How to Make Big Money Safely In Stock Market
by Henry Lu

(6) Successful Value Investing is Hard, But You can Do It!
I certainly do not want to make you to believe that value investing is as easy as reading couple of books. Value investing not only requires tons of knowledge and expertise in financial analysis, accounting, US tax law, US bankruptcy law, etc., it also requires real life training of right psychology to fight against greed and fear in the stock market. It is hard to do.

However, successful investing certainly can be done and I have done it over past decade myself. You certainly want to look at my investing articles of this web site for more information.

(7) You need to start early in value investing
Let's be honest about value investing, it is not a get-rich-quick scam and it takes time to really make living with value investing without need of your regular job. You need large starting principle if you want to make living from stock market investment than your salary.

By reading Warren Buffett's article above, you can pretty much guess that successful value investors can achieve 20% to 30% per year performance consistently over the long run regardless of whether market is bear or bull although it is possible to obtain significantly higher performance in earlier investment years due to smaller fund size and luck. 20% or 30% more consistent investment return is already very high return over the long run. Since Peter Lynch retired from Fidelity, you can rarely find a mutual fund with that kind of performance over past many years.

The best approach is to treat stock market investment as side business in addition to your regular job. Your regular job help you pay your bills and help you earn the initial principle for value investing. Once your investment net worth surpasses $100,000, sooner or later you will realize that your regular job salary can hardly keep up with compounded rate of investment return. Too many people naively believe that they can get rich quick with speculative trading method in stock market rather than a hard work with a job and value investing at side. It is a lot easier to make your first $50,000 net worth with a job rather than speculation in stock market.

Even if you do not have large sum of money right now as principle to make really big profit out of value investing, you still want to start value investing early so that you can learn in and out of value investing in your earlier years of investing in the stock market. Successful investment is long term process. The earlier you start investing successfully, the better off your pocketbook will be, and the quicker you will reach your financial freedom. Let's do a quick math, if your starting capital for investing is $50,000 and your annual compouned rate of return is 30%, you will need 9 years to surpass $500,000 net worth. However, to turn $500,000 net worth into 1 million, you only need 3 more years, think hard!

* Article by Henry Lu of BlastInvest LLC, a premium investment newsletter publisher in Connecticut. Visit for FREE "how-to" investing assistance, web services and more.

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