Investing shouldn’t be like work. Investing should be simple and uncomplicated. Many investors who fail very well might become more successful if they avoided chasing after the latest, greatest trend and instead headed in a different direction with their portfolio. It is natural to want to be successful and to desire to follow the success that others are having in the market but often this attitude leads to emotional investing filled with desperation and greed as you search for that opportunity that is about to become breaking news.

Basic investing involves several very simple principles. Long term investing and becoming a wise investor isn’t difficult. It does require some knowledge. Often when we find out about a new investment that others are making money with, we lose time researching and trying to understand the market and the lay of the land. By the time we are knowledgeable about the market, the time to enter the market has passed. This type of frantic investing will almost always end poorly for the novice investor and it should be avoided at all cost.

In order to find more success and have more fun you might want to pick investments that interests you. Find a niche or market that you already enjoy learning about and which you are already knowledgeable about. The amount of time spent researching a certain company, trend or investment will be reduced and you might already have some information on what the market is doing without even having to dig too deeply. Being somewhat of an expert already in a certain market or at least having a working understanding of trends, predictions and worth are all skills that you already posses.

Let’s say that you already love fine art. You visit galleries and you have a background in art and different artists. You have an eye for art and you wish that you had the money to fully invest in a few nice pieces of art. It makes absolutely no sense for you to spend days, weeks or months getting up to speed so you can understand the trends and how the stock market is trading in relation to a particular stock that you heard was about to take off. Sure, it’s always a good idea to remove the emotion from your investing but lacking basic knowledge is always a bad move. If you do decide to move forward, you will likely grow to despise the task of continued research and checking on this stock or the market. Even though your investments should be taken seriously, having some emotional interest vested other than the desire to turn a profit will help you in the long run. You will be more attentive and happier spending your spare time keeping up on trends and doing further research.

While investing in a hobby or something that you’re interested in is all well and good, ensuring that your interest has some monetary value is important. Also, knowing the market and being able to spot a bargain is where you can capitalize on your passion and interest in the particular market or object. Being an expert or at least more knowledgeable than your typical investor is your edge. It enables you to spot an opportunity more quickly than the general public and act decisively while others either can’t see the potential value or they are wrapped up in researching and making a decision.

For instance, let’s say that you have a background in art or antiques. You go to an auction and you find something that seems to have been overlooked by others at the auction. There’s a piece that you know is valuable yet its true value isn’t understood by the audience. Or maybe there’s a small company with great potential in a market that you know very well. The stock is at a good price and they have a product that they are releasing that you know will make their name a household item in the near future. This is your opportunity to use your interest and knowledge to get in on a deal that others might hesitate at. You will be the trend setter. You will be the one with the eye for a great opportunity.

In the end, your goal needs to be to buy low and sell high. Everybody knows this. With your interest in the market and your knowledge about what is going on and what very well may happen in the future, you can find bargains and sell at a later date when you feel that you have turned a profit. Whether it be liking the work of a new artist and seeing the potential in that artist’s work or following a small company from its formation through to becoming profitable, your interest and knowledge can pay you big dividends. Having a feel for the market or niche is something that many people struggle with because they don’t have a true interest in the market. Their only concern is making a buck. You are emotionally attached to this market but not so attached that you ride out bad investment or throw good money after bad.

Finding that perfect time to sell an investment is every bit as important as knowing what to buy and when to buy it. Having your ear to the ground and keeping yourself informed about what is going on with your investments is every bit as important as picking the right vehicle for your money. Again, this is why it is so important that you have an interest in the topic, niche or market. If checking on your investments is too much like work then you’re going to avoid it. On the other hand, if you are always reading and checking the news as it relates to your interest then this isn’t work at all.

Putting your interests, likes, dislikes and temperament into your investment portfolio is a wise move. It makes the entire process easier, more fun and often highly profitable. Investing in companies, product or vehicles that you use, believe in and enjoy just makes sense. You will be more likely to keep a watchful eye on your portfolio and finding new opportunities won’t be like work. It will be like fun. Also, when you’re investing based upon what you like there often isn’t a bad investment. That piece of art or antique car that you bought can be enjoyed both during the time that you’re waiting for the opportunity to sell but also if you never sell it, you will always have that material possession to enjoy. This is called a winning investment either way.

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