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Great Plains Capital Conference
The first annual Great Plains Capital Conference will be held in Wichita, Kansas, home to many successful entrepreneurial companies and the perfect location to bring together great ideas and great investors. So submit your business plan and register for this unique and promising opportunity!
Business plans must be submitted by email attachment utilizing Microsoft Word or Adobe Acrobat format. Elements that must be included are an executive summary, description of business, management team, marketing plan, financial projections and harvest strategy.
Submit Your Business Plans
The First Annual Great Plains Capital Conference will bring together the region’s leading venture capitalists, investors, bankers, accounting and legal professionals for presentations by eight to ten emerging businesses seeking funding. Presenting companies will generally be seeking venture capital from several hundred thousand to $20 million each. The forum is sponsored by Koch Genesis LLC, the law firm of Stinson Morrison Hecker LLP, and Wichita State University’s Center for Entrepreneurship.
There are tons of different types of investment opportunities. There are many different approaches and plans that you could take to invest either in other or yourself. You have to make the decision to invest in something that will be worth your time and effort, because if you start investing without an end goal, then you have probably just wasted money in a place that could have been thought out and used more effectively. Here are some of the different kinds of investment opportunities that you could look in to.
First up are banks. Banks and credit unions usually offer a very safe way to invest your money by managing it or gaining some interest by putting certain amounts of money into your savings. Using both checking accounts and savings accounts efficiently can help you invest money and start saving up over time. Banks are one of the safest ways to invest money if you look through the different offers they have.
Stocks are more of a risky choice when it comes to investing your money. If you do not have money to lose, then this is not the place that you want to put your money first. It would be much more effective if you starting saving little bits of your paycheck over say five years to accumulate funds that you can then use to invest in the stock market. During this time, you can also do more research and look into the trends of the market. Keep your eyes peeled for any new companies that have a visionary mission and don’t hesitate to put a little bit into them from the start If you truly believe in what they are doing. But believing is never all that you can do and expect returns. Be sure to know their goals, funds, market value and overall efficiency to make sure that you will see some sort of return in ten years or so.
Retirement funds are the investment that you put into yourself. It is always a smart idea to invest money into a retirement savings account. This can be done in very small amounts that can really add up over time. Usually you won’t want to rely on this for your retirement altogether though, because if you run out of funds and you don’t have any residual income, then you could be stuck and go into debt. Residual income can come from investing in stocks and real estate. Bonds can help bring additional funds in after you retire if you set them up to return your money when you plan on retiring.
Investment funds can be a simpler way to invest your money. You can pool it in from many other investors as well and put it into a strategic investment plan. These kinds of investments can be planned out with others, but research is a must and you will not be able to invest in these without first knowing the different strategies and styles of the funds.
There are tons of reasons why you would want to stick with short term investments, or head over into long term investment territory. Each has its pros and cons and there are different reasons for choosing either one. You will want to base your decisions off of the current market as well as the trends that are going on in the market. Some predictions will need to be made as well as taking some risks, but with any investment where you are giving your money up for a company to use, there is plenty of risk involved. True, there are also different kinds of investments, like stocks and cryptocurrency, but for now we will stick with the general term investment to explain the difference between long term and short-term investments.
So, what are the pros and cons of a short-term investment. Well, first you must realize that more preparation and research will need to have been done before you invest in the short term rather than the long term. Since you want to make money and not lose money, you will have to examine market trends much more carefully and plan out what value you will want to pull your investment out at. Stocks for example have highs and lows. You will want to determine, based on research, what the high should be in your short-term plan of owning the shares. If the stock value reaches this calculated high, you will probably want to sell off those stocks, since the volatility of the stock could drop its value back down. This is all based on short-term investing mindsets, so if you want to make money from an investment in 3 years or so, then these are the things that you will need to think about.
