Who is steering the boat of your investments?
Before we get into the first Dating & Trading post, first a serious word about your wealth in stocks.
Writing about trading stocks in common circles sometimes borders an untouchable taboo-like mystery. People don’t bother to learn the basics because they think trading is some unfathomable subject.
Like certain things in life that can have a gigantic impact on your well being, it is not discussed in an educated way and much of what is discussed has a gossipy characteristic to it, because of that, I believe, trading is often not taken seriously as a vehicle to make wealth (or to lose it).
Employees with stock options have waded into trading stocks like the blind walking onto a minefield, without serious education from their employers, schools or community, and have destroyed what could have been positive life changing financial wealth for them, their families, their children’s future and to the organizations they could donate to.
Yes. I do have a responsibility to warn for those who desire to hear the warning.
Stock trading is not like playing a bloody slot machine. Like anything worth doing that has potential for success, many intelligent people have made serious money in the stock market.
You should seek credible instruction on how to do it before getting your hard earned money involved. Do not treat it as a “learn by your own mistakes.” You will run the risk of wealth destruction, a fate easily avoided with a few simple disciplines.
I absolutely recommend that anyone in a position to acquire stock, especially the large amounts offered by companies going public, go do your studying, at the very least, learn how to manage your risk by using a trading stop so that you will not lose all what you worked so very hard for.
Understand the tax consequences and keeping part of your sales for paying taxes. Don’t be one of these people who don’t sell only because they don’t want to pay taxes (although holding for the long term capital gain tax savings can be substantial).
Remember, that number you see on your screen, unless you have a lot of previous capital losses to burn up, you need to reserve part of your future sale for the purpose of paying your TAX. Never view the full amount as spendable.
If you choose to keep part of your wealth invested in the market, do yourself a favor and make sure you know how to trade and invest stock. Even if you are not a day trader, learning how it is done will help you make more intelligent decisions on how to manage your investments to preserve as much of your money as possible.
Remember, the best trading decisions are done with planning, logic and risk management, not with emotion and feeling.
Keep in mind Jim Rohn’s words of wisdom:
“It is hard to keep that which was not obtained by personal development.”
That means you’ve got work to do if you are the one I’ve been talking about.
You earned it, you deserve to keep it. But you’ve got to do the work because NOBODY is going to look out for your wealth as much as you. Unless you want to spend more time sitting in that cubicle than you have to, you better develop the necessary skills.
I’ll see you… on the next page
If you know someone that can benefit from an attitude adjustment, you like this post or have gotten something useful from this, please share it and leave a comment.
FYI, my stock mentor is Dan Fitzpatrick. You can find Dan at www.Stockmarketmentor.com.