Recent turns in the markets have put many people off on the idea of investing because they’ve lost significant portions of their 401k’s and IRA’s. This has meant putting their retirement plans off as much as 10 years. For people in their 50’s, 60’s, even 70’s, that’s a hard reality to swallow.
However, if someone is really serious in controlling their retirement, there are ways to approach learning how to invest for yourself. You can even be able to retire in months, not years. Remember that, many professional investors have still made money in these current markets. You can too, if you know where to acquire these skills.
Don’t Listen to the Noise
Too many people make the mistake of not taking investing seriously when they get into it. They take advice from sources such as people who have never invested, television pundits, the news, or listen to their own ‘gut’ hunches. These newbie investors either lose their money off the bat, or even if they make money immediately, will eventually lose all if it when their bad decisions catch up to them.
Why Investing Looks So Easy But is So Hard
In concept and theory, investing is easy. Buy low, sell high, and you’ll make money. However, what clouds the judgment of amateur investors are their emotions. Both greed and fear interfere with sound decisions and will get you in trouble every time. Leaving emotions out of investment decisions is a skill that is underestimated by most amateur investors.
The Secret to Learning the Right Way
Learning to invest takes interest, desire, and commitment, and more importantly a coach or mentor who is successful in their own right. Why not learn from someone who’s already got it figured out? And do it in live market conditions.
You wouldn’t expect a fourth year medical student to walk into the operating room and perform brain surgery, would you? Even if they ‘know’ the surgical procedure. Studying the procedure in theory and actually performing the surgery are two very different things. It really has to do with applying the knowledge, and making sound decisions in the moment, I.e. when situations don’t present themselves as “textbook”.
So why would you expect to learn how to invest from studying courses, or taking classes without the benefit of learning from a professional trader in real market conditions? At the same time, learning how to leave greed and fear out of it?
By investing in your own education to trade alongside a professional, you’ll be:
* Making more money in the long run.
* Shortening your learning curve, literally by years.
* Prevent you from making costly mistakes, such as draining your investment account.