How Money Smart Are You? - Here Are 6 Basic Skills

When you look at the icons of the investment industry, the ones that make money year after year, you find they all follow these 6 simple things to one degree or another.  We say these are simple, because they are… just as it’s simple to lose weight by eating less and exercising more… But as we all know, it’s easier said than done. 

1- Be Braveheart – Buy when others run.

2- Don’t be a lemming – If everyone else is buying it… you shouldn’t.  Think about all those house and condo “flippers”.  The last one’s in had a bunch of real estate that no one has wanted for the last 4 years.  Many have gone bankrupt.  Again, not saying not to buy or sell real estate… but consider how high something is priced if everyone is buying it… and then consider what people would pay your if nobody wanted it.  Do that before making any money decision.

3- Be early into AND out of a trend – Just about anyone can understand the golden cross and death cross definitions of trend.  If you don’t know these… you should.  Call my office and I can bring you up to speed, quickly and easily.

4- Ignore the headlines – The rich ignore the noise of mainstream media.  They instead look at the facts behind the headlines and research investments before making them.  They often come to the exact opposite conclusion that the headlines come to.

5- Don’t count your chickens before they hatch – There are no sure things, particularly when investing.  If it sounds too good to be true… you’d better check it twice and twice again before you put your hard earned money in it.  Many an investor in the Ponzi schemes that have surfaced in the past few years would have been well served to follow this advice.

6- Ignore the Official Government reports – Case in point… the government reports that      inflation is just 1.1%.  Really?  Have they been to the gas station or grocery stores lately?