Trading Pal Blog

Buy yourself a safe and charge yourself $10 each time you open it to count what's inside. Seriously, can you really get around the correlation between risks and returns?

The concept that you can get your money to go out and work on its own is called investing. But maybe your money might feel abandoned and would like your company instead, rather than working with strangers.

We live in a mindset where few people are in business for themselves. The majority work their guts out to make some corporation rich and they demand high returns for the savings that cost them so much blood sweat and tears.

It wasn't always like that. Since we have moved from an agricultural age to an industrial age and then onto an information and now entertainment age we need to go back to the basics and see unshakable laws at work.

The safe investment with fewer risks is when you have a hands-on approach to investing. Why would you trust some glossy prospectus to park your money to work on dubious ethical ventures? This is a cop-out and you deserve to be fleeced for believing a falsehood.

It's your money. You need to take charge and be responsible for it. Maybe the root of the discomfort is that you do not have clearly defined goals - both short term and long term. Even taking a holiday could be a very productive investment if it opened your mind to find out what you really want to do with your life and set aside resources for you to get there.

Setting goals will force you to investigate issues that really resonate with you and will give a meaning to everything that you do. Your research will lead you to solve problems where you have to give out of your substance - both time and money. You and your money working together - what a beautiful partnership!

One of the obvious long term investments people will ever make is real-estate. But unless you are quite clear about what you want to achieve and who with, you will never know what sort of accommodation/business abode you really need and in which part of town.

What maybe a sound safe investment for some might be very risky for others who lack the connections and the industry background. Say you worked all your life in the mining industry. Picking speculative stocks of oil exploration companies might be a clincher for you because you know the background of most of the directors on the board and you trust their experience. Someone else might be fooled by some fake new venture just setup by a creative broker to "pump and dump" on the stockmarket.

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