Numerous surveys show that the vastmajority of physicians don't haveany sort of detailed investment strategy.But by following a few basic educationalprocedures, doctors can buck thetrend and gain enough knowledge tomake the most of their stock marketinvesting. Consider the following points:
• Don't treat investing as a hobbyâ€”Although it's important that you maintainthe final say as to where yourmoney is going, it's even more crucialthat you realize your limitations. Just asyou spent many years studying to be aphysician, quality financial advisorswork long and hard at their profession.Unless you're an expert in the field orhave significant knowledge about a specificstock, it's wise to consult a financialauthority. Once you've gathered thatunbiased advice, then you can make aneducated decision on an investment.
Reminiscencesof a Stock Operator
The Intelligent Investor
TheGeneral Theory of Employment, Interest,and Money
• Be a student of historyâ€”One ofthe best ways to recognize sound adviceis to become an educated investor yourself.Study the history of the market todevelop a general understanding. Thereare many respected investing booksthat may serve you well, such as (JohnWiley and Sons; 1994) by Edwin Lefevre, (HarperBusiness;1985) by Benjamin Graham, and (Prometheus Books;1997) by John Maynard Keynes. A littlehistory lesson may help you to spottrends and useful market patterns.
• Listen to the marketâ€”Basically,this means you have to pay attention. Ifyou observe a trend in the market thatdoesn't seem to make sense, take a stepback, research the investment, look atwhat some of the experts are doing, andinvest accordingly. For example, oilprices were dropping recently, but oilstocks didn't move. If you were payingattention to the market, you realized itmeant the price of oil was probably notgoing to continue its downward movement.Don't rush into anything, andremember that if it seems too good tobe true, it probably is.
• Trust your judgmentâ€”In the end,after you've conducted your research,consulted the experts, examined themarket, and thought it through, you'llhave to make the call. Any investment isa gamble, but if you've taken the propersteps in your education, you shouldhave a solid chance to make the mostwith your money.