Learn Wealth Creation

Protecting Your Capital In The Stock Market

As mentioned previously, the goal of investing in anything is to preserve and protect your capital, and through sound research and advice, make a good return on your investment. So let’s look at some further ways that you can protect your capital, this time in the Stock Market.

For those who want to become Stock Market investors, this can actually be quite a simple exercise, yet most investors will never use this extremely powerful strategy. By utilising a Put Option against any stock that you have gone long (bought) on at a strike price that is the same price as what you purchased the Shares at, then you can have complete capital protection in the event the share price moves down.

By giving away a small percentage of potential upside profits, you now have complete asset protection, and just as importantly you have the ability to sleep well at night, knowing that your Share Portfolio is protected in the event of any market downturns.

Many Stock Market investors do not like to give any of their profits back to the market, even if it is to insure their portfolio. If you were to ride a Bull Market for several years and make some very large paper profits, can you image how it would feel to have your profits nearly wiped out in the event of an economic crisis?

One of the major forces of Market movement, greed, stops the average investor from buying a Put Option, or insurance, against their portfolio. To become a successful investor, and to ride out the turmoil and Stock Market Crash as well, it is a wise decision to give back a little of your profits.

Where To Invest Money At The Moment

There is a lot of fear and panic in the world’s financial markets right now, and people are wanting to know where they should invest their money where it will be safe, and make a return on investment. There are not too many things as completely safe, however there are some strategies that are, and you could also expect a good return on your investment too.

The first strategy that comes to mind is a standard bank deposit. Recently, the Australian Prime Minister Kevin Rudd, has guaranteed personal bank deposits up to one million dollars. This has been just what the market has been crying out for, and with some banks paying up to 9% p/a interest, this is a very safe investment.

Investing in Blue Chip Shares right now might seem like a crazy idea, yet there are some very undervalued Stock out there at the moment. To make an investment in Shares safe, we can implement the purchase of a Put Option at the same price as what we paid for the Shares. By giving some of the upside profit towards the Put Option, we have a Share Portfolio that will have no downside risk at all.

Investment property has also been taking quite a hammering at the moment, and excellent properties in outstanding locations are available for fantastic prices. Many wealthy people are actively adding to their property portfolios at the moment.

There are many ways that you can invest your money, and it is important to remember that you must exercise just as much caution in the good times, as well as the volitile timeslike now. The first rule of investing is protecting your capital, and by doing thorough research and becoming financially educated, you can thrive in even these ‘uncertain’ times.

Setting Financial Goals

In order to become financially successful, we must actively set SMART goals, and then get out there and achieve those goals. A SMART goal, is one that is specific, measurable, attainable, realistic, and tangible. The best way you can reach your financial goals, is to write them down on a goal planning sheet and then read your goal at least once per day.

Financial goals are important if we wish to be wealthy. It is easy to say that you wish to be rich, or wealthy, although if you do not put a dollar value on your goal, then you will never be rich. If you want $100,000 by a certain date, then write that figure down. The methods of making that money will then come to you in your creative subconscious.

You can have many financial goals, and for many reasons. Something that I have learnt and many wealthy people whom I respect have shared with me, is that your goals to create wealth should not just be for the sake of having money. Instead, it is what the money can do for your life, and the positive experiences that it can bring you and other people.

When you create wealth through ethical means, many people and businesses benefit. Jobs are created and money filters through to all. That is also why it is so important to become wealthy, so you can add to the advancement of the human race.

Put your goals somewhere that is easily seen, and read them at least once per day. Some people say the difference between a millionaire and a billionaire, is that a billionaire will read their goals twice a day.

Millionaire Mindset

The single most important thing you can have to help you create wealth, is your mindset. Without a healthy and abundant mindset, you simple will not have an enriched life. Without it, you may come into money at times, yet you will not keep it.

The abundant mindset is something that you may not have right now, and the chances are if you are not in the financial situation that you dream of, then you have some work to do. The good news is, is that you can quickly learn how to change your mindset, apply the principals, and before you know it your entire life will change for the better.

There are many free and inexpensive tools and resources available to help you change your mindset. Most resources that you will find however, will have their core taken from the writings of Wallace D Wattles, and his classic book, ‘The Science of Getting Rich’. This very book, has gone on to inspire every successful wealth creation speaker, educator, and presenter since then. Getting rich is indeed a science, and that said if you follow the principals as they are laid out, then there is simple no way that you can fail.

I intend to present many more posts on Wattles writings, as they are simple to understand, and also to execute. The beauty of it is, is that anyone can do it, and no matter what situation that you may find yourself right now, you can apply all the principals.

Welcome To the Learn Wealth Creation Blog. My name is Clint Maher and the purpose of this blog is to give you real wealth creation strategies that will help you reach your financial goals. The strategies are the same ones that I use on a daily basis, and they are the ones that I used to leave behind a six figure a year job that I did not like.

There will be information on all aspects of wealth creation, and a lot of focus on the importance of the wealth mindset. If you would like to know anything at all about the creation of wealth, then please feel free to offer any suggestions about future postings.