The Bull Hunters Guide

Welcome back. We’re glad you enjoy reading advice on how to invest wisely. Continuing from where we left off in part four of developing the success mentality for investing, we’re going to move towards covering another critical thinking skill that applies to ensuring that your investments are always sensible choices.

It’s Not All About Crunching Numbers

A lot of amateur investors are often told that they should bury their head in the market journals and utilize mathematical formulas for determining successful investment strategies. This is something basic that works, but it can only take you so far. In fact, crunching numbers is only useful when you couple it with what those numbers represent the real world.

Changing values can alert you to opportunities and risks, but they don’t necessarily tell you what those opportunities or risks are. When it comes to making those brilliant choices that the best investors are famous for, it often boils down to evaluating and paying close attention to business practices, employee behavior, and press correspondence.

Pay Attention To The Company Behind The Stock

This mindset is called qualitative evaluation, and it’s basically a matter of inferring changes and deducing market reactions to the things that occur with the key players and participants behind stock-based companies. Very much like being a detective, you have to be willing to forget the numbers and investigate the idiosyncrasies of a company and its behavior.

For example, in 2002, during a Ciena Corporation conference call, Gary Smith, their CEO, was talking. A very festive event, Smith maintained a jubilant attitude regarding the future of his company. However, some individuals recognized Smith’s unusual usage of the term”difficult” and his tone of voice when talking about the economic landscape for telecommunications.

While most basic investors would never have paid attention to this, the shrewd purveyors of fortune knew that this indicated troubled times ahead for the company. Sure enough, almost half of the stocks were sold off only months after the conference, despite optimism.

Always pay attention to what affects your stock directly. Numbers are representations, so you should turn to what they represent and pay attention to the happenings of businesses and the people that run them. This concludes today’s lesson. Don’t leave us however, as we still have more to cover for this series!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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Greetings! Today, we’re starting a new series on developing your success mentality for investing. It’s always smart to pay attention to the solid tips and strategies that help you make good investment choices. They’re practical tidbits of financial exercise which you can incorporate into your own stock market investing philosophy.

The Mentality Of Successful Investing

That leads exactly to where we’re going to start things off. Even though good tips represent solid ideas to pursue, any choice made begins with your own understanding of investing and the mentality that goes behind it.

Success is far more achievable if you can adjust your trading psychology for success and allow your behavior to work for you, instead of against you.

In the following entries of this series, we’re going to cover some basic concepts of  having the success mentality of a high-roller.

Whether you’re starting off with investing and have no history, or you have plenty of experience and a rock-solid portfolio of dependable shares, you’ll find something to learn with the advice you’ll find in the articles that are to come.

Basically, we’re going to discuss how those investors who adapt a sense of courage, a flexible attitude, and allow their natural skills of foresight to develop into a useful tool for analysis are often the leaders of stock market success.

Focusing On The Big Picture

It definitely has been proven that concrete efforts such as crunching numbers and engaging in quantitative analysis pay off, but having the mindset to deal with investing from all perspectives gives you the ability to see complex systems and basic common sense side by side.

When you focus on only one or the other, you can lose out due either to obvious oversights or being oblivious to hidden methods with extreme profit potential.

Now that you got an idea of what we’re talking about, we’re going to get into the specifics and address several key aspects of developing your success mentality so you can make the most out of your money and know how to truly work the market for what its worth. Stay sharp and keep checking back for the next chapter in this ongoing series!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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