I love this “saying” as its so through in all walks of life. Unfortunately many people enter the investing arena looking for a hot stock or looking to make money quickly. Moreover, probably the worse thing that can happen to a new investor initially is success because then, he or she may invest even more on their next investment and lose everything in the process. This has happened and unfortunately continues to happen in our industry.
Therefore we must always think of investing as an opportunity and we must never bring our need to the marketplace. When a new investor tells me that they have $20,000 in savings and they need to make $2,000 a month in come straight off the bat, I usually tell them that investing is not for you. Where else can a person get that sort of return immediately? Investing no doubt is a fantastic opportunity for a person who is willing (willing being the important word) to educate themselves incessantly about this industry. This education can only be done by spending hours and hours developing your craft. I am subscribed to umpteen newsletters and I devour all the information I can about this wonderful industry. I have lost an awful amount of money in this industry but as a result I know I am a better investor who can easily make it back and more. I know that as the industry changes, I also need to change to ensure I always bring my best to the market-place.
A recent book I have just bought is Tony Bobbins book “7 Steps to Becoming Financially Free” looks to be a fantastic read as he shares a lot of the strategies I share. His main mantra is asset class diversification of which I am a strong proponent. Yes, you can make more money buying a penny stock in the oil industry but this one trade can also bankrupt you. Asset allocation may limit your upside but it definitely protects your downside. In this book, Robbins has interviewed 5 or 6 of the top traders/investors in the world so we are going to have their strategies on a plate. If we only pick up one thing from this book, it will be worth the money (x1000) so this why I’m recommending it to you. We must continue to educate ourselves and even if we only pick up an extra 1% per year return, it will make all the difference in the long run as our money compounds..