Economic predictions are reliable and form a strong foundation for success 2. Key to investing is identifying companies whose earnings can be expected to grow faster than average thanks to superior products, marketing or management. A smart investor can predict which way the market is going and which stocks will go up most. Knowing when the market will fall is central to investment success. To preserve your capital, get out of the market when it is about to go down.
Successful investors move in and out of the market with uncanny skill.
Their portfolios benefit from a hands-on approach. It is fairly easy to spot good companies by examining their financial data and determining what their stock should be worth. An astute investor can make a killings on under-priced stocks, acting before other investors catch on. Charting past price movements helps predict future price moves. It's easy to choose good funds because their past track record is a reliable indicator of future success.