For decades conventional wisdom has been that we should purchase the"blue chips" put them away and forget about them. After all,"What's good for GM is good for the nation" used to be a mantra on Wall Street.The two ETF's and mutual funds are baskets of investments. When you have shares in them, you have a small part of the basket, which consists of a collection (portfolio) of investments. However, they operate differently, and you invest in them otherwise.When you invest in the stock of a business, as an individual investor you have hardly any control over the performance of the stock. You may perhaps vote at shareholder meetings but besides that, there's not much you can do if business management under performs. There is not much you can do if a competitor enters the market to compete with the stock you own. You definitely can not do much if industry changes take place with a negative effect on the company that you purchased stock from. As you have no control, it is absolutely foolish to have an undying loyalty to a specific company stock if you're in the business of earning profitable stock trades.Another great part about options trading is this: Option trading strategies are versatile. There are a lot of ways to make money using options. With Stock you make money when the market is going up or going down. That's if you opt for the perfect direction of course. 성지커뮤니티 buy stocks because it is expensive. Expensive doesn't always mean that it's valuable. From time to time, price goes up because lot of people are buying it. Don't buy it just because it's cheap . Company could be on the brink of bankruptcy or maybe the stock is just really not worth anymore.Question 2 - how should I invest in studying the business? There are three ways: books, seminars /education companies, and mentors. Generally, a combination of all 3 works best. Even Donald Trump still reads books on property.Your ultimate goal as an investor might be to beat the Dow Jones Industrial Average by 10 percentage points, year in and year out. (This, in actuality, was Warren Buffett's goal in his first investment partnership). Or it may be to collect enough wealth to retire at age 50 or 55.Entering an investment at the perfect time is 90% of the equation for success. Becoming a really smart investor requires recognizing market tops and bottoms, and knowing when to move to safety to protect the investment dollars and prevent losses. The informed investor did not have to be a genius, did not need to decide on a big winner, he could have purchased either stocks or mutual funds. He only had to know when to buy and when to move to safety. Thus, during marketplace advances he was making money rather than waiting to break-even.