One of my students posed a very good question, and I thought it might benefit other readers if I share it here:
“I am only on week 4 in the Mindset Mastery course and haven’t learned too much about second streams of income yet — I am hoping to get a little advice. My husband and I are currently learning about trading stocks, options, and other investments through a class that is offered by [a certain company]. We are seriously considering investing 10K in training. Have you done any investing in the stock market? Would you recommend working with this company or have another training company you recommend? I’d really love to get your insights.
Thank you, LS”
Here’s my reply (with a few additional thoughts):
We have not invested in the stock market only because every time we set a goal using the principles, we have felt guided to do other things instead—not because it’s bad, but because there was a more suitable or faster path for us in our circumstances at that time.
No question, it has certainly been a profitable endeavor for many people, for as long as it’s been around, just as it has been the opposite for others. So just be aware of your reasons, that it’s not a ‘jumping/barking’ move, but that it’s a ‘following the rabbit’ move. Click below to watch the 4-minute video about that:
I understand there are ways to make money in the stock market even if it goes down, so the market conditions alone are not the determining factor in whether or not a person will do well. The determining factor is how a person will respond to the market conditions. It’s not about the market as much as it’s about you.
You may consider reading Killing Sacred Cows before investing that much [written by my co-author of Portal to Genius]…that is, if your decision can wait that long. It will either steer you away or it will solidify your resolve, but at least you will have wider perspective and be able to make the decision with both eyes wide open.
I would also say this – if the money is extra and you already have a healthy savings in place — in other words, if you can afford to lose it, then that’s much different than if you have to borrow money for the training. People lose in the stock market when their fear of loss overtakes them. The market is predictable on the whole because the masses make their decisions emotionally. It’s not about what happens in the marketplace, it’s all about how people feel about what happens there. And human nature is predictable.
In short, if it’s borrowed money or if you can’t afford to lose it, then the market is a dangerous place.
Those are my two cents. But again, sometimes we did risky things because that’s exactly the way our rabbit jumped, and warnings wouldn’t sway us. In those cases, we did very well (like tripling our income in 3 months, or making $250,000 on the side in 9 months tax-free).
However there were other times, when we did risky things because other people had done well with them — and we thought that if we just did what they did, we’d get what they got. Those were the experiences that just about destroyed us (like putting us 3/4 million dollars in debt and causing us to lose almost everything).
That’s what can happen with jumping and barking.
So, about the stock market. I can’t say if it’s good or bad, right or wrong for YOU — only you can discern that. Just remember: before you make any significant moves, be sure your eyes are locked tight on a rabbit, and be sure you’re following it, instead of expecting your actions to produce one. When you’re absolutely clear about your end goal, the actions you should take will feel more instinctive and sure.
As Robert Kiyosaki says, “There are no risky investments, only risky investors.”
For some interesting reading about online trading, visit the provident investing site, Pro-Fundity.com.