--Written by Jordan Lin, www.vantagerei.com
Last month, we went to Las Vegas and Los Angeles for two investment classes. There are so much to learn and so much to do. We learned about stock and option trading in Las Vegas. On the second day of our class, the market crashed. It’s been the worth crash since 9/11. The Dow Jones Industrial average dropped to 7000’s almost half of its high years ago. Talk about the way to learn how to invest in stock: when the market is crashing down like you never seen before. However, as bad as it sounds in this market, many people actually made tons of profit from it. The instructor pointed out that before the market crashes, there are many indicators that is suggesting that way. So for those who is experienced and know what they are doing, it’s an exciting time for them. For those of you who bought stocks or mutual funds and were predicting they were going up in value before the crash, I feel very sorry because the lost has already happen. And for those of you who still have money to invest, it’s really the right time to buy. Just like real estate, you buy when everyone is scared.
If you are new to the investing world DON’T MAKE ANY MOVES YET
Sorry but I have to make this loud and clear. Don’t just go to any financial advisor and start buying mutual funds or stocks. Instead, invest in yourself. Many people have made the mistake of handing money to some financial advisor without knowing exactly what’s going on, and thinking that the financial advisor is smarter than you so they can make a wiser decision on how to invest. Here are some facts I like to point out:
Not every advisor has your interest in their heart because of the way they make profit. Many advisor out there are not advisor at all, they are simply a sales person selling the products their company is selling. And they make money when you invest, not when you make profit on the investment. But don’t get me wrong, there are some out there that are truly financial advisors and they can benefit you greatly. So shop around to find the real financial advisor, not mutual found sales person.
S&P 500 outperforms 85% of all the mutual funds out there. So if you want to be ahead of 85% of the pack, just buy funds that follow S&P 500. Also, they don’t have stinking fees either. However, you can do better if you wanted to. There are funds out there that are constantly beating S&P 500, long term or short term. To find them, the key is “no-load-funds,” meaning the fund doesn’t charge you fees at the front end or and at the back end.
Invest in stock or real estate is not risky. Thinking you can just following what the so called experts are saying and you will be fine is risky.
Would you let your son take your car key and start driving without getting a license first? I hope not. The same thing applies here. I have been to many seminars and spent a fortune on it too. Do I think it’s worth it? Absolutely! I know these seminars are very expensive and not all of them are good. But there are many good ones out there that would truly benefit you financially. What if you don’t have the money to take the course? Go to the library and borrow books on it. Then save enough money to go to the reputable ones. What if you don’t have the time? That’s a lie, and you know it too. You make the time to do things that are important to you. Do you have time to shower? Do you have time to eat? You need seminars even more if you think you don’t have time. Hopefully you get my point.
If you don’t know where to begin, I would suggest that you can go buy this book and read it: Secrets of the Millionaire Mind
From this book, I have learnt a lot about how we were conditioned from people we know when we grow up and how the riches think. It’s a great starting point for everyone who is interested.
Last word I like to share with you:
Be scared when others are greedy. Be greedy when others are scared.
No comments:
Post a Comment