Connect with us

Success Advice

10 Cold Hard Facts About Buying And Selling Shares

Joel Brown (Founder of Addicted2Success.com)

Published

on

Buying-Selling-Stocks-Shares

Are you ready to buy and sell stocks & shares?

It is common knowledge that share market investments yield the best returns over a long period of time, if one knows how to go about it correctly. Success in the stock market depends a lot on the capability and mindset of the investor rather than the market. The same market rewards some people and causes losses to others mainly due to this difference.

Here are ten facts that you should not overlook if you are buying and selling shares.

 

10 Must Know Facts Before You Try To Make Money Selling Shares

 

1. Set your expectations right:

Many people start investing in stock markets hoping to double their money in a year or less. While this is sometimes possible by pure luck or taking insane risks, it is a rare phenomenon and not sustainable over any reasonable length of time. Stock markets give good returns over long periods of time that will be in the range of 10 to 12% annually. If you are looking for something more, you are speculating, not investing and that is a very risky thing to do. Stock market returns are also not fixed, but come with a lot of volatility and even with some short-term losses. So get the expectations right or your emotions will get the better of you and you are very likely to make irrational decisions.

 

2. Stock market investment is a long-term activity:

Short-term movements of the market are just noise or knee-jerk reactions to company or economic news. They are what they are – short-term. There is nothing more to read from it. Benjamin Graham (known as the father of value investing) put this across nicely when he said that in the short-term the market is more like a popularity voting machine and in the long run it is a value weighing machine. Don’t bet on the popularity which goes up and down every other day, bet on the substance. In the long run the markets and stock prices move towards their fundamental valuations. It is unfortunate that many investors bark up the wrong tree and lose money in popularity contests rather than looking for value.

Warren Buffett once said that he would only buy something that he would be happy to hold even if the market stops trading for ten years. This is the kind of long-term view that is required to focus on quality stocks.

 

3. Turn a deaf ear to free investment advice:

Business channels on TV are 24 hour animals, they need to be fed. You will find a lot of analysis going on about why this stock went up or that went down or about which direction it may take based on some future events or predictions. As discussed above, these are most likely short-term movements which may not represent any real change in valuation. Any event that doesn’t affect the valuation of a stock or does not have a long term economic impact does not matter to the long-term stock investor. Keeping out all this noise about short-term market volatility will give you more time to focus on real changes that affect company performance which are the real issues that a smart investor should be focusing on.

 

4. Think and act like the owner of the company:

When you buy a stock, you are buying a share in the company however small it may be. Think about buying a stock like you are buying a company. This means you have to do quite a bit of research about the company, its business, its past performance, checking out its competitive advantages and forecasting future trends in the light of the company’s strengths and the likely economic scenarios. Deciding to buy or sell a stock should not be an impulsive decision, it should be a well thought out decision.

Peter Lynch one of the best in the mutual fund business said that to buy a stock, the company has to be profitable, the business should have a strong competitive advantage and the stock price has to make sense.

 

5. Buy when a stock is cheap and sell when it is high:

This seems to be the obvious thing to do, but knowing when a stock is cheap and when it is time to sell needs an understanding about valuations. Novice stock investors assume that what goes up must keep going up and use the price direction to make their investment decisions. They usually end up buying when the stock is expensive and close to its highs and selling when it is cheap. They thus do the opposite of what they are supposed to be doing. Making investment decisions solely on the basis of price movements is like allowing the tail to wag the dog. Only a person who thinks like an owner and understands valuation will be able to time the market properly.

Benjamin Graham, known as the father of value investing advises that one should never sell in panic just because the prices have fallen and the market is undervaluing a stock, as the prices will bounce back.

Link: (Video) A Fun And Easy To Understand Cartoon Of How The Stock Market Works

 

6. Don’t give undue weightage to a company’s management:

Even the best management team cannot run a company profitably if it has a bad business model and financial position. Management teams can change many times during a company’s life and so it should be given only due weightage and the company’s strengths and weaknesses should take precedence over it. Even an ace driver cannot win a race if the car he is driving is a slow dilapidated vehicle with partially inflated tires.

 

7. Patience is essential, but it is very different from being stubborn:

Never forget the original analysis on the basis of which you purchased a stock. When the outlook of the economy or the company changes check how it impacts the original analysis, valuation and forecasts. If you would not buy a stock based on what you know today, there is no great reason to hold on to it even if you already own it. Patience is when you hold on to a stock in spite of price fluctuations and this will usually be rewarding. You are stubborn when you keep on holding to a stock just because you don’t want to take a loss or want to be proven wrong. This can lead to big losses.

 

8. When an investment is obvious to everybody it is usually time to exit:

Recognizing the signs of the top of a market move allows you to exit when the prices are high. It is a familiar pattern when stock prices go up. When the prices are low, only the smart investors notice it and accumulate it. Then the prices go up, more people start to take notice and buy, pushing the price up further. Next the TV channels start talking about the stock and more people on the sidelines start rushing in. As prices go up further, everyone, their drivers and gardeners are also aware of the stock and there is a mad rush to jump into the bandwagon. This is when the stock is trading at many times its fair price and smart investors quietly sell the stock. When the stock is obvious to the whole world, it is a bad sign and a time to exit. Recognize these signs of a top, because after this point a huge correction is around the corner.

