Wise Investing Doesn't Have To Be Competitive

By Peter Cole, Chartered Financial Consultant, Licensed Clinical Social Worker

The Competitive Mistake

The biggest mistake investors make is to try to compete with other investors. What do I mean by this? How does this scenario tend to go? Here is a typical example:

John Q. Investor hears about a "hot stock" on the NSADQ exchange
He reads about the stock online
He thinks that he has found something that other investors have yet to discover
He invests in the stock without a thoroughgoing understanding of the investment
His stock fails to live up to his hopes for quick profit

His competition with other investors has led him to underestimate them. What he has not taken into account is that other investors - millions of them, from all over the world, are also evaluating this and every stock traded on the NASDQ. The stock price has taken into account everything that is publicly known about the stock. He has underestimated the collective wisdom of the marketplace to arrive at an appropriate price for his stock. His dreams of outsmarting other investors are misplaced.

The Solution

Instead of focusing on hot stocks, and trying to outsmart other investors, focus on your asset allocation. The term Asset Allocation refers to the process of dividing your investments among different kinds of investments, such as stocks, bonds, real estate and cash. The idea is to optimize your risk/reward tradeoff based on your specific situation and goals. With asset allocation, you invest broadly and in balanced way in the marketplace. You are not trying to beat other investors, your portfolio grows as the various indexes and the economy grows.

What a relief it is to know that your prosperity is not a competitive struggle, but something you can do with calm, discipline and focus.

We publish a new True Self True Wealth Connection every six weeks or so. Please send us your financial questions and issues so that we can know tailor our content to your concerns at topics@trueselftruewealth.com . We will choose topics of general interest to address in upcoming issues.

Insight Financial Group Offers Comprehensive, Holistic, Financial Planning Services
* Portfolio Management
* Life, Long Term Care & Disability Insurance
* Estate Planning Consultation
* Financial Psychology Consultation

Schedule an appointment now to meet with Peter



	Brought to you by Insight Financial Group
		FREE Newsletter: The True Self - True Wealth Connection - A Humanistic Perspective on Money". HOME FINANCIAL PSYCHOLOGY CONSULTATION WHO WE ARE BOOK - Mastering the Financial Dimension of Your Practice Peter and Daisy's Book for Mental Health Professionals FREE REPORT: "Discover the hidden connection between your money script and prosperity." SCHEDULE AN APPOINTMENT	Wise Investing Doesn't Have To Be Competitive By Peter Cole, Chartered Financial Consultant, Licensed Clinical Social Worker The Competitive Mistake The biggest mistake investors make is to try to compete with other investors. What do I mean by this? How does this scenario tend to go? Here is a typical example: John Q. Investor hears about a "hot stock" on the NSADQ exchange He reads about the stock online He thinks that he has found something that other investors have yet to discover He invests in the stock without a thoroughgoing understanding of the investment His stock fails to live up to his hopes for quick profit His competition with other investors has led him to underestimate them. What he has not taken into account is that other investors - millions of them, from all over the world, are also evaluating this and every stock traded on the NASDQ. The stock price has taken into account everything that is publicly known about the stock. He has underestimated the collective wisdom of the marketplace to arrive at an appropriate price for his stock. His dreams of outsmarting other investors are misplaced. The Solution Instead of focusing on hot stocks, and trying to outsmart other investors, focus on your asset allocation. The term Asset Allocation refers to the process of dividing your investments among different kinds of investments, such as stocks, bonds, real estate and cash. The idea is to optimize your risk/reward tradeoff based on your specific situation and goals. With asset allocation, you invest broadly and in balanced way in the marketplace. You are not trying to beat other investors, your portfolio grows as the various indexes and the economy grows. What a relief it is to know that your prosperity is not a competitive struggle, but something you can do with calm, discipline and focus. We publish a new True Self True Wealth Connection every six weeks or so. Please send us your financial questions and issues so that we can know tailor our content to your concerns at topics@trueselftruewealth.com . We will choose topics of general interest to address in upcoming issues. Insight Financial Group Offers Comprehensive, Holistic, Financial Planning Services * Portfolio Management * Life, Long Term Care & Disability Insurance * Estate Planning Consultation * Financial Psychology Consultation Schedule an appointment now to meet with Peter
Securities offered through Securities America Inc., a Registered Broker/Dealer Member NASD/SIPC and Advisory Services offered through Securities America Advisors Inc., an SEC Registered Investment Advisor, Peter Cole, Representative. CA Insurance Lic #0D04931. Our representatives are licensed to offer securities products in CA, CT, GA, MA and WA and are licensed to offer insurance products in CA. Our representatives may only transact business in a state if properly licensed in that state. If you are not a resident of one of the above states we cannot provide individualized responses or follow up contact that involves the effecting of transactions until properly licensed in your state. Insight Financial and Securities America are unaffiliated.