Tuesday, September 11, 2012

Creating wealth as Investor Stock Market - It 'risky?


When you create wealth in the stock market, you need to build some understanding of the risks involved. How do you assess risk? When listening to the opinions of others and when you make up your own mind based on training and research?

Well, for starters, do not listen too much to others. Who is going to look after your money better? You, of course! So why not learn for yourself how to be a stock market investor, instead of heeding the advice from possibly unreliable sources.

For starters, learn the basic strategies. If you understand how the stock market works to a certain extent, then maybe you should look at derivatives. These investment instruments are highly leveraged and need to be understood properly to use them to full advantage.

Once you understand derivatives trading (and that if one applies), you can move on to more advanced strategies and this will open some interesting possibilities for you.

For example: I invest with yields around 15 to 20% per month. I learned this with little knowledge of how to be an investor in the stock market. I achieved this in less than 2 years. I understand that many investors have learned this from 3 to 6 months.

There are also bad month. Here is where comes in the money management Learn to manage your investment with a proper strategy and money management is vital for success in the stock market.

You have much to gain from learning from other traders excited. Visit the stock market or forums for the creation of wealth. Learn from other like minded people. A little 'effort, fueled by dreams will take you well beyond the minimum effort and without dreams.

Remember that this is the lever. Learn how to make yourself and your income potential increases with it.

Many will say that the risk increases with the income potential. If you agree with this, then read this quote from a very seasoned stock market investor and think again:

"The risk is not understanding what you are doing" - Warren Buffet

Think about it. If you did not think - "Yes, it is true", then read it again and again until you really get the point.

What some people perceive as risky, others do as a task of every day as if it were second nature. It 's just like having a casual stroll to the local shop.

Driving a car is risky. Especially if you have not ridden before, or have little experience. Maybe it did not bother to learn the basic rules of traffic.

How risky is for you to drive a car when you know the traffic rules, have made the effort to practice and stay abreast of any changes they may have in that environment?

Not very risky at all!

Same task. Very risky for some. Almost no risk at all for others.

Compare this to be an investor in the stock market. If you enter a trade with little or no knowledge, it would be fair to say that it is very risky. Do this with the knowledge base, research and networking, then it would be fair to say that the risk has been reduced dramatically.

The trade itself may have different outcomes depending on how you react to the market. Therefore, the different levels of risk in the same situation.

So hang in there. Use the resources as a forum for exchange. Are you a course or attend a seminar for fast track your learning. Educate yourself with things that will make a difference to your future. Believe me, whoever said money can not buy happiness, or had no money at all or has never gone without.

Of course, money does not buy happiness. But it sure does help. I know which option I prefer.

Let me think. Here are my financial options:

Option # 1 - Little or no wealth.

O Work until I'm 65.

Putting my children or through the media under-funded schools because I have no choice.

Having to budget or most or all the time.

or try to make ends meet.

or maintain a relationship and a happy family, while leaving them struggling to pay bills.

Have very few or holidays.

Constantly or worry about fuel prices.

To have or little or no money for charities.

or Etc, etc.

Option # 2 - Abundance of wealth.

Or enough money.

Or a comfortable life. Stress-less lifestyle.

O Work up to when I want. NOT until needed.

work or as a hobby. Do what you wanna do. With a passion!

or put my children in schools that I want. It 's my choice.

o Support of many charities as I like. Making other peoples life easier.

Ø Financial support my local community, because I can.

Holidays or what I like.

Or make ends meet ALL the time. Who cares how much the grocery bill is?

o That the prices of fuel? What is the problem? When fuel prices rise, so do my actions.

or Etc, etc.

If I can be happy with option number 2, so I have some serious problems!

You can choose your destiny. Do not allow others to your mind for you. Make wealth creation a part of your financial education.

Good research and good luck to you in your quest for financial independence....

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