Be Sure to Do Lots of Background Reading
by Cody
(Guildford, England)
Whilst I am an investor rather than a trader, I find that the amount of relevant information I read has a direct impact on my results.
We all know that it is important to follow the markets, but seeing the daily stories in the Financial Times / Wall Street Journal etc is vital. If you believe in efficient markets - which I don't really - the theory is that all market participants (including you and I) know all of the relevant information.
This isn't easy, but if you aren't really trying to follow the press and trade journals of companies and industries that you are investing or trading in, you are a long way behind others. That is not good.
So as well as reading the daily press on and offline relating to areas of interest, I also try and read the trade magazines and annual reports of these firms. It certainly adds more time and effort to the job of investing, but I am convinced that it is worthwhile.
Good luck!
Cody
www.investment-for-beginners.com
