Rookies’s guide for the future investors from Lithuania


However, it is important to follow some realistic rules (after all, this is not a game of Monopoly, but involves real buck), which are far different from those applicable in the public spheres.

First of all, think about why the Wall Street has never liked market “analysts”, “experts”, or other pundits. There are two reasons for this. Firstly, all of these “experts” base their observations, forecasts and advice on events from the past or on their own experiences – and the past is a complete non-issue in the stock market. Yet when you try asking them about the future, for instance, whether the price of gold/real estate will go up or down, instead of hearing an honest “I have no idea”, you will be flooded with a ocean of meaningless deliberations in the conditional tense. This includes phrases such as: “It should…”, “It could…”, “Anything can happen” and so on. Do you have time for this? Then go and listen to what “could” happen, or has already happened. As Kurt Vonnegut once wrote, “If our wishes suddenly turned into horses, all beggars would be riding along”.

Secondly, serious market players do not like such speculations because real money, just like real authority, is silent. One of the 10 Golden Rules of the Wall Street Trader states that “Those who talk do not know. Those who know do not talk.” And why would you? In the words of Jesus Christ, why would you cast pearls before swine? To what ends? One of the biggest investment banks in the world, Goldman Sachs follows one rule – their brokers never publicly comment on the market situation, their “experts” never fish for attention from TV or radio, and they never willingly provide their analyses and conclusions to anybody. If you want to know it all, you’ve got to pay. If you do not want to pay – then go ahead and read what some online big fish has to say for free, that’s up to you. It is your will. And it is your money.

Yet, how does a nice man on this good Earth who has little money and even less knowledgeable friends or personal experience steps in into the rewarding and lucrative securities market? And finally, what if he does not speak English or has no time to study the textbooks describing the fiscal business?

It is easy. Honestly, it is not that difficult to do. This flexible and dynamic market is already global and has become accessible to anyone, even those without significant capital, due to the internet. First, you need to sign up to a trade platform such as Luno – this one is specially designed for those who want to give it a try without risking significant investments.

In order to be successful in this market, there is one other thing to do: follow two investment rules, invented by the Jews of yesteryears. At first glance, these seem very basic, yet they are incredibly meaningful.

The first rule suggests investing in something that you understand (one of the most famous investors of our time, Warren Buffett, follows this rule). The second rule advises you to invest in products or services that you personally use – such as Bitcoins if you use them for payments, or Visa, or American Express. There – you already have all the basics you need for a successful investment. There are many other ways to invest, for instance, into quick speculations and other fiscal tools such as futures, bonds and options. However, we will talk about them next time.

When you follow these two Jewish principles, your life itself will seem positively different. You rediscover the world again from a different perspective: brands of products and services will no longer be just brands, as they will become the elements of YOUR investment portfolio. For instance, products like tea, mayonnaise or toothpaste that are otherwise completely unrelated to each other may be a part of one holding such as Unilever (NYSE: UN) or Procter & Gamble (NYSE: PG), which manage hundreds of other brands as well. Suddenly, you will notice that Lay’s potato crisps belong to PepsiCo, while Estrella potato crisps and Heinz ketchup are part of one and the same company.

If you have invested in what you know and use – anything – such as Ford, Phillip Morris, Facebook, Kraft Heinz or anything else, then you will experience the sweetest feeling in your life – an owner’s ecstasy. You will see people buying YOUR product and you yourself will also be buying it. You will then be able to honestly advise others on what to buy or use and quite sensibly, they will buy it – from YOU. All of the agony of choosing which mouthwash to buy will disappear, as you will simply buy YOUR OWN product. Suddenly, you will think differently about the otherwise sad scenes of emigrants dragging themselves across the airport runways, because they will be going toward YOUR Boeing airplane, and departing into the unknown via YOUR airline.

