Most of us learn to think early on that the Stock Market is:
1) Some mysterious place where rich people gamble; then...
2) When we learn a little about it.... we see it as a place we can put some of our money and it has a chance to grow (over time);
3) Even though our money is always 'at risk', still the stock market produces better than a bank savings account or CD ever does. (Usually, that is.)
When you were a kid in school, and even through college, were you ever taught anything about the stock market other than the bare essential of 'investing for the long haul'?
'Investing' is always the key word. Have you ever heard or read a brokerage firm or a Mutual Fund's advertisement that talked about anything but investing? Investing is the only thing most folks know as to financial planning. The mutual fund ads have convinced you that you aren't capable of doing your own planning, though...let alone your own investing. They blatantly tell us that [we] should leave [our] planning to the 'professionals.' Namely, them.
Some 80-million Americans buy into their sales pitch...turning their financial planning and retirement hopes and dreams over to them. Those who want to get a little more involved, and learn a little about what's going on, soon begin discovering one 'eye-opener' after another. Once you do, you'll never do things the same way again.
First of all, you'll learn that:
1) The Stock Market historically (since its beginning in 1896), has averaged 10-15% annual growth...even with all of the bad times averaged in! In other words, if one truly went for the 'long haul' their portfolio would have grown. Regardless of depressions, Wars, 9-11.....and even Sept 2008(!) The stock market always has and probably always will, beat anything the banks offer.
2) The second big 'eye-opener' would be discovering that trading (verses passive investing) allows one to take advantage of the UP's and DOWN's the Market is constantly experiencing;
3) The third is that the 'Insiders'-those stock brokers and mutual fund managers, are the one's who really know how to make the Stock Market pay off for themselves: They trade all day everyday! But, they preach only 'investing' to their clients. If you understand 'shorting' and the full nature of the agreement you signed when you opened your stock account or mutual fund, (acknowledging that your money is 'at Full-Risk'), then you'll recognize whose money it is that makes it possible for them to trade everyday at the levels they do! But, you and your portfolio? One can only hope that the stocks you think you are a long-term investor in, do grow over time. If they don't? Oh, well...you acknowledged that you were 'at full risk' so the 'manager' is protected no matter what. He can trade with your stocks (sitting in their 'house account') and you'll never know the difference. (He might even get real greedy and trade in your actual account. But then, that would be called 'churning your account to collect extra commissions'. He might get his hands slapped if you noticed it and complained.)
4) The fourth and greatest 'eye-opener' of all is that -with a little bit of knowledge, you can enjoy the same tremendous advantages of being a 'trader' yourself - right along with them!
Thanks to the Internet and the personal computer, the Stock Market has been changed forever. With these tools and a little trading knowledge, the playing field with them has been leveled for you. Instead of long-term hoping, you can now make it your daily cash flow machine, just like they do.
Oh, they don't like it! Vested interests in the status quo never welcome change.
It's much more than just losing those big commissions you paid your stock broker or mutual fund manager that's worrying them. Perhaps they are beginning to see where the Internet and PC might make them 'museum pieces'. To fight it, they never talk about it.
Self-trading and the 'e-mini' are the last things in this world they want you to discover. As a note of interest... a 2005 study of the 'value of a broker or mutual fund manager to his client vs the amount of money he makes' revealed that the average mid-level manager makes $742,000 a year; The client is fortunate (yes, happy as all get out) if his portfolio gains 10-15% appreciation a year.
Doesn't the Stock Market average that on it's own? None other than Warren Buffett said that "equity investors could do better if they listened to no one." (Cover letter to tlhe Berkshire Hathaway Annual Report, 2005)
All things considered... Is it any wonder that when the 'e-mini' was introduced by the Chicago Mercantile Exchange in 1997 as a financial instrument that average folks could afford to learn to trade with on their new computer and via the Internet, that 11 years later, everyone seems to [still] have never even heard of it, yet?
If you would like to learn more, there's a ton of FREE information available at my web web site and blog.
http://www.emini-forex-trader.com (Mel's web site)
http://blog.melhardman.com (Mel's blog)
1) Some mysterious place where rich people gamble; then...