Hedge Fund Manager Jim Cramer emphasized this by saying that bulls and bears make money while pigs get slaughtered. Stocks which are overvalued and still rising are just climbing up a tower to take a suicidal jump.

 

9. A safety margin is always necessary:

The future is always unpredictable and however skilled an investor is in analyzing valuations and forecasting the future, there will be surprises. This could be due to unforeseen events or changes in a company’s internal or external environment. All great investors keep a margin of safety to prevent major losses in the event things don’t go as expected.

 

10. Never put all your eggs in the one basket:

Diversification across many different industries and sectors is the key to a healthy portfolio. Economic events usually impact different sectors differently. Having all stock investments in one or two industries could result in a disaster if an event that impacts them adversely occurs.

It is possible to make money selling shares and obtain handsome returns in the long run, but you must go about it like a businessman and not as a speculator. The ten things mentioned above are cold hard facts that you should always keep in mind while investing in stocks.

 

wall street investor quotesBe sure to checkout our 22 Must Know Investment Quotes By Some Of The Worlds Greatest Investors for some unforgettable investment advice.

 

 

 

Article By: Neil Cloud | Addicted2Success.com

I am the the Founder of Addicted2Success.com and I am so grateful you're here to be part of this awesome community. I love connecting with people who have a passion for Entrepreneurship, Self Development & Achieving Success. I started this website with the intention of educating and inspiring likeminded people to always strive for success no matter what their circumstances. I'm proud to say through my podcast and through this website we have impacted over 100 million lives in the last 6 and a half years.

Advertisement
4 Comments

4 Comments

  1. Julee

    Apr 9, 2014 at 1:40 pm

    Hi my name is Julee and I have learn so much already. I wrote down your contact information. I would like to hear from you thank you

  2. Joel

    Joel

    Jan 25, 2013 at 10:58 am

    Thanks for sharing that with us Peter, yes you are right, this advice is for long term investing. Thanks for dropping by, and Kanwal, that Warren Buffett quote is a classic! nice work.

  3. Kanwal Sarai @ Simply Investing

    Jan 25, 2013 at 1:51 am

    Great advice! This reminds me of Warren Buffett’s words of wisdom “Be greedy when others are fearful, and be fearful when others are greedy.”

  4. Peter Valus

    Jan 24, 2013 at 11:07 am

    Nice post though. I am Trader myself for a while already and, let me just give a little suggestion. In the beginning, just not to frighten newbies, trading and Investing are 2 different things. You (I guess) have been explaining facts about (long term) buyin and selling stocks what is called investing. While trading is intraday activity. So young traders, have belief, this does not apply to you (mostly) at all. But while investing, this is really nice article to follow.

    great job

Leave a Reply

Your email address will not be published. Required fields are marked *

Success Advice

How to Use the “Small Victories” Method to Avoid Burning Out

Published

on

avoiding burnout
Image Credit: Twenty20.com

Have you had a goal you begin to work toward only to run out of steam? Do you know what you need to do to get to where you want to be, but the necessary work feels overwhelming? “Small Victories” is the method to eliminate procrastination, dramatically increase productivity, and to make every part of the process not just bearable, but fun.

The journey from novice to rockstar is filled with a thousand small victories. Each victory increases your skill, your confidence, your positive expectation, and is ultimately the only way to really do something truly great.

Imagine you have a band in which everything was fun- fun to practice, fun to get together and create. The first victory was writing your first song. Afterwards, some friends come to watch you practice, and they cheer you on giving you another boost. Then you play your first show, do your first band photoshoot, and create a band website. After all this hard work, you record your first song as a band, have your first major show, your first tour, and develop the best thing so far which are your first true fans.

Each victory gives you the energy to get to the next victory

If you told the kid, it was going to take ten years of work to get to the end goal, without celebrating the small important victories in between, it would be illogical for any human to hunker down and work 10 years to get there. So how is this relevant? When starting a business or following your dream, incentivizing yourself with small victories will make you far more likely to make you continue on to your end goal. Without it, your willpower only lasts so long.

The small victories are the positive fuel to make it to the next milestone. You create small victories by finding a way to interact with people as a way to have an impact even if it’s small. For example, when people try to start businesses, often they try to get everything together before selling their first product. It could be months or years of work before they are at the level of their competition.

I am a series of small victories and large defeats and I am as amazed as any other that I have gotten from there to here. Charles Bukowski

Say you’re creating a bakery, it could be a year before anyone tried your first baked good if you go the traditional brick and mortar route without any small victories. This comes with great financial cost and energy. You also lose out on the opportunity to improve your craft, your products, your image and your connections with others who can take your business to greater heights.

However, if you go with the method of small victories instead, you would start by creating a cult following amongst friends and family with your decadent treats. Next, you would bake them at home and sell them at local events, farmers markets, and maybe even at local businesses. This can give you the opportunity to create a strong local and social media following well before the opening of your first actual store.

Work and effort without small victories lead to burnout

We need to build rewards along the way into our endeavors, because this provides encouragement to keep going. Each moment is a separate gift, an experience where something was fulfilled, where something was accomplished, no matter how small, and being a recluse until the grand unveiling will have so many missed opportunities along the way.