Certainly, some sceptics who have never achieved anything in their lives will try to make fun of you. For instance, they made fun of me by saying that I, a minor shareholder of “McDonald’s Corporation” (NYSE: MCD) own a meagre 0.000…1 percent of all the company shares, so there is no point in boasting about such an investment! My answer to them was: “That is true, but I also own 0.000…1 percent of Lithuania, and that’s what I would give my life for”.

Therefore, if you are ready to recklessly immerse yourself in the experiences of successful ownership and investments, please accept these 10 Golden Rules of Wall Street Trader (with a short commentary). They have existed for more than 200 years, authors such as Fraser and Marx have written about them – and they have helped thousands of people to become rich and to win the respect of their society:

1. There is no shame in wanting to be rich. There is nothing noble in wish to stay poor. Money solves all problems – not only yours but most of those of the people you are close to. (Comment – The poor always claim that money will not buy you happiness, friendship or time. They may be right, but money will definitely produce more effective results in all of these areas).

2. Never become emotional about your stock. Remember that money is an inanimate object and loving it is profane and inhuman. (Comment – Even the ancient Jews used to say that when you give away money, you leave a problem behind. Do not be overjoyed when you gain something, and do not mourn when you have lost it. Do not be frightened to lose, and do not be scared to sell. As James Bond said, “a good gambler is never afraid to fold”.)

3. Do not try to be an intellectual in the market. Simply trade. Follow your guts. (Comment – Do you remember those “know-it-alls” on TV, who talked a lot but never achieved anything in their lives? The next rule derives from this.)

4. Ignore the news. The perception of majority is always wrong. (Comment – Any military intelligence officer knows this.)

5. There are only two feelings that can ruin a broker – fear and greed. (Comment – In my opinion, the recent Bitcoin and cryptocurrency market has already proven this.)

6. We only sell one thing: risk. You may can it like garden peas and sell it to others. (Comment – Certainly, investing is a risk and it is not meagre. So only use some of your capital at first, until you get the feel of the market dynamics and grasp the sales principles. Online trading platforms such as “Luno” are designed especially for this purpose – to help you start with small investments).

7. Stability is the most dangerous thing in the market. (Comment – It is also the biggest and brightest characteristic of a mediocre person. This is the main reason why the vast majority of people in the world will never be rich.)

8. Those who know do not talk. Those who talk do not know. (Comment – We have already talked about this.)

9. Wherenever there is an emergency, there are opportunities. (Comment – This is an important matter which needs a detailed explanation. What, in your personal opinion, has made people the most money in the world? I know, I know – various banalities will come to mind such as oil, gold, furs, leading brands… but unfortunately, none of them are the answer. The biggest money generator in the world throughout the whole of human history was, is and always will be – a problem. Your personal problems, such as your willingness to belong to a certain social group, to be healthy, to stop aging, to reach a dignified old age, to prove and show your masculinity, to not look like a stupid and backward peasant, to eat, to drink, to be entertained and to sleep wholly depend on every penny that you spend. Money is what fills your wardrobe with sweaters, jeans and shoes, and covers your body with tattoos and piercings. It forces you to hit the gym and to buy a new car on credit, as if it matters to anyone what your car is like. Money makes you buy a new smartphone case even though you already have three previous models which work just fine, and it forces you to drink much more coffee and eat more croissants than your body requires. A problem! Always remember this, if you wish to get rich. “I am looking for an honest man!” Diogenes once proclaimed, before becoming intoxicated with the idea and wandering throughout Athens. “Look for a problem!” urge the investment funds. You already know many such problems very well. For example, take the Bitcoin and its drop in value: how many people are making a fuss now because they did not withdraw their funds when they could? How many people have calculated their losses on the exact same day that they bought a cryptocurrency? How many people try to find comfort in the words “money cannot buy you happiness”? And remember, it is always more likely that a share will drop in value rather than rise. However, do not panic – you can make the most money out of these drops in value.)

10. Be a dreamer! (Comment – This rule is required in order to start anything.)

Good luck!

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