The steps to investment wealth growth
How superior investors grow wealth with a successful growth strategy that any investor can follow. The superior investor journey to wealth is a lifetime of learning, growing and successful investing. That journey begins with the decision to learn about investing and stock markets. It takes time and effort to grow knowledge, develop investor skill and learn the best ways to plan and execute investment decisions. The time and effort pays off with a lifetime of wealth building results.
What you learn from: Lesson 8 -
How superior investors grow wealth:
Frequently Asked Questions
How superior investors grow wealth
What is a good way to start investing?
Make knowledge of markets and investing your first and most important investment! Spending the time and effort to invest in yourself by acquiring investment knowledge pays off with a lifetime of returns. Investing success is built on knowledge. Successful investors continue to learn over a lifetime. Before making any other decisions about investing or putting money to work, first learn about investing and your vast range of almost unlimited possible choices and opportunities. You can learn from many excellent books on investing and you can learn from the White Top Investor lessons as well as many other excellent sources. Use multiple sources, and use Google to open a world of knowledge useful to anyone learning about investing.
What is the key to investing success?
Both knowledge and execution, knowing and doing, are essential to investing success. While knowledge is important, doing is an equal and needed partner for investing success. Do that by following the
4 Steps to Investment Success.
1. Grow your knowledge of investing and markets,
2. Train your investor brain to develop an investor mind,
3. Write your plan and record your investment record,
4. Execute to make it happen; actions make your plan come true to achieve investment success.
What are the biggest investing mistakes?
For investors, mistakes fall into broad A-B-C groups with a lack of knowledge in the top spot on the list of Top 10 Investment Mistakes.
A. Knowledge Mistakes
1. Lack of knowledge, investing before learning.
2. Not doing research or investment homework.
B. Emotional Mistakes
3. Impatience costs and limits gains.
4. Falling in love with an investment melts money.
5. Greed or fear can quickly burn wealth.
C. Management Mistakes
6. Portfolio churning raises costs and locks in losses.
7. Market timing ensures investor losses.
8. Outsmarting markets is a game for fools.
9. Averaging down locks in losers and blocks winners.
10. Diversification mistakes hurt performance.
How can I get my investment returns higher?
Increased revenue or lowered costs improves returns on any of the
14 investment types falling into 4 Risk Groups from low to high risk.
Low-Risk investments, safe, modest returns, many strategies,
High-yield savings,
Certificates of deposit,
Money market accounts,
Treasuries,
Bonds,
Low to Medium Risk higher returns, endless choices,
Index funds,
Equity funds,
ETFs
Managed Risk best returns for knowledgeable investors,
Individual equities,
Trading quality stocks,
High-Risk possible high to exceptional returns at higher risk,
Aggressive Trading,
Speculations,
Options - low to higher risk strategies.
After considering risk, higher returns also comes down to more revenue or less cost.
Core Content
How superior investors grow wealth
The How superior investors grow wealth lesson name here shares teaches or gives first paragraph of lesson content
Building knowledge begins the journey on the superior investor path to success
The superior investor path to success, growth and wealth can be walked by any investor. That stock market success journey to wealth building takes a lifetime to travel. The decision to learn about investing and stock markets, can begin the journey by investing the time and effort needed to grow knowledge. Then training your mind to think like an investor builds on the knowledge and provides the foundation needed to learn the best ways to plan and execute your investment decisions to produce the wanted wealth building results.
If you want to have a better performance than the crowd, you must do things differently from the crowd.
More about John Templeton, American-born British Investor.
Sir John Templeton
Investor
The pecking order of risk and higher returns
For high safety returns are often modest. That begins with the low risk, high-yield savings, certificates of deposit, money market accounts and treasuries. All are very secure but do deliver modest returns. In some cases, returns in this group do not cover the real cost of inflation. Money invested in such securities can actually lose value!
Taken as an overall group, bond investing is considered a bet on safety but one that most often offers a slight return advantage over savings accounts. For higher returns, investors can choose to accept more risk or invest more time and effort learning to manage equity investing.
For only a modest increase in attention, investors can increase returns with index and equity funds or ETFs. The range of offered products seems to be endless and growing by the day. These choices and possibilities have market risk. Market risk is typically higher than bond or savings accounts but, in general, considered low to moderate.
When knowledgeable investors manage risks and execute well, returns can be much higher. The greatest investment returns go to the very well rewarded knowledgeable and effective wealth builders that invest time and effort.
To move to higher returns yet, requires more time and effort to do well but at returns that can be much higher. As with all parts of investing, knowledge is a key factor. Investors can put in the time and effort and learn how to invest well. Those that do receive wealth building returns. And excellent lifetime returns are possible for investors that learn to manage risks and execute well.
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Brings greater stock market returns - Greater, improved, more stock market returns
Steps to Investor Growth and progress
As you grow in market and investment knowledge, you soon realise the loudest voices are not the best sources. Growing investors are patient and willing to get rich over time.
Growing investors are knowledge gluttons! They feast on the vast information ocean while learning to filter out the best and ignoring the rest. Following the adage, don't lose money! They preserve capital as a crucial part of investing success. Succeed following the steps to investor growth and progress.
