5 Reasons Folks lose money in the Market

September 9, 2018 | Filed under: Financial, Stock

Let me give you the top 5 reasons, people loose money in the stock market:

Mistake Number 1: Trust Financial Experts.

Experts? In fact this can be far from the truth. Yes, they passed a simple test, to get a license. But did you know on that test, there was NEVER a question about the stock market or trading! You heard me right not one question. The questions were all about, the securities act, and what appropriate risk for folks. How do I know that, I took the test. I had several license at one time. Not any more. I just wanted to know what they know, and don’t know. I was amazed at what they don’t know. Usually, once you have passed the test one of 2 things happen. One you realize you know nothing and spend hours and hours of personal time to become a good trader. If you are luck you find a mentor to help you a long the path. By the way if you are interested in a stock mentor, check out www.m2express.com OR two, as a broker you start passing along the recommendations of your brokerage (mutual fund or stock), and get paid commissions. Well may be both can happen, but not very often.

In fact, a number of financial folks: brokers, agents, and even mutual fund managers have come to our programs, just to learn credit spreads. It usually results in a problem by the way. Once they learn Credit Spreads, it is tough for them to go back to their clients, and sell mutual funds, or individual stocks. When you are making 10% a month on your money invested, it is tough to suggest to client, that they should invest in a mutual fund, that “may” earn 10-30% (maybe).

Strategy: Increase your financial knowledge through training

Mistake Number 2: Invest only in Mutual Funds.

Diversity is a key to success. There should be a nice mix of strategies, techniques, and systems. A good mixture of cash flow strategies, growth, and some minimal high reward, higher risk strategies.

Think about this. If 2008 your only strategy was investing growth stocks or mutual funds you lost 40% or your account. ONE strategy is not a smart thing. Multiple strategies make a great deal of sense. Credit Spreads are a Fantastic cash flow strategy. High success rate and solid consistent returns.

Strategy: Invest in multiple growth and cash flow investments

Mistake Number 3: Don’t know about investments that get 15% a year (or greater).

There are lots of investments strategies, available to individuals. Unfortunately, not all of them are discussed through a financial advisor. Or readily available to the average person. You have to go out and find them.

There are lots of cool strategies out there, which can earn you more than 15% a year. Here are a couple of examples:

  • Real Estate. Investing in property can earn you 50% a year or more, using the power of leverage.
  • Tax Liens. You can earn 18% a year or more, guaranteed by the government. Tax liens are a safe, investment.
  • Cover Calls. Rent your stock out to others, while you own the stock. Your returns can top 30% or greater with high yields.
  • Credit Spreads. 5-10% a month. Very cool; Click Here Now to learn about them.

Strategy: Earn more than 15% a year.

Mistake Number 4: People are lazy.

Most Americans are lazy about their investing. Trusting a friend or the first person to solicit their money. Hoping things will get better.

You have to get off your ASSets to build your wealth. Taking action is the key to all success. It is time you take some action and increase your financial knowledge.

Strategy: Increase your financial knowledge.

Mistake #5: Don’t understand the power of compounding.

Compounding is a great tool. It can make you a fortune, in time. But that time does not have to be 30 years. You can make a lot of money in short period of time, by getting higher rates of return.

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