As for long term investing, well there is a lot less risk, but a whole lot more waiting involved. With the long-term investment mindset, you will watch tons of different things happen to your investment. There will be many high points, but also many low points. You have to remember that long term investments are usually a safer bet with your money, but that also means that the money you put in won’t be coming back to you for quite some time. You will have to do some research and base your investments on what you think will happen in the future. It is always smart to invest in new technology, especially the tech that you think will become mainstream in the future. The risks are that you could lose everything much later, and because you plan to keep your money invested in that company for a longer time, tons of things will change in the world. You have to always remember that the world is constantly changing and that new and better things are coming just around the corner, so investing in companies that have a mindset that looks to the future is the smartest idea.
You also have to remember to never invest money that you can’t afford to lose. You do not want to ever rely on investments to keep that money safe and sound, because every single investor will one-day deal with some sort of loss. You do not want to be that person who puts a ton of money in that you have saved up and can’t bear to lose, and then have the company you invested in mess up and lose everything. Never invest what you don’t want to lose, because when you lose it, that’s game over. Investments are a guessing game, but also have a deeper level of calculation and research planted into their core.
It is very smart to listen to some of the top investors, whether they are talking about short-term or long-term investing. They are the ones who know what it is like to successfully invest into others, and what kind of patience it takes to see that investment grow into profit for you. The goal is always about making money, but sometimes it can be smart to pull out of the market before things tank all the way. While markets always rise and fall, there are certain circumstances in which you may want to consider taking your investment out of the market and rethinking your plans, as things can change very quickly. If the company that you invested in 5 years ago is slowly sinking and the owners are negligent of this, then you may want to jump ship.
If you are interested in investing into the stock market, there are definitely some things you need to know before you start putting money into stocks. But before you do anything, you need to make sure you have money to lose if you are serious about investing money and time into the stock market. The more risks you take in this market, the more likely you are to lose money. If you expect significant returns on the money you put in during the first two years of being invested in stocks, you will probably be disappointed. Most stocks don’t rise by high percentages in short amounts of time, so you should be prepared to have your money in stocks for ten years or so if you really want a significant return on your money.
So, what is the stock market exactly? Well, on a basic level, it is an exchange market that deals with buyers and sellers. They act as the market for the shares in stocks, and the prices of the stocks are based on supply and demand. Supply and demand does not come directly from the buyer however. Traders are represented by brokers who makes the deals and does the exchanges for you. You also can’t just buy stocks whenever you feel like it. Certain stocks are open to trade from certain times, but depending on your broker, there could be pre and post market hour options to trade in.
Understanding the Stock Market
A stock market index is usually what people refer to when talking about the market being up or down. A market index is the overall performance of a group of stocks, not an individual company. Indexes represent either the entire market or a sector of the market, and depending on what kind of companies you want to invest in, could be set up either way. I’m sure you have heard of the Dow Jones industrial average, or DOW J. This is used as a sort of name for the performance of that total market. You can choose to invest in indexes or specific companies.
Whenever people talk about having gained lots of wealth through stocks, they have probably compiled a pretty significant portfolio of stocks. A portfolio of stocks is your collection of stocks in different companies, all compiled into one place. You never want to invest all of your money into one company, as one bad move from that company could wipe out all of your money that you have invested. For this reason, you will want to research all of the different stocks you can buy and spread your money out accordingly. You are much better off knowing that if one of your companies’ stocks tanks, you won’t feel that pain in any of the other companies you have invested in. Sometimes it may be wise to take your time after investing in a single company to invest in the next, and see what the market does before you make your next move.
Visit CNN.com to find out more information on current Stock Market trends.
Getting your foot in the door of investment can be tricky if you don’t know what you are doing. Of course, this is what most people will tell you if you mention wanting to begin to invest in different businesses. But if you really do your research and know what kinds of stocks are good for short term and long term investing, then you may be able to break into the world of investment without losing money to begin with. If you want to become a successful investor and actually see returns on the money that you put out into the market, then you need to be sure you have money you are willing to lose.
