Change moves markets forward as a stock market constant. 3 big investing choices gives investors many options for change to plan, grow and manage their wealth.
Money strategies – planning & managing wealth, Lesson 10, introduces the 3 big investing choices investors use to change and grow their wealth. Links at the lesson end guide you to related content to learn more.
What’s in this lesson for me?
Understanding the 3 investing choices used to manage change gives investors options to grow their wealth. That gives you ways to grow your wealth and financial security.
Markets trade anything
Markets exist to trade every imaginable thing. They have been around forever. Or at least through all of advanced human history. Through the long history of markets, there has been one constant, change. Change is the only constant.
Trading things and parts of things including shares of companies was a natural progression in human social development. Most markets were local and in practical terms, restricted by barriers to entry. Technology, knowledge and contacts gave access. Restrictions by the rich and powerful controlled who obtained and how they accessed investments and opportunities.
Change the stock market constant and mutual funds bring change
We flash forward centuries and discover mutual funds. Mutual funds went very far in bringing democracy to investing. Invention of mutual funds or pooling the capital or money of many investors, was revolutionary. It allowed small investors, many common citizens, to form fund or capital pools.
These pools of capital were large enough to buy significant positions in an enterprise or take portions of several different opportunities. For the first time in history this accomplished an amazing investing feat! It gave much broader access to many more investors and dramatically increased the total capital pool available for investing and economic development!
Mutual funds predate the American Declaration of Independence
Historically, inventing mutual funds was a very big deal! Astounding as it may seem, this innovation predates the American Declaration of Independence! The first mutual fund appeared in Holland in 1774!
Mutual funds democratized and popularized investing. They gave practical market access to many millions of small savers and investors. Now, assets under mutual fund management, total multiple trillions of dollars. Funds cover every imaginable investing and business angle of every nation, market, industry and economic sector. Mutual funds range from those that offer extremely broad market coverage to some of exceptionally narrow focus.
The greatest achievement of mutual funds was bringing many ordinary citizens into the world of investing. That wonderful achievement has been eclipsed by more current developments and modern financial instruments. Products developed in more recent times, take advantage of efficient digital technologies and avoid the huge cost of the now obsolete mutual fund structure.
When horses and sails were the latest in technology, mutual funds were revolutionary. The mutual fund sale, distribution, management and administration structure show this historic foundation. So do the high costs associated with mutual funds.
Mutual funds have an outdated structure, sales and service culture and high fees that all together renders an expensive and obsolete fund system. With the mutual fund management and administration structure, as well as a distribution system designed for a pre-electronic, let alone pre-digital age, mutual fund costs are far too high.
However, with managing trillions of dollars at stake, this powerful economic and financial force is not changing without a fight. Please see the links to other White Top Investor lessons on mutual funds.
Changes good for your wealth
The White Top Investor lessons, Investment Choice, discusses far more efficient and cost-effective ways to invest. If you own mutual funds you will want the information in ETF Revolution Changes Investing History. Dramatic cost differences can dramatically improve your net returns. Make the change to put much more money into your own pocket.
When computers arrived and the digital age unfolded, financial services underwent dramatic cost structure shake-ups. Paper driven financial industry players saw dramatic plunges in operating, administrative and sales costs.
In time, innovative discount brokers emerged to wage fierce cost based, price wars for clients. Investors saw the cost of transactions fall from well over $100 a trade to, in one case, $0.01 per share. Now transaction fees under $10 are very common and free options exist. These low fees come with no service, advice or help. Investors wanting to take advantage of low fees need to know what they are doing.
It is well worth your while to learn how to invest for your own benefit. Learn it and do it. The significant differences go directly into your pocket.
Many new and non-investors are using WhiteTopInvestor.com to learn basic investing from this site dedicated to helping non-investors become knowledgeable, comfortable, confident investors on their way to mastering their own financial security and independence.
The cost driven evolution unfolding over decades, continues to revolutionize investing today. Over time, markets everywhere continue evolving towards becoming open to almost anyone, anywhere.
Why this lesson matters
Change is the stock market constant. As the lesson title suggests, change moves markets forward. Knowing the 3 big investing choices continually change helps investors understand the market environment. That helps them plan, grow and manage wealth.
Takeaways from lesson 10, Change moves markets forward, includes:
Change moves markets forward as a stock market constant. 3 big investing choices gives investors many options for change to plan, grow and manage their wealth.
- Become a better investor by knowing when to take profits.
- Let winners run when markets are rising.
- Don’t fall into the fear trap that makes you sell too soon.
- Think like the wise merchant the buys more winners.
- Sell your losers and buy more winners.
- Be exceptional – take the full ride with your winners.
- Trim the weeds, water the flowers.
- Take the lesson on portion control.
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Use White Top Investor lessons to learn investing. Then, grow into a knowledgeable, comfortable and confident investor. In fact, you can learn investing one small step at a time at your own pace. Do that and become the master of your financial security and independence. White top Investor never sells or shares our email list. Learn more.
Money strategies, lesson links:
Introduction to Money Strategies – Planning & Managing Wealth Lesson 1
Investors and traders ride growth Lesson 2
8 Big money matters Lesson 3
Nelson Mandela touched investors Lesson 4
Market time grows money Lesson 5
Stock market dip opportunities Lesson 6
Investing strategies taking profits Lesson 7
5 Money making strategies Lesson 8
Investors can deposit and WAIT! Lesson 9
Change moves markets forward Lesson 10
ETF Revolution changes investing Lesson 11
Benjamin Graham market mix Lesson 12
Next lesson 11
ETF Revolution changes investing. Exchange Traded Funds are popular investing choices first created in Canada but now in investing markets around the world.
Have a prosperous investor day!
Bryan
White Top Investor
[email protected] WhiteTopInvestor.com
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