Wealth Management
W
hether it’s building wealth or any other area in life, you have a choice. You either do it by trial and error and waste a lot of time, effort and money, or you educate yourself and save a lot of time and pain. Some people like a bit of pain to push them into action but think about it when learning to drive. You don’t take driving lessons before taking your driving test. Without any lessons, you will most likely crash at some stage. When you educate yourself, you minimise the risk of a crash and make success a lot more likely. 68
The same goes for investing in the stock market. Most people start stock market investing without knowing the basics. They buy, hold and pray without any real rules or research of when to enter or exit an investment. They invest with no understanding of how or even where to start. I was no different. But of course, I didn’t know that. And, of course, I thought I knew better. So, I ended up £100,000 in bad debt sleeping on my brother’s floor for six months. Only instead of buying, hold and praying, I did something much worse. I defied the two golden rules of trading, which are:
1. Cut your losses short 2. Let your profits run
