Rule #1: Don’t put all your eggs in one basket

Investing always comes with a certain degree of risk and one of the best ways to

hedge your bets is to mix things up in your portfolio. One-percenters know that

sinking all of their money into a single type of investment exposes them to the

highest level of risk. So they often make sure to keep their portfolios balanced at

all times.

Diversifying doesn’t mean you have to totally revamp your investing strategy. If

you’re partial to mutual funds, for example, it can be as simple as choosing funds

in different asset classes. The bottom line: The more diverse your portfolio is, the

more your investments will balance each other out in terms of risk.

 

Rule #2: Know thyself

For the wealthiest investors, success doesn’t come from getting lucky in the market

or jumping on a deal at the right time. Instead, it’s all about knowing what kind of

risk they can tolerate and what their long-term goals are. Because netting bigger

rewards often means taking more of a gamble with your investments, it’s important

to be aware of the degree of risk you’re comfortable taking on.

Rule #3: Put a cap on fees.

Raking in huge returns won’t do you any good if you’re handing them back over in

the form of fees. High net worth investors don’t jump into an investment without

first considering how much it could cost them in terms of management fees and

taxes.

 

Rule #4: Go with the flow

If 2008 taught us anything it’s that the stock market is fickle and there are going to

be times when your investments aren’t going to perform as well as you’d like them

to. For every dip, there’s a rebound and the 1% crowd doesn’t panic when stocks

slide. Adopting that same cool-under-pressure attitude can help you weather the

storm when the market gets bumpy.

 

Rule #5: Ditch the get-rich-quick mentality.

Building wealth isn’t something you can do overnight. Warren Buffett didn’t

become a billionaire by banking on the next big thing. Instead, his investing

strategy is all about long-term value and it’s that kind of forward thinking that has

helped him amass such enormous wealth.

Adopting that same attitude is necessary if you’re committed to mastering the

investment game. Instead of hoping to hit it big by discovering the next Google,

it’s best to look at where the market is as a whole and choose investments that have

the best potential for generating a steady rate of return.

 

Rule #6: Knowledge is Key

The wealthiest investors didn’t earn that title out of sheer luck. They’re constantly

studying the market and they know their investments inside and out. Whether

you’re new to investing or you’ve been at it for a while, doing your homework is

an essential piece of the puzzle that you can’t afford to neglect.

Trading vs. Investing

We all know the risks of trading and how it can completely consume one’s life and generate many sleepless nights.  So why do people trade?  They are chasing the profits the institutions tell people they can make; profits of 20% or more!  What they don’t tell you about is the high degree of risk that you will have to assume.  For most, you are just as well off going to Las Vegas and betting on a throw of the dice or the spin of the Roulette Wheel.  Few have the skill set, or the knowledge that is absolutely required, to be successful traders.  Most all who venture down this path end up frustrated, if not broke!

Let’s walk you down the path of a wise alternative.  Knowing knowledge is power and the more you learn the more you earn, let’s look at the most important facts surrounding trading.

An unfathomable amount of securities changes hands every year with no net positive impact for those traders.  You read that right.  $32 trillion is traded every year, achieving no net impact for themselves, except for the institutions who hold them and to the brokers who generate fees for themselves for handling the transactions.  It is the institutions that encourage investors to trade these trillions of securities, where the only benefit is to the “toll takers” at the gate and the institutions that have brought you together to sit at their table of fleece.

So how much is $32 trillion?  It’s about twice the total of the annual economy of the U.S., moving from one investor’s pocket to another, with the toll taker always in the middle, stripping out his fees, before you take your profit or loss.  If you were to remove yourself from this pre-arranged marriage, this industry would die!

Think about it.  What is the difference between investing and trading?  An Investor is one whose sole focus is on managing and growing their capital.  An Investor isn’t interested in jumping in and out of positions hourly, daily or weekly.  An Investor analyzes the market and seeks only those long term investment opportunities that offer high returns with the least risk possible.  An Investor understands that he’ll never hear market moving news before it has already been factored into price.  An Investor understands that with the right facts, long term gains are not only possible, but predictable.  On the other hand, traders are all about guessing which way the market will move in very short moments in time.  They will project price based on a technical signal or a piece of news that was just released, hoping for a quick gain they can jump in and grab.  Guessing is the key word; the most accurate word to describe actions such as these.  Now ask yourself how you are going to make your hard earned dollars work for you.  Do you want to guess, or Invest?

If you see yourself as an astute investor whose sole focus is to himself and his profits, how would “our” institutionalized system survive?  How would stock or commodity brokers survive?  They certainly can’t survive by doling out advice.  It is well known that the monkey with the darts does better than they do!  An account that sits invested for months generates no fees for the system.  Your goals are an exact, polar opposite of your broker needs for him to succeed.

If your conclusion is the same as ours after reading these facts, then you know that the system is geared to its success, not yours.  And you can bet your future success that these institutions will do all they can to achieve theirs.  If you place your future success ahead of theirs, then you realize that by doing less, you earn more.  This is not how they want you to think or how they want you to make your money work for you.  Their goal is for you to work your money to best benefit them.
When the facts are laid on the table for all to see, your path to financial success must follow the time-tested method of wealth building.  Investing beats trading, hands down.  Don’t feed the system.  Investing by owning undervalued assets and holding for long, term price appreciation has always been and remains the most effective way to build wealth.

Investment-Mistakes Decadian.com

What is the biggest mistake that people make when investing their money?


  1. Trusting the institutions?

  2. Trusting your broker?

  3. Not managing your money?

  4. Letting greed and fear mismanage your money for you?

  5. Over leveraging your available capital?


None of these obvious choices are the answer.  Believe it or not, it’s you!  It all comes down to your inability to remove yourself and your emotional ties from your money.

