Archive for August, 2010

I want you to imagine that you are in one of my finance seminars right now. You are seated in the middle row and you are here because you want to understand how to grow your money.

As the seminar begins, and after I make everyone feel comfortable, I pause and look into the crowd and ask a simple question. “Can anyone tell me; is there a difference between Trading and Investing?”  A few hands go up and I pick one. “Sir, investing is putting your money into an asset and making it work for you”. “Good”, I say, “…and what about Trading?” “Well, sir trading is buying and selling”. “Very good, okay, how about you?” I point to another person. “Investing is long term, trading is short term”. “Fantastic! Thank you for your very concise answers, you are both correct, now let me summarize and simplify so that everyone understands: Investing and trading are both being able to place your money into assets and make it work for you, both of them are also buying and selling, the difference is, investing is buying and selling on a long term basis while trading is buying and selling on a short term basis.”

Then I joke around. “Of course many of the experienced investors in the room know that Investing is also known as ‘Buying and Praying’” Which elicits a healthy amount of laughter. And I continue “…And those of you experienced traders in the room also know that Trading is ‘Buying and Praying Faster!’” And the room gets hysterical. I continue with another question: “Okay, raise your hands, how many of you want to make money by waiting a few years (Long term) to see some returns?” About a third of the room raises their hands. “Great! Now raise your hands if you want to make your money even faster!” Almost everyone in the room, even those who said they wanted long term investments raises their hands. “Ah, greed is in the air today I see…Now let me ask you, why do you want to make money faster?” Someone shouts, “Para yumaman ng mas mabilis!” (“So that we can get richer faster”) And the room starts to laugh again as everyone has the same mindset. So I continue “Very good, I know exactly what  you mean, everyone wants to get rich as soon as possible.”

Then I ask a few more questions: “So, how long would it take for you to double your money in a long term investment?” The crowd begins to chatter and you can hear people saying certain investment types and attaching the amount of years it would take for that investment vehicle to double their money. Some say 5 years, others say 3 while others say 10 years. “And how long would it take to double your money in trading short term?” Then the crowd randomly mentions a few numbers, some say 1 month, 3 months, 1 year. “Okay guys, that’s great, now let’s just say, for long term investments, and for arguments sake, can we agree that if you pick the right vehicle and you invest at the right time, you can actually double your money in 1 year?” The investors in the room nod. “Okay then, now for the traders in the room can we agree that for short term investments, you can double your money in 1 month?” A person from the back shouts “Actually Sir, you can double your money in 1 week, especially if you time it correctly!” And I myself nod and continue “…That’s true, but let’s just say 1 month to be a bit more conservative, can we agree? Good, now let me ask you guys, if you can double your money in a long term investment in 1 year, can you also lose all of your money in 1 year?” The room unanimously agrees, Yes they say with a vengeance. “And for short term traders, if you can double your money in 1 month, can you also lose all your money in 1 day?” The room, especially the veteran traders, vigorously nods in total agreement. ‘Absolutely’ is what I hear some people say as I press on.

“Good! Now, do you still want to make money in the short term knowing that you can also lose money faster?” then suddenly the room starts to ponder and quiet down a bit, and I can see some people beginning to realize the ugly truth about trying to grow your money whether for the long term or the short term. Everyone wants to make money fast, but my question made them realize that they might not want to lose money –slow or fast.

So I look around the room and I speak to them as I am speaking to you right now.

“Well, if you ask me, I would still want to make money in the short term even if I know that I can lose money faster, because and remember this, if you lose money in a long term investment, you don’t just lose your money, you also lose something far more valuable, you lose time. Remember my example above? If your long term investment made you lose money in 1 year, you lost your money and you also lost 1 year of your life — something that you can never get back…. Now if I lost my money in the short term, say 1 month. I lost my money, but only 1 month, which means I still have 11 months in the year to decide on what to do with my life!” And the crowd laughs and smiles in unison as if they saw clearer into their future on how they might tackle how they will grow their money. They nod in simple agreement and like them, I hope that you now understand in more practical terms what the difference is between Trading and Investing.

Want more of my Premium Articles like this one? Go to my blog at http://www.markso.wordpress.com now.

Author box:

Mark So is a fervent businessman, forex trader, marketer, sales consultant, and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is also the Chief Forex Trainer of Forex Club Manila. Mr. So is slated to conduct his “Forex Orientation Seminar” this August 28, 2010. If you are interested in attending this seminar, click here: http://www.forexclubmanila.com/forexorient or call 6874445 / 6873416 / 6874645 and look for Aiza King

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FACT: “Everyone has problems. And almost everyone I know HATES having to deal with problems.”

This absolutely simple truth is the most basic formula for success in all of my businesses.

