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How to earn from actions?

For the answer to this question suggest to address experience of one of the richest representatives of the present - famous Warren Buffett. In his opinion, investors you should not even try to predict tendencies in stock market or to foresee the forthcoming trends in economy.

In the first part of this article we already considered full senselessness ( hopelessness ) independent active trade ( of speculation ) on share, currency and other markets.

Therefore I suggest you to be focused on Warren Buffett`s recommendations for the answer to the question declared in the name of article now: how to earn from actions ?

The legendary investor gives us very clear, distinct, and the most important - the commercialization methods which are easily repeated by everyone from operations with securities.

the Guide to investment

the Rule first

Take shares of the large companies while they experience temporary difficulties and/or when it is considerable the stock market falls off ( and respectively, stock quotations of these strong companies strongly fall ).

I will explain on an example: from - for the fact that stock quotations of Gazprom fell it did not stop being Gazprom - the most powerful gas enterprise with huge reserves of gas, the developed system of pipelines and long-term contracts for delivery of gas concluded with many countries.

I very much like to take shares when around global financial crisis rages. Same the real sale of good stocks of the qualitative companies at the ridiculous price. It is just some holiday!

The rule second

Properly analyse activity of the company before taking its shares. If you cannot understand how business of the company functions ( from where money undertakes and at the expense of what ), then do not take the share of this company at all.

It is very important to you to understand well this segment of the market, to understand efficiency existing in the company business - processes, to know all competitors and the strengths.

According to U. Buffett, before purchase of shares it is necessary to ask itself a test question: if I had money, I would buy this company entirely ? If after the analysis which is carried out by you you are ready to become its individual owner, then only in this case you have full moral authority to buy a quantity of stocks of this company ( in other words, to become her co-owner ).

Actions will well feel because their destiny is closely connected with results of business of the company. And as you thoroughly understand business and for 100 percent are sure of success of this company - then why to you perezhivatyiz - for temporary fluctuations of quotations of its actions on the stock exchange?

You have to acquire that recessions in economy ( of recession and financial crises ) will constantly happen. But it should not disturb at all you as you will be calmed by these figures: in the XX century the Dow Jones Industrials index grew from 66 to 11497 points. It is 17320 percent of growth! all this

I, despite two world wars, the Great Depression and a set of financial crises.

Therefore safely take shares of the big solid companies and do not pay attention to appeals of investment companies to participate in purchase and sale of shares, currencies etc.

Remember that time works for us, and frequent trade operations bring in the income only to investment companies, but not you! Be vigilant, do not trust advertizing slogans, and then your personal finance will always be in a full order.