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SUMMARY:

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How to Achieve High Returns Taking Little Risks, a question a get asked all the time and I’ll attempt to answer it here today.

Like you, I’ve been on the hunt for the ‘Holy Grail’ of investing and trading for years but have yet to find it.

But, I have found what does work and I want to share this with you today.

So here are the following 3 things you can do immediately do to reduce your trading and investment risk while also achieving satisfactory returns.

1. Position size. What do I mean by this term?

It simply answers the question, how much? That is, how much do I invest or trade when I have an opportunity in front of me.

So begin reducing your size of trades or investments going forward and this will cut down your risk right away.

2. Diversification

Some say you should diversify while others say you should focus on the few eggs and watch over them carefully. I say it depends. It depends on how much experience you have had with the markets and also the capital you have.

3. Stop Losses

You have no excuse, they are easy to set up and it protects you to allow you to play another day by protecting your capital when things go wrong.

So review your position sizes, review your portfolio diversification and review or implement your stop loss rules and you will be on your way to much safer and consistent return. And you also will sleep much better at night.

I hope this shows you how easy it is for you to reduce your risk by simply implementing the 3 things that we spoke about to achieve extraordinary but safe returns.

Be the tortoise, slow and steady and let compounding perform its miracle.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com

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SUMMARY:

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What does Personality have anything to do with trading success?

For years, I went from seminar to seminar, hoping to learn the ‘Holy Grail’ of trading systems to put into action.

It took me years of day trading to finally think to myself, I don’t really enjoy this, but I know I do enjoy long term value investing and medium term ‘slower’ trading

and I am willing to patiently look and wait for much higher probability positive outcomes…and this is when my trading finally took off.

In other words, I matched my personality to my trading style.

I learned the hard way through trial and error over the years as I tried all different styles of trading from trading very actively to investing very slowly waiting for long term ‘Warren Buffett’ style value, and finally tweaking it to my own style to suit my personality.

What is your style?

Once you get this, your trading like mine will take off. Why?

Because you not only do what you love daily so that it no longer becomes work, but because it matches your personality, so your trading becomes effortless and what famed psychologist Carl Jung calls, being in ‘Flow’.

Once you find your ‘Flow’, that is when I can almost guarantee you that your trading success is on it’s way.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com

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ABOUT TERRY AND THE FREEDOM TRADER

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Terry Tran is founder of both The Freedom Trader and a private hedge fund and his mission is to help people create financial, time and location freedom through safe consistent trading in every market condition, even if they are a complete beginner. Terry understands because he has personally been through the journey over the last two decades and can help you do the same.

Having been fortunate to have had personal contact with none other than Warren Buffett and from his inspiration, founded a successful hedge fund looking after staff of leading Australian retail and investment banks, accounting and fund management institutions, several Australian Government departments as well as the wealth of some prominent Australian fund managers over the past eight years.

Forget the market myths and hype, and Terry show you how to safely and consistently trade your way to financial freedom just like he has at TheFreedomTrader.com.

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SUMMARY:

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So how long will it take you to learn how to invest and trade?

The answer to this question is that it depends.

Asking yourself the following questions will help you in your journey:

What do you want to achieve through investing and trading? What is your purpose and goal?

What level of experience do you currently have in dealing with the markets?

Have you made physical investments in the markets in the past?

Do you see trading and investing as passions in themselves, or do you see them more as means to an end?

The large number of resources can actually become a problem if you allow yourself to feel overwhelmed with too much information, so make sure to guard against that. Take things, one thing at a time.

If you possibly can, try to find someone that you could learn from directly. This will shorten your learning curve.

Having a mentor was a great source of help for Warren Buffett. His mentor was Benjamin Graham, who is seen as the father of value investing.

The type of investor and trader you become will be determined by your personality, and the formation of your exact style will take time.

However, this should not hinder you from learning and reading from a variety of sources, as it is through learning and doing that you “find your path”.

So in summary:

Allow yourself the gift of 6 to 12 months minimum as opposed to something like a weekend seminar.

Make sure to learn from varied sources, and do not dismiss anything until learned and tried.

Start investing first before trying trading, as trading really is investing but on a much shorter time frame and with much greater frequency.

Begin making investment of real capital on a small scale once you think you have the basic understanding and knowledge you need, as nothing will ever beat having real money on the line.

Decide on the area you are passionate about in the markets, and be willing to let go of everything else.

Take one thing at a time on board. Master one thing before moving on to the next. There is no rush.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com

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ABOUT TERRY AND THE FREEDOM TRADER

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Terry Tran is founder of both The Freedom Trader and a private hedge fund and his mission is to help people create financial, time and location freedom through safe consistent trading in every market condition, even if they are a complete beginner. Terry understands because he has personally been through the journey over the last two decades and can help you do the same.

