What is the difference between a successful investor and an unsuccessful investor?
On the simplest level, it involves having access to sources of information which are truthful, accurate, and – most importantly of all – unbiased!
Unfortunately, in the investment world – and the financial services industry in general – bias is everywhere. Many financial ‘experts’ have an agenda and adjust the ‘facts’ to fit whatever advice or recommendation they are giving at the time. Whenever possible, you need to study the source of the information and try to ascertain their interest in the proposal they are offering. For example, do they have something to gain from the advice they are providing?
One way in which investment brokers and advisers try to hold onto clients for as long as possible is by promoting what is known as the ‘buy and hold’ policy. They tell people to purchase a selection of stocks and bonds, and simply hold on to them no matter what is happening in the market. That is not necessarily the best way to manage your portfolio, but it keeps your funds locked into them. If you choose to sell all or part of your holdings, or turn them into cash, the brokers no longer have control of what you might do then.
What the serious investor really needs is unbiased advice from a source that has no vested interest in the outcome of your decisions. In the world outside of investment, it is perfectly normal to form an opinion on almost any issue and hold onto it. However, inside the investment framework, having fixed ideas is dangerous for your financial health.
Markets are never static and successful investors are very well aware that they have to be flexible and move their funds around to secure the best returns. The problem with having fixed views is the volatility of the market; you must be willing to adapt to a constantly changing environment and forget any preconceived ideas. In order to do that, you must be able to make decisions without bias.
How can you accomplish that? Firstly, it is important to educate yourself as an investor and be aware of the daily changes in the market place. Given the constant stream of news today, you need the kind of service that can give information that is unbiased, clear, and dependable.
One such company is Agora Financial, which provides independent economic commentary through print and online publications, print and e-books, films and international conferences. They are known for being a leading innovator in the financial publishing industry, and have frequently provided accurate forecasting ahead of the mainstream media.
For example, Agora Financial clients were aware of the housing bubble, the credit bubble, the excesses underlying the panic of 2008, the pending collapse of Lehman Bros., and last year’s bankruptcy of American Airlines, long before they actually happened. As a result, many of their followers were able to turn that knowledge to their advantage – and make money!
As an Agora Financial Representative explained: “We saw a lot of these coming: the housing collapse, the recession, and a lot of really terrible financial crises that severely impacted the United States over the last few years. The fact is that the different media outlets have their own axes to grind, and the major financial institutions’ target audience is not the investor – it’s their advertisers!”
What the successful investor needs is an honest, unconventional, unbiased, and independent financial source of information, which is exactly what Agora Financial provides.