Yesterday, we talked about how your beliefs can attract wealth. Not only do your thoughts influence your investing and saving habits on a personal level, but these beliefs, in a collective sense, can cause macroeconomic changes.
But can your thoughts attract debt?
It seems so. Your spending behavior is directed by your beliefs. Financial psychologists say that, like most mental processes, these beliefs can be complex and often contrarian. Thoughts and beliefs about debt are the most complicated.
You probably think that debt comes from over-confidence, or financial hubris. You’re spending money you don’t have because you’re sure the resources to repay the debt will be there one day… some day. But that may not be the case.
But, wealth-building technology has a much better chance of succeeding if it finds its way to regular investors. We have reason to hope this will happen. With the amazing computing power available, it’s just a matter of time before the types of technology that drive hedge funds and private equity funds is available to self-directed investors.
Where’s the source of our optimism?
It relies a lot on our own experimentation, but the bulk of this expectation lies in the path of technological process and Moore’s law. It’s something we’ll explore in depth in our forthcoming eBook, the Wealth Singularity, but here’s an overview.
Investing isn’t brain surgery. It’s not rocket science. But brain surgeons and rocket scientists lose money in the market.
That doesn’t mean investing is an impossible science. It can be learned and mastered. It can be categorized and automated. Best of all, there are a lot of sources on the web that will help you learn about investing, or training.
In this edition of Weekly Wisdom, we’ll pass on some links for excellent resources for beginning investors. And, since being well-rounded is the first lesson of being wealthy (as opposed to being rich), we’ll add links to some of the web’s best articles and posts.
Well, maybe meaningless is too strong of a word. But, technically when you’re shopping for Automated Trading systems, the percent of winning trades may not accurately assess the success of the system.
Depending on how you define success, a team with the most hits is not the most successful. It’s the team with the most runs.
A guest poster at the INO Blog indicates that many traders focus on winning percentages when they investigate Automated Trading systems. The logic behind this seems solid: the more times you win, the more you win.
Trading, though, often has its own rules of logic.
How can you win 90 percent of the time and lose money?
I was watching a community work crew put up a bridge across a creek many years ago. I asked the guy in charge how the puny boards could hold the weight of the men out on the middle of the river.
He said, “It’s not the wood, or ropes, or posts that keeps the bridge up, it’s the design.” In other words, that pile of wood could not do anything without a solid idea behind it.
How profound. Sometimes we see the effects of our behaviors and pronounce them the cause, or the design. If I asked a hundred traders why they trade, they’d probably say because of the returns. But, underneath, there is a simple design. People may actually trade because they want excitement. Or they want security. Or they want to show off in front of a possible date.
The inability to find this know yourself is just one way you can complicate your trading. And that causes problems. If you want to build a better bridge to solid returns, here are fifteen ways to better understand yourself and to simplify your trading.
A friend of mine, who told me recently that he was budgeting his money, said he just went crazy.
Standing in a sea of new boxes from QVC, he told me that he made it through the month tightly following a money plan and then–with two days remaining in his monthly plan–called the home shopping station and, from the looks of things, emptied their warehouse.
And now the guilt settled in.
Budgets, for many people, work well. But, these are folks who have a budget mentality. In a Catch 22, they’re people who can probably live without these spending plans. They’re naturals.
Those who disparately need to control their spending are a lot like dieters who look at their menus as salvation from their eating patterns. This phenomena leaves dieters fat, and spenders poor. Here are a few reasons why:
There’s a story about legendary quarterback Joe Montana.
After his first Super Bowl win, a reporter asked what it was like playing in his first Super Bowl. Montana said, it wasn’t his first Super Bowl. He had played that game as a kid hundreds of times.
What I think Montana is saying is that when he was young, he saw himself playing in the Super Bowl, all the time, probably like a lot of other kids. But, unlike most youngsters, Montana kept his faith and kept working and kept visualizing that goal, even as most of his contemporaries lost their drive.
If your goal is personal wealth, visualization can helps you achieve Super Bowl-type performances.
To recap, this week, I looked at ways you can become an entrepreneur without the scary, no-safety-net approach of quitting your job.
Those part-time methods, or chicken steps, include:
Become a freelance worker
Start an online business
Dabble in real estate
There’s another way that is perhaps the newest entry to the part-time entrepreneur list: Automated Trading. Automated Trading is a way to use technology to automatically send buy and sell calls to your trading account.
I admire people who have settled into jobs that naturally fit them. They go to work happy. They spend their day pleased and fulfilled. And, when night comes, they don’t toss and turn, dreading the morning light.
It’s great to be in this position and I know people like this. Honestly, I don’t make it a practice to rain on parades, but, after a chat with a friend, I recognize that some dream jobs can turn into nightmares.
What do you do when the dream job becomes the job from hell? Most think they’ll cross that bridge when they come to it, but you should start building your bridge before you come to it. As in most cases, preparation is the key. Here are a few things you can do RIGHT NOW to make sure you can wake up instantly if your job becomes a nightmare.
There was the dotcom bubble. Could a dotgov bubble be in our economic future?
If we look at the recent past economic picture, we see that money and wealth is really about flow. Money flows from industry to industry, from product to product, and from idea to idea.
The money, propelled by enthusiasm and greed, gets hung up in little pools and eddies that become bubbles.
In the past 25 years, we’ve seen money flow into precious metals, build a bubble and pop. With the introduction of online technologies and the onslaught of new technology companies, a similar bubble was created and it eventually burst. That money, egged on by low-interest rates, then moved on and created the real estate bubble, along with the resulting credit crisis. Soon on its heals, the oil bubble inflated and deflated, too.
Now, many investors are wondering where the next bubble economy will be.