How I Went From A Losing Investor To A Profitable Investor
I am very fortunate in that I now make pretty good profits from my trading and investing. However it wasn’t always like that. In fact I made every mistake going when I first started trading stocks about ten years ago. Nevertheless I have evolved as an investor and have definitely learnt from my mistakes.
Right at the beginning my goal was to make big profits. I didn’t have huge amounts of money to play with, so I was relying on finding some potential multi-baggers amongst the small cap stocks. After all many people get rich when one of their companies becomes hugely successful and their share price subsequently rockets.
However this never really happened for me. The companies I invested in were very high risk when I look back at them now, and they never really came close to fulfilling their potential. As a result of this I ended up losing most of my money and quit investing for a while. Eventually I was soon back again though, once I had some more capital to invest.
To be honest I still invested in a few small cap stocks in the next few years, and again they weren’t that successful. This was actually a good thing though because as I started earning more money from my other activities, I realised that it was a much better idea to invest in mid and large cap stocks instead.
This was the biggest change I made and resulted in me having a big change in fortunes. I now have a few strategies that I use to trade these stocks, and I can generally make fairly consistent profits from both short term and long term investing.
I tend to only trade those companies that have consistent earnings and dividend growth, and this has definitely helped me become a successful trader and investor. The great thing about these stocks is that even if you get your timing wrong when you buy the shares, you can still make money in a lot of cases if you hold on long enough due to the consistent earnings growth.
So the point I want to get across is that I think everyone struggles to make decent profits when they first start investing their own money. However if you are able to evolve as an investor, then there is no reason why you cannot become successful yourself. After all if I can do it, then anybody can.
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