Small victories are also an opportunity to develop your skills, get feedback – positive or constructive – and considerably increase opportunities. Small victories increase your credibility by showing a track record and the trajectory you’re on by increasing your ability to attract investors and partners.

“Success is rarely the result of one swell swoop, but more often the culmination of many, many small victories.” – Joseph M. Marshall III

The idea of celebrating small victories can be applied to any subject. In weight loss, for instance, seeing pounds melt away will give you the positive mindset to continue and even improve the choices you make to enhance your physique. Sharing your success with others will bring in the element of positive encouragement. It can also motivate others to come with you on the journey. Your small victories can inspire others to start their own journey.

What small victory did you achieve today which will bring you a step closer to your goals? Let us know below!

Image courtesy of Twenty20.com

Continue Reading

Success Advice

Setting Up Your Mindset to Win: How to Achieve Success in Your Life and Career

Published

on

mindset
Image Credit: Twenty20.com

How did Usain Bolt become so successful? He seems superhuman, doesn’t he? Richard Branson, Steve Jobs, Paul Bocuse… all these people have something special in them. They became the stars in their niche. Have you ever wondered why? No, they do not have any superhuman capacity. They are simple people, just like you and I. They, too, had flaws. Their mindset, however, is what set them apart. If you want to win in your career and in life, generally, you need the mindset of a winner. You have to think like a true champion, so you’ll overcome your flaws and emphasize your strengths.

So how do you set the mindset to win? Here are 5 suggestions to get you started:

1. When You Can’t Achieve a Goal, Get Help

Have you heard of Paul Bocuse? He was one of the most famous chefs of his time, and he was named as the chef of the century. This is a good example of the point we’re about to make. Even the best are not almighty, they have to learn from someone. Paul Bocuse learned from another famous chef. He constantly worked to improve his skills and he learned along the way.

The lesson is: you cannot do everything on your own. This is the first thing you have to do: learn and find the right person to learn from. Are there any books by the champions of your chosen niche? Get them and read them. Can you get a mentor? Of course, you can! Start connecting with people on LinkedIn. Your alumni network is a great source of mentorship opportunities, too. Don’t be afraid to reach out and say that you want to learn from someone.   

“Don’t let the fear of losing be greater than the excitement of winning.” – Robert Kiyosaki

2. Work on Your Resilience

Here’s the most important life lesson you’ll ever learn: things don’t always go as expected. When you strive towards a particular goal, the chances of failure are real. When Usain Bolt started training, he wasn’t the fastest man on Earth. He worked towards that goal and he was resilient enough to go through all the obstacles he faced. We couldn’t possibly assume that such success came easily for him.

The journey towards a successful life is not a straight line, it’s a bumpy road full of difficulties and setbacks. The average person would give up along the way, but a champion would stay resilient. It’s the mindset that makes a true difference. The good news is that the more obstacles you overcome, the more resilient you become.

3. Focus

What do you want in your career and in your life? This is not something that can go with the flow. You cannot simply live your life one random day after another and expect great things to come your way. You have to focus on particular goals and work your way up there.

Ken Chenault, CEO of American Express, has a nice tip for everyone who wants to become successful: “Dedicate yourself to a core set of values. Without them, you will never be able to find personal fulfillment, and you will never be able to lead effectively.”

Simple and straight to the point, right? So set your goals! Find that major goal you want to achieve and break it up into smaller achievements. Then, start accomplishing things on a daily basis. You need to devote your life to achieving that goal.

4. Be Bold

Steve Jobs wasn’t focused on getting an average job, achieving average results and living an average life. He had big dreams and bold goals. All successful people have something in common at the starting point, a bold dream. Being afraid to dream big is a huge mistake. Set your imagination free! What’s the biggest thing you’d like to achieve? If you believe in yourself and you start working towards that goal one day after another, you’ll unlock your true potential. You’ll realize that not many things are impossible. You can achieve much more than you believe you’re capable of.

“If you really look closely, most overnight successes took a long time.” – Steve Jobs

5. If You Fall, Get Back Up

Have you ever wondered why Richard Branson became so successful? The answer is simple: never gave up, no matter what hardships he faced. His first company didn’t make money. The test flight of Virgin Atlantic Airlines almost crashed because of a flock of birds. Virgin Cola, his soda company, failed miserably. He almost got himself killed during his trip around the world. Richard Branson has done many things, but do you know what he never did? Give up. No matter how serious the failure was, he always found the strength to get back up on his feet and carry on with life. That’s the mindset of a champion!

Never allow yourself to get disappointed from failure. Do not fall back into average just because your big dream doesn’t seem to be working. Failure is not a big deal. It’s just part of the journey, and everyone has to face it. If you carry on, you’ll find success along the way.

So you want to be a champion? You better start working towards that goal without wasting any time. The first step is changing your mindset. Hopefully, the tips above inspired you to do that.

Image courtesy of Twenty20.com

Continue Reading

Success Advice

3 Important Principles You Need to Know That All Billionaires Have in Common

Published

on

billionaires
Image Credit: Twenty20.com

I’ve always been highly interested in the similarities amongst the world’s wealthiest. Their habits, successes, mindset, and failures have fascinated me. The journey to great prosperity can seem overwhelming, but if you apply success principles to any endeavor you can quickly and efficiently overcome challenges and expand.

