Is your goal trade & profit now? Or invest for comfort?
Today is another Wisdom Wednesday! Welcome back and today I want to share an idea that will help make very conscious the decisions you make around investing.
I am also including 13 questions EVERY new investor/trader needs to ask themselves before they start looking for the perfect investment strategy – you need to answer those.
I believe that when anyone is starting to invest/learning to invest, one of the most important questions should be “Am I investing for profit? Or am I investing to create comfort?”
When you truly answer this you alleviate yourself of the confusing energies which are led by greed and fear.
Once decided, consciously, you’ll find yourself much more aware of the risks involved with the investment and in-fact more than likely your ability to take and handle risks will go up, your ability to make decisions on the fly will shoot up and your ability to respond will become a lot more sharper.
When investing for profit now, you’ll be able to detach from the long term aspect of the investment and make much faster split second decisions. Think about it, if you know you’re logging into your trading account to make a profit, when you don’t see a profit, your action is cut losses and move, it becomes very emotionless, when you make it conscious.
When investing for comfort, you’ll find yourself much more relaxed about the short term fluctuations, you won’t get stressed when the asset goes up or down in price, because upon entry you won’t have placed a very risky position, you’ll know the money invested is there to BE THERE when you need it, overall your actions will become a lot more patient, simple and enjoyable.
This is an essential part of evolving as an investor, consciously deciding the purpose of the investment. You know a funny lesson I learned a long time ago? “An investment is just a trade that went the wrong way!”.
While most people reading this will be able to relate to that, the lesson behind it’s validity is very important. Most people set on path with one intention and then as the market changes they change their own actions in response. The truth is, when you know you’re in it to profit today, when the trade goes the wrong way, you’ll have loss criterias, maybe 5%, when that hits, you’ll be out.
The trade never turns into an investment for a conscious investor.
Similarly when consciously investing for comfort, like a lot of Gold For Life students are, long term comfort for life, they’ll place an investment, manage it monthly and when Silver or Gold start sliding 5-10% they’re not panicking, not rushing to their trading accounts, not receiving calls from brokers, not rushing to get out and into the next shiny object trade, because they’re consciously aware of the purpose of the investment.
Answering this question will immediately also save you a lot of money on education. When you want to learn how to trade for profit today, there is one type of training program, when you want to invest for comfort, there’s a whole different type of training program.
It amazes me to this day how many people want to invest for comfort, go to a seminar, buy a trading for profit now program, go home, spend 6 months, lose 30%+ of their capital only to realise “Oops, this was the wrong thing for me!”.
Why do you think that is? Because they’re not consciously entering the market on day 1.
When you sit down and clearly answer what it is you want, everything else becomes a lot more simpler.
For example, we ask this question when taking applications for any level of Gold For Life, because we know that Gold For Life is a comfort investment program, not an adrenaline pumping panic filled trading for profit now program.
This is really one of the main reasons why we have a 92% success rate, because we match the investor to the program, not just let people join because they “think” it’s the one for them.
We actively turn people away from the program, because at their stage in life, they need the Forex or Spread-betting or Day-trading programs that are out there, this investment strategy only serves a certain type of client.
And by my knowledge, we’re the only ones that actually do this analysis, which is why I wrote this post because the last thing I want for you is to go waste thousands on trading/investment training, when with 30 minutes of accurate thought you can decide what is right for you, right for your family, right for your life and right for your goals.
So – take 30 minutes now and ask yourself:
1. Am I looking to trade & profit today or invest and live comfortably tomorrow?
2. Am I okay to increase the risk I’m willing to take if I want to trade & profit big today?
3. Am I okay in not profiting huge today, but having a consistent, safe and simple investment growing for me by choosing the investing for comfort route?
4. Am I dependent on this trading strategy to be profitable to maintain the quality of my life?
5. Am I financially okay if this trading account drops 30-40% overnight?
6. Am I okay with leaving this money out of sight and use for 5 years while it grows?
7. Am I okay if within the 5 year period my investment account fluctuates up and down while I hold the asset & generate the cash-flow?
8. Am I okay with always risking 30-60% of my account, for a potential 10% per month return?
9. Am I okay with not making 10% a month, but consistently growing my fund at 1-2.2% per month for the rest of my life?
10. Am I okay with spending the majority of my day monitoring the market and it’s movements?
11. Am I okay with only spending 15-20 minutes per month investing and finding other things to do with my time while my money works?
12. Am I investing to create a pot for me to enjoy life with?
13. Am I investing to leave a legacy and fund for my family in the long term?
Re-ask Q1: Am I looking to trade & profit today or invest and live comfortably tomorrow?
Answer question 1 again at the end to make sure, because once you’ve asked all these questions your true intentions will surface, it may change from the start, be true to yourself and do what is right for you now.
We all know people who are doing things in life without answering these questions, firstly share your thoughts in the comments below and then share this post with them and discuss with them what you really want. We all need someone to talk to & discuss these things with.
Also let me know if you had any ah-ha moments, last week I talked to a Gold For Life Student from 2011, who thought “Gold For Life is too slow for me” because his peer’s were saying “1-2.2% per month is too small” etc etc etc and actually left to trade Forex & Spread-betting, this year however he’s coming back to Gold For Life, because he’s built his company, doesn’t want to sit in-front of a computer all day, want’s to travel, live life and realised that while 1-2.2% per month is consistent, since 2011 when he left, percentage wise, he would be up higher on his portfolio today, and he wouldn’t have spent 5 hours a day in-front of a screen, missing his family, sacrificing travel only to risk more and profit maybe. All this time, everything he wanted was right in-front of him, but because he didn’t answer these questions, 1 statement from his peers drove him away for almost 3 years doing what he didn’t want. That by the way is 5 hours a day, lets say 300 days a year, almost 4,500 hours of sitting in-front of a computer, sweating the markets risking more than he wanted, to “hopefully” make a return, 4,500 hours – gone.0
This is why you need to get CLEAR before you act on your investments, some people like trading, I don’t. It doesn’t matter, as-long as it’s right for you & what you want.
Until the next Wisdom Wednesday…