Beginners Guide to Stock Market - Amazon S3

  • Pdf File 92.52KByte

A Beginner's Guide to Financial Freedom through the Stock-market

Includes The 6 Steps to Successful Investing

By Marcus de Maria The experts at teaching beginners how to make money in stocks

Web-site: investment- Email: info@investment-

Details of free tutorials: starterkit

? 2011, Property of Investment Mastery Limited. May not be reproduced in any way without written permission IM Shared/Master Docs/Previews/SM

Don't put off taking control of your finances another minute ? every minute is costing you lost growth and compound interest!

The first step is to acknowledge the fact that you need to take control of your own finances. If you acknowledge this, then half the battle is won. If you give control to others, they might just lose your hard-earned money! No-one, and I mean no-one, is going to care more about them than you. This makes you the ideal candidate to take control of them.

The second step is that you must find the right vehicle to get you where you want to go. If you are in a job dreaming about becoming a millionaire, you are going to need to do something either different or additional to what you are currently doing, like investing, to get you there.

Choose from The 5 Pillars of Wealth

The most popular choices, which will help you become wealthy of financially or financially independent in the shortest possible time, are:

- Investing in the stock-market - Investing in property - Marketing a service or product on the internet - Owning your own, traditional business - Career or job

As you can see, the stock-market is by no means the only vehicle to get you where you want to go. However, I am here to tell you that it is the easiest to access for beginners and the simplest, fastest way to get started, especially if you are serious about making money.

Figure a: Why you must consider the stock-market as a source of income

Job Normal Property Marketing


on internet

Can you protect yourself if the market goes No No



against you?

Location ? Totally flexible you can stay at home No No



and do it

No competitors ? the more people do it the better No No



Recession proof

No No



Can you make money within seconds / No No




Constant and massive demand for your business No No



Guaranteed to exist in the future - Fad proof

No No



Can anyone do it, regardless of sex, age or No No



physical ability?

Can you do it without having customers?

No No



Are you are totally in control at all times?

No No



Can you do it without staff or other people No No



helping you?

Is only very low starting capital required?





No meetings

No No



You can stop activities if you have to and get out No No




Huge and unlimited profit margin

No No






Yes Yes Yes

Yes Yes Yes

Yes Yes Yes

Yes Yes Yes


? 2011, Property of Investment Mastery Limited. May not be reproduced in any way without written permission IM Shared/Master Docs/Previews/SM

You absolutely MUST consider the stock-market as an additional stream of income. All it takes is 10 -20 hours to learn my simple and fun strategy, then 2 hours a week to make it work, and in just a few months from now you could be enjoying 3% -6% GROWTH PER MONTH!

You will require focus, dedication, discipline and time to get it right but so do most good things. The point is, start today and in a relatively short period of time you will be on the road towards financial freedom.

Once started, you will soon discover that using this smart Investing strategy will improve your performance in other areas of your life also. Your mind and thought patterns will become faster and sharper, and you will start to notice opportunities and possibilities in other areas of life like never before. As your investments grow so will your confidence and self esteem etc.

The 3 most asked questions concerning the stock-market

1. What is the stock-market? The stock market is the name for the place where company stocks are traded.

Think of it as an enormous cash vault, in which resides a large proportion of the world's wealth. Some of it is destined to be yours - it just waiting to be placed in your trading account if you are prepared to learn!

So exactly how do we get in? Normally a vault is kept secure by a big lock with a combination. If you know the combination, you can gain access.

In the stock-market, the opposite is true. In the stock-market, there are countless combinations you can choose from. As a beginner, which one do you choose?

2. What about the risks? Serious entrepreneurs will be glad to know that it is not a get rich quick scheme. A student of ours once said of our teaching, "it is like passing the driving test for investors". Driving is a great metaphor for investing. As a beginner, you could get into a car and start driving. But you need proper instruction to avoid making mistakes and crashing.

It's awkward at first, but after a few lessons, a test and some practice, you are looking at faster and better cars to travel with. In the same way once you learn to invest you can get from where you are now financially to where you and your family want to go.

3. Can a beginner like me make money? Beginners can make money in the stock-market ? and very often do so. In fact, there are even four basic reasons why beginners with just a computer and internet access have more chances of succeeding than the `professionals'. Professionals are restricted in an industry that is highly regulated because they are dealing with large sums of other people's money. We on the other hand can do what we want because we are dealing with our own money.

Most professionals are not allowed to make money when the market goes down or even sideways, whereas we can. Most professionals are not allowed to buy into a company and sell within a short period of time, whereas we can. Most of them are restricted to the companies they are allowed to invest in, whereas we are not restricted. Finally, most professionals are not allowed to insure or hedge themselves

? 2011, Property of Investment Mastery Limited. May not be reproduced in any way without written permission IM Shared/Master Docs/Previews/SM

in case the market goes in the wrong direction. This is like driving without insurance. Again, we can do all of these things.

The 6 Steps to Successful investing

1. Find a strategy that suits your personality and lifestyle

Learn how to make money ... A seriously wealthy trader (trading his own money, not institutions') once said to me, "Marcus, you know more about trading than I do". Up until that time I had been on course after course searching for the Holy Grail, having spent over $50,000 in the process, so I thought I did know a lot about trading. He then looked me square in the eyes and said, "yes, you know how to trade. The difference is, I know how to make money". This sentence struck me like a freight train. The truth is we shouldn't be interested in learning all the different ways one can trade, which can confuse people. Rather, we should choose one strategy that suits our personality and lifestyle and then master it until we start making money. This is exactly what I went on to do. Ironically, the strategy best suited for me turned out to be one I had learned on the very first course I went on!

