Wednesday, February 18, 2009

How to Build Wealth Part IV

(30) You mistake years of investing for years of investing experience. If you 've been investing for 30 years but have never managed your own money, you have zero years of investment experience when it comes to being able to do it own your own. Most people don't realize this, think they've learned enough by speaking with their investment advisor over the years, embark on their own and lose money. Learn an investment system first and this won't happen.

(31) You believe that all the cumulative knowledge you've gained from being a client of a well-respected brokerage house of financial consultant should be enough to allow you to manage your money successfully. None of this information you've learned will help you build wealth. If you've built wealth through them, you wouldn't be trying to learn how to do it yourself. Forget about all these strategies and principles and seek out an investment system that doesn't have as its number one goal closing a sale.

(32) In this ever increasing age of immediate gratification, you've never given yourself proper time to learn a real investment system. You may have tried something for three months, and after questionable or poor results, discarded it. Ever try learning anything worthwhile within 3 months with great success? Learning how to invest and how to build wealth is not difficult yet it demands a certain level of commitment and time. Too many people these days expect a lot for nothing. They want a secret formula that will give them explosive growth. They jump from one foolish spam email that screams "I'm almost positive this stock will give you 1,580% returns in six months" to the next $10,000 software program that promises to have cracked the "secret patterns and codes" that predict every single upleg in the markets in chase of quick profits. This is not learning a system. This is foolishness. There are secrets to building wealth, but they all involve learning proper systems of investing that won't make you rich overnight but will make you rich only when you assume a proper commitment to learning.

(33) You actually spend an adequate investment of time learning a system, but you spent time learning the wrong things.You invest with these strategies but never build any wealth and declare that you're better off letting the "pros" handle it. Modern portfolio theory of diversification is over half a century old. There is nothing modern about it. Learn the long tail of investment strategies that have updated yesterday's outdated strategies and you will finally learn the secrets about building wealth.

(34) You start an investment club with industry experts. Experts innanotechnology, in biotechnology, in pharmaceuticals, in precious metals, but still your investment club has not made you rich. Industry experts are a great place to start. In fact, they will be able to shed more light on companies than the average person. Still if no one in your investment club has learned a proper system of investing, all that insight is useless. You must have the framework available to take advantage of all that insight. That framework is a solid system of investing, and all members of your investment club should possess this.

(35) Most people misunderstand what a solid investment system is. This is not something that you gain from reading a $39.99 book and not something that you can learn from "dabbling" in investing. Just as you would not expect to be able to solve complex algebra algorithms or problems without a comprehensive structured course, you need a comprehensive structured course to truly learn a system. Find one and learn it.

(36) Most people don't utilize leverage when learning an investment system. If your strength is not independent learning, then find a tutor to aid you. Understanding your personal strengths and weaknesses are paramount to investing success. If you have learned a great investment system but don't have time to apply it properly, form an investment club and leverage the ideas of others to save time or bounce ideas off of.

Life is short! Break the rules! Forgive quickly! Kiss slowly! Love truly, Laugh uncontrollably. And never regret anything that made you smile.

No comments:


RISK WARNING: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results.
This blog, assume no responsibility for errors, inaccuracies or omissions in these materials and shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials.


click on the label cloud above to view other blog posts