Character Description:

The Stock Investor is the most common character type. There are other types of assets, but stocks are usually the first thing people think about when investing.

What are stocks?

Stocks are essentially parts of a company. When you buy a stock, you own a piece of that company and you become a shareholder.

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Important Tips:

• “Buy on fear, sell on greed” (Warren Buffet). This is NOT as easy as is said. (Buy low, sell high)

• We are emotional creatures and it is so easy to let emotions affect us. Most people will end up doing the exact opposite, which is “selling on fear, buying on greed”. (Buy high, sell low)

• "Risk does not necessarily equal return. Work = return" (Benjamin Graham, Warren Buffet's teacher)

• "Diversification may preserve wealth, but concentration builds wealth" (Warren Buffet)

• The only way you will learn is: get exposure and see how it feels. Learn the psychology of the stock market.

• Whenever you take action (buy or sell), put it in a journal entry. Write down why you did it and how you felt. By doing this, You can reflect back on you decisions.

• Invest in what you know! What you do every day gives you an edge!

• There is a common misconception that people have that the stock market = the economy. Remember, THE STOCK MARKET and THE ECONOMY ARE TWO DIFFERENT THINGS. The stock market can be irrational and does NOT necessarily reflect the economy.

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