This would require the investor to have in place an investment system with all its checks and balances. This would include investment strategy and tactics with all their accompanying rules. Fundamental and technical analysis and their relevance to the financial instrument targeted for investment.
In conclusion, from the 'why' we get the aim. From the 'what', we are able to think, analyze and act. From the 'where' we see the financial instruments available for investment. From the 'when' we have an understanding when to invest or divest. And from the 'how' we get our investment system.
I must caution you at this stage. That whichever the financial instrument chosen for investment, there will be ups and there will be downs. Good and bad decisions will be made.
Investment and its management are not gambling; it is an art, which is as interesting or as boring as you make it to be. It is an ongoing process and would require adjustments from time to time to optimize and maintain the expected rate of return on our investments. The main aim being to be ahead and above of inflation.
Although, the above description of how to invest may sound to be a bit simplistic; it would be fair to say that to achieve a certain amount of expertise in matters of investment it would take many years of study, analysis and action. In addition to the financial papers or the annual reports of corporate entities, the investor would also be required to have a certain amount of theoretical knowledge and the wisdom to apply such knowledge in real time investment decision successfully.
