When I talk with investors, many confide that they “feel funny” making a statement like “My dream is to become a millionaire.”
I understand that sentiment.
For most investors, the idea of becoming a millionaire is more of a pie-in-the-sky dream than an actual – attainable – goal.
But it doesn’t have to be.
Here at The 10 Minute Millionaire, our mission is to prove to you that getting to the magical $1 million mark isn’t as complicated as people think it is.
On its face, The 10 Minute Millionaire system is a “roadmap” – or a set of directions – and the “destination” is millionaire status.
But it’s also a compass, or guide, whose goal is to help you steer clear of some of the most dangerous pitfalls investors fall prey to – that can ultimately derail your financial goals.
Now, no investor – not even the so-called “pros” – is perfect. We all make mistakes that can lower our returns and increase our risk.
But the true key to investing success is striving for a Millionaire Mindset that helps you build wealth and learn to avoid costly investing mistakes along the way.
And at its core, that’s what The 10 Minute Millionaire strategy is designed to do.
That’s why, today, we’re going to map out three of the biggest investing blunders investors make – and how we use The 10 Minute Millionaire Way to avoid them.
Let’s get started…
Investing Mistake No. 1 – Not Having an Action Plan
The main reason more investors don’t achieve millionaire status is pretty simple: They don’t reach this financial pinnacle because they don’t believe it’s possible.
They don’t think they can do it.
They don’t understand the foundational element of wealth building.
Getting rich, becoming wealthy, achieving millionaire status isn’t a just a dream.
It must also be a goal.
Having a dream is great. But if you don’t make that dream an actual goal – and then back that goal up with a true “plan of action” – your dream will never come true.
You need a map… a route to follow… a plan of action.
It all starts with the philosophy and “core beliefs” around which you’ll build your trades, investments and expanding portfolio. And it includes the specific “opportunities” you’re going to exploit for profit – as well as the “methods” you’ll use to make that all happen.
But what makes The 10-Minute Millionaire system so unique is that it doesn’t just give you a strategy (an action plan).
It also gives you a system.
Think of this unified approach as the ultimate GPS for your investing journey.
If your strategy is your “grand action plan,” then your “system” is your procedure – the methodology that turns your strategy from theory to reality.
As I said, however, that system has to be simple.
The more complex a process, the more time it takes to learn it and run it. And the more complex a process, the greater the number of “variables” involved.
Neither is good.
Take time, for instance. And let’s be honest here: We all know that big time commitments are a huge turnoff. This is true of just about everything – from school to exercise programs to investing systems.
Because we’re all so busy, big time demands are a “disincentive” to keep going. (In fact, as I used to say in the investment seminars I gave: “If you don’t commit, you’re likely to quit.”)
Complexity is risky – if not downright bad – for another reason. More complexity equates to a greater number of “steps” required. As a career engineer, I can tell you: Each “step” in a system is also a “variable” – otherwise known as an opportunity to make a mistake.
Lessen the number of steps in a system, you also lessen the potential for miscues.
Simple is better.
Especially with investing.
Simplicity makes it easier to understand just what it is that you’re doing.
It reduces the potential for loss-inducing miscues.
It slashes the amount of time that must be devoted to your investments.
It makes it easier to understand what you’re doing.
And our system is the epitome of simplicity.
Investing Mistake No. 2 – Not Being Patient
Once you start with a system, you need to give it a chance to work.
So many times during my career as a teacher, analyst and market observer, I’ve watched folks “chase returns” – often by playing a game of “strategy hopscotch.”
The truth about investing is that there are lots of different investing styles, and lots of different strategies – and many of them have merit, meaning that they can and do work, if you give them time to do so.
But it’s also true that strategies have hot and cold spells – it’s only natural. Value investing works well when markets aren’t red hot. But when formerly mild markets heat up, growth or momentum takes over. And what happens is that a value investor, miffed that his style isn’t “working” – and watching as his momentum-focused friends are cashing in – decides to “switch uniforms” and starts to play the momentum game, too.
Unfortunately, the momentum strategy isn’t his forte, so he plays it poorly. And it’s also highly likely that by the time he makes the jump, the momentum period has played out – probably giving its way back to value.
Investors who do this are almost always “out of sync” with the market. It’s like playing “blind-man’s bluff” – but inside an airplane hangar, instead of one tiny room.
If you’re going to be a “systems” investor – especially if you’re going to be a 10 Minute Millionaire system investor – you need to commit to this.
Do that and you’ll become a true “master” of this simple system. And you’ll also give the “power” aspect of this the time required to fully play out – so you can achieve millionaire status.
Investing Mistake No. 3 – Letting Emotions Get in the Way
One important thing you need to understand is that markets function like big, global auction houses. But instead of antiques, old books or china, the objects being sold include stocks, bonds, bars of gold, pork bellies, or contracts to buy oil at some date in the future.
I enjoy auctions myself – especially the charity auctions that benefit a church, a local youth program or some other community project.
And at every auction I’ve attended – without fail – something comes up for bid where emotions take over.
You know what I’m talking about.
Some item will come up (once, I remember, it was a rusty garden trowel – which became an object of desire after the auctioneer labeled it a “rare antique”), and the auction suddenly turns into the “Theater of the Absurd.”
Auctioneers like to refer to these interludes as “spirited bidding.”
I refer to them as “manias.”
Here you have an item whose value is pretty clear. But emotion takes over. Bidders get competitive – and forget about any bidding plan or price limits they might have had.
The bids eclipse the object’s intrinsic worth, but the bidders rationalize that by going perhaps a few steps higher, thinking that they’ll be the winner and won’t have to “really overpay.”
But then two bidders embrace that mindset. Then three. Then five. Before you know it, an item worth $25 or $30 is being sold (with a really loud gavel bang) for $125, $200, $300 – or more.
I can hear you laughing.
But the same emotion-charged scenarios play out in the financial markets every single day.
Thanks to those emotions, financial markets (and the individual securities in them) get “out of whack” from all the time. Emotions cause entire markets to overrun at “tops” and overrun at “bottoms.”
At market tops, investors are “irrationally exuberant” – and they willingly overpay. At market bottoms, investors become indifferent, or downright depressed, and you can’t give the stuff away.
Fact is, do-it-yourself investors who let those governing emotions dictate their decisions are always going to make the wrong move at the wrong time.
The key isn’t letting fear or greed rule your investment choices. It’s finding a way to make those emotions work for you.
And that’s exactly what The 10 Minute Millionaire is designed to do.
Fact is, the market will always be governed by emotions. There’s no changing that.
My system helps you outsmart the masses by exploiting these “extremes” for hefty profits… often at risk levels that are well below normal.
We do this by “going long” (buying) on stocks or options that are oversold, or by “shorting” (betting on a price decline) those that are overbought.
Fact is, if you are serious about becoming a millionaire – of taking that pie-in-the-sky dream and turning it into a reality – avoiding these common investing “blind spots” is key.
It’s the true secret to becoming a millionaire.
You just need a roadmap to guide you.
And with The 10 Minute Millionaire, I’ve already codified it for you.
All you have to do is join us here each week and follow the system.
Do that over the course of a year and you’ll more than double your money.
You’ll be a millionaire.
Free and clear.
It’s as simple as that.
D. R Barton, Jr.