When you go to the search engines to do research on the term “stock market in todays economy” you will get a lot of advice about what you should invest your money in and what stocks you should avoid.

Much of this is traditional type advice, it’s the same thing you have been hearing for years from the self proclaimed “experts” of the day. The problem is that much of that information is wrong.

Recently I have started to educate myself about investing. I knew absolutely nothing about investing while I was married. We went to an adviser and we were told the same thing everyone else is told: to stay in for the long haul, that the market always tends to gain back any losses over time, etc.

After some painful, both financially and emotionally, losses I decided that maybe the information that most of us get isn’t complete or even accurate.

That is why I decided to look a little more closely. I started reading books about two of today’s top investors both of whom seem to have become extremely wealthy only on their own investments.

I like that idea. The guy we used to go to only made money when he got us, or any of his other clients, to invest in a certain stock or bond. He didn’t just live off the income he made with his own investments.

This is one of the first points I remember learning when I started doing my own research – why take advice about how best to invest my money from someone who isn’t “good” enough to live off their own investment?

I think that is a valid point and one you should carefully consider. Both of the investors I studied had similar outlooks on their money and how they invest. They have their own criteria that they use to decide what to invest in and what to steer clear of.

It is based on their own research and not what some talking head says. If the investment doesn’t meet their criteria they don’t invest in it… period.

When the market is too hot and all the stocks are overpriced, they don’t invest in it. Instead they will pull their money out and put it someplace safe. Perhaps they buy gold or perhaps they invest in Treasury bonds but they don’t leave it in the market.

They will stay out of the market as long as it takes to rebound. When a good stock, one that is undervalued and meets their criteria, becomes available they will buy it.

All of these things can be learned by any of us if we are willing to take the time. Here are a few things you need to take away from this article:

1. Knowledgeable investors don’t just “ride out” a bad economy. They get out early so they don’t lose any, or as much, and put their money elsewhere until the market provides more opportunities.

2. They don’t take advice from people who are paid only to give advice. Instead, they do their own research and make their own decisions.

3. They don’t follow the herds or the trends. They have learned from experience that most people get into the market right as it is heating up, which is the time these successful investors tend to get out.

Follow the winners, continue to educate yourself, learn from your experience and create your own criteria for when to buy and you can’t go wrong. If you build a solid foundation you will never have to ask yourself what to do with the stock market in todays economy, you will already know.