There are two basic fundamental principles that you must first understand if you ever want to become a successful stock investor. Let's call them Little Secrets since there is still an incredible large group of people who don't know about them, refuse to believe it or just ignore it. If you happened to fall into this group, these two stock market secrets will rock your world. Read them, memorize them, and tell them to everyone you care about, but whatever you do don't disregard them!

The stock market little secret number one is that "there is no secret rule or magic formula for guaranteed profit".

The stock market little secret number two is that "secret number one is always true, whoever claims that it isn't is a liar, scammer or woefully ignorant".

Disregarding or not knowing about these two little secrets is one of the main reasons why stock investors are often losing or wasting their money. Countless precious hours and money are wasted looking for the next "hot tip" and products that never deliver the amazing profits they promise. Most articles in magazines you read or on the internet are also full of phony recommendations written by self-proclaimed "experts" whose only objective is to make as much money as possible from you.

One of the most realistic way to become a successful investor could be achieved by doing the following:

Educating Yourself

Start reading books/articles/magazines from trustful sources and try to absorb as much knowledge as possible about stocks and investing. You could also take classes which explain the principles of Personal Finance or Investment Basics.

Finding a Successful Mentor

Go and seek advice from someone you know who attained good profits and is genuinely willing to help. Someone who has the investing experience in buying and selling stocks can prevent you from making mistakes he/she made himself and teach lessons which would usually take a long period to learn.

Always ensure that you do research about the company you are going to buy stocks of. Keep aware not to invest all of your money in one lump sum or stock. Buy more than a few different types of stocks, in different industries so you are more secure if one doesn't do well.

Investing in mutual funds are also a possibility where you put your money into a fund. A full-time investment manager then adds that money to the combined capital that everyone puts in and buys stocks with it. The profits that you are going to recieved then depends on if the stocks performed well and how much you put into the shared fund. This can also be a safe way of investing in stocks if you don't want to put too much time into researching stocks, but only if the investment manager is trustworthy and experienced enough.

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