Intelligent investorHow can we be one intelligent investor? I shall indicate some personal psychological and number analytical methods to explain how we can avoid investment lose or risk more easily as below: On personal psychological hand, we need to know when the inflation will come to influence our investment lose. Inflation have been very much in public's mind in recent years. The shrinkage in the purchasing power of the dollar in the past, and particularly fear ( or hope by speculators) of a seriuous further decline in the future, have greatly influenced the share market varies. It is clear that those with a fixed dollar income will suffer when the cost of living advances, and the same applied to a fixed amount of dollar principal.Holders of stocks, on the other hand, have the possibility that a loss of the dollar's purchasing power may be offset by advances in their dividends and the prices of their shares.ON the basis of these inflation economic environment changing fact, many financial authorities have concluded that: bonds are an undesirable form of investment and consequently, common stocks are by their very nature more desirable investments than bonds. This is quite a reversal from the earlier ways when trust investments were restricted by law to high-grade bonds ( and a few choice preferrable stocks). How inflation influences share price change, for example: What would be the implications of such an advance to influence our living when inflation occurs? It would eat up, in higher living costs, about one-half the income now obtainable on good medium -term tax free bonds ( or our assumed after -tax equivalet from high grade corporate bonds). This would be a serious shrinkage, but it should not be exaggerated. It would not mean that the true value, or the purchasing power, of the investor's fortune need be reduced over the years. If the investor spent half his interest income after taxeshe would maintain this buying power intact, even against a 3% annual inflation.The another personal psychological factor, is that defensive investor psychological investment factor, the basic characteristics of an investment portfolio are usually determined by the position and characreristics of the owner or owners. At one extreme, we have had savings banks, life insurance companies, and so-called legal trust funds for our saving methods. A generation ago their investments were limited by law in many states to high grade bonds and in some cases, high-grade preferred stocks. At the other extreme we have the well -to-do and experienced businessman, who will include any kind of bond or stock in his security list provided he considered it an attractive purchase