“What we can or cannot do, what we consider possible or impossible, is rarely a function of our true capability. It is more likely a function of our beliefs about who we are.”
— Tony Robbins
This blog/website is an outgrowth of a number of things. It’s a way of getting the word out about my mentorship service.
It’s an outlet for the latent writer in me.
It’s also a positive distraction from any impulse I might be tempted into during my day.
Most importantly, it’s a direct line of communication for an ongoing conversation
- between myself and the underemployed;
- between me and those of you approaching retirement with underfunded retirement accounts;
- between me and the young people wondering how to support a family AND save for college AND save for retirement;
- between myself and the young people graduating from high school and college and wondering what to do with themselves.
Let me be clear about something… you can achieve stellar investment/trading results.
Let me say that again… you can achieve stellar trading results.
Even better, it doesn’t require that you learn accounting.
Nor does it require that you learn some complex trading strategy.
And you definitely don’t need to purchase some complicated black-box system.
In fact, after you learn a proper, simple approach and the tactics to go with it, you won’t even need to spend an enormous amount of time on investing/trading related activities unless it becomes your passion and you want to take it to the next level.
The professionals say you should leave it to them, right? For many of you that may be true to an extent. I’m not trying to debate that. I’m actually saying that you don’t need to treat it as an either/or decision. You can (and should) keep the lion’s share (85, 90, 95%) of your retirement savings as is. You should also continue making contributions in much the same way that you have been to date.
But there are a few steps you can take immediately to bolster your performance as reflected by your returns.
First and foremost, learn, accept and then commit to constantly improving your Emotional Quotient or EQ (we call it Emotional Capital™ or EC). EC is just a fancy way of saying discipline and patience. While most people think investing/trading is about numbers, accounting, technology and secret “systems,” the reality is that the best traders have exceedingly simple underlying methodologies matched with extraordinarily strong EC. The good news for you is discipline and patience are two things upon which any of us can improve.
Second, you should learn to read charts (or follow someone who already knows how to read charts). Whether it takes you a minute or a month; a few days or a year, learning to understand and read what a security’s price action is telling you is imperative. Trust me, it will pay enormous dividends, whether you focus on company fundamentals or whether you’re more interested in learning to trade solely based on price. If you are a fundamentalist at heart, use what you learn about reading charts as an overlay to selections made based on fundamental criteria. However, if you’re interested in adding a bit of alpha, follow step 3 below and start trading a small account using a short-term approach.
Third, open and fund an IRA account (preferably a Roth). It’s important to note here that you can fund the account with a relatively small amount. Relatively small depends on the size of your overall portfolio as well as your years left until retirement. After funding you can allow the law of compounding using your simple strategy to take its natural course. If done correctly, taking this step can help you add return while lowering the overall risk of your portfolio… two desired outcomes that don’t often go hand in hand.
As you can see, these are 3 fairly simple steps that you can take right now to improve how hard your money is working for you. And none of them require you to have an enormous nest egg already.
I’ll be writing more about all of this stuff in future posts (get them as they’re posted by joining my email list).
In the meantime, let me know what you think… good, bad or indifferent by hitting reply or via the Contact Us link on the site. I’d love to hear from you.