Having been fortunate to have had personal contact with none other than Warren Buffett and from his inspiration, founded a successful hedge fund looking after staff of leading Australian retail and investment banks, accounting and fund management institutions, several Australian Government departments as well as the wealth of some prominent Australian fund managers over the past eight years.

Forget the market myths and hype, and Terry show you how to safely and consistently trade your way to financial freedom just like he has at TheFreedomTrader.com.

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SUMMARY:

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I’ve have been asked by a lot of people over the years about what I do and how I do what I do, and importantly for what purpose?

Well, the answer is simple…

I enjoy investing and trading and I do so because my ‘WHY’ is to create financial freedom for my family and myself.

As it happens, I have also helped inspire others to do the same, which gives me great joy, knowing I have been able to help change someone’s life for the better.

People forget that financial freedom has multiple by-products. They are time freedom, location freedom and life experiences freedom.

Financial freedom allows you to have time for your family, time to do what you love -which may be to just do the very simple things in life, like taking your children to school without rushing back to work or simply enjoying a stroll in the park.

People associate financial freedom in multiple ways. Even for myself, I remember chasing ‘financial freedom’ and my definition was to have a million dollars in my bank account. I wanted to be a millionaire. I mean who doesn’t?

But what does having a million dollars actually mean? I don’t think you really want a million pieces of paper with deceased famous presidents on them right?

What you really want is what this million dollars can do for you and your family. In other words, you hope it gives you that financial freedom, time freedom, location freedom and experiences freedom I just spoke about.

Enough about me, so what is your ‘Why’ to become financially free through trading or investing?

I believe that if you don’t find a big enough ‘Why’, your chances of long term investment success is diminished because you will either treat it as a hobby or when the going gets tough and you make some losses, you will quit because you have suffered not just a financial loss but an emotional loss.

For those investors or traders that succeed long term, their ‘Why’ enables them to get through these tough times and keep on going.

Financial freedom is not about just becoming a millionaire, accumulating all the toys and luxurious goods you can get your hands on, but simply to gain enough passive income through your investments to cover your expenses in life.

Not only does this way of viewing financial freedom seem very achievable, it also relieves the pressure you place on yourself because you can now strive for this simple goal when you begin, not some distant multi-millionaire dream.

Once this is achieved, everything else becomes a by-product of now enjoying your work.

Financial freedom is also much easier if you live simply and have low expenses.

Most long term successful investors and traders, including professional hedge fund managers, focus not on the money and returns but on their daily processes, and the money and returns become the by-product which naturally occurs.

Investing and trading yourself to financial freedom really is a game where this time, the tortoise can and does win the race.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com

SUMMARY:

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Freedom of travel brings about perspective and allows you to emotionally cope with trading volatility better, without getting caught up in the panic and allowing your emotions to go up and down based on your account balance.

It also reminds you to always put things in perspective no matter how trying the current circumstances maybe, which I know a lot of people feel a sense of loss at the moment, me included, in regards to the sudden decline in your trading accounts.

In regards to whether there is a coming financial crisis upon us, in my opinion the answer is no, and here are 6 reasons why;

1.Gold continues to retreat and in times of crisis, precious metals like Gold is normally sought after pushing up prices quickly.

2.High yield credit spreads, excluding energy related debt (which only represent a small portion of overall debt issues anyway), are still within normal range and haven’t spiked, which normally occurs during the onset of recessions.

3.The 2 year Interest Rate swap spreads still remain low which tell us that financial markets are highly liquid and there is no risk of systemic risk.

4.The VIX volatility ratio although elevated recently, is still hovering at relatively low levels.

5. The S&P 500 Price to Earnings Ratio is close to its long term average of 16.5, so the market valuation overall isn’t stretched.

And finally China, although the second largest economy in the world, imports a very small percentage of Unites State’s exports and therefore slowing Chinese growth is unlikely to derail the ongoing recovery of the US economy.

It is these facts which not only help me sleep better at night knowing my long term portfolio of great global businesses like Apple, Bank of America, Johnson and Johnson, IBM, Oracle and Walmart will continue generating increasing profits, it also provides the opportunity to invest even further at lower prices and with a higher margin of safety.

Here we introduce one of our students, Tony Carlisle who knew absolutely nothing about stocks and within a space of 1 year has achieved extraordinary results. If you’ve ever wondered if you can do this starting from scratch, his story will inspire you to finally begin. Opportunities don’t wait. I truly hope this video helps you in your quest to become the trader and investor you want to be. Register for our next financial freedom online training for free: http://www.thefreedomtrader.com/financialfreedom