Michael J. Gabrielli, founder of WeRunAds, has spent hundreds of hours and tens of thousands of dollars studying billionaires and their habits. Michael has also studied over 2000 different billionaires and from this experience he’s found three principles they all had in common.

Here are the 3 principles the billionaires all had in common:

1. Be in a rapid growth industry at the right time

Timing is so important. Billionaires know when the time is right to enter a market. Most billionaires do not enter first or second into a market because of the inherent risks involved. Many billionaires let the pioneers pave the way and then leverage the knowledge gained to innovate and optimize in order to create something that works.

The key is to find an industry that is soon to take off. Stepping in at the right time is important. Let’s take a real life example that is known all too well– the founder and CEO of Facebook, Mark Zuckerberg. When he entered the scene, the idea of a social network was moderately known, but it was still not quite predicted to be the monster it is today.

Others like Friendster, Myspace, etc. had made some headway into this fledgeling industry and then Facebook entered leveraging the knowledge and expertise gained from the early pioneers. Zuckerberg saw the huge potential of social networking, took what was done previously and made it better.

He is presently worth over $66 Billion and the company has surpassed the 2 billion users mark with 1.4 billion using the platform daily. Not surprisingly, many billionaires were not the first to pioneer the industry they would later find success in. They came in at the right moment, learned from the mistakes and triumphs of their predecessors, and made a lasting final product.

Here’s a practical 3 question exercise you can do to judge if you have the right timing with your current venture:

  1. Look at your industry and say—is this brand new?
  2. Am I trying to invent something that doesn’t exist?
  3. Am I too late to the party?

2. Position yourself better

In addition to finding the right industry and getting in at the right time, billionaires position themselves in the best way. They provide the solution to the need and they think outside the box to do it. Optimal positioning is a commonality amongst billionaires. For example, during the California Gold Rush, people rushed to mine for the gold itself blinded by the promise of large profits.

However, it turned out that Sam Brannan had the better idea for how to position himself for success. He knew the chances of finding gold were risky, so instead he committed to a sure thing. He manufactured the tools that were needed by all the miners to mine gold. As each new miner migrated West, they were happily met by Brannan and his company who were ready and waiting to sell these new hopefuls the shovels and tools they’d need to strike it rich.

Digging for gold seemed to be the most profitable route, however, greater returns were yielded in the supplying of materials required to mine for gold! A good company that also illustrates this concept is Microsoft. They did not seek to create their own computer, but the software that computers would run on. Most people mistakenly think they have to “go for the gold” to attain wealth, but it’s evident in history that selling the necessary tools to the gold miners can be far more profitable.

The two questions you need to ask yourself to see how you could position yourself correctly are, “What industries will need the supplies that I could provide? And, “Am I following the trend instead of innovating?

“Big shots are only little shots that keep shooting. I can see your sun rise out of obscurity. Keep shooting” – Ikechukwu Joseph

3. Take calculated risks

Most people choose the safe bet that is secure, however, this is not common among billionaires. Billionaires take big calculated risks in order to propel themselves to higher levels of influence and success. The most important thing to note here is that while to others the risks seem big—to billionaires, they are calculated.Risk and Calculated Risk are not the same. Calculated risk is measured and well-thought-out. Risk is impulsive and immeasurable. Understanding the difference between the two is a commonality among billionaires. The world’s most prominent figures have at some point in their lives disagreed with the ordinary and took a shot at the unknown. Proper calculation and clever thinking certainly accompanied the bold moves they made in their careers.

Howard Schultz, the CEO of Starbucks, is a great example of this. He had grown up in poverty and made his way out to earn a comfortable wage as an executive at a company that manufactured coffeemakers.

“Risk more than others think safe.” – Howard Schultz

He risked it all when he discovered a small coffee shop named “Starbucks” in Seattle that prompted him to quit his job and step out to create a company that was inspired by the Italian coffee culture and personal relationship people could have with their coffee.

Of the 242 people he spoke to, 217 said no to investing with him. Despite the discouragement, lack of agreement, and investment, Schultz kept pushing on. Fast forward to present time, and Starbucks’ is a massive success. Strong intuition and unshakeable belief is common among high achievers. Many successful billionaires risked their safe jobs, personal assets, and even their reputation to take calculated risks that they knew would pay off huge in the end.

The questions you need to ask yourself now are, “where can I take a calculated risk? Am I holding back when I should be going forward? What tangible steps can I take today to move forward?”

These 3 success principles are staple elements that are common among many billionaires. Now, there are more principles that you must discover and implement in order to become a billionaire. Work diligently and do all that can be done each day. Be inquisitive and study those that you wish to emulate.

Which one of these principles do you need to work on more this year? Let us know in the comments below!

Image courtesy of Twenty20.com

Continue Reading

Success Advice

One Question You Must Answer to Ensure Personal Success

Published

on

personal success
Image Credit: Twenty20.com

I don’t believe in quick fixes, in get-rich-quick schemes, or any other system that guarantees instant success with only a modicum of effort. But, I do believe it’s possible to condense great strings of logical thought and intellectual algorithms into basics. I like to keep things simple! Many of my clients love the fact that I don’t overly complete things, and frankly, so do I! I like to ask simple questions whose answers can be had quickly but require some focus in obtaining the outcome.

