Investing is like swimming, the earlier you start ,the better
Read latest article here, hereand here.
In many casual conversations with friends, I discovered there are still many who do not invest their money. And the few common reasons they give are :
1. Not earning enough money
2. With Covid-19 and the recession, it is better to park funds in bank
3. I have thought about it .....maybe someday
Of the 3, I thought the 1st reason was compelling. Afterall, if you earn little, you have little to save and lesser to tallk about investment. But that is a wrong concept to begin with. If we make a conscious effort to start saving a small amount a month, say, $50 consistently for 6 months, we will have $300.
With fractional units that one can buy in shares and micro and mini lots in Forex, one need less than $100 as working capital, really. Of course, the smaller your base, you are likely going to take a longer time to compound your returns.
Example :
a) 100,000 invested in Company A @ 5% returns will give you $5000
b) 100 invested in Company B at 50% returns will give you $50
Many think of option a) and think with $5000, it is a decent passive income and I can do this, pay this and that......so the attraction is there. But they forget the risk is also high ,ie, $100,000 invested. The market could go the other way and he lost $5000 as well.
And when option b) is presented, they are not the least excited as $50, being a nominal sum present little to no attraction. They choose to procrastinate , thinking there are other ways to make $50. And with that kind of thinking, they delay their decision to participate in the market.
Many choose to rely on their primary source of income - from their day job and fail to diversify until Covid-19 hit ! In a way, this virus is a wake up call as regardless of age, capabilities, this Covid-19 has wiped out thousands of jobs and more heads will be axed.....
Suddenly, the retrenched, suffered 50% pay cut or unemployed person wakes up and have to struggle with a new identity - who am I ? Without the job, they cannot pay the rent, the debts, the beautiful car they own, dinners and Netflix ,etc.
Think logically - banks worldwide are offering paltry to negative interest rates which means putting your hard earned money in banks is no longer a safe option.
Investors are spoilt for choices to the myriad of instruments made available from ETFs to commodities, futures , options ,etc. And there are tons of resources (FREE) available on the internet, books in library, etc.
Let not the size of your capital, your lack of knowledge, age, circumstances you are in to STOP you from investing. Some may tell you to start a business during this pandemic. My take is treat your investment as a form of business.
It is way cheaper than setting up a shop online be it Amazon, Ebay or Alibaba to sell. Once you have the products, you still have to market it aggressively to get customers. Then you have to take care of delivery and after-sales service and inventories hiccup , if any.
Investment - be it buying currencies or shares or gold, is very much straight forward. All records are kept with your broker, neat and concise by date, time, position size, profitability,etc.
You can operate conveniently from a laptop , Ipad or mobile phone.
But the best part which many businesses cannot offer you immediately IS :
There are READY pool of buyers and sellers. When you execute a long position in this company, ZA Online, within seconds, your order is filled, meaning a seller somewhere out there is willing to sell it to you. Could you say the same thing for your online/traditional shop ?
Another thing - millions and millions of people can long say, EURUSD currencies and there would still be available stocks to sell. We are talking about trillions and trillions worth of money in the currency market. That is liquidity. Never worry about finding a buyer or seller.
Time - the most valuable resource would be the most expensive item that you need to spend on. That is, for beginner, you need to study , gain knowledge, apply it on live trading account , build a strong system , manage your emotions (you get better over time), risk management, etc.
Thus, like swimming, the earlier you start, the more time you have to learn the skills. It is a lifeskill that can save your life in the case of swimming. Investment can offers you the financial freedom that many aspire but failed to obtain it because they keep doing the same thing over and over again.
Here's something to get you started :
1. Don't worry, enjoy life first , we are still young.......
2. Sowing and reaping
3. Help others in need
In many casual conversations with friends, I discovered there are still many who do not invest their money. And the few common reasons they give are :
1. Not earning enough money
2. With Covid-19 and the recession, it is better to park funds in bank
3. I have thought about it .....maybe someday
Of the 3, I thought the 1st reason was compelling. Afterall, if you earn little, you have little to save and lesser to tallk about investment. But that is a wrong concept to begin with. If we make a conscious effort to start saving a small amount a month, say, $50 consistently for 6 months, we will have $300.
With fractional units that one can buy in shares and micro and mini lots in Forex, one need less than $100 as working capital, really. Of course, the smaller your base, you are likely going to take a longer time to compound your returns.
Example :
a) 100,000 invested in Company A @ 5% returns will give you $5000
b) 100 invested in Company B at 50% returns will give you $50
Many think of option a) and think with $5000, it is a decent passive income and I can do this, pay this and that......so the attraction is there. But they forget the risk is also high ,ie, $100,000 invested. The market could go the other way and he lost $5000 as well.
And when option b) is presented, they are not the least excited as $50, being a nominal sum present little to no attraction. They choose to procrastinate , thinking there are other ways to make $50. And with that kind of thinking, they delay their decision to participate in the market.
Many choose to rely on their primary source of income - from their day job and fail to diversify until Covid-19 hit ! In a way, this virus is a wake up call as regardless of age, capabilities, this Covid-19 has wiped out thousands of jobs and more heads will be axed.....
Suddenly, the retrenched, suffered 50% pay cut or unemployed person wakes up and have to struggle with a new identity - who am I ? Without the job, they cannot pay the rent, the debts, the beautiful car they own, dinners and Netflix ,etc.
Think logically - banks worldwide are offering paltry to negative interest rates which means putting your hard earned money in banks is no longer a safe option.
Investors are spoilt for choices to the myriad of instruments made available from ETFs to commodities, futures , options ,etc. And there are tons of resources (FREE) available on the internet, books in library, etc.
Let not the size of your capital, your lack of knowledge, age, circumstances you are in to STOP you from investing. Some may tell you to start a business during this pandemic. My take is treat your investment as a form of business.
It is way cheaper than setting up a shop online be it Amazon, Ebay or Alibaba to sell. Once you have the products, you still have to market it aggressively to get customers. Then you have to take care of delivery and after-sales service and inventories hiccup , if any.
Investment - be it buying currencies or shares or gold, is very much straight forward. All records are kept with your broker, neat and concise by date, time, position size, profitability,etc.
You can operate conveniently from a laptop , Ipad or mobile phone.
But the best part which many businesses cannot offer you immediately IS :
There are READY pool of buyers and sellers. When you execute a long position in this company, ZA Online, within seconds, your order is filled, meaning a seller somewhere out there is willing to sell it to you. Could you say the same thing for your online/traditional shop ?
Another thing - millions and millions of people can long say, EURUSD currencies and there would still be available stocks to sell. We are talking about trillions and trillions worth of money in the currency market. That is liquidity. Never worry about finding a buyer or seller.
Time - the most valuable resource would be the most expensive item that you need to spend on. That is, for beginner, you need to study , gain knowledge, apply it on live trading account , build a strong system , manage your emotions (you get better over time), risk management, etc.
Thus, like swimming, the earlier you start, the more time you have to learn the skills. It is a lifeskill that can save your life in the case of swimming. Investment can offers you the financial freedom that many aspire but failed to obtain it because they keep doing the same thing over and over again.
Here's something to get you started :
1. Don't worry, enjoy life first , we are still young.......
2. Sowing and reaping
3. Help others in need
Comment:
we are adding longs at this level
