Achieving Financial Independence

Title	Achieving Financial Independence
Author	Share Direct
Size	7141KB
Date Added	2010-03-05
Price	Free

The staff, traders and trainers involved with Share Direct have, through their access to clients, had the opportunity to examine hundreds of strategies and approaches, talked at length to innumerable students about their favorite “formula” for investment success and read many books and papers.

Some approaches work well, some does not work at all and others work intermittently. This booklet is an attempt to synthesise what has been learnt and distil some of the most important elements of this accumulated experience so that you may benefit from it.

Some of what follows may, at first, appears to be very mundane and obvious - yet it is surprising how these simple and apparently obvious ideas often determine the difference between success and failure.

Time and time again it has been found that students need to learn their lessons the “hard” way by first-hand experience. It seems that some ideas just cannot be easily absorbed from a book or lecture, but have to be driven home by a material loss in the market.

Other ideas appear easy to understand at an academic level but actually require investors to gain the sort of gut-level understanding which only develops with practice and personal involvement.

The challenge is to learn as much as possible the easy way - by adopting a receptive attitude; an attitude that searches for answers rather than an attitude that is immediately cynical and negative.

It is often possible to read something twenty times and still not truly grasp the meaning of what is being said. Then suddenly and unexpectedly the deeper significance of the words becomes apparent in a moment of insight. Such insights do not come often to the cynical.

At Share Direct we recognise that the most successful investors are those with discipline. It is of utmost importance that you set goals and implement strategies that ensure those goals are achieved.

The best investment strategies are those that are generally the simple ones, unemotional and based on historical probabilities.

True share market insights are simple and profound; apparently obvious and yet tantalisingly elusive; more often a state or control of mind than a concrete formula or criteria set. It is suggested that you return to the ideas set out in this book and re-read them on a regular basis. As your experience in the market grows, you will find yourself more able to appreciate their significance and you will accelerate your progress towards an in-depth understanding of the problem and its solutions.

It has been said that in this life you will pay for your illusions. Nowhere is that more true than in the share market.

Successful investors are those who are always humble towards the market; always willing and ready to learn; always prepared to abandon pre-conceptions and think laterally. Try not to pay more “school fees” than you have to!