Here’s the question I always ask: What is standing between your current reality (where you are now) and your ultimate vision (where you want to be)? Are the impediments psychological, physical, emotional or some other reason?

Until you answer what is causing the difference between your AS IS and your SHOULD BE, you will be stuck spinning your wheels in the mud and the muck of the former. This is an important question that requires a level of mental self-examination. And the answer to this question may require a lifetime of introspection. It is an important question to answer because if you know where you want to go that provides direction but examining why you are not there yet can provide momentum. (In other words, by answering the question it may get you there faster!)

“Success is not final; failure is not fatal: It is the courage to continue that counts.” – Winston S. Churchill

It’s just like following a road map. A map is useless unless you know two things, where you are, and where you want to go. What might be stopping you (or at least slowing you down) from the ultimate destination of your passion and life’s fulfilment?

I’ve asked many people about this over the years and have heard these four reasons that keep people from moving forward.

1. Lack of vision

How do you plan to get there, if you don’t know where “there” is? The most difficult undertaking in the world is to sit quietly with a blank sheet of paper and chart out your life. I know, I have many blank sheets of paper to prove it. However, I also found out that it only takes one sheet, with a few well-crafted lines of thought to give you the direction you need. But you need to start!

2. Lack of goals

So, you know where you want to go, you just don’t know how to get there. The second hardest thing in the world is to have a sheet of paper with your ultimate destination on top, and the rest blank as you ask yourself, now what or how do I get to my vision? The process of functional decomposition means breaking down the larger process into steps that are both actionable and motivational. In other words, the steps are small enough to do and you remain motivated because they are so small.

“Successful people do what unsuccessful people are not willing to do. Don’t wish it were easier; wish you were better.” – Jim Rohn

3. You don’t believe you can get there

You want to, but there is a script running through your head telling you to go home, make some chicken soup and don’t leave the house until these foolish notions of greatness are gone. Think about it, your parents never did what you are trying to do, no one in your family has ever done it, you are far too old (or too young) to do that, you don’t have the right education…your rationalizing can go on for a lifetime! Here is my suggestion when it comes to running those self-deprecating scripts: STOP IT!

4. You are lazy

You won’t admit this to yourself, but perhaps you are just plain lazy. I’ve seen it so many times; individuals majoring in minors. Performing high fun, low payoff activities instead of the low fun, high payoff activities. (And, by the way, who ever said that a high payoff activity can’t be fun? There’s that darn script again.) As a species we are inclined to take the path of least resistance, but that path may not lead us to our vision, but you must admit, we are having a great time NOT moving toward our vision! Laziness is not “doing nothing.” It’s doing the wrong thing because that’s what you want to do, and, very often, we know it’s the wrong thing to do!

There you have the four possible things that might be holding you back from the realization of your vision. Are any of them hitting home? Answer this question before you move on:

What is standing between my current reality and my ultimate vision of success?

Image courtesy of Twenty20.com

Continue Reading

Trending

Life

5 Counterintuitive Ways to Make the Most Out of Your Time

Published

on

how to use time effectively
Image Credit: Twenty20.com

Do you think you’ll accomplish everything you want to before you die? Do you sometimes worry you won’t reach your goals? Do you have a plan to get what you want? If you’re like most people, you often have trouble squeezing in everything you want to do during the day, week or month, let alone everything you might want to accomplish in a lifetime. Updates from friends on Facebook, Instagram and Snapchat come in to your phone at all hours of the day and night. Invites to activities, events, festivals, etc. blow up your phone on a regular basis. (more…)

McVal Osborne is the author of Start Up your Life: Why we don’t know what we want, and how to set goals that really matter. McVal writes about motivation, decision making, and strategic thinking. He graduated from UC Santa Barbara in 2011 with a degree in Spanish, and has since worked as a market researcher and business consultant in Washington D.C., New York City and London. You can reach him on Twitter @mcval or on IG @mcvaliant.

Advertisement
4 Comments

4 Comments

  1. Julee

    Apr 9, 2014 at 1:40 pm

    Hi my name is Julee and I have learn so much already. I wrote down your contact information. I would like to hear from you thank you

  2. Joel

    Joel

    Jan 25, 2013 at 10:58 am

    Thanks for sharing that with us Peter, yes you are right, this advice is for long term investing. Thanks for dropping by, and Kanwal, that Warren Buffett quote is a classic! nice work.

  3. Kanwal Sarai @ Simply Investing

    Jan 25, 2013 at 1:51 am

    Great advice! This reminds me of Warren Buffett’s words of wisdom “Be greedy when others are fearful, and be fearful when others are greedy.”

  4. Peter Valus

    Jan 24, 2013 at 11:07 am

    Nice post though. I am Trader myself for a while already and, let me just give a little suggestion. In the beginning, just not to frighten newbies, trading and Investing are 2 different things. You (I guess) have been explaining facts about (long term) buyin and selling stocks what is called investing. While trading is intraday activity. So young traders, have belief, this does not apply to you (mostly) at all. But while investing, this is really nice article to follow.

    great job

Leave a Reply

Your email address will not be published. Required fields are marked *

Success Advice

How to Use the “Small Victories” Method to Avoid Burning Out

Published

on

avoiding burnout
Image Credit: Twenty20.com

Have you had a goal you begin to work toward only to run out of steam? Do you know what you need to do to get to where you want to be, but the necessary work feels overwhelming? “Small Victories” is the method to eliminate procrastination, dramatically increase productivity, and to make every part of the process not just bearable, but fun.

