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Financial Resources
5 main points of stocks that you need to know
Wednesday, April 10, 2013
1. A stock is an holder in an company, its underlying value does depend on activity of company.
2. The stock market is a single pendulum that swings between optimism (share too expensive) and pessimism (share too cheap). The investor is a intelligent person who sells to optimists and buys from pessimists.
3. The concept “margin of safety” is very important. Only a way to minimize your risk by using this concept, no matter how exciting an investment seems to be.
4. Buy a stock the lower the better. The lower the price you pay, the higher your return will be.
5. The secret to your financial success is inside yourself. In the end, how your investments behave is much less important than how you behave.
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