In a recent interview, someone asked Warren Buffett how he finds companies to invest in. Mr. Buffett smiled and said that he does three things:
He reads. He thinks. He talks to people.
How many average Main Street investors have the time, the patience and the knowledge to do this? You're right: very, very few.
Let's face it: most people know they're not Warren Buffet and never will be.
I say GREAT! I've found a different way to grow rich, simply and easily.
It doesn't take a lot of time or work. It's ultra-safe. You don't need a lot of money to get started. Best of all, it puts "extra" income in your hands every month no matter what happens in 2008.
I hope you won't get insulted, but I call it the "lazy" investor's way to wealth.
The "lazy" investor spends about 10 minutes a month setting up his account.
In return for his "hard" work, he could put an "extra" $166,000 in his pocket from just ONE investment. (I'll show you specifically in just a second.)
You see, he's living THE DREAM: he's getting steadily richer month by month AND he has more time to indulge himself. Play golf. Dine out. Hang with his family. Have fun.
That's what life is all about, isn't it? What's the point of being prosperous if you don't have the time to enjoy the spoils of your success?
I'm here to tell you that YOU can live the "lazy" investor's dream: collect handfuls of cash like clockwork without busting your hump or sucking up your time.
Just because you’ve won your first few trades doesn’t mean you know how to trade. Too many traders think they can rule the world once they’ve won their first few trades. But when they take a loss, it’s almost guaranteed to be big because they won’t know how to manage it. The worst part is that they mentally won’t understand what happened and won’t be able to cope properly.
Don’t bet on margin if you just started trading. In Singapore, contra trading is high risk. In the U.S., betting on margin is high risk. Why in the world would you want to bet with someone else’s money if you don’t have a trading system and don’t know how to manage money? According to the Market Oracle, more than 95 percent of traders lose money their first year of trading. If it’s your first year of trading, you’re probably going to lose money (i call it a tuition fee). So try to lose only your money.
Never, ever, ever borrow money on your credit card to trade. This is even riskier than betting on margin. Anyone who does this is sticking their neck way out and risking a huge loss.
Never play catch-up. Once you’ve lost money, the last thing you should do is try to recoup your loss on the next trade. This is the same thing as losing a hand of blackjack and then doubling up. Once you decide to win that money back, you become very emotionally involved. And emotions will easily cloud your judgment and keep you from making smart decisions.In fact, there's an easy way to double your monthly income. Many people don't know about this, but it works like a charm.
Companies can start their quarterly dividend payments in January, February or March. Some pay at the beginning of the month, others in the middle.
For example: Altria pays in early January, April, July and October. Sempra Energy pays in the middle of those months.
National City Corp. pays in early February, May, August and November. RPM International pays in the middle.
Deluxe Corp. pays in early March, June, September and December. Bank of Hawaii pays in the middle.
If you bought just one equity in each time slot - that's only six companies - you would get 24 checks a year ... or a steady river of income twice a month every month all year long! But you don't have to start with $5,000 a month. Or $3,000. Or anything near that. You can begin with whatever you're comfortable with. Obviously the more you invest, the more you could make but it's not necessary -- not like many other "wealth-building" research services whose recommendations would expose your money to huge risk. With the change in the way economic reports are being interpreted, I would consider this a shift in the tone of the market. Apparently the market is less confused, now that the Fed has taken a break from the rate hikes.
Understanding the tone of the market should be an important overlay for your investing and trading decisions, but I strongly advise against trading based on the news or the release of economic reports.
There are several reasons why this is futile for most investors. First, you have to arrive at an estimate of what the report will state. Then you must determine what the market actually expects. For just about every report that is released, there are panels of economic experts poring over the data to arrive at a consensus estimate. But it is a rare occurrence that these experts hit the target and the estimate matches the actual number.
But even if you correctly predict what the report will reveal, and you are right about what the market expects, then you have to correctly anticipate the market’s reaction to the news. And as you know, this is notoriously difficult to do consistently.