The journey from novice to rockstar is filled with a thousand small victories. Each victory increases your skill, your confidence, your positive expectation, and is ultimately the only way to really do something truly great.

Imagine you have a band in which everything was fun- fun to practice, fun to get together and create. The first victory was writing your first song. Afterwards, some friends come to watch you practice, and they cheer you on giving you another boost. Then you play your first show, do your first band photoshoot, and create a band website. After all this hard work, you record your first song as a band, have your first major show, your first tour, and develop the best thing so far which are your first true fans.

Each victory gives you the energy to get to the next victory

If you told the kid, it was going to take ten years of work to get to the end goal, without celebrating the small important victories in between, it would be illogical for any human to hunker down and work 10 years to get there. So how is this relevant? When starting a business or following your dream, incentivizing yourself with small victories will make you far more likely to make you continue on to your end goal. Without it, your willpower only lasts so long.

The small victories are the positive fuel to make it to the next milestone. You create small victories by finding a way to interact with people as a way to have an impact even if it’s small. For example, when people try to start businesses, often they try to get everything together before selling their first product. It could be months or years of work before they are at the level of their competition.

I am a series of small victories and large defeats and I am as amazed as any other that I have gotten from there to here. Charles Bukowski

Say you’re creating a bakery, it could be a year before anyone tried your first baked good if you go the traditional brick and mortar route without any small victories. This comes with great financial cost and energy. You also lose out on the opportunity to improve your craft, your products, your image and your connections with others who can take your business to greater heights.

However, if you go with the method of small victories instead, you would start by creating a cult following amongst friends and family with your decadent treats. Next, you would bake them at home and sell them at local events, farmers markets, and maybe even at local businesses. This can give you the opportunity to create a strong local and social media following well before the opening of your first actual store.

Work and effort without small victories lead to burnout

We need to build rewards along the way into our endeavors, because this provides encouragement to keep going. Each moment is a separate gift, an experience where something was fulfilled, where something was accomplished, no matter how small, and being a recluse until the grand unveiling will have so many missed opportunities along the way.

Small victories are also an opportunity to develop your skills, get feedback – positive or constructive – and considerably increase opportunities. Small victories increase your credibility by showing a track record and the trajectory you’re on by increasing your ability to attract investors and partners.

“Success is rarely the result of one swell swoop, but more often the culmination of many, many small victories.” – Joseph M. Marshall III

The idea of celebrating small victories can be applied to any subject. In weight loss, for instance, seeing pounds melt away will give you the positive mindset to continue and even improve the choices you make to enhance your physique. Sharing your success with others will bring in the element of positive encouragement. It can also motivate others to come with you on the journey. Your small victories can inspire others to start their own journey.

What small victory did you achieve today which will bring you a step closer to your goals? Let us know below!

Image courtesy of Twenty20.com

Continue Reading

Success Advice

Setting Up Your Mindset to Win: How to Achieve Success in Your Life and Career

Published

on

mindset
Image Credit: Twenty20.com

How did Usain Bolt become so successful? He seems superhuman, doesn’t he? Richard Branson, Steve Jobs, Paul Bocuse… all these people have something special in them. They became the stars in their niche. Have you ever wondered why? No, they do not have any superhuman capacity. They are simple people, just like you and I. They, too, had flaws. Their mindset, however, is what set them apart. If you want to win in your career and in life, generally, you need the mindset of a winner. You have to think like a true champion, so you’ll overcome your flaws and emphasize your strengths.

So how do you set the mindset to win? Here are 5 suggestions to get you started:

1. When You Can’t Achieve a Goal, Get Help

Have you heard of Paul Bocuse? He was one of the most famous chefs of his time, and he was named as the chef of the century. This is a good example of the point we’re about to make. Even the best are not almighty, they have to learn from someone. Paul Bocuse learned from another famous chef. He constantly worked to improve his skills and he learned along the way.

The lesson is: you cannot do everything on your own. This is the first thing you have to do: learn and find the right person to learn from. Are there any books by the champions of your chosen niche? Get them and read them. Can you get a mentor? Of course, you can! Start connecting with people on LinkedIn. Your alumni network is a great source of mentorship opportunities, too. Don’t be afraid to reach out and say that you want to learn from someone.   

“Don’t let the fear of losing be greater than the excitement of winning.” – Robert Kiyosaki

2. Work on Your Resilience

Here’s the most important life lesson you’ll ever learn: things don’t always go as expected. When you strive towards a particular goal, the chances of failure are real. When Usain Bolt started training, he wasn’t the fastest man on Earth. He worked towards that goal and he was resilient enough to go through all the obstacles he faced. We couldn’t possibly assume that such success came easily for him.

The journey towards a successful life is not a straight line, it’s a bumpy road full of difficulties and setbacks. The average person would give up along the way, but a champion would stay resilient. It’s the mindset that makes a true difference. The good news is that the more obstacles you overcome, the more resilient you become.

3. Focus

What do you want in your career and in your life? This is not something that can go with the flow. You cannot simply live your life one random day after another and expect great things to come your way. You have to focus on particular goals and work your way up there.