Investing in a 401(k) plan can be a good start to understanding what investing your money takes away at a moment and gives back to you later. Being employer-sponsored, a 401(k) is an easy way to automatically deduct from your pay and place the money into a retirement savings. These investments also come with tax benefits, and usually the contributions are made with the pre-tax money you earn, so you wont have to pay taxes on the money you earn until the investment funds are taken out.
Never try to invest in a business if you cant afford to lose the money you put in. Sure, you are always taking a risk with investing your money in others, but if you want to make money without having to be active in both the investment and the business all the time, then investing in the stock market can be a very rewarding investment to make. You always want to make sure that you are able to cover expenses and debt that you may have accumulated before you even begin to think about investing in stocks. If the stock market decides to decline in value, then at least you know that you can sustain yourself without worrying about the money you lost at that time.
Start Investing Young
Investing at a young age is a better idea than later, since you can ride out the trends and bumps along the way and see years of data to decide when it may be time to pull the money out and cash in on the earnings. Another way to invest your money with a guaranteed return are bonds. Loan the money you can afford to give up for a number of years, wait it out, and earn interest along the way. This means that you cant get the money back for a longer amount of time than if you want to get out of the stock market, but at least you know you will be getting it back in the first place.
An important thing to remember is that the longer time you give your investment money to set into the market, the better chance you have to get a significant return on it. Usually over periods of 10 years or longer, the returns are positive and have good percentages, meaning you get back what you put in and more. But you have to remember that this is 10 years that we are talking about, which means ten years of fluctuation with dips and high points. Never be to hasty to pull your money out when you think you are losing too much, and if you invested your money without thinking that you could lose it all, then you will be in a world of hurt.
Basically, say you have a thousand dollars that you can afford to lose. You have saved this money up for the past 3 years or so and you knew you wanted to invest with it. This is a very good start to stock market investment. Now what is up to you is to decide which business you think will succeed in the future, and bring your shares in the company up to a better value. Prior preparation will prevent you from losing everything you put in, and I cant really stress that enough. Always make sure you can afford to lose the money you put in, and never be afraid when you do lose that money. The stock market is constantly fluctuating, so if it all goes down at one point, just start saving up extra money again and try again. Wealthy investors did not gain their wealth in a single day. It takes years of waiting and planning to bring a healthy return back to your pocket.
To learn more, visit TheStreet.com for additional advice.
Looking for a reliable, low-risk investment for your money? Then consider investing in savings bonds. According to Investment.gov, savings bonds are “debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.” Admittedly, investing in savings bonds is one of the least sexy investments out there, ranking right along with savings accounts. Yet, 1 in 5 Americans are investing in savings bonds. Surely, there must be a reason why they would choose to invest their hard-earned money this way and purchase US savings bonds.
Investing in savings bonds can mean a number of benefits for the investor. While it will certainly not lead you to a homerun, it is, however, the safest, most reliable investment option available. The reason, of course, is that investing in savings bonds means you are fully guaranteed by the US Government itself.
Another reason is that investing in savings bond can free you from local and state income tax returns to a certain degree. The savings bonds themselves are tax-free, and this, of course, increases their yield. In addition, savings bonds are tax-deferred. This means that taxes are paid when you sell the bonds. So when you are in a bracket that is lower than average, that’s the time to claim your income.
Aside from that, if you bought your bonds before January 1990, they may be free from federal tax altogether if you used them to pay for your college tuition of your child. Note that this benefit only applies to parents who are eligible under the income level requirement.
Savings Bonds: How to Invest
Unlike the stock market, investing in savings bonds does not promise any high yields. Because the interest rates are very low compared to the stock market, many people are turned away by this. Still, investing in savings bonds is a safe bet if you are planning to use the money to pay for your child’s college tuition or for supplement retirement income. That way when things go wrong, you have a reliable source of financial support in the form of savings bonds.
