Simple Wealth Strategies Are BetterWealth Principles
Your most important responsibility is comprehension. As an investor, you should always understand your public or private investments. If you don’t comprehend, or cannot comprehend, your investment you should not opt in until you learn all negative risks and how the investment generates profit. Even if an investment you do not comprehend is working now, you will not know what went wrong if it results in losses. Wealth strategies should be simple and effective.
Holding onto investments you do not understand leaves you susceptible to confusion, which clouds judgment. You also cannot reasonably understand the situation your money is in. How does this investment generate a return? How stable is this return over the long term? When and why should you exit the position? Under what circumstance should you add more money to this position?
This applies to complicated investments, especially if they are inherently confusing because of their complications. Wealth Strategies which are simple and comprehensible are better than plans which are complicated and difficult to understand. The same goes for investment instruments. Complicated investments usually don’t work in your favor. They almost always work in favor of the investment’s seller or creators.
This does not mean you shouldn’t try to learn how the investment functions. You should try to understand and comprehend the investment’s nuances and complications. The more complicated they are, the more likely that once you understand them they will scare you.
If you cannot understand the investment, and you have made the best efforts attempt to comprehend it, you should not purchase the investment. If you do understand the investment but realize that its various nuances result in reduced returns for you but higher profits for its creators, you should sell or avoid the investment. Relying on others to tell you whether to buy, hold, or sell, is no way to profitably invest.
Confusion creates problems, one of which is increased costs which drag your wealth gain. Many complex investments are sold at higher fees and commissions than simpler investment instruments. This results in increased profit for them, and an incomprehensible investment for you. This is not a wise trade. Using wealth strategies that are simple and preform well will help you over the long term.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Investment and Finance, Serviced by Amazon
A Concise Guide to Macroeconomics, Second Edition: What Managers, Executives, and Students Need to Know
A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market
Algorithmic Trading: Winning Strategies and Their Rationale
Alternative Investments: CAIA Level I (Wiley Finance)
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