Ken Chenault, CEO of American Express, has a nice tip for everyone who wants to become successful: “Dedicate yourself to a core set of values. Without them, you will never be able to find personal fulfillment, and you will never be able to lead effectively.”

Simple and straight to the point, right? So set your goals! Find that major goal you want to achieve and break it up into smaller achievements. Then, start accomplishing things on a daily basis. You need to devote your life to achieving that goal.

4. Be Bold

Steve Jobs wasn’t focused on getting an average job, achieving average results and living an average life. He had big dreams and bold goals. All successful people have something in common at the starting point, a bold dream. Being afraid to dream big is a huge mistake. Set your imagination free! What’s the biggest thing you’d like to achieve? If you believe in yourself and you start working towards that goal one day after another, you’ll unlock your true potential. You’ll realize that not many things are impossible. You can achieve much more than you believe you’re capable of.

“If you really look closely, most overnight successes took a long time.” – Steve Jobs

5. If You Fall, Get Back Up

Have you ever wondered why Richard Branson became so successful? The answer is simple: never gave up, no matter what hardships he faced. His first company didn’t make money. The test flight of Virgin Atlantic Airlines almost crashed because of a flock of birds. Virgin Cola, his soda company, failed miserably. He almost got himself killed during his trip around the world. Richard Branson has done many things, but do you know what he never did? Give up. No matter how serious the failure was, he always found the strength to get back up on his feet and carry on with life. That’s the mindset of a champion!

Never allow yourself to get disappointed from failure. Do not fall back into average just because your big dream doesn’t seem to be working. Failure is not a big deal. It’s just part of the journey, and everyone has to face it. If you carry on, you’ll find success along the way.

So you want to be a champion? You better start working towards that goal without wasting any time. The first step is changing your mindset. Hopefully, the tips above inspired you to do that.

Image courtesy of Twenty20.com

Continue Reading

Success Advice

3 Important Principles You Need to Know That All Billionaires Have in Common

Published

on

billionaires
Image Credit: Twenty20.com

I’ve always been highly interested in the similarities amongst the world’s wealthiest. Their habits, successes, mindset, and failures have fascinated me. The journey to great prosperity can seem overwhelming, but if you apply success principles to any endeavor you can quickly and efficiently overcome challenges and expand.

Michael J. Gabrielli, founder of WeRunAds, has spent hundreds of hours and tens of thousands of dollars studying billionaires and their habits. Michael has also studied over 2000 different billionaires and from this experience he’s found three principles they all had in common.

Here are the 3 principles the billionaires all had in common:

1. Be in a rapid growth industry at the right time

Timing is so important. Billionaires know when the time is right to enter a market. Most billionaires do not enter first or second into a market because of the inherent risks involved. Many billionaires let the pioneers pave the way and then leverage the knowledge gained to innovate and optimize in order to create something that works.

The key is to find an industry that is soon to take off. Stepping in at the right time is important. Let’s take a real life example that is known all too well– the founder and CEO of Facebook, Mark Zuckerberg. When he entered the scene, the idea of a social network was moderately known, but it was still not quite predicted to be the monster it is today.

Others like Friendster, Myspace, etc. had made some headway into this fledgeling industry and then Facebook entered leveraging the knowledge and expertise gained from the early pioneers. Zuckerberg saw the huge potential of social networking, took what was done previously and made it better.

He is presently worth over $66 Billion and the company has surpassed the 2 billion users mark with 1.4 billion using the platform daily. Not surprisingly, many billionaires were not the first to pioneer the industry they would later find success in. They came in at the right moment, learned from the mistakes and triumphs of their predecessors, and made a lasting final product.

Here’s a practical 3 question exercise you can do to judge if you have the right timing with your current venture:

  1. Look at your industry and say—is this brand new?
  2. Am I trying to invent something that doesn’t exist?
  3. Am I too late to the party?

2. Position yourself better

In addition to finding the right industry and getting in at the right time, billionaires position themselves in the best way. They provide the solution to the need and they think outside the box to do it. Optimal positioning is a commonality amongst billionaires. For example, during the California Gold Rush, people rushed to mine for the gold itself blinded by the promise of large profits.

However, it turned out that Sam Brannan had the better idea for how to position himself for success. He knew the chances of finding gold were risky, so instead he committed to a sure thing. He manufactured the tools that were needed by all the miners to mine gold. As each new miner migrated West, they were happily met by Brannan and his company who were ready and waiting to sell these new hopefuls the shovels and tools they’d need to strike it rich.

Digging for gold seemed to be the most profitable route, however, greater returns were yielded in the supplying of materials required to mine for gold! A good company that also illustrates this concept is Microsoft. They did not seek to create their own computer, but the software that computers would run on. Most people mistakenly think they have to “go for the gold” to attain wealth, but it’s evident in history that selling the necessary tools to the gold miners can be far more profitable.

The two questions you need to ask yourself to see how you could position yourself correctly are, “What industries will need the supplies that I could provide? And, “Am I following the trend instead of innovating?

