Invest | Before You Invest In Stocks, Know Your Motives

Most investors on Wall Street have a family to support. Just like purchasing life insurance, investing in stocks is a way to provide your family with security later on in life. If you buy lottery tickets, plan frequent vacations to Las Vegas, or enter sweepstakes online, you may be doing this for recreation but ultimately you are doing these recreational activities to win a chunk of money that can be put away.

Just like with gambling, the stock market is associated with setbacks. If you are investing for the thrill, think again. Your family security relies on responsible investing. You need to change your mindset if you believe investing in stocks is an exciting motion picture. Investments are real life. Be sure you understand this and your motives before proceeding.

If you are honest with yourself, you will quickly discover that making money is not always the influencing motive to invest. If you thrive off of the thrill of investing, you could land yourself in hot water very quickly. Investors looking for a thrill tend to prefer risky investments. It is important to set a target goal and stick to that goal. Will you be satisfied for a small and consistent return on your money, or do you prefer to make your initial investment and pay little attention to the market's performance. When you have your family's finances in your hands and you invest in stocks, methodical planning is important.

There is no denying the fact that the human species is a species of competition. It is in our nature and that is something that will never change. If you allow your competitive spirit to direct your motives for investing, it can be a recipe for disaster. You must learn the rules of investing to beat the market. You cannot enter the market and expect to automatically know how to invest your money for long-term returns of 12 percent or more.

Learning how to invest is a quest for knowledge. If you want to be a doctor and you diagnose a patient without training, chances are you will not have a long-term career. The same goes for investing. With the right strategies and knowledge, you can beat the market in the long haul. Stop trying to be the hare, and be the steady paced tortoise.