A Simple Guide for the Clueless, on Using the Internet to Build and Protect Your Investments.
Featuring Option Trading Basics
by
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It’s amazing, that when I talk to people about investing, they seem to know all the negative events that have occured over the years. Some even remark about the great stock market fall in 1929. Strangely though, they don’t know that there were some people, like John D. Rockefeller and J.P. Morgan who made a fortune during that same period because they sold their stock. Warren Buffet who is presently the second richest man in the world, made his entire fortune as an investor. Like Rockefeller and Morgan he followed simple principles. Neither of them had the Internet. Today the Internet has made it easy for anyone to become a savvy investor.
Most investors thought that mutual funds and CD’s were the ultimate safe investments until March 2000. Then the stock market went down. A lot of investors saw their portfolio dive with the market. One thing most peo- ple did was to leave their investments completely in the hands of their financial advisor. They found out, that their advisor wasn’t paying any attention to their money. If you called them they probably told you to stay in for the long haul. I doubt that they would risk guaranteeing paying your losses, if your portfolio doesn’t go back up in value. How can your one broker keep up with a thousand accounts on a day to day basis? Well hopefully you will read this book and find the courage to pick up the pieces and get back the money you loss.
The best way to get over your fear of handling your own investments, is to learn how the Stock Market works. It is a lot easier now with the help of the Internet. If you have a 401k, 403b, SEP (Simplified.Employee.Pension plan),ESOP ( Employee.Stock.Option.Plan.) or I.R.A. (Individual Retirement Account) you can accept the status quo. You can choose not to ever retire, or live at a much lower standard after you retire. You can also take this opportunity to maximize your benefit, by learning to use the Internet and develop your investments.
You must to understand that the days of employers looking out for your retirement are gone forever. The older retirement plans were called Defined Benefit. The company would pay a premium to a Investment service and the company had the responsibility of making sure there would be money in the retirement plan regardless of the stock market condition. If the money wasn’t there, they would have to pay it out of their profits, unless they filed bankruptcy and the Bankruptcy court let them out of paying the retirement.
Now you have what are called Defined Contribution plans. You, not your employer, has the responsibility to make sure that you have enough money to retire. Without the knowledge of how your particular plan works you could very well end up retiring with a reduced living standard or unable to retire at all.
I believe that the reasons that employers switched to the newer type of plans are:
1. They don’t have to pay for losses when the stock market goes down.
2. They are cheaper for them to maintain.
3. Like Social Security there will be less people paying into the fund which would cost them more under the old system.
I can’t emphasize enough that if you want to see where your invest- ment is, and whether it has reached it’s peak. If you want to know the perfect time to get into or out of a stock at the best price. YOU MUST LEARN HOW TO READ CHARTS.
I have excellent news for you this is the easiest part, and it is the most effective way to avoid loss and maximize gain. When you buy stock or invest in anything you should have an expectation of growth. The purpose of investing is financial gain. You want to multiply what you have without loosing it. All investments have risk. You can buy property, and a event not covered by insurance could happen. You could lose your entire investment. Property is one lawsuit a way from total loss. Near the end of this book I will be sharing on how to legally protect any investment from loss including I.R.S seizure and how to reduce your taxes. Remember stocks never stay at their maximum price. Be prepared to sell.
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About the Book
If you have a 401k, 403b, 457, or IRA you need at least to understand the basics of investing. This book is for those who don’t have a clue about investing or the use of the Internet.
The advent of the Internet has made investing less confusing. It will help you get the full potential of your investing dollars.
One of the common factors relating to investing horror stories is that they left everything to the so called professional. Ignorance isn’t bliss especially when you lose your entire retirement savings, because you were ignorant of your rights and choices.
Do you know what investments are in the average mutual fund? Stocks. Do you know how many? 100 or more. How does a mutual fund make money? Is there a time to sell? Or do I have to take the loss? How can I know when to sell?
About the Author
Like most Americans Richard was oblivious to how a 401k operated. One day he spoke to a financial advisor. He was shocked to discover that the money that he saved in his 401k was all he would have to live from.
Shortly after the same financial advisor quit their job to become a Daytrader. She began to show him a better way to invest. After seeing 200% increase in a investment in 31 days he began research how the stock market worked. In doing so he discovered that the Internet gave him education, research and control over his stock choices. Gleaning information from many resources he has developed a simple understandable guide to help the less than average investor stop losing their investments.