Are you investing in the stock market? Excited about Gamestop and bitcoin? That’s great, but what’s YOUR investment strategy?
The key to successful investing is to have a plan. Many people are buying what everyone else is buying, but is that what’s best for you? Do you have an exit strategy? What will you do with your profits? What will you do if the market starts to go down?
It’s critical we understand the markets and how they work. For example, the average person understands the concept of buying a stock at a lower price and selling it when it goes higher for a profit. This is called “buy long.” You buy the stock because you think it will increase in price.
But how many people understand the concept of “selling short?” This is the strategy of investing in a stock that you believe will decrease in price. With this strategy, a person can make money even if the stock market goes down or even crashes.
It’s also important to know the stock market isn’t the only way to build wealth. The average millionaire has at least 7 streams of income, which are unrelated to the stock market. Unfortunately, the stock market is all we are taught. We are taught to get a job and invest in a 401k, invest a portion of your money in diversified funds and when you retire, you’ll have a nice nest egg.
While that strategy may work for some, that’s not the only strategy, or the best option for everyone. Consider the following questions:
- What if you don’t want to work for someone else for 40-50 years?
- What if you don’t save enough for retirement?
- What if the market goes down as you near retirement age?
Gamestop and bitcoin has brought investing to the spotlight, but many people don’t know where to begin. It’s critical you understand how the markets work and the various investment strategies available to you.
Check out my book Invest For Success: Millionaire Wealth Strategies Not Taught in School. I am a former financial advisor, and discuss the many wealth building strategies that are not discussed in mainstream media. Pick up a copy today. Available in paperback, eBook or audible format.
It’s important we educate our children as well. Our children are not taught about business or entrepreneurship in school, so it’s critical we introduce them to these important concepts at a young age. Pick up a copy of Planting Seeds: The Children’s Guide to Entrepreneurship today. We owe it to our kids to give them the best opportunities to excel. This book is available on Amazon in English, French and Spanish.