One can never predict the performance of the stock market. That is part of the risk involved, which you can avoid by investing in savings bonds. If the stock market plunges and savings interest rates are likewise not performing well, savings bonds become more attractive.
However, remember this: do not use savings bonds as basis for your retirement plan. They do not provide enough yield to properly support you when you retire. Instead, invest in savings bonds as a supplement to your existing 401(k) or other retirement options. The beauty in investing in savings bonds is that, while you won’t get rich, you are not likely to lose your shirt either. When you come right down to it, you are safe, which is definitely not a bad thing.
To learn more about savings bonds and how you should invest, be sure to visit Investor.gov.
Anytime that you are investing in the Forex market, you are going into the Market blind. You don’t know what point of the investing trend you are entering in at. You might be investing in a Forex stock just before the trend changes. Smart investing means you need to protect your trading float and set up a stop loss. This needs to be done before you enter a trade, so that there is no room for error, or last minute indecision. A stop loss is simply a predefined point at which you exit the stock.
Effectively, it’s like drawing a line in the sand underneath the share price, saying, “If the share price falls below this line, then the stock hasn’t done what I thought it was going to do, and I’ll exit the position.”
This allows you to protect your investing trading plan, because it cuts your losses short, and guards against an all too human tendency to want to believe you must be right.
95% of investing in an entry Forex position means you are expecting to profit from the trade. If, however, the share-investing price goes against you, you might feel the need to justify why you bought the stock by holding onto it until it turns a profit. You might have heard the idea that all big investing losses once started as small losses. Well, while the share price continues to go in the wrong direction, those losses grow in lockstep. This is why you need to have a stop loss in place – it’s like having an ejector seat that tells you when to abort the mission.
One of the most common question I’m asked when traders are introduced to a stop loss is “How wide should I set my stop?”
In other words, how much room should I give the stock to move? There are no definitive answers to this question because it depends on what time frame you’re investing in. If you’re a shorter-term investing trader, you’re going to have a stop loss that’s set closer to the share price. If you’re a longer-term investing trader, you’ll give the share price a little bit more room to move and set your stop loss lower.
Once you’ve identified what time frame you’re looking at trading, you need to be able to remove the normal market noise (volatility) in that particular time frame. You don’t want to have to close out of an investing position just because a share price moved a little bit due to its normal trading volatility.
In fact, there are some serious drawbacks to setting tight stops. First, you’ll decrease the reliability of your system because you get stopped out more often. Second, and probably a little bit more importantly, you dramatically increase your transaction costs, because you’re trading transaction costs make up a major proportion of your business expenses. To give yourself a fighting chance, you want to trade a system that doesn’t chew through excessive brokerage fees. This is one of the major reasons I steer my clients into developing a trading system that runs over a slightly longer time frame. With the correct system in place, and your investing risk minimized, you are well positioned to maximize your trading profits.
If you are interested in a way to get involved in the real estate industry you should look into foreclosure investing. Many people avoid this type of investing because they are not aware of the details that go along with it. By simply learning about foreclosure investing, you will be able to join this industry in no time at all.
The first thing that you need to know about foreclosure investing is who you will be buying the house from. Foreclosed homes are properties that have been taken over by the bank because the past owner failed to pay his or her mortgage. When this happens, the bank then needs to sell the property back to the public so that they can start to collect a profit again. The longer that the bank sits on a foreclosed home, the more money they are going to lose.
Being that banks are always in a hurry to sell properties back to the public, the buyer definitely has a huge advantage; this is what makes foreclosure investing so profitable for thousands of people ever year.
When you are looking to get into foreclosure investing you should realize that you will be able to find properties that are greatly discounted. It is not uncommon for a buyer to be able to find a property for up to 40% off of the market value cost. By purchasing properties at this price and then selling them back to the public, you can make a lot of money.