2) When we learn a little about it.... we see it as a place we can put some of our money and it has a chance to grow (over time);
3) Even though our money is always 'at risk', still the stock market produces better than a bank savings account or CD ever does. (Usually, that is.)
When you were a kid in school, and even through college, were you ever taught anything about the stock market other than the bare essential of 'investing for the long haul'?
'Investing' is always the key word. Have you ever heard or read a brokerage firm or a Mutual Fund's advertisement that talked about anything but investing? Investing is the only thing most folks know as to financial planning. The mutual fund ads have convinced you that you aren't capable of doing your own planning, though...let alone your own investing. They blatantly tell us that [we] should leave [our] planning to the 'professionals.' Namely, them.
Some 80-million Americans buy into their sales pitch...turning their financial planning and retirement hopes and dreams over to them. Those who want to get a little more involved, and learn a little about what's going on, soon begin discovering one 'eye-opener' after another. Once you do, you'll never do things the same way again.
First of all, you'll learn that:
1) The Stock Market historically (since its beginning in 1896), has averaged 10-15% annual growth...even with all of the bad times averaged in! In other words, if one truly went for the 'long haul' their portfolio would have grown. Regardless of depressions, Wars, 9-11.....and even Sept 2008(!) The stock market always has and probably always will, beat anything the banks offer.
2) The second big 'eye-opener' would be discovering that trading (verses passive investing) allows one to take advantage of the UP's and DOWN's the Market is constantly experiencing;
3) The third is that the 'Insiders'-those stock brokers and mutual fund managers, are the one's who really know how to make the Stock Market pay off for themselves: They trade all day everyday! But, they preach only 'investing' to their clients. If you understand 'shorting' and the full nature of the agreement you signed when you opened your stock account or mutual fund, (acknowledging that your money is 'at Full-Risk'), then you'll recognize whose money it is that makes it possible for them to trade everyday at the levels they do! But, you and your portfolio? One can only hope that the stocks you think you are a long-term investor in, do grow over time. If they don't? Oh, well...you acknowledged that you were 'at full risk' so the 'manager' is protected no matter what. He can trade with your stocks (sitting in their 'house account') and you'll never know the difference. (He might even get real greedy and trade in your actual account. But then, that would be called 'churning your account to collect extra commissions'. He might get his hands slapped if you noticed it and complained.)
4) The fourth and greatest 'eye-opener' of all is that -with a little bit of knowledge, you can enjoy the same tremendous advantages of being a 'trader' yourself - right along with them!
Thanks to the Internet and the personal computer, the Stock Market has been changed forever. With these tools and a little trading knowledge, the playing field with them has been leveled for you. Instead of long-term hoping, you can now make it your daily cash flow machine, just like they do.
Oh, they don't like it! Vested interests in the status quo never welcome change.
It's much more than just losing those big commissions you paid your stock broker or mutual fund manager that's worrying them. Perhaps they are beginning to see where the Internet and PC might make them 'museum pieces'. To fight it, they never talk about it.
Self-trading and the 'e-mini' are the last things in this world they want you to discover. As a note of interest... a 2005 study of the 'value of a broker or mutual fund manager to his client vs the amount of money he makes' revealed that the average mid-level manager makes $742,000 a year; The client is fortunate (yes, happy as all get out) if his portfolio gains 10-15% appreciation a year.
Doesn't the Stock Market average that on it's own? None other than Warren Buffett said that "equity investors could do better if they listened to no one." (Cover letter to tlhe Berkshire Hathaway Annual Report, 2005)
All things considered... Is it any wonder that when the 'e-mini' was introduced by the Chicago Mercantile Exchange in 1997 as a financial instrument that average folks could afford to learn to trade with on their new computer and via the Internet, that 11 years later, everyone seems to [still] have never even heard of it, yet?
If you would like to learn more, there's a ton of FREE information available at my web web site and blog.
http://www.emini-forex-trader.com (Mel's web site)
http://blog.melhardman.com (Mel's blog)
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