Smart Investing is a necessity in the current economic climate. Why is this?
- No longer can you rely on banks to work with your security in mind
- No longer can you rely on governments to provide you a pension
- No longer can you rely on companies for job security
- No longer can you ignore the hidden stealth tax of inflation from eating away at your investments as you read this
Now is the time to seize control of your life and financial future and build your Smart Portfolio™
It is important that your investing career covers these 8 Principles of Smart Investing:
- Who are you and what do you want?
- Start early… but better late than never
- Every little helps so invest regularly
- Spread your wings and diversify
- To create is effort; to copy is genius
- Align your expectations with practicality
- Ask yourself where you think you will be in 5 years time, still doing what you’re doing?
- Always ask yourself where do you want to be in 5 years time?
From following these steps, you will be head and shoulders above the average “have-a-go-investor”.
Who are you and what do you want?
Yes we all know we are here to make a lot of money… why else do millions of people invest everything to learn how to invest properly? However, it’s important to get real and detail your exact investment goals and time frame for achieving them. Some have short term goals, like saving for a car; others have longer term goals, like saving for retirement or their child’s university/college fees. But most importantly every investor has a different appetite for their level of investment risk.
The old adage: where there is risk, there is reward. How risk averse are you? Clearly we all want to avoid risk but there is an upside. With great controlled risk you have the opportunity for greater unlimited rewards over the long term. Once you find your balance of what you are comfortable and fully accept it then you have taken your first step to smart investing.
The best way to start is to view Trade-Vest’s Financial Trading & Investment Handbook™ which also has useful breakdowns on how to have a Smart Portfolio™. Also make sure you stay up to date with life changing investment choices through our Investor Intelligence™ publication.
Start early… but better late than never
There is one tool that has been key to the riches of the world’s billionaires. It is called Compound Interest – regarded by Albert Einstein as “the eighth wonder of the world”. To you and I, we can use
compounding in the art of making money work for us. The above example shows three hard working individuals who manage to save just £100 per month but they all start at different ages. Assuming an inflation-busting 7% annual interest rate (if you’re lucky!) from your bank then you can see your potential retirement pot. Hardly something worth working for let alone saving for but that, unfortunately, is the reality if you sit by and do nothing.
Unfortunately many people fall into quicksand of inertia – they sit back and watch inflation erode their retirement pot day by day…but who’s to blame?
Now for those of you who are ready to do something like Paul, who decided to invest in himself and learn to how to do it properly. He went on to achieve 30% return a year from the markets, still investing £100 per month. Paul’s retirement pot at age 60 is now £11,848,273.
No matter how old you are it is never too late to start but an absolute necessity that you must start.
Every little helps so invest regularly
It makes perfect sense but why do so many people fail to do this? Yes, life, for many, just gets in the way…not to mention the “spend today and worry about saving for tomorrow” culture the west is in trapped in. A regular investment plan will make sure you make regular contributions. Nowadays, you can instruct your bank to do this automatically so you never even have a chance to spend it! It’s also generally easier to come up with small bits regularly. Most people wait to invest until they’ve built up a large amount but do not realise that even starting with a small amount will make a huge difference in years to come.
Spread your wings and diversify
Those who manage to spread their capital across a wide range of investments are in effect, reducing their risk and increasing their potential returns over the long term. It can also help cushion your portfolio during downturns as some investments may go up whilst the others go down.
There are many ways to diversify what you do. We like to diversify by Trading & Investing therefore using the same skill set to profit in the short term but also look after the long term plan. You can also diversify by making sure your portfolio has a mixture of economic and business sectors, themes domestically and internationally, etc.
To create is effort; to copy is genius
Where to start? The market is saturated with so-called “gurus” peddling courses – many of whom don’t, can’t and won’t even walk their own talk!
The unfortunate reality is that there are many people teaching what they know, rather than doing what they know. In fact, one of the reasons Trade-Vest was borne was because of the founders’ disappointment in the absolute rubbish that was out there but all the big promises. Having themselves learnt the hard way, made all the mistakes, spent all the money they know what every trader and investor out there is feeling and thinking. But they got through it all and found the light at the end of the tunnel and now it’s their mission to lead others through the same tunnel and to the light.
It’s been an incredible journey for Trade Vest’s founding fathers. It’s taken over 5 years of analysis, testing, trading and modelling to being you a concise and complete service. Yes, we know exactly what works and what just do not, and have successfully helped thousands of people around the world to trade and invest successfully. From regular live trading events in South Africa and the US, to helping retail traders develop fund level strategies in Singapore, to educating Europe on Trading & Investing at the Ultimate Wealth Congresses, they’ve done it all….now it’s down to you to join our ever growing community and be in the top 10% of successful traders and investors.
Align your expectations with practicality
What is your time horizon? Whether you decide to trade or invest or do both, you will still need to choose whether you are saving for long term or short term, or maybe both. The key is to be specific on your goals but also practical in how you will achieve them.
Some of our traders who are comfortable with risk strive for very high targets and take the lead from Marty Schwartz who turned $40,000 into $20,000,000 never losing more than 3% of his account. Some of our investors look for the medium to long term opportunities as they look to use the effect of compounding to build a good retirement portfolio. Either way they had a plan and stuck to it!
What they both have in common is that they started! And the time to start is today.
The TV Investor Academy’s library shows you how to get started and invest in a style that suits you and your goals. It covers:
- Introduction to Financial Markets
- Stock Market Fundamentals
- Risk Management Techniques
- Fundamental Analysis for Stocks:
- Value Investing
- Growth Investing and much more
- Technical Analysis
- All you need to read a chart and identify opportunities