Hi,
Warning: If you can't handle truth, you should probably stop reading this email right here, right now...
When I was in my early 20's and I was beginning to put some money away for the first time in my life...
It was weird. Really weird.
I was so used to NOT having money, it was actually kind of strange that I now had the opposite problem of having too much money, on hand...
Anyway, I decided to save and invest it (after spending a lot of it on stupid stuff)... sounds familiar?
But here's where things got interesting...
What I didn't realize back then, was that investing isn't that simple. You don't just take a chunk of your savings and dump it in some real estate or in some other "asset" like stocks & bonds. It's a lot more complicated than that.
But that's what I actually used to think, and that's what many beginner investors, I know -- think too.
They think they know what they're doing. They think they're building their financial future, but they're actually "gambling" their savings away.
So to protect you from making the same mistakes, here are the three (3) warning signs you're gambling your savings - instead of investing it. (My comments will follow.)
Gambler Alert #1: You Invest In Things You Don't Understand.
A few weeks ago, I sent out an email about how I took my family's savings and blew it on an 'opportunity' that I didn't understand at all and lost...
And that if I had just spent some time doing the due diligence, I probably wouldn't have made such a stupid mistake. And I would have saved myself and my family from so much hardship. But foresight unlike hindsight is NOT 2020...
And the thing is. I'm not the only one guilty of diving headfirst into "too-good-to-be-true" or that 'shiny thing syndrome' -- opportunities…
Many many investors - even experienced investors - go into investments they don't really understand, like commodities or options.
Let's take Forex Traders, for example. Even traders that have been trading for decades don't always know what they're doing. AND none has a crystal ball...
Most of the time they're just guessing...
Guessing that the US Dollar will go up, or guessing that the US Dollar will go down vs the EURO or other currency pair.
Sure, it's possible that some amazing traders have gotten trading down to a science and automated it.
But what about everyone else?
Are they 'investing' - or are they 'gambling?' You tell me...
If it's studied and one takes a calculated risk, based on research and your sound understanding... its investin,' if you're guessing even an educated guess, it's not... it's gamblin'.
Gambler Alert #2: You Invest In Things That Are Emotionally Exciting
"Wow, this investment is going to make it big, I'm telling you."
If you find yourself talking about your investments all the time to friends and family.
That's a big red flag.
Remember back in 2017 when everyone, including the mainstream media, was talking about Bitcoin - btc?
Everyone was hyped and convinced it would keep rising and rising.
TONS of money was "invested" into btc.
Some people even re-mortgaged their homes to get in "before it's too late". Yes it went up to $20K/ btc but now it's back down to around $7K currently at around $8K https://www.coindesk.com/price/bitcoin
And that's what emotion does to you.
It's no different from a gambler that keeps playing and playing because he is emotionally hooked.
And that brings us to...
Gambler Alert #3: You Have No Exit Strategy
This is why casinos make so much money.
Most gamblers don't know when to quit...
When they're on a winning streak. They just keep playing...
"I'm on a roll."
They think they'll stay, lucky forever.
Instead of cashing out or taking the cash on the table right there and then... while they can, they just keep playing.
Then when their luck turns and they start losing…
They can't accept defeat.
Instead of leaving and calling it a night, they keep gambling to "win it all back".
To "break-even," at least.
They keep betting and betting and betting.
Until there is nothing left they can bet with...
And the same happens to many investors.
When Bitcoin started falling...
Many didn't know how to cut their losses.
They were in too deep...
Some even put MORE money in. Hoping it would bounce back and that they'd make twice as much profit.
But that didn't happen. And it wiped out a lot of people.
Now I'm sure you don't want that to happen to you. And if you're anything like me, you're not looking to gamble your savings anyway.
Also around 2008 their was a financial "bubble burst," stocks tanked, most lost their investments, retirement money or nest egg.
Here's What To Do Instead
If you're unsure what to invest in, then why not just invest in yourself for now?
What have you got to lose?
That's what I started doing...
Instead of putting my money in things I didn't understand…
I just started attending more events, taking more courses, and reading more books.
This gave me an edge over other investors. And when I was ready to start investing, I had shortened the learning curve a lot. I also follow a professional like Jim Cramer to learn how it's done and made from $200K -- $300K...
Become a Smarter Investor w/ Action Alerts PLUS
There's no reason it can't be the same for you.
Keep learning and keep growing.
~João Silva
P.S. .OR. If you'd like to learn the secret investment strategies many wealthy people use year after year, decade after decade. Click here to learn more.
| 
No comments:
Post a Comment