Forget all the crap others feed you.  It’s not about how smart you are, it’s not about how educated you are, and it’s not about your investment style.  Your world of investments is all about you and how you handle the investments you decide to make.  

Investing becomes much easier if you first learn to know yourself and the devils in you that constantly cause you to make the same mistakes over and over.  Like one well known investor is quoted as saying, “Success in investing doesn’t correlate with IQ …..what you need is the temperament to control urges that get other people into trouble in investing.”  


Emotion kills in the world of investments.

When everyone else is going crazy, you have to be levelheaded and remain calm.  That is the only way you will be able to identify the opportunities that are likely staring you down.  Your mindset; how you attack the market will be the reason your investments outperform even those who just get lucky. 

So start now to cultivate your mind and build that temperament within.  Don’t be that jack rabbit jumping in and out of investments.  Focus on long term.  Develop a game plan that you know works and stick to it.  Don’t follow the crowd; the non-thinkers.


In Decadian’s World of Investing, we remove the emotion.

You become an investor.  Where ever you place your money, your investment is just that; an investment.  You are not a trader.  You do not dance.  You’re in it for the long haul; when you want it, the way you want it and how you want it.  No uncertainty.   Bad decisions will fall to the way side when you become mentally tough, expelling all those emotional triggers that have lead you to all your bad decisions of your past.  Say it again.  I am an investor.  

Your next step will be in becoming a Decadian and letting us help you leave all your emotional baggage behind and open the door to financial freedom!  We are real people, not robots and we would love to talk with you over the phone.  Click here to schedule an appointment to speak with one of our Senior Marketing Staff will then reach out to you at the specified time.

Lastly, we want to give you a copy of our “The Guide to Commodities” report.  This comprehensive guide will give you an inside look into over 20 commodity markets you have access to.  Please let this wealth of quality information serve as just a taste of what we do for you at Decadian.

Click Here to Access the Report 

U.S. manufacturing activity slowed sharply in January on the back of the biggest drop in new orders in 33 years while construction spending barely rose in December, pointing to some loss of steam in the economy.

Economists largely blamed frigid temperatures for the chill in economic activity and said they expected a rebound in the months ahead. However, they also cautioned that the economy was receiving some payback after a strong performance in the second half of 2013.

“The disappointing data provide further confirmation of a dramatic slowing in economic growth momentum,” said Millan Mulraine, deputy chief economist at TD Securities in New York. “This offers a sobering glimpse on the weakening in growth in recent months, confirming the souring tone in other important economic indicators,” he said.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 51.3 last month, its lowest level since May 2013, from 56.5 in December.

Bad weather also appeared to hurt U.S. auto sales in January, with Ford Motor Co, General Motors Co and Japan’s Toyota Motor Sales USA reported a slide in sales for the month.

U.S. stocks fell sharply on the manufacturing data, with the Dow Jones industrial average off 1.5 percent and the S&P 500 losing 1.7 percent. The yield on the benchmark 10-year Treasury note hit its lowest level since early November and the dollar dropped against a basket of currencies.

Mulraine, however, said “to the extent that this weakening can be attributed to weather-effects, we expect activity to rebound meaningfully in the coming months.”

January’s ISM figure was also well below the median forecast of 56 in a Reuters poll of economists, missing even the lowest estimate of 54.2. Readings above 50 indicate expansion.

It was the second straight month of slowing growth from November’s recent peak reading of 57, which had been the highest since April 2011, and indicated manufacturing was slowing after output grew at its fastest pace in nearly two years in the fourth quarter.

Underscoring the weather impact, delivery delays increased a bit last month, but the biggest red flag was the huge drop in the forward-looking new orders index, which fell to 51.2 from 64.4 in December. That 13.2-point drop was the largest monthly decline in the key component since December 1980.

“While the magnitude of the decline in the ISM index may have exaggerated the degree of cooling in the underlying pace of factory activity, it reinforces our belief that the optimism surrounding a burst of capital investment in 2014 is overdone,” said Michelle Girard, chief economist at RBS in Stamford, Connecticut.

Economists also noted that the ISM survey had been running too strong relative to other factory indicators.

SLOW FIRST-QUARTER GROWTH EYED

In a separate report, the Commerce Department said construction spending rose 0.1 percent in December, slowing from the prior month’s 0.8 percent increase.

While private construction spending hit a five year high, outlays on public construction projects recorded their biggest drop in a year, reflecting the drag from weak state and local government spending.

The soft construction spending data will probably not have much effect on the government’s advance fourth-quarter gross domestic product estimate as it was broadly in line with assumptions.

The government reported last week that the economy grew at a 3.2 percent annual pace, supported by consumer spending, exports and inventory accumulation, after logging a 4.1 percent rate in the prior quarter.

It expanded at a brisk 3.7 percent pace in the second half of the year, up sharply from 1.8 percent in the first six months of the year. It was the biggest half-year gain since the second half of 2003.

Exports are not expected to match their strong growth and businesses are expected to step back from restocking. When added to the impact of cold weather, that suggests a slowdown in first quarter growth is in the cards, analysts said.

Indeed, the ISM survey showed a pullback in new export orders and a contraction in inventories.

“An earlier pickup in manufacturing production and inventory building in the second half of 2013 is slowing down,” said Ryan Wang, a U.S. economist at HSBC in New York.

The prices index hit an 11 month high. Economists, however, said that was mostly energy-related after the cold snap caused a shortage of propane and pushed up prices for electricity and heating oil in some parts of the country.

An indicator of employment fell to its lowest level since June. Economists said that posed a downside risk to expectations of a rebound in employment in January after a surprise slowdown in December.

January’s employment report will be released on Friday and is expected to show nonfarm payrolls rebounded to 185,000 in the month from 74,000 in December, according to a Reuters survey.