Learn Wealth Creation

Fear And Panic And The Stock Market

Last night in the US, the Dow Jones Index closed at under 8000 for the first time in five years. That is a huge difference from the highs last November before the Credit Crisis started to unfold. Many people are panicking now, and maybe they deserve to, maybe not. Instead of focusing on the fear, why don’t we concentrate on how best to take advantage of the current Stock Market conditions.

Buy, Sell, or Hold?

A great question and one that only you can answer. There are certain Share Strategies that will make you a lot of money right now, and there are strategies that you can use to completely protect your investments too. Combining the two strategies is a good way to make a lot of money right now.

Educate Yourself And Learn The Stock Market

Now is the time to be learning as much as you can about the Stock Market and to become financially educated. The roller coaster ride has not finished yet, and when this mess is all over there will some massive opportunities for those who are smart and savvy investors. Huge fortunes will be made in the coming years from the Stock Market, and there is still time to learn from what is happening at the moment.

Fear and greed are the two driving forces of any market, and in particular the Stock market. Greed and some over the top investment vehicles have got us in this current financial situation. The future of Share Investing calls for more solid and protective strategies.

That’s it for today, just wanted to touch on the Dow closing below 8000 and to share that it is not the end of the world just yet. Go out and get prepared, and then you will reap the benifits on the next Bull Market.

Is It Easy To Make Money Investing In Shares?

In today’s post we are going to look at investing money in the Stock Market, and will discuss some of the Share strategies that are available to use in this current economic climate. Not all wealth creation strategies are created equal, although as we have discussed before it is usually not the strategy that loses you money, it is the mindset in charge of it.

Making Money And Keeping It

So the trick is not just to make money  when trading stocks, it is to keep it as well. Making a $200,000 profit is not much fun if you follow it up with a $300,000 loss. There are some great share strategies that will not only allow you to make a lot of upside potential, they will also allow you to protect your capital 100%.

We have spoken in the past about using Put Options in combination with you Share Trading Strategies. By giving up a few percent of your possible gains, you can have complete peace of mine knowing that if the Market turns against you, you will have full equity protection.

Some of you may not like to give up some of your gains, and there is another part to this strategy that may swing you in favour. Of the Shares that you do want to invest in, look for ones that offer a good dividend yield. There are many quality Shares that offer a dividend that will nearly equal the price of a long term Put Option. In doing so, you will not have to give up any of the upside potential at all.

So know we know how to make money and to protect our investment, we still need to know when to take your profits from the market. Many Share Traders will take their profits too quickly and will miss out on a lot of future profit because they get scared they will lose money. There are many mechanical trading systems out there that can systematically take your profits according to technical analysis, yet this can be a full time job in itself.

A much more simpler system that will only take you a few minutes is to sell your Put Option on the shares and then purchase another one that is nearly ‘At The Money’. By doing so you have essentially locked in all your profits, yet you can continue to take advantage of any upside potential without the fear of losing it.

Many people like to over complicate trading and come up with all manner of rules and techniques to get money in and out of the market. When you want to create real wealth, go back to basics, protect your capital and lock in all profits. You can make money in the Stock market, and you can keep it all too.

Sabotaging Your Own Success

In today’s post we will look at something many people overlook in their journey to create wealth. When it comes to making money and keeping it, the majority of people will subconsciously set themselves up to fail.

So why is this? Well it mainly has to do with the way in which we were brought up by our parents, and the way money and wealth (or lack there of) was discussed and used in the family home. This goes on to set up certain conditioning patterns that will govern the way we treat money for the rest of our lives.

Thin back in the past and remember how many times you have come into money or wealth, and certain things began to happen that ensured you had to spend all the money, and maybe even put you in a position that was worse than even before you had the money. A classic example of this is when someone who is ’struggling’ goes out and wins the Lotto.

The majority of people who play Lotto are what are colloquially known as ‘Aussie Battlers‘, and are not used to having money in their lives due to their conditioning and thought regarding money. When they come into wealth by chance, they subconsciously go into a self destructing pattern, as they only know how to repel wealth. Now that may offend some readers, yet that is exactly what happens. Within a few short years (or shorter) the money has gone, and the Lotto ‘winner’ is now in even more financial pain than before they had their win.

If you are not wealthy now, or feel that you could be doing better, then the good news is that you can re-wire your thinking process and begin to attract wealth into your life. Making money is not just about great Stock Market strategies or Property Investing. It is about the mindset and how you think that will ultimately bring you financial freedom.

The Law of Attraction is a very powerful thing, and can bring you anything in life that you want. Anything at all. If you want more poverty and focus on how tough things are, then that is exactly what you are going to get. Imagine if you were to focus only on wealth, and how great things are, I wonder what would happen then.

Many people just can not fathom the importance of the paragraph above, as they are so conditioned to poverty and repelling money. Many will scoff, and call it new age garbage, yet the truth is this is not new at all. It has always been there and we are in a fortunate time where we can harness The Secret and put it to good use for the good of all man.

Investing And The Fear Of Losing Money

In today’s post, we will look at something that nearly every investor will go through at one or more stages of their life. That thing, is the fear of losing money.

The fear of losing money can cripple your investing strategies in their tracks. As I have mentioned before, many of these fears are unfounded, and through proper research and a great financial education, you can lay these fears to rest and focus on the task at hand.

Our fear of losing money on an investment such as property and the Stock Market, usually comes from the way in which we were brought up, and the way our parents discussed and treated money. It is easy to fear something that you do not understand, so it is important that you become financially educated in your chosen investment field. The 21st Century Academy is just one of the many excellent investing Homestudy programs that are available today to put you in to a fantastic advantage when it comes to the creation of wealth.

