Top 5 investments secrets from peter lynch | Peter lynch investing methods

 1) Secret no 1

Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets. Always look at the balance sheet to see it the company is best before risking your money on it.

2) Secret no 2

Everyone has the brainpower to make money in stocks. But not everyone has the stomach. If you are susceptible to selling everything in a panic, you should avoid stocks and mutual funds.

3) Secret no 3

There is no correlation between the success of a company's operations and the success of its stock over a few months or even years. In the long term, there is 100% correlation between the success of the company and the success of the stock. This is disparity is the key to making money

4) Secret no 4

Owing stock like having children don't get involved with more than you can handle. Having less than 5 companies in the portfolio makes sense.

5) Secret no 5

If you can't find any companies that you think are attractive, put your money in the bank until you discover some...