Another reason that foreclosure investing is so popular is because there are a lot of these properties to go around. In almost every city in the United States there are foreclosure properties available for purchase. The only thing that you have to do when getting into foreclosure investing is find the homes that you want, and decide how much you are willing to pay for them. This can be done by simply scouring your newspaper, or joining a service that will supply you with homes in your area.
There are some challenges in buying per-foreclosure. Out of them, the biggest challenge of buying pre-foreclosure is getting the attention of homeowner. Great deals attract people. Thus, acting fast and effectively will help you to reach homeowners with better and deeper impressions. This is why foreclosure listings are important. Whenever a new pre-foreclosure home is unfolded, you can be the first person to review its details in the foreclosure listings. Besides, we could get info on the pre-foreclosure properties in foreclosure listings too. Foreclosure listings are just a necessary tool in order to buy a great bargain of pre-foreclosure.
Overall, foreclosure investing is a huge industry at the present time. There are people all over the country that have turned their love of foreclosure investing into a full time job. If you are interested in getting involved with the real estate industry, there is no better way to do it than by investing in foreclosed properties.
To learn more about foreclosure investment, visit Foreclosure.com.
Different sources define value investing differently. Some say value investing is the investment philosophy that favors the purchase of stocks that are currently selling at low price-to-book ratios and have high dividend yields. Others say value investing is all about buying stocks with low P/E ratios. You will even sometimes hear that value investing has more to do with the balance sheet than the income statement.
In his 1992 letter to Berkshire Hathaway shareholders, Warren Buffet wrote:
“We think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value – in the hope that it can soon be sold for a still-higher price – should be labeled speculation (which is neither illegal, immoral nor – in our view – financially fattening).”
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.”
Buffett’s definition of “investing” is the best definition of value investing there is. Value investing is purchasing a stock for less than its calculated value.”
Tenets of Value Investing
1) Each share of stock is an ownership interest in the underlying business. A stock is not simply a piece of paper that can be sold at a higher price on some future date. Stocks represent more than just the right to receive future cash distributions from the business. Economically, each share is an undivided interest in all corporate assets (both tangible and intangible) – and ought to be valued as such.
2) A stock has an intrinsic value. A stock’s intrinsic value is derived from the economic value of the underlying business.
3) The stock market is inefficient. Value investors do not subscribe to the Efficient Market Hypothesis. They believe shares frequently trade hands at prices above or below their intrinsic values. Occasionally, the difference between the market price of a share and the intrinsic value of that share is wide enough to permit profitable investments. Benjamin Graham, the father of value investing, explained the stock market’s inefficiency by employing a metaphor. His Mr. Market metaphor is still referenced by value investors today:
“Imagine that in some private business you own a small share that cost you $1,000. One of your partners, named Mr. Market, is very obliging indeed. Every day he tells you what he thinks your interest is worth and furthermore offers either to buy you out or sell you an additional interest on that basis. Sometimes his idea of value appears plausible and justified by business developments and prospects as you know them. Often, on the other hand, Mr. Market lets his enthusiasm or his fears run away with him, and the value he proposes seems to you a little short of silly.”
4) Investing is most intelligent when it is most businesslike. This is a quote from Benjamin Graham’s “The Intelligent Investor”. Warren Buffett believes it is the single most important investing lesson he was ever taught. Investors ought to treat investing with the seriousness and studiousness they treat their chosen profession. An investor should treat the shares he buys and sells as a shopkeeper would treat the merchandise he deals in. He must not make commitments where his knowledge of the “merchandise” is inadequate. Furthermore, he must not engage in any investment operation unless “a reliable calculation shows that it has a fair chance to yield a reasonable profit.”
5) A true investment requires a margin of safety. A margin of safety may be provided by a firm’s working capital position, past earnings performance, land assets, economic goodwill, or (most commonly) a combination of some or all of the above. The margin of safety is manifested in the difference between the quoted price and the intrinsic value of the business. It absorbs all the damage caused by the investor’s inevitable miscalculations. For this reason, the margin of safety must be as wide as we humans are stupid (which is to say it ought to be a veritable chasm). Buying dollar bills for ninety-five cents only works if you know what you’re doing; buying dollar bills for forty-five cents is likely to prove profitable even for mere mortals like us.
