An investor does not have to be a Wall Street Wizard to earn money on the stock market. Over the years, millions of individuals have earned money in investing in stocks as well as most of Wall Street's Wizards-by following four simple investment principles.
They invest regularly over their lifetime without trying to guess which way the stock market is going.
They reinvest their earnings and dividends.
They learn how to select stocks which have good prospects of being worth substantially more five years in the future.
They diversify their investments.
The third one sounds difficult, but most amateur investors are stymied by the first two. When the market goes down for a year, they decide to quit and wait for a change in direction. Those who continue can beat Wall Street.
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