many people invest simply because others around them are investing. When you ask them, what do you guys invest? They normally will reply, “Huh? I just know the investment A can earn lot money. Person A already gets $10k return out of it and many people are recommending this investment. Even if you do trust that person very well, try to discuss with him to find out the reason why he says so. In a way, you gain some knowledge too rather than just trust the guy blindly. If he doesn’t know, try to do some research why many people recommend that investment. What are the advantages and disadvantages? Does this investment help my personal financial goal? If I lost in this investment, what is the impact to my personal financial goal? Do all the homework and make your own judgment.

Remember, just don’t practice “You jump, I jump” in investment. It doesn’t work. A good investor doesn’t act that way. Follow them. Do homework!!!


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