What Value Investing Is Not
Value investing is purchasing a stock for less than its calculated value. Surprisingly, this fact alone separates value investing from most other investment philosophies.
True (long-term) growth investors such as Phil Fisher focus solely on the value of the business. They do not concern themselves with the price paid, because they only wish to buy shares in businesses that are truly extraordinary. They believe that the phenomenal growth such businesses will experience over a great many years will allow them to benefit from the wonders of compounding. If the business’ value compounds fast enough, and the stock is held long enough, even a seemingly lofty price will eventually be justified.
Some so-called value investors do consider relative prices. They make decisions based on how the market is valuing other public companies in the same industry and how the market is valuing each dollar of earnings present in all businesses. In other words, they may choose to purchase a stock simply because it appears cheap relative to its peers, or because it is trading at a lower P/E ratio than the general market, even though the P/E ratio may not appear particularly low in absolute or historical terms.
Should such an approach be called value investing? I don’t think so. It may be a perfectly valid investment philosophy, but it is a different investment philosophy.
Value investing requires the calculation of an intrinsic value that is independent of the market price. Techniques that are supported solely (or primarily) on an empirical basis are not part of value investing. The tenets set out by Graham and expanded by others (such as Warren Buffett) form the foundation of a logical edifice.
Although there may be empirical support for techniques within value investing, Graham founded a school of thought that is highly logical. Correct reasoning is stressed over verifiable hypotheses; and causal relationships are stressed over correlative relationships. Value investing may be quantitative; but, it is arithmetically quantitative.
There is a clear (and pervasive) distinction between quantitative fields of study that employ calculus and quantitative fields of study that remain purely arithmetical. Value investing treats security analysis as a purely arithmetical field of study. Graham and Buffett were both known for having stronger natural mathematical abilities than most security analysts, and yet both men stated that the use of higher math in security analysis was a mistake. True value investing requires no more than basic math skills.
Ultimately, value investing can only be defined as paying less for a stock than its calculated value, where the method used to calculate the value of the stock is truly independent of the stock market. Where the intrinsic value is calculated using an analysis of discounted future cash flows or of asset values, the resulting intrinsic value estimate is independent of the stock market. But, a strategy that is based on simply buying stocks that trade at low price-to-earnings, price-to-book, and price-to-cash flow multiples relative to other stocks is not value investing. Of course, these very strategies have proven quite effective in the past, and will likely continue to work well in the future.
The magic formula devised by Joel Greenblatt is an example of one such effective technique that will often result in portfolios that resemble those constructed by true value investors. However, Joel Greenblatt’s magic formula does not attempt to calculate the value of the stocks purchased. So, while the magic formula may be effective, it isn’t true value investing. Joel Greenblatt is himself a value investor, because he does calculate the intrinsic value of the stocks he buys. Greenblatt wrote “The Little Book That Beats The Market” for an audience of investors that lacked either the ability or the inclination to value businesses.
You can not be a value investor unless you are willing to calculate business values. To be a value investor, you don’t have to value the business precisely – but, you do have to value the business.
Principled investing is a misnomer these days. As facts say, most investors today wish that they want to learn more about investing. Therefore, common financial literacy is not so common after all. The need for people to be educated in a dynamic system should be taken into account. Thankfully more and more people are finding online education advantageous in improving their investing education.
Investing education is an abstract idea for most people. This is because that they value investment as a way to save money with the expectation that their finances should advance. Yet what they don’t see is that there are methods where investing can become an instinctive exercise to achieve financial freedom. This entails developing the perspective to find investing opportunities where most people find nothing. A quick refresher on investing education will teach students to change the way they look at different investment opportunities, risks, and rewards.