Be a glutton for knowledge seizes all you can. The game is long, it lasts forever. You have time and must tolerate growing as you can. knowledge and councils caution. to achieve investing success, there are main primary basic crucial points. keys . to investing success, avoid investing mistakes. market background, holding and trading, noise and turmoil, . The communication veil, . guardian, trustee, fiduciary investor life.
Understanding the market and the noise,. The trade push Start investing, investing success keys, investing mistakes, higher returns, investing success - Walking the investing success trail with the wealth builders - step by step progress - Road to investor brain success - Investor brain success track - for The Investor brain wealth track - Wealth Tracking for the investor brain - s for the Investor Mind Wealth Road - Wealth Road For Investor Minds - Wealth Building Market Mind - Market Mind Wealth Road - Investor mind market Background
Starting the investing process, learning the keys, learn, train, plan, do, . Know and avoid the big mistakes. Loss avoidance,. Basic market. Hold for profitable growth. Noise and mind traps,
Know the financial service reality and plot - suitability or fiduciary test - who works for you?
Words build money traps
With their trained brain, emotions become an ally rather than a source of bad wealth destroying decisions. They understand the value of research and learn business and operating fundamentals to better understand their investments and business.
Investors learn to understand stock market basics
Skilled investors understand and keep current on stock market news.
Superior investors know stock market success begins in the mind as the base for an investor life. They know and understand how investing, trading and speculating differ.
Buying and selling of investors, traders and speculators all happens in each market. All major to minor market movements reflect the total of all forces in the market. The moment by moment total buy and sell orders affect the market action, price and volume.
Far exceeding investor orders, traders and provide the volatility driving volume. The volume of speculation trades fall between investor and trading volumes.
In markets today, trade volumes have reached astronomical levels. Computers drive the vast majority of that trade volume. High frequency trading and other algorithm driven programs now account for most trading. That includes thousands of trades at nanosecond speeds beyond what humans can trade.
Understanding profits from slow earnings vs fast trading
Investors are content to buy and hold to ride productive investments for many years. In contrast, traders are in for a good profitable time, not a long time. That contributes to large volatile driving trading volumes to markets responding to all orders.
High volume market noise can trap minds without adding value
As trade volumes grow, market noise rises faster as the market and media pump out ever more clamor. With experience, superior investors learn to filter the noise, taking only what matters.
Media joins in the mix to add more commentary and reports. With few exceptions, little of it matters to superior investors. Most often, we can relax and enjoy the show!
Investors must know when flash, bang, to and fro don't matter!
Moment by moment, stock markets display incredible volumes and action. But does that matter? For investors, most often, no!
Trade by trade market action has little meaning to investors seeking productive investments. Their focus on buying and collecting dividends requires paying attention but most have no volume issues.
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For investors, the market and financial facts are more important than opinions.
Superior investors use mind skills to avoid financial service money traps. Develop and use investor mind skills to build your stock market success.
Stock markets are one of many engines driving the economy forward. Although stock markets, even the largest ones, are not the economy, these engines produce lots of noise and get plenty of attention.
These public, open and loud engines run without any mufflers. As a result, we hear all the stock market noise and action, including the backfires and misfires. Each one gets amplified by business media reports. Although far from the full business scene, we hear the noise and shouting. Most of the noise means very little.
Part of growing into a superior investor is learning to manage our response to stock market noise and volatility. Seldom does the volatility carry any meaning for a serious investor.
Marketing skill and financial services say this and do that!
Many financial service communication strategies are long past their best before date. The terrible aloof, outdated, tone-deaf but too common messaging keeps clients in a fog. This bad strategy ranks as the top cause of undermined client trust.
Websites of many financial service companies display this aloft manipulative communication strategy. They seem addicted to jargon and determined to avoid plain, clear disclosure. Most sites do a poor communication job. Few deliver practical meaningful information well. A high-handed industry wide culture seems bent on long-winded self-aggrandizing pronouncements. As Grandpa may have said, “they use fancy talk” to confuse regular people. It can trap unwary people.
Money pain and financial service money traps
Tone deaf and outdated describes too many financial service communication strategies. In fact, many succeed in keeping clients in a fog that undermines their trust.
Using jargon rather than plain, clear disclosure, many sites are poor communicators. Avoiding practical meaningful information is common in this high-handed industry. Seeming to focus on long-winded self-aggrandizing pronouncements. Grandpa had it right, "they use fancy talk" to confuse regular people. The unwary can fall into these word traps and make poor decisions.
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Woman reacts after learning about the unsuitable financial industry suitability standard.
Be wary of investor abuse by advisors or financial industry players! The conflict between the lower suitability standard vs the higher standard of a fiduciary obligation. Financial services consistently fight against any possible higher standard leaving clients open to advisor abuse.
Beware of money traps built with words
When you run into an aloft, obscure communication strategy, a money trap is being set! Their plan is to make you think that you do not know how to invest. And that you can not learn how to invest as well as they can. That is the core reason for such strategies.
They intend to make you think successful investing is beyond you. The goal is for you to give them your money to manage because you think only they have the needed skills.