Can you lose money investing? Yes, of course you can. I have lost considerable amounts of money in some investments. What led to the loss of money was my own ignorance at the time, as well as greed and fear. There are risks in life, and the majority of people will not take ‘risks’ with their hard earned money. They would rather live near the poverty line and work in a job they despise for the rest of their life simply because they do not want to take any unnecessary risks.

Unfortunately they are the same people who when they get to their twilight years, reflect back on their life and wish that they had taken more risks. There is nothing as sad as witnessing that scenario.

Take risks, although ensure that they are calculated ones. Pre-empt your fears, and dissolve them before they manifest in your life in material form. Take the steps required to ensure any losses you may have, are kept to a minimum. There are ways of doing this with any good wealth creation strategy.

On the upside of losing money, there is unlimited upside potential, meaning you can make a lot of money and create a lot of wealth if you take a risk. Become educated, face your fears early, and focus on what you want, and not what you don’t want.

Advice For Young Investors Part 3

In our previous posts, we have looked at ways in which young people can get sound and accurate advice when they begin investing. Today, I will continue on some great ways to raise money to invest with.

4. Parents. No, they are just not there to feed you till you are 18, they are there to lend you money when you are 30 and want to invest. You’ll have to go to your parents with a business proposal and to make it even more fair, you’ll even offer them a percentage of the profit you make from your investment. This can be sometimes used as a last resort. If it’s property you want to invest in, there is a greater chance your parents will lend you money as they can see something tangible that you are investing in.

5. Get a raise at work. This may be the quickest way for some. If you are good at your job then you can confidently walk into your bosses office and explain why it is time you were given a raise in salary. Ensure you have a list of strong and valid reasons on why you should get a hike in pay. Take the time to negotiate properly and fairly. Many people often can get a pay rise of $5000 to $15000 just by asking for it.

6. Get a new job. If you are stuck in rut where you work now why don’t you consider moving on. Do you look at the job pages often to see how much your position is worth to other companies? The right employer may be offering twice the salary that you are on now for exactly the same job. If you don’t look, then you will not find it.

These are just a few ways on how to get some quick money together to help kick start your investing career. Don’t feel you have to wait till you have a big cash pool before you can start investing. Often one or two thousand dollars is enough to get started with in shares and property. With Internet Marketing, you can get started with one or two hundred dollars.

Don’t just talk about investing, get out there and do it now.

Advice For Young Investors Part 2

In the last post, we looked at ways in which a young investor can get access to great advice. We explored the possibilities of getting a Mentor or Wealth Coach, and also had a look at Investment Homestudy programs too.

Sometimes it seems just to hard when you are starting out on your investing career. Here are some great ways in which you can kick start your investing so you can begin sooner rather than later.

1.Sell something. You must have something around your home that you don’t use any more. We buy so much junk these days you probably have plenty to get rid of. That second television that you don’t watch, or even that second car that sits in the drive. Maybe you have a spouse that sits around doing nothing, you could sell them (just kidding).

2. Borrow money. If you have a good eye for opportunity and are great at risk management, then there is no reason why not to borrow money to invest with. As long as the return on your investment is higher than the interest you are being charged, everything will be OK. As I just mentioned, you would be best to buy into an investment that is completely protected. There are plenty of strategies around that offer complete capital protection, you just have to know where.

3. Equity. So you own your home or even part of your home. Then don’t let that equity sit there doing nothing. Get a Line Of Credit against it and put that money to work hard for you. Imagine doing covered calls on a share portfolio of $100,000 every month. That will bring you in about $3500 every month for just one phone call.

In our next post, we will look at some more ways that a young investor can kick start their investing career.

Advice For Young Investors Part1

It is often hard for young investors to get good advice when it comes to investing. Often, they ask their friends or family for advice on how to get money, and what to do with money once they have it. This can have some detrimental outcomes, as younger people are easily influenced by their peers suggestions.

Firstly, just because someone offers you investment advice, it does not mean that advice is substantiated. If you must take advice from family or friends, it is best to do so only if that person is a successful investor themselves, and has the results to prove it. The most expensive advice, is usually free.

So where can a young investor go to get help? There are many ways to get good advice, and perhaps the most effective method, if to find a mentor. Preferably you would want your mentor to be someone who is successful in the investing field that interests you the most. If you wanted to be the next Warren Buffet then you wouldn’t necessarily look for a mentor who is a property investor would you.

To find a mentor, you will have to take massive action and get out there and put yourself on the line. Track down successful people, and arrange to meet them so you discuss your ambitions with. Many times, you will have to pay to be mentored, and this is totally acceptable. By paying money, you are implanting in your mind that you will treasure the information that you receive, and that you are serious about your goals. As a mentor, they will see that you are serious, and in turn will give you both time and advice. Who knows, perhaps you will even become a business partner with your mentor.

Your mentor doesn’t have to be someone that you do have real contact with. It could be someone from a Wealth Creation Homestudy program. This is often a highly effective way to get access to wealth education experts that you would not normally be able to. For your investment, there are some amazing strategies and investment advice that is yours to watch, as many times as you please. When I was starting out, I purchased many Stock Market and Property Investing Homestudy Programs, and in turn those investments paid for themselves quite quickly.

That’s all for part one of Advice for young investors. Next time we’ll have a look at some more ways you can get great advice to get your investing career off to a flying start.