Because while everyone thinks of problems as unwanted nuisances that upset their well being and adds stress to their already stressful lives. I see profitable business opportunities just waiting to be started.

Let me ask you, my dear reader. If your problem was urgent enough, irritating enough, complicated enough, or time consuming enough, would you be willing to pay for your problem(s) to go away?

If you said yes, then someone in the world this very moment is already profiting from your problem(s) (It might even be me). Wouldn’t it be nicer if that someone who was profiting from your problem was you? In my article today, I’ll teach you how I do it in five very easy steps.

5 steps to make my problems produce profits for me

Step 1: I know that my problems, no matter how big or small are not unique to me, if I have these problems so does a whole bunch of other people. So let’s take this problem of mine as an example

“I need to eat healthy but I don’t know how to cook healthy food”

Now I’m willing to bet that this problem is shared by millions of people like me around the world.

Step 2: The next step of course would be to find a solution for it. And I’m not necessarily talking about having to invent a solution for it on my own unless of course I can or want to, I’m talking about finding a ready made existing solution to it — simply “google” it and chances are you will find  pretty good suggestions immediately.

So for the problem I wrote above I googled “I need to eat healthy but I don’t know how to cook healthy food” and what came up in the search was a Blog of someone giving me these suggestions:

  • If you are in a hurry and can’t cook, go to the grocery instead of the fast food and buy a rotisserie chicken its low in fat and tastes excellent. Just remember to remove the skin.
  • Buy pre-cut salad mixes from the vegetable section, break open a pack when you get home then toss with a light vinaigrette which can also be bought in the Grocery
  • Buy pre-seasoned lean meat in the meat department of the grocery and steam it when you get home.

And the suggestions go on and on.

Step 3: I will try and test the suggestions and see if it works for me. If it doesn’t then I go back to step 2 and find other suggestions or solutions then repeat until I find one that works. Now let’s say I like the suggestions already and it works absolutely fantastic for me. In other words, it solves my problem, AND there is a tangible result from this solution lets say I lost 20 pounds in a month and I completely stopped eating unhealthy fast food.

Step 4: This step is where I make a small business out of it by first creating a “product”. In this case my product will be my “Super healthy food system menu” — A menu of all the healthy food combinations I ate for one month that resulted in losing 20 pounds.

Then Once I complete my product which can be as simple as an Email, I create a super simple “offer” to people who have the same problem as me

The offer will look something like this:

“Do you need to eat healthy food but don’t know how to cook healthy food?

I had the same problem until I created and tested my super healthy food system that has absolutely no cooking time nor effort what so ever.

And these were my results:

  • I completely stopped eating unhealthy fast food
  • I lost 20 pounds in one month.
  • I can sleep better now.
  • I can move faster.
  • And best of all, I feel absolutely healthy!

It cost me a bit of money and a bit of time to experiment with different combinations but because I know it will help you, you can have my super healthy food system menu that you just have to follow at one super low price. And the best part is everything on the Menu is available at your local grocery store.

To get my super healthy menu for just P500 just email me at (email address) or call me at (Phone number) or visit my website at (website)”

Or something like that…

Step 5: This step is where I launch the small business. I send out this offer to the right target market or those who have the same problem that I have. Who are they? Well they are people who are just like me, busy people, mid thirties, doesn’t get much exercise because of too much work, etc. I know their profile because they are me, well not as handsome though ha ha, but you get the point.

So In my example above, the problem was a small one which really didn’t need me to spend anything outside of what I had to spend — I needed to spend on my food anyway during my “experimentation” phase and when it came to my “product” I can deliver it by email. Now if I apply the right marketing effort and know how, this “small problem” would easily produce me some very nice profits.

So I hope you’ve learned how I view problems in a different light. For most people, problems are stressful nuisances that they want to get rid of even if they need to pay someone to solve their problems for them. But for entrepreneurs like me, the very same problems given the right plan, exists to make me even more profits.

Want more of my Premium Articles like this one? Go to my blog at http://www.markso.wordpress.com now.

Author box:

Mark So is a fervent businessman, forex trader, marketer, sales consultant, and educator.  He is the Chairman and CEO of Businessmaker Academy—a business, finance and corporate training center.  He is also the Chief Forex Trainer of Forex Club Manila. Mr. So is slated to conduct his “7 Point Formula for Business Start up and Growth”  this September, 2010. If you are interested in attending this seminar, email Mark directly at markso@zerocapitalclub.com. or call (632)6874445 / 6873416 / 6874645 and look for Kenneth Dalen. To read more of Mark’s interesting and life enriching articles Mark is published twice a month at Manila Bulletin Classifieds Sections usually on Wednesdays and Sundays.