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Secrets of Investing for Beginners Part II

In stock market the most important element in Investing for Beginners is time. If anyone wants to start investing money in the stock market he or she must have to take time.

Secret Two: It’s time in the market, not timing the market

If I were to build a house for you, the first thing I would do is pour a solid, durable foundation. Everything, and I mean everything that I build for you from that point relies on that foundation. If you try to cut costs here you will pay handsomely for it. The 2011 Joplin tornado was a catastrophic EF5 multiple-vortex tornado that struck Joplin, Missouri, late in the afternoon of Sunday, May 22. It caused $2.8 billion in damages. It left a swath of destruction almost a mile wide. The massive EF5 twister destroyed many homes, yet in spite of its massive power, it was unable to demolish even one foundation.

A necessary ingredient to making money in the stock market is time. It is the foundation on which your portfolio grows. Before you put any money into a company via their stock or bond, you should have a long-term plan for staying there. There is only one way I know to get rich quick-TAKE YOUR TIME, because the swift outcome is usually the evaporation of your money.

 

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Secrets of Investing for Beginners Part I

Three Secrets of Investing for Beginners

So you want to start investing in the stock market, but, as a beginner, you are afraid of losing your money.Undoubtedly you’ve heard of people winning big, and others losing it all, in the same stock market, like the DOW Jones or the S&P 500. How do such polar opposite outcomes occur within the same market?  Do the successful have some spectacular insight that helps them choose winners over losers? Hardly. Could it be they have discovered the secrets that Wall Street doesn’t want you to know? Possibly. Would you like to know what they are? Here we go.

Secret One: Wall Street needs you, not the other way around

Make no mistake; you are the absolute life-blood of every brokerage firm and maker of every investment security which is both flattering and dangerous. As yet you do not fully appreciate the enormity of your worth in the eyes of the Hungry, nor do you yet comprehend the pitfalls of being so. Without you…there is no Wall Street; without Wall Street…you remain. When you understand this epiphany, things start to change. Most of what you consume regarding successful investing is pure noise. Larry Swedroe, author of, “What Wall Street Doesn’t Want You to Know” calls much of what you hear about making money in stocks, “investment pornography.” That is the hard blue-steel kind of language that you need to hear, and investment consultants need to speak. When you choose someone to help you with this, make sure they speak this kind of dialect.