Investing education is also important in having a better read of today’s financial situation. As an analogy, anyone can enjoy a delicious cheese cake. But only informed people can dissect what is the real value of the cheesecake according to its taste and other characteristics that the uninformed eye cannot see. Therefore this education is a form of shaping and training that makes a student notice what he does not see in his first look.
Importance of Online Education
Online learning is in the center of the purposeful information marketplace today. Students of distance learning are seen to be highly motivated individuals who are able to adjust to the dynamics of different training materials and mediums that will allow them have a unique view of what education and training is all about. This dwells more on the practical and quantitative goals. This is evident in continuing internet based learning where the student is updated with the latest trends according to his field.
With the latest trends brought by the internet, online investing education is a practical side track to one’s personal development. Just imagine any full-time worker seeking to increase his finances to ultimate financial freedom. While he is severely tied to his career, he can scotch over some time to invest in his personal training. Web based learning then becomes an efficient method to acquire such knowledge because of its flexible and mobile advantages. Time saving and personal management is in itself a practical application of the objectives of online education and 21st century education.
Mindset Development through Investment Education
A positive impact that is not readily observable is the relationship of investing education and developing a millionaire’s mindset. Smart investors are able to find ways to generate income without much work. The thought that runs through a millionaire’s head invokes an encouraging level of attraction that will allow money to come to an individual. Investments should not be a methodical tool but a rational decision led by an instinctive millionaire’s mindset.
Everyone can become a smart investor through constant investing education. As you will learn smart investors completely do the opposite things and would rather be out leading. Leaders in the investment game are usually the risk takes that leave the average investor guessing. Planning ahead and thinking three steps ahead is one of the leading principles of investor education.
Investing education through online learning will teach you not only the methods of becoming a smart investor, but the mindset shift that will give you the instinct to be a smart investor and a wealth creator. The bottom of it all is that it should not be about the rules of the game. Instead, smart investors look at these rules smile at it and go the other direction; such a nugget of knowledge from 21st century educators.
I think the title of this article really says a lot about why so many people lose money when investing in stocks. If you go in with the idea that you are going to play the stockmarket, you have the wrong mindset and you will probably lose more than you make.
You see, you don’t play the stockmarket, you play games but when you are investing you aren’t playing, it is basically a business venture and if you don’t know what you are doing, you will lose… maybe a lot. Instead, you should be willing to invest a little time and learn at least the basics of stock market investing. You may not want to spend a lot of time to become an expert but you should at least have a firm grasp of the basics that go into investing.
If you don’t know anything at all about investing, how can you even know if the advice you get from your broker is good advice or not? That is mistake one for many would be investors, they simply don’t know a thing about investing and they turn their money over to a broker and hope for the best. If you really think about it, that really is a silly strategy. Here is something you should consider; how does your financial planner make their money? Are they so good at investing that all their income (or most of it, at least) comes from their own investments doing well? Or, like most of them, do they make their money on commissions from investing other peoples money? If they were so good and knowledgeable and really could make a lot of money investing, why wouldn’t they do it with their own money instead of having to deal with clients and consist solely on commissions?
Something to think about. And if you do give that some thought, you are already ahead of many investors. I don’t mean any disrespect to financial planners but this is something you really need to think about. No matter how knowledgeable you are investing can involve risk and you aren’t going to win every time, but if you do know what you are doing you can win more than you lose and you can get quite wealthy.
So, no one is saying you have to do it all on your own, but you should have at least a little knowledge so you can be an active participant in your own investing strategy. It’s also important to ask the hard questions before you actually hire someone to invest for you and manage your money.
Investing is a smart move. You can put your money to work for you and actually grow it. But, you have to be willing to learn more about the process first. You also have to be willing to ask difficult questions before you find someone to work with you and help you on your investment journey. Whatever you do, don’t go in with the idea that you will “play the stockmarket” it’s not a game, it’s more like a business.
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