The following is a post in the Mystical Money Machine group that I created on Facebook.
It’s investments Tuesday. In order to have good results and become an investor, You need to understand which type of an investor You are. Or would like to be. And even before that, understand what is investing to You and what would You like to get out of it.
Like it or not but at this moment in time we are all living in a capitalistic society. This means we are either selling our time for money, have a business that brings in money or invest money into other people. So, they can do the work and we can make money off of their brilliance.
If it sounds kind of sad, it is. But that’s what we got currently and we have to make the best of this situation.
A good place to start is to identify where You are at currently, and where would You like to go.
At this moment I personally fall under the category of all three types of people but I would like to be in the last two categories. Meaning, owning a business that supports this society and brings in money at the same time. And also invest into other people so they can do the things they find meaningful. I like this one because that means I’m totally in charge of my own time. And if You are in this group, I’m guessing this is what You want.
But just in case You are not clear yet, do a little creative exercise. Visualize, write or just think about where You are and where do You want to go. It’s better to write it down. Then You can come back to it later and see Your progress. As well as make changes to it if something outside or inside changes.
Go do it now, write it down and share it with the group. Or if it’s too vulnerable for You, write it down for Yourself.
Now comes the second part. Knowing which type of an investor You are.
This is very directly correlated to how much time do You have to take care of Your investments and how much time do You have to look for new ones. How much time do You have and want to put into investing?
And there are many different options here. You just have to get clear on how much time do You have for this. Through the years this can fluctuate and You can play different or even many roles at once as well.
The most common types of investors:
- Passive investors = this is usually a person who makes an investment or investments and then almost forgets about it (obviously not entirely). They usually take a look at their investment portfolio once or twice a year. Then make adjustments (if necessary) and forget about it again. Most people who are into investing in some shape or form are passive investors. Mostly because of time constraints. Or the fact that they are just not that interested in it but at the same time would like to have a passive income.
- Swing traders = I myself fall in this category mostly. These are people who follow the markets, do their research constantly but trade and make moves occasionally. When there is a good spot on the market. They do their best to time their trades to the current of the market. Buy low and sell high.
- Day traders = these are usually large institutions and big companies that use automated processes. There are individuals who do this and with the rise of cryptocurrency, there are a lot of individual day traders out there. These are people who trade daily, are constantly behind the computer, use automated processes and are constantly aware of what is happening with the markets.
Being that You are in this group means that You are either wanting to be or are already a passive investor or a swing trader.
The most important thing here is time. You have to honestly look at how much time do You have for this and then we can move on to the next part. Which is deciding on assets we want to invest in.
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