Be your own Pundit

Ignorance shouts while wisdom whispers. There is no better verification of this ancient saying than listening to and reading the so-called "pundits" on economics and investing. The majority have no idea what they are talking about, but they'll be shouting their lack of knowledge loudly. It's important to know how and why markets work and to have had experience in their working before investing a single dollar on anything or in anything. If you can't read financial statements and don't know how and why financial statements are generated, you have no business being in the market. It's not for you. Accounting is the language of business, just as mathematics is the language of science. If you are unfamiliar with the language used, you can't understand what is being said or what is happening or why it's happening (the why is just as important as the how). So, the best advice that can be given is this: If you would invest (and you should if you have the disposable income), learn the language of business first: study accountancy. Then, once that is done, learn how to analyze statements. If you would be prosperous, learn to be an auditor of life.