Been there, done that. Made a fair bit of money and than lost it all. I suppose that you should probably follow the same rules regarding investments as I have mentioned in the section About Playing Poker – with one more caveat in mind: stock market investment is actually a much more risky proposition than playing poker – real-estate investment on the other hand is much safer.
Why is stock market investment a risky proposition? It’s like that because in Poker you generally play at a table of 6-9 individuals, you know the deck has 52 cards, you know what you are dealt and if you suck at reading people you can still play on the odds. In the stock market, you only have your bankroll, a number of reports about a company which may or not contain fake data, the company you are willing to put your money in could careless about you investing $10,000USD or $100,000USD in it, because this little money is not going to make it or break it for the company – and, most important of all, everything has already been pre-determined – without any of your input. Somewhere, someone out there either wants the given company to succeed or fail, and guess what? You or your money has no say in it.
So, wait a minute – what’s the point of stock investing? Because you can still make money on it. How? First, even though stock market investment is a people’s game (just like poker or life is) – it still contains ground rules. What are these ground rules? Where do you learn about them? Ah – that is all which I will be posting about on the pages of this precise blog. No, I will not be asking you to pay me so I can give you more info, but I will be sharing with you some mistakes I have made in the past as well as some strategies as to invest which have given me decent results and wish you luck 🙂
But the bottom line is, do not put your money down on the stock market unless you can lose it – and believe me – lose it you will (before you win).
If you are into real-estate investment on the other hand, all you should really have is a decent credit rating, some cash saved up and the patience to build up your bankroll over a number of years – as opposed to a number of months (if you know what you’re doing and get consistently lucky) in the stock market.
I hope my tidbits regarding investment will prove useful to someone out there.