Three Tips for Investing in Gold and Silver
Inspired By CEO ·
These three tips will help ensure your success when investing in precious metals like gold and silver:
1. Focus on Long-Term Gains
This is always a good rule when it comes to investing. Those looking to get rich quick frequently take on too much risk and wind up losing money on the market. When it comes to investing in gold and silver, along with other precious metals, the best practice is to target long-term portfolio growth.
Part of this is due to the costs of investment transaction. When, for example, investors buy shares in exchange traded funds, they have to pay commission fees each time they buy or sell shares. Flexibility is a major benefit of exchange traded funds, but unless you are trading huge amounts of money, those commission fees can eat up large parts of any gain you might have received.
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A Great Book for People Who Think Investing Is Difficult
Inspired By CEO ·
James P. O’ Shaughnessy wrote the perfect book for people who think that investing has to the risky, complex, and dangerous. It is also the perfect book for those who want to think that they can outsmart the market. This book has the academic and numerical proof that a passive or mechanical system of investing will in most cases beat a human system of investing.. . even professional investors such as fund managers. This book also explains why nine out of ten investors do not make money.
O’ Shaughnessy’s best-selling book is titled “What Works On Wall Street: A Guide to the Best Performing Investment Strategies of All Time”. O’ Shaughnessy distinguishes between two basic types of decision-making:
- The clinical or intuitive method. This method relies on knowledge, experience, and common sense.
- The quantitative or actuarial method. This method relies solely on proven relationships based on large samples of data.
O’ Shaughnessy found that most investors prefer the intuitive method of investment decision-making. In most instances, the investor who used the intuitive method was wrong or beaten by the nearly mechanical method. He quotes David Faust, author of The Limits of Scientific Reasoning, who writes, “Human judgment is far more limited than we think.” Read more
Rules of Investment Number Four
Inspired By CEO ·
Basic rule number four is, it is the investor itself is really the asset or the liability.
The investor is the asset or liability not the investment or security. I often hear that people say, ‘Investing is risky‘ it’s the investor who is risky. It is ultimately the investor who is the asset or the liability. I have seen many so-called investors lose money when everyone else is making money. I have sold businesses to many so-called business people and watch the businesses soon go bust. Read more
Rules of Investment Number Three
Inspired By CEO ·
Investment basic rule number three is to keep your earned income secure by purchasing a security you hope converts your earned income into passive income or portfolio income.
It is time for explanation that go beyond the simple understanding of assets and liabilities—an understanding that most people never achieve. But this point all securities are not necessarily assets, as many people think they are.
Many average investors cannot distinguish between a security and an asset. Many people, including many professionals, do not know the difference. Many people call any security an asset.
A security is something you hope will keep your money secure. And generally, these securities are bound up tight by government regulations. And that is why the organization that watches over much of the world of investing is called the Securities and Exchange Commission, a.k.a. the SEC. You may notice that its title is not the Assets and Exchange Commission neither is it called the Securities and Guarantees Commission. The government knows that all it can do is maintain a tight set of rules and do its best to maintain order by enforcing those rules. It does not guarantee that everyone who acquires a security will make money. That is why securities are not called assets. Read more
Rules of Investment Number Two
Inspired By CEO ·
Investment basic rule number two is to convert earned income into portfolio income or passive income as efficiently as possible. And that, in a nutshell, is all an investor is supposed to do. That is about as basic as it can get.
Risks are always part of investing, as it is with life. People that are too negative and avoid risking themselves out will be losing most opportunities because of their negativity and fear of risk.
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