There are many great investors out there. Carlos Slim is one of them. In fact, this world famous Mexican entrepreneur is currently the richest man on planet, according to Forbes. But we will not talk about Slim this time. We want to talk about the third richest man and a person who revolutionized the whole concept of investing. His name is Warren Buffet.
Today, Warren Buffet is a role model for a huge army of XTrade Europe investors around the world and people who share the same dream: achieving at least a fraction of his success.
Before we see what we can learn from this great and remarkable man, here are a few facts about the guru of modern investing:
Buffet comes from the family where business and investing were nothing strange. His father was pretty much successful stock trader and newspaper seller. Buffet senior gave initial knowledge about world of trading to his son, who, on the other hand, was more than willing to learn. And it was the perfect combination.
Warren showed a huge talent for numbers and recognizing hidden business opportunities from the very beginning, which helped him a lot during his brilliant career. This ability to predict movements on the global market was one of the biggest reasons why people started to call him “The Oracle of Omaha”. This Nickname is still valid.
OK, now it is time to see what Buffet say about investing and how we can use these suggestions to improve our online trading. This is something that all XTrade Europe traders should apply right away.
#1 No matter what you do, preserving the capital should be your first goal.
Contrary to dominant opinion, chasing more money is not the most important thing. We should focus all our attention on preserving the precious capital we have instead. It is a matter of common sense. If we lose all our money, we will not be able to continue with investing. This is the reason why avoiding huge loses is a skill that is the most valuable in the word of online investing.
#2 Insist on long-term positions
The ideal holding period would be “forever”, advices Warren Buffet. And he is right. With short- positions we can earn instant money, but with some really long ones, we can financially secure our life for good. Of course, finding such opportunities is probably the hardest thing in online business, but we should never stop searching them.
#3 Think outside the box
We can become superb investors only if we use all our imagination and creativity and in the same time follow the trading discipline when trading through your XTrade Europe account. In other words, we must not go with the flow. This is the road that can lead us only to averageness. We should avoid following huge trends because they usually end up in some kind of catastrophe.
#4 Understand the difference between price and value
This is our favorite Buffet’s lesson. Just think about it for the second. When you buy certain things, you pay certain price for its value. Both categories are changeable, but they are not the same. You can pay something more than it actual worth and vice versa. Use this knowledge when investing with XTrade Europe.