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| Introduction |
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Have you wondered why ‘Professionals’ achieve greater success than amateurs in any trade? There are 2 simple reasons; mindset and practice. Practice makes perfect. A ‘Professional’ is able to learn any art through practice.
It is human nature to want happiness and motto of all mankind. To achieve happiness, we need money. Making money is easy provided you know how to work efficiently. There is a phrase that goes, “It doesn’t matter how hard you work but how much of work has been done”. What this means is you must learn to work smart.
Our workshop teaches you how to plan for an early retirement so that you can spend more time enjoying life with your family and friends. Life is short, so let’s make it sweet.
Do you know how money is made in Stocks, Futures, Forex, Commodities, Options, Mutual funds, Unit Trusts etc? You have an account with a broker or financial institution and your money is deposited with them as an investment. For Mutual funds and Unit trusts, the investment decisions are decided by the financial institution. You do not have a say on their trading decisions. Where else in stocks, futures and forex, the decision is up to you, i.e. you decide which instrument you want to invest in. You get to manage your own risk and reward.
Stocks are the most common in trading. You can buy a company stock if it is publicly traded and your investment depends on the value of the company. If the company earnings are good, then the value of that company appreciates but if the earnings are bad then the value depreciates. This may sound easy but in real life, it is not that easy. You need to know about the company’s financial performance if you are a long term investor. You have to analyze the company’s prospective and future projects based the Country’s economic growth and political policies. Trading in stocks has a disadvantage where you have a lower leverage for the money you have invested; usually it is the double the size of your investment. E.g., if you invest hundred thousand, you can trade for two hundred thousand worth of stocks. Are you aware that you have to pay an interest on the other hundred thousand to the financial institution you are trading with? If not, you might want to find out more.
In stocks, the volatility is not that much too. Sometimes, the company stocks might be moving like a ‘turtle’ and you may get caught. On rare occasions, the company might even go bust and your investment becomes zero. Just like in ENRON and WORLDCOM. Another difficulty in trading stocks is once you miss an opportunity, you have to wait for the next. In the US markets where the volatility is very high and the investment is also very high, you can also do short selling meaning you can sell before you buy. This is very critical to some Traders. Sometimes when you feel that the market has risen too high and too fast, that’s the time you will want this facility (short selling). |
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