13 steps to successful investing Step 1.Obschepriznannaya wisdom

Step 1.Obschepriznannaya wisdom
Here is an excellent starting position. We offer you a systematic step by step teaching method that will help newcomers to investing find solid ground in their quest to explore the management of funds in the stock market. We are not investment advisors, we see our task is to advise you, teach you how to make money and at the same time have some fun. We want to teach you self invest.
Let's start with what look at what is considered to be wise in this world today,and how this wisdom to us suitable for the success of the financial market. Perhaps some cliches we have to reformulate. Thus, we consider several generally accepted "wisdom" - just a small sample.
Generally accepted wisdom N1: "You should trust investing your money only" experts ", putting them into a mutual fund."
A: Hmmm ... Well, if you really do not have time and desire to manage their own money, then it may be true. But did you know that on average more than 75% of all mutual fund rates of return each year are lower than the market? In other words, most of the wise "professionals" of such funds lose market averages year after year. Of course, they will try to convince you to invest in their fund, using a complicated "professional" jargon designed to confuse or embarrass you, and colorful charts showing the results of its operations. Unfortunately, all this tinsel too quickly disperses after comparing actual performance with the average fund performance.
Generally accepted wisdom N2: "I graduated from business school, and there we have studied the" efficient market theory. "The main idea of ??this theory lies in the fact that no one can ever surpass the market. So why spend your time?"
A: Oh yes, the "efficient market theory" ... And it is true, why try to beat the market? And for example, then it can be done continuously, and in the long run - to beat him on a rather impressive size. Look at the amount of money spent on advertising mutual funds: is not surprising that the basic idea that "financial professionals" are trying to convey to the masses, is the idea of ??the individual investor as a helpless puppy and do something anachronistic. Only a very confident investor venture today to storm the financial markets alone, and confront reduced the number of associates, the pressure of mutual funds, and from time to time - attack the media. The objective of such investor is an independent investment, committing their own mistakes, learn from our experience and enjoy the fruits of its own success.
Here are some of us academic researchers: "The efficient market theory argues that in today's market, where the distribution is close to perfect information, no market participant can not get better information than others and, therefore, all stock prices accurately reflect what that is known to all. The only time when prices are changing - is the emergence of new information on the market. This information can not be hidden in any way and is immediately available to all participants. Thus, there is no point in trying to catch the right moment before the others. "
We would answer this way: Yes, but although the information can be distributed almost instantly today, not all have equal processing capabilities and precise sense of the information. Check out our "13th steps," and you'll find a number of investment approaches, which gave results significantly better than the average ones over the years. These approaches, you can start using to manage your portfolio tomorrow. Academic researchers would do well to spend some time on self-investment - at least for the sake of gaining experience in the study area.
Generally accepted wisdom N3: "The financial newsletters are a great educational tool for investors who want to learn the science of investing and learn some new ideas in this sphere."
A: The U.S. financial newsletters are one of the few advisers who cope with the management of your money is even worse than mutual funds. In this series, we are trying to follow a strategy opposite to that imposed financial newsletters. We emphasize the importance of self, intellectual integrity, long-term investment and having fun both on the learning process, and actually from the investment. The majority of financial newsletters are written bad language, do not compare the income derived from the use of recommended strategies, with the average and often insist that you subscribe to their "hot stocks list," consisting of the "hot stock of the week (or day) "as if to make you a weekly or daily basis to change the composition of their portfolio. This is completely wrong way to invest money, you will immediately commission alone, the price of your multiple transactions. Furthermore, in today's ballot offers very little training materials, and most of their publishers would prefer that their readers never have enough educated people and continued to subscribe to their products as long as possible.
Generally accepted wisdom N4: "The financial luminaries do important work in predicting market direction, and it's worth taking your time out to listen to their words."
A. No. No one has proved its ability to predict future stock market accurately and consistently. We hit the people who are still trying to do it, and journalists, citing their statements on the relevant issue. Our proposed investment approach has nothing to do with attempts to "predict the market", if this were so, we never would reach the average market. Buy good stocks, hold them and not pay any attention to anybody who will tell you about future market movements.
Generally accepted wisdom N5: "Brokerage firms on Wall - Street and their experts are of great value to financial market participants."
Answer: Yes, so says advertising, but really - no. First of all, it's just not in the interests of Wall - Street - to teach you. The longer you stay in the darkness of ignorance, the longer you give your money to management "professionals from Wall - Street." Accordingly, these professionals will charge you a fee for managing your money, etc. The industry consulting based on the fact that you do not need to know how to manage their money. On the contrary, this is just going to teach you we are.
Further, many brokers charge depends on how often you make a trade, and not on how these operations are successful. Can you imagine that? Many people refer to the full Commission to brokers (full service) as a source of new investment ideas, as well as a helper in the portfolio management and financial planning. And at the same time, for some strange reason, these brokers are paid not for how well run your business, and for how often you trade.
Here there is a serious conflict of interest because the best way to increase his fortune is to buy and hold shares rather than sell them. Those who trade frequently, resulting in losing huge amounts of money on a commission per transaction. These sums may be greater than your long-term returns, and, unfortunately, your broker will only win.
This conversation goes on, but hardly worth it. Our main idea is that no one will make investing your money better than you. And we want to teach you how to do it effectively.
At the core of our philosophy is the ability to make decisions, and reap their fruits and carry the responsibility for them. Obviously, this is a healthy philosophy of life for every adult, so why not apply it to invest? Please read our "13 Steps" and you will be much easier to achieve success both on financial and life's endeavors.