How to Invest Money Wisely?
This a great question and a very common one that is constantly asked by our members in the community and people I come across throughout day to day life.
My typical response sounds something like buy when others are selling and sell when others are buying.
Pretty straightforward and obvious; probably have already heard this many times before but do you practice it. Lets think back, what was your view on the stock market in 2008 were you thinking “Buy” like the Wealthy or “Sell” like the Majority.
Once we realize when the majority is panicking like in 2002 or 2008. To use the chicken little analogy “the sky is falling and we are all doomed.” GUESS WHAT!
WHEN THIS HAPPENS BUY BUY BUY!!!!!!.
People will look at you like your nuts if you share what you are doing in the market and its the opposite of the majority opinion. Guess what they might call you nuts but wait three years from now those same people that called you nuts are going to be calling you rich.
Now lets view the stock market today. What is the majorities sentiment. It is overall optimistic, isn’t it? We have been on a 6 year bull run and the majority is really starting to get excited about the stock market again.
The majority is just starting to say “hey the market has been doing so good over the past 6 years maybe I should buy some dividend stocks.”
What do you think the move is?
SELL SELL SELL
You got it.
See not that difficult after all.
When the overwhelming majority is thinking buy you sell and when the overwhelming majority is thinking sell you buy.
That’s how Billionaires are made.
David Rockefeller was quoted famously saying “buy when there is blood on the street”.
Why because when tragedy strikes majority of people panic and make stupid decisions like sell when everyone is selling and have to sell at a major discount.
Or buy when everyone else is buying and they are buying at a major Premium.
This is why majority is broke but at least they don’t have to deal with the feeling of being an outcast.
The wealthy don’t care if they are an outcast they actually try to be because that’s where opportunity lies.
The moment you catch yourself doing what the majority is doing get off that ride and do something else.
The key to winning in any market is to zig when everyone else is zagging.
Our Reading recommendations at the bottom of this page are fantastic investment books that have had a major impact on us at the Freedom Creator.
If your looking to ingrain the mindset we have been discussing so deeply rooted that you subconsciously make the right decisions about investing time in and time out year after year.
These Four Investment Titles are not the typical ones you here from all the Guru’s but they are the MOST ESSENTIAL pieces for every serious investor to read.
The Four Investment Pieces that are must Reads are as Follows: