The Secret of Successful Investment

Posted: 04 Mar 2008 | Categories: Investing

Investment according to the web definition is the use of money through various vehicles, or an individual’s time and effort, to make more income or increase capital, or both.

According to Union Registrars Investment Education Series the extent of learning, awareness, information, practical skill and acquaintance shapes the course of every human endeavor and makes a huge difference between failure and success. To be able to invest properly and to have maximum benefit requires knowledge in a specific area of interest. Except you have information relevant to where you are going to, you may never get there or you may even eventually get there but after much stress, waste of time and resources. For instance if you decide to go to New York from Nigeria, you must know where to go and get a ticket for the flight that is going to New York and not any flight going to America. If not, you may end up in Texas and then re-route to New York! You must have an idea of the direction the flight should take whether north or southwards.

Without knowledge it is difficult to make meaningful any thing in life. If you do not know how a thing works, of course, you cannot use it and neither would you be able to utilize any other benefit flowing from its use. A lot is usually lost from lack of knowledge and even the bible has said people perish for lack of knowledge. For instance how many people have lost money from not knowing that they can trade their rights issue and even make money than forfeit the rights because they have no money to take up the rights? How many are losing money they could have gained through trading their stocks because they cannot think of parting with their share certificates to a Stock Broker? How many people earning a regular income have lost the opportunity to purchase a higher amount of shares just because they do not know that some banks or other institutions give loans specifically to purchase shares? How many people know what it means to minimize one’s risk in stocks by diversifying in the stock market? Yet in the above instances the people involved are all “investors” who do not have these knowledge, and this lack of knowledge would continue to limit what they can benefit from their investments.

The only way to have this knowledge is by educating yourself on these issues. Once you are interested in an area, for instance investing in shares, then make sure you get information on how you can get a good Stock Broker, how to know a good stock to buy, when to dispose and hold stocks etc. You may be wondering where you can get such information. Virtually all newspapers have a business page where they write on such issues, some even have columns that educate you on such issues and there are also specialized papers that deal with such issues, then there are tapes, and books written on such issues including periodicals that are focused on giving you tips to improve your financial life. In fact where to get knowledge is all around you, the only problem is that most people do not realize the importance of getting knowledge thus they commit little or no money into getting it. Unfortunately, some commit a lot of money into it but have only head knowledge of these issues but hardly apply this knowledge to their lives, consequently their lives remain poorly the same.

In investing in your personal development you must have a plan. This would include the plan on what to purchase, the seminars to attend on such topics or even getting someone to mentor you. Decide on the number of books, tapes you would buy, the number of seminars you would attend every year and these should be on a particular topic of interest to you. Get focused.

Doing these means investing in knowledge because without knowledge you cannot make any meaningful investment no matter the amount of money you may have. You may even make an investment running into hundreds of thousands that would flop just because you were unaware of an issue. Knowledge on its own can hardly do much for you but applied knowledge certainly makes a huge difference between failure and success.

Remember that you would only succeed in what you do if you act on new knowledge acquired. Why don’t you TAKE ACTION on what you have read TODAY?

Christine is a Lawyer and Wealth Creation Strategist. For more Free Take Action and Wealth Tips visit http://takeactiontosucceed.com

Article Author :Christine_Vidal-wachuku