Thursday, April 06, 2006

Speculate In What You Know

Yes speculating is better than investment - but where do you start speculating?

Are you an artist, a doctor, a workman?

Consider speculating first in what you know by analyzing trends in your area of knowledge.

A bricklayer that invests in diamonds is probably buying cut glass. A bricklayer that sees growth in his geographical area and buys a local gravel pit may find it more valuable than diamonds.

When someone calls you about their great opportunity, hang up. Research what you know, and seek out your own opportunity. If someone calls you it is to sell you something to benefit themselves - when you are ready call the best source and control your own transaction.

Plan your speculation, speculate your plan.

Don't suddenly switch due to a news report or a friend's report of success. If everyone that is excited has bought, who will they sell to? Know well in advance what you plan to do, when the moment arrives, do it.

A solid
Speculation Rule: Buy when almost everyone has sold, sell when almost everyone has bought.

But what is most important?

Speculate in what you know.

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