A symbolic black figure with a clock face sprints after a line of dollars. Representing trading and a trader chasing dollars to find profit. The article makes the point that trading is not investing although extreme media coverage can leave the impression that trading is investing and that investing is trading. It is not. Trading refers to a broad range of shorter term strategies that can be used by an experienced investor. The essence of trading is an investor’s belief that a buyer can be found, in the near future, to pay a higher price for a share being purchased today. If that bet is right, the investor profits, if the bet is wrong, a loss results.
Read MoreMastering the most powerful investing factors – time and knowledge – is central to achieving investing success. This guides investors to the necessary knowledge and skills that can be acquired and utilized by anyone who takes the time to manage their investment choices. Learning to invest well takes time, as does the doing and managing needed to develop your wealth-building process to produce the best results.
Read MoreClassifying investment strategies into five broad groups arranged low to high risk, Income, Value, Growth, Trading, Speculation, helps new investors understand some of their many investment choices. Choosing from these investing strategies can set you on the path to financial security. While there are numerous variations within each broad strategic group; no strategy offers the impossible: risk free investing.
Read MoreWealth Building Step 3 – Learn Investing Basics. Today’s White Top View post concludes our introduction to the three proven steps to wealth.
After covering the critical 1st step, debt control, we continued with the essential 2nd step, saving. Now we turn our attention to the wealth building 3rd step, learn investing basics as the best way of building your wealth.
Read MoreStep 2 Save to Build Wealth – Pay Yourself 1st. Save as much as possible as fast as possible. Get debt under control, then save as much as you can as fast as you can. The one – two punch of debt control and saving gives you the fastest and best way to begin your path to wealth. Beginning is the most important part. Begin today. Just decide that today you start your journey to financial security.
Read More1ST Step to Wealth – Debt Control. Debt control – Your first, critical and most important step to wealth. Without control of debt you and your family have no hope of being wealthy. Learn this and teach your children to begin their path to financial security. Last discussion we touched on the three proven steps to wealth established over many generations by numerous families. Additionally, any self made person wishing to pass on their success must give this knowledge to their children. Today we further examine that 1st step, debt control. Borrowing and debt control – borrow the minimum – pay back as fast as possible
Read More3 Wealth Building Steps. Short of inheriting wealth, winning the lottery or starting Facebook you need to get rich from your own efforts. You can do that. You can choose to follow a well worn and proven path already taken by many others as the steps to getting rich. Know and follow three simple rules as the steps to getting rich: 1. Borrow – Debt Control – borrow the minimum and pay as fast as possible. 2. Save – Pay yourself 1st – save as much as possible as fast as possible. 3. Learn – Investing – become a knowledgeable investor.
Read MoreIf you must look at options, begin by reading, Options for Dummies by George A. Fontanills. This low cost and readily available introductory book gives good basic coverage of the options spectrum. It serves as a good reference to keep on hand.
Last discussion I made it clear that option trades have no place in a beginner’s portfolio. It is good to be aware of them and to learn about them. Only consider using options after you become a knowledgeable and experienced investor.
NO options nohow – danger for new investors! Options have no place in the portfolio of anyone new to investing. You must master investing basics before you consider looking at or using any derivative. Options are a type of derivative. Derivatives are financial creations “derived” or based on a real asset. They are bets on a future price for the underlying asset. Extreme losses can be quickly realised when you get ahead of yourself while learning to invest. Getting into derivatives too soon can be a danger to your wealth.
Read MoreEvery 6 months you must be weeding your investment portfolio. Keep good holdings, eliminate bad positions. Regularly scheduling performance reviews achieves your investing goals faster. Mark your calendar so the reviews do not slip by.
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