... by concentrating and mastering one, maximum two strategies... "Do you mean I don't need to know lots of different strategies?" That's exactly what I am saying. I hope you are breathing a sigh of relief. There is no Holy Grail. You don't need to learn a lot of different strategies - just pick the one that seems like `you'. Perhaps it is one that you can do in the evenings or one you can do at the weekend. Then learn all the rules around that strategy, until you have thoroughly mastered it.

...that take advantage of all three market movements Did you know that markets go only in three directions: up, down or sideways? So doesn't it make sense to focus our energies on 1 or 2 strategies that can take advantage of these three market movements?

As the experts in teaching beginners, we have found two strategies that take advantage of these market movements and that are ideally suited for beginners. One of these takes just 2 hours a month, always on the same weekend each month and still makes anywhere between 3-6% a month. Yes, I really did say a month which equates to 36-72% a year. And these are just the beginners' strategies, but let's learn how to drive before we step into a Ferrari. For details on these strategies, come along to our free evening tutorial. To register, go to investment-.

The next few pages contain probably the most powerful information I can share with you, so if you have read this far, you are about to be rewarded.

2. Make small returns, re-invest and compound your money! After you have decided on strategies that takes advantage of all market conditions, you need to do 2 simple things:

a. Let your profits run and keep your losses short This is linked to point a. above, and this is where most people get it wrong. They take their profits too early when they feel they have made enough (what is enough?!) and do the opposite when they are losing money. They watch as their losses get larger, hoping that the stock will turn around, even though their rules tell them to cut their losses short at, say 10%. As the 10% turns to 15% or 20% loss, they feel even worse

? 2011, Property of Investment Mastery Limited. May not be reproduced in any way without written permission IM Shared/Master Docs/Previews/SM

and now rationalise that they really cannot sell the stock. Worse still, some even buy back into the stock, thinking it is now cheap

c. Compound your returns Now the question you might be asking is how can you become financially free on just 3% a month? Surely you need to be aiming at 100%? Nothing could be further from the truth. This is why:

The Eighth Wonder of the World - Compounding Albert Einstein called compounding "the Eighth Wonder of the World". Take a look at the compounding sheet below: Can you see that if you started off with, say ?10,000 in your trading account and you made just 3.5% a month (most stocks move this much in a day), then you would make ?350 in your first month, in just 2 hours.

Figure b: Compounding sheet (Note: this is theoretical. Commissions & taxes not included)




% return / month


(3.5% per month)

Year 1

Year 2

Year 3

Year 4





























































Year 5 53,961 55,849 57,804 59,827 61,921 64,088 66,331 68,653 71,056 73,543 76,117 78,781

Year 6 81,538 84,392 87,346 90,403 93,567 96,842 100,231 103,739 107,370 111,128 115,018 119,043

Year 7 123,210 127,522 131,986 136,605 141,386 146,335 151,456 156,757 162,244 167,922 173,800 179,883

Year 8 186,179 192,695 199,439 206,420 213,644 221,122 228,861 236,871 245,162 253,742 262,623 271,815

Year 9 281,329 291,175 301,366 311,914 322,831 334,130 345,825 357,929 370,456 383,422 396,842 410,731

Year 10 425,107 439,986 455,385 471,324 487,820 504,894 522,565 540,855 559,785 579,377 599,655 620,643

Year 11 642,366 664,848 688,118 712,202 737,129 762,929 789,631 817,269 845,873 875,478 906,120 937,834

Year 12 970,659 1,004,632 1,039,794 1,076,187 1,113,853 1,152,838 1,193,187 1,234,949 1,278,172 1,322,908 1,369,210 1,417,132

Year 13 1,466,732 1,518,067 1,571,200 1,626,192 1,683,109 1,742,017 1,802,988 1,866,093 1,931,406 1,999,005 2,068,970 2,141,384

Year 14 2,216,333 2,293,904 2,374,191 2,457,287 2,543,293 2,632,308 2,724,439 2,819,794 2,918,487 3,020,634 3,126,356 3,235,778

But how long does it take to get from ?10,000 to ?500,000? It takes just 10 years and 6 months. What other vehicle can match that? It is the next part which is the Eighth Wonder of the World: how long does it take to make another ?500,000 to get to ?1 million? Does it take another 10 years? Take a good look at the chart above so you see for yourself. It actually takes just another 1 ? years. 1 ? years to make an extra ?500,000. Now that's what I call `exponential growth'.

And it doesn't stop there. As you can imagine, if you carry on you can make another ?1,000,000 in another 1 ? years. That's ?1,000,000 in 1 ? years. And it continues like that: ?2,000,000 in another 1 ? etc. This is the power of compounding. It is so powerful that we all need to use it, start using it for our children so that you have a lump sum for them when they come of age, teach them how to use it, use it in your pension plans etc.

This is without adding any additional capital. Can you imagine what would have happened if you would have added some more money in year 2?

So WHEN ARE YOU GOING TO START? What is your next excuse? Is it you are too old, or too young, don't know enough, you have a tooth-ache or are you simply going to make the decision you should have taken a while back and start today?

? 2011, Property of Investment Mastery Limited. May not be reproduced in any way without written permission IM Shared/Master Docs/Previews/SM


Google Online Preview   Download