Kim Reilly’s “Seven Secrets to Investing”
For further information about Kim Reilly and his DVD Options Trading Home Study Course, CLICK HERE
THE SEVEN SECRETS
1. Make Investing Your Hobby
In general, hobbies deliver more satisfaction and joy than our careers. By making investment your hobby, you will become
proficient in a short period of time and you will also become wealthy.
If you want to become extremely wealthy, you must let your money work for you.
“The amount you’re paid for your personal effort is relatively small compared with the amount you can earn by having your money make money”. John D Rockerfeller
2. Pay Yourself
To make money you must have money. Deduct 10 to 20 percent from your income as soon as you receive it and store it away. You always manage to find money to pay the bills, so you will find it in order to pay your monthly ‘profit’ as if it were a bill - the first one to pay before the rest.
3. Know Yourself
You are the only one who knows your internal ‘risk profile’. Your financial planner will help determine this, but only you can decide your ‘sleep at night factor’. This is important, as you will see later, in determining asset allocation. First, you must know WHY you react the way you do in certain investment situations.
4. Don’t Try to Outsmart the Market
You must learn to place the long term odds heavily in your favour. Don’t try to swim against the all-powerful tides of wealth creation. Let the long term tides work for you by effortlessly carrying you along to greater and greater wealth.
Following is a quote from Sir John Templeton, who is revered as the most successful fund manager of all time. $10,000 invested with his fund when it first began in 1954 is now worth more than $12 million. Consider what this legendary investor says about using stocks to make your portfolio safer:
“Over a period of 62 years, investing in stocks yielded 10 times as much gain as investing in bonds, CD’s or mutual funds. So the question is: What are you trying to preserve? Are you trying to preserve the number of dollars or are you really trying to preserve the purchasing power?”
“If you’re trying to preserve the purchasing power, its better to be an owner rather than a lender. That’s why in the long run, common stocks are your best protection. In terms of purchasing power, the worst thing you can own is cash. You can’t play safe with cash. If you want to play safe, put it into something that is genuine, something that has fundamental value such as real estate or common stocks…I believe you are far safer with common stocks than with cash.”
5. Never Ask an Encyclopaedia Salesman if you Should Buy an Encyclopaedia
The answer will always be “yes”. This does not mean that all sale people are unethical, but it pays to be aware of any bias. This applies to every area of your life, including Fund Managers, Accountants, Brokers, Course Facilitators - everyone.
6. The Billionaires’ Simple Secret
This secret was shared with investor J. Paul Getty and in essence means if you want to make money, really big money, do what no one else is doing.
“Buy when everyone else is selling and wait until everyone else is buying. This is not merely a catchy slogan, it is the very essence of successful investing”. J. Paul Getty
7. Carpe Diem (Seize the Day)
Or in more modern times and in ‘Nike’ terms, ‘Just do it.’ When opportunity knocks, you’d better run and open the door. Get in the habit of making decisions.
For further information about Kim Reilly and his DVD Options Trading Home Study Course, CLICK HERE