Do not fall for the nonsense of that money trap. Be careful! The strategy intends to put you at a huge disadvantage and at their mercy. They want you money and for you to go away and leave it to their professional skill...and costs!
Should you ever encounter this from a financial advisor, speak up and ask for a clear explanation. Say when and what you do not understand. Clear answers are available, so insist on answers that you do understand.
In part, the financial advisor job includes helping clients learn about investing. An advisor that embarrasses or confuses you is the wrong one. Move to one that helps you grow in knowledge and wealth. You pay for the service, get it or move on. When you are not sure, hold your money and ask questions until you understand.
Investor safety pass-fail – suitability vs fiduciary test – who protects who?
The low client safety bar of financial services keeps the communication veil. Investors may think financial services come with user protection. But limits, bureaucracy and obscure processes frustrate most claims. Investors in conflict with an advisor, find themselves alone and at great disadvantage. Even egregious cases bring few satisfactory outcomes.
The best defense is to avoid bad advisors. Do that by educating yourself on how to make an informed advisor choice.
In general, there are two regulatory standards for financial advisors: suitability and fiduciary. The suitability standard is the low one favoring the industry. In practical terms that low standard means virtually anything goes that is not a clear improper choice. The industry fights tooth and nail to keep that low standard. That keeps the door open for investor use and abuse. Higher fiduciary standards mean advisors must provide for the best interest of clients.
Quality professionals step up with higher service standards
The fiduciary standard sets the bar higher. It means only recommendations or actions in the best interest of the client are acceptable. It puts the client first. That applies even in situations that places any other parties at a disadvantage. That includes even putting the advisor’s at a disadvantage. From the advisor point of view the client interest must rank above their own. All advice must meet a thorough and as correct as possible standard.
The words defining those standards open a legal minefield for investors. Herds of lawyers keep busy with this stuff.
For self-protection every investor needs to know investing basics. Investor education provides the best possible investor protection. This standard issue, suitability or fiduciary, is all about making money. That is making money for the players and industry. Not the client.
A lower service standard can hurt your pocket
Quality professionals step up with higher service standards
Woman reacts after learning about the unsuitable financial industry suitability standard.
The Story
Making knowledge your first and most important investment is a commitment to your success! There are an endless number of books to help you learn and you can also learn from these White Top Investor lessons as well as many other excellent sources. Don’t depend on just one source but use multiple sources including Google to see a world of useful information. Learning from multiple sources also helps you see the vast topic of investing from differing points of view.
Once you begin, growing investment knowledge never ends but continues as lifelong learning at the ever growing feast of investment knowledge! But investing success takes more than knowing. Successful investors do. That is the execution part which is also essential to investment success.
Two keys and four steps for investor development
Investor development has two keys developed by taking four steps. The keys are knowledge and execution and development starts by learning and adopting the investor mindset. That sets you on track to making the lifestyle and attitude choices needed to have investing success as your mission. As your knowledge of investing and the stock markets grows, begin the process of training your brain into an investor brain.
Then, research and develop your investment plan. Once completed and tested, set about following your investment plan and doing what is necessary to put it in place. Finally complete the execution by taking the actions needed to successfully invest.
Following the guide to first building knowledge avoids many mistakes that new investors can make. Knowing sets you up for investing success rather than failure. Researching to plan your investments helps identify many avoidable investment problems. And learning first before doing, makes sure that when it is time for you to do, you know what successful investors do and what you should be doing.
By learning the facts and making good choices before taking the needed actions, investors can produce the wanted wealth building outcomes. That opens many investment choices for wealth building. Those many investment choices cover a wide range from very safe to higher risk.
Good cost control delivers more investor bottom line.
As you grow in knowledge and understanding of markets and investing, you can build trust. Take the time needed to learn because knowledge changes thinking and attitudes. That can change our minds and thinking, lowers barriers and builds confidence.
Developing trust is an individual journey for each person but does pay off for a lifetime. That improves financial services for clients. Certainly worth making the effort.
Learning who and how to trust when investing becomes part of the investor life
Summary points Part I investor thoughts and attitudes
Summary points Part II mind trap control
- Use your investor mind to control mind traps
- Learn before investing
- Learning overcomes the knowledge mind trap
- Know the cause and learn to manage trust mind traps
- Control the cost mind trap by managing all expenses and fees
- Learn to focus to know how to clear the complicated mind trap
- Investors, traders and speculators are different
- Market noise from trading and media can mislead
- See through the financial communication veil
- Watch for money traps built with words
- Know the suitability vs fiduciary service standards
- Build investing around a plan
- Low costs work best and deliver bottom line
Lesson Takeaway:
How superior investors grow wealth
Now you know:
Now, it’s your turn to apply the lesson:
How superior investors grow wealth
Begin applying your new knowledge at your own pace. Taking the time you need to understand the lesson, helps you master the material. Then you can apply what you learned to take another step in your development as a superior investor. Have a prosperous day!
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How superior investors grow wealth
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Brain Train for Investment Success
These Brain Train for Investment Success lessons are from the White Top Investor 1st Guide - Developing Your Investor Mnd that shares superior investor knowledge about developing an investor mind.
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