Long-term investing is popular, but does it work? When I started to invest, my primary objective is to get out of the “rat race” — waking up, going to work, eating, sleeping and do it all over again. I had a very good job in IT back then, but we have to work long hours, often having to meet deadlines (like, yesterday!) so the stress has affected my health, I couldn’t fall pregnant for 4 years! That clear objective helped to shape my strategy thus I avoided “long-term investing” and instead went for income investing where I make sure I have money coming in monthly, make sure that I grow my capital and skillset steadily, which lets me invest more and increase that income! The best part, with the skillset, you can even get to use “other people’s money” — yes the banks or brokers let you invest with “margin or a loan”. The goal has always been to replace my income from my job and have more time to raise my children and other projects I want for myself.
You see, it all starts with desire. What do you want in your life, most brokers or “stock investing education” neglect this part of investing education because well, they just don’t have to. It’s beyond what makes money for them … AHA!!! (All they have to do is make you buy or sell and they make money either way — they don’t have to bother!). Yes, sadly …. this is why I share about goal-setting, which is the reason why you are investing in the first place. Oh yes, sounds simple ,,, but no! Done haphazardly, it’s not going to get you anywhere. “I want to make a lot of money” is not only vague but after a while, it does not motivate you anymore.
GOAL-SETTING is discussed in my workshop. “Low-Risk High-Reward Investing Workshop”
happening on April 25. For many, vague goals are stopping them from making more profits, they can be “psychological barriers” that you may not even be aware of, so join our workshop to get clarity on this!
Here it is again “Low-Risk High-Reward Investing Workshop”
There will be webinar version of this for people who can’t make it to the site. Keep posted and email me at charmel@highheeledtraders.com for details.
In goal-setting – we start by doing an inventory.
> Where are you right now — assess your current financial standing : assets, income, debts
> How much capital do you have available, a portion of that for risking eg, 100,000 total capital to be spent but 20,000 only for risking (amount you can afford to lose)
> What are your skills? Are you computer literate, good in math, what industry do you understand or are you interested in? (technology, finance, industrial, mining etc)
> How much time do you have for studying, creating your business plan, timeframe you want to invest, monitoring your investments
> What is your temperament – are you action-oriented, do you like to think and ponder about things, take things slow.
The beauty of investing is that it can be done in a way that suits you. In the book “Market Wizards” all these traders cite different strategie but the singular thing that works is that “they invest as it fits them”
Goal-setting is your compass, your GPS (and soon to be Apple Watch! 🙂 ) , it basically gives you direction on your trading. Avoiding the wrong path so to speak. Make sure you make the right moves. Without the goal/s you will be led by anything that, suggested frequently enough will make you think that is the norm or only way to do things. Your goal is ultimately what you want in your life that makes you happy and productive. So think long and hard about that. Get into the details ,,, what you can see in your future, taste and smell!
Meantime, here’s my video on my take on Long-term Investing. Enjoy!
