Fundamental Investment Skills



Staff member
Jun 15, 2018
The root of many professional mistakes is ignoring simple ideas that seem to experienced people too primitive to pay attention to them. If we consider the world of investment from different angles, we can identify four key skills, on which the results of investor activities dependent more.

The Ability to Distinguish between “Temporarily out of Favor” and “Wrong”

It is very important to distinguish between two situations: “The investment looks unsuccessful because such is the situation in the market” and “The investment looks unsuccessful because it is in fact unsuccessful”. It is difficult to understand the difference between them in real time.


The ability to distinguish them depends on the ability to accurately calculate the chances of the appearance of something that will correct the situation and make the market or company shares grow, which so far look like an unsuccessful investment. Since these chances are always less than 100%, it may take time to understand how well you are able to carry out such calculations. Even if the chances are in your favor, the result may be worse than expected. It is difficult to carry out such calculations. But it is worse (and it is done more often) to forget that first of all it is necessary to distinguish one situation from another.

This article was originally published on - Online Investment Watch Blog.

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