1-01 Understanding Investment Choices
The first time Tiger Woods grabbed a golf club he couldn’t hit the ball perfectly straight 300 yards and the first time Michael Jordan touched a basketball he couldn’t dunk it, so don’t think that you will be able to earn a 100% return in the first year. Before Tiger could hit a golf ball 300 yards, he had to learn which end of the club to hold, how to hold it, where to place the ball in his stance, and then how to swing it—and then he had to practice thousands of times.
When learning any new skill, like playing golf or investing, you must begin understanding some of the “tools” and “terms” involved. Without this basic knowledge, it is difficult – if not impossible – to practice your new skill properly.
This first lesson covers the primary “tools” you will use to empower yourself to become more financially successful. Once you become comfortable with these “tools” and understand what each can accomplish – and what they cannot – you will be well on your way towards becoming more financially savvy.
As with most journeys, you will encounter some twists, turns, and detours. With your newfound knowledge, however, you should navigate successfully during both sunny and stormy conditions. Enjoy your trip!
During these sunny and stormy conditions you are sure to experience what I call the “the thrill of victory and the agony of defeat” (to borrow a line from the old ABC “Wide World of Sports”). The thrill of victory is buying a stock and having it double in a few weeks! The agony of defeat is losing your shirt on a trade when you “knew” it was going to be a solid performer. While we can’t guarantee that you will never suffer a defeat, we will definitely help you minimize the impacts of those defeats and increase the frequencies of the victories.