The Markets Are Like Elevators

I had a realization the other day that markets were exactly like elevators.. but with no signs that say if it is going up or down. it can only say what floor it is on. Now, how would you manage to get around with such an elevator.. THINK and THINK hard!

INCOME STREAM #3: STOCKMARKET INVESTING PART 2

Ever since I started in the stockmarket, I have been trained to trade, not to invest. This is due to the fact that I work for a brokerage firm and commissions must be generated not only via capital gains but also via trading volume and activity. Risks are also minimized, in my opinion, when trading as opposed to investing. So what is the difference between trading and investing? I'll list them down for a better feel..

1. TIME - Traders buy and sell on a short term time frame. Their holding period is from a few days to a week as opposed to investors' time horizon of months to decades (think warren buffett).

2. PRICE - Traders buy or sell based on price action. Traders usually dont care about the price per se, as long as they see higher prices coming by way of price action then they take positions as needed. Investors are more concerned about price levels, they look at valuations and ratios of companies as businesses and their potential over the long run.

If you have unlimited capital and time, i suggest you go for long term investing just like Warren Buffet but otherwise, trading is my favored way to grow capital. As proof, just look at the Dow Jones Industrial Average, as of this writing, it is approximately where it was A DECADE AGO! now if you invested in those "blue chips" a decade ago, you would've still lost money because of inflation..

wait for my next post on stockmarket investing, we're getting hot!

INCOME STREAM #3: STOCKMARKET INVESTING

The stockmarket, in my personal opinion, is not for everyone. Many people think that it is a magical money making machine that makes people wealthy with minimal effort and time. It is not! It is a vehicle by which proper study, patience, and discipline are applied to take advantage of the vast opportunities that it presents. The rewards are high but so are the risks. In the end, it all boils down to mastery of the market and of yourself. You need to put in the required discipline and study if you do not want to lose your shirt, or even worse, the roof over your head. 

It is as if by fate that I chanced upon this article this morning because I was planning to write on this topic today 

http://bosanchez.ph/how-a-college-dropout-became-a-mega-millionaire/

The guy in the article is my boss. His story is true and that is why I currently work for him. His story is nothing short of amazing and I would like to follow his footsteps in building amazing wealth through the stockmarket. I think my boss, however, has changed a lot since his college-dropout days; aside from being richer than he ever dreamed possible, HE NOW WORKS HARD/ER. I think this is his secret. He reads voraciously, trades at least 3 markets, runs the stockbrokerage, trains traders, attends meetings, etc.  

I'll stop here for now.. wait for part 2 on stockmarket investing.

escaping 9-5

I just recently erased ALL of my previous posts. Why? because they are so fcukin BORING! Im new at blogging and didn't quite know when too much is being written for the good of the readers so from now on, I'll keep it short and direct to the point.

This blog- I will keep this blog focused on my quest for FINANCIAL FEEDOM. Freedom from 9-5, freedom from bosses, freedom from working for money's sake. For me, financial freedom would mean having PASSIVE INCOME that will support the lifestyle that i want. Basic, right? Now boys and girls, remember that PASSIVE INCOME is income that we generate automatically, without lifting a finger, without 9-5.

Now how in the world can we create passive income? simple! but not necessarily easy. There are three ways that i know of, and they are:
1. Real Estate - Rental income from real estate comes in automatically month after month, year after year.
2. MUSE- This is a term used by timothy ferriss (google him) to describe businesses that run on autopilot. The owners have no part in the business operations because they are probably busy backpacking in europe, skiing in the alps, or getting a tan in some remote island paradise. -nice!
3. Investing - Particularly in stocks. Pick a real winner at the right time and get ready for the fast track.

The quest begins!