“Big shots are only little shots that keep shooting. I can see your sun rise out of obscurity. Keep shooting” – Ikechukwu Joseph

3. Take calculated risks

Most people choose the safe bet that is secure, however, this is not common among billionaires. Billionaires take big calculated risks in order to propel themselves to higher levels of influence and success. The most important thing to note here is that while to others the risks seem big—to billionaires, they are calculated.Risk and Calculated Risk are not the same. Calculated risk is measured and well-thought-out. Risk is impulsive and immeasurable. Understanding the difference between the two is a commonality among billionaires. The world’s most prominent figures have at some point in their lives disagreed with the ordinary and took a shot at the unknown. Proper calculation and clever thinking certainly accompanied the bold moves they made in their careers.

Howard Schultz, the CEO of Starbucks, is a great example of this. He had grown up in poverty and made his way out to earn a comfortable wage as an executive at a company that manufactured coffeemakers.

“Risk more than others think safe.” – Howard Schultz

He risked it all when he discovered a small coffee shop named “Starbucks” in Seattle that prompted him to quit his job and step out to create a company that was inspired by the Italian coffee culture and personal relationship people could have with their coffee.

Of the 242 people he spoke to, 217 said no to investing with him. Despite the discouragement, lack of agreement, and investment, Schultz kept pushing on. Fast forward to present time, and Starbucks’ is a massive success. Strong intuition and unshakeable belief is common among high achievers. Many successful billionaires risked their safe jobs, personal assets, and even their reputation to take calculated risks that they knew would pay off huge in the end.

The questions you need to ask yourself now are, “where can I take a calculated risk? Am I holding back when I should be going forward? What tangible steps can I take today to move forward?”

These 3 success principles are staple elements that are common among many billionaires. Now, there are more principles that you must discover and implement in order to become a billionaire. Work diligently and do all that can be done each day. Be inquisitive and study those that you wish to emulate.

Which one of these principles do you need to work on more this year? Let us know in the comments below!

Image courtesy of Twenty20.com

Continue Reading

Success Advice

One Question You Must Answer to Ensure Personal Success

Published

on

personal success
Image Credit: Twenty20.com

I don’t believe in quick fixes, in get-rich-quick schemes, or any other system that guarantees instant success with only a modicum of effort. But, I do believe it’s possible to condense great strings of logical thought and intellectual algorithms into basics. I like to keep things simple! Many of my clients love the fact that I don’t overly complete things, and frankly, so do I! I like to ask simple questions whose answers can be had quickly but require some focus in obtaining the outcome.

Here’s the question I always ask: What is standing between your current reality (where you are now) and your ultimate vision (where you want to be)? Are the impediments psychological, physical, emotional or some other reason?

Until you answer what is causing the difference between your AS IS and your SHOULD BE, you will be stuck spinning your wheels in the mud and the muck of the former. This is an important question that requires a level of mental self-examination. And the answer to this question may require a lifetime of introspection. It is an important question to answer because if you know where you want to go that provides direction but examining why you are not there yet can provide momentum. (In other words, by answering the question it may get you there faster!)

“Success is not final; failure is not fatal: It is the courage to continue that counts.” – Winston S. Churchill

It’s just like following a road map. A map is useless unless you know two things, where you are, and where you want to go. What might be stopping you (or at least slowing you down) from the ultimate destination of your passion and life’s fulfilment?

I’ve asked many people about this over the years and have heard these four reasons that keep people from moving forward.

1. Lack of vision

How do you plan to get there, if you don’t know where “there” is? The most difficult undertaking in the world is to sit quietly with a blank sheet of paper and chart out your life. I know, I have many blank sheets of paper to prove it. However, I also found out that it only takes one sheet, with a few well-crafted lines of thought to give you the direction you need. But you need to start!

2. Lack of goals

So, you know where you want to go, you just don’t know how to get there. The second hardest thing in the world is to have a sheet of paper with your ultimate destination on top, and the rest blank as you ask yourself, now what or how do I get to my vision? The process of functional decomposition means breaking down the larger process into steps that are both actionable and motivational. In other words, the steps are small enough to do and you remain motivated because they are so small.

“Successful people do what unsuccessful people are not willing to do. Don’t wish it were easier; wish you were better.” – Jim Rohn

3. You don’t believe you can get there

You want to, but there is a script running through your head telling you to go home, make some chicken soup and don’t leave the house until these foolish notions of greatness are gone. Think about it, your parents never did what you are trying to do, no one in your family has ever done it, you are far too old (or too young) to do that, you don’t have the right education…your rationalizing can go on for a lifetime! Here is my suggestion when it comes to running those self-deprecating scripts: STOP IT!

4. You are lazy

You won’t admit this to yourself, but perhaps you are just plain lazy. I’ve seen it so many times; individuals majoring in minors. Performing high fun, low payoff activities instead of the low fun, high payoff activities. (And, by the way, who ever said that a high payoff activity can’t be fun? There’s that darn script again.) As a species we are inclined to take the path of least resistance, but that path may not lead us to our vision, but you must admit, we are having a great time NOT moving toward our vision! Laziness is not “doing nothing.” It’s doing the wrong thing because that’s what you want to do, and, very often, we know it’s the wrong thing to do!

There you have the four possible things that might be holding you back from the realization of your vision. Are any of them hitting home? Answer this question before you move on:

What is standing between my current reality and my ultimate vision of success?

Image courtesy of Twenty20.com

Continue Reading

Trending