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Are you a Good Investor?

Do you think you are a good investor? A good investor needs a lot of common sense, sometimes knowledge. How do you know that you are one? Here's a quick way to find out - while having some fun in the process.

1.	Based on what you know, what's one way to generate really big returns?
By taking a risk, investing in tech stocks and other growth companies.   By putting more money at stake - the bigger the risk, the bigger the return.   Invest "ugly" - buy "boring" businesses at cheap values.   Invest in high interest junk bonds.
2.	Which of the following is one of the biggest mistakes an investor can make?
Cutting your losses early in an investment.   Having an exit strategy in place when you enter a position.   Allowing emotions to guide your investments.   Practicing position sizing.
3.	Which of the following is true about investing in timber?
The price of timber consistently beats inflation.   Timber returns have never beaten stocks.   Timber is correlated to stocks.   Timber land is relatively expensive.
4.	Which of the following is not a great way to research your investments?
Rely on free stuff at the library.   Investment software like Excel's XLQ companion is inexpensive and easy to use.   Websites like Yahoo! Finance and MSN Money feature insider trades, institutional ownership and financial results for just about every stock out there.   Rely on the recommendations of friends and acquaintances who have "been there" and learned from experience.
5.	What do I look for when making a "buy"?
A popular investment.   A stock that's expensive but promising.   An unpopular investment poised to jump.   A stock in a confirmed downward trend, so I can ride the up trend when it starts.