Warning: These Are Dangerous Times in the Stock Market

2012-02-25T00:58:00.002+08:00

A Nice article again from my mentor, Bro. Bo Sanchez...

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I must warn you.

A disaster can befall you anytime—if you’re not careful.

Let me dissect for you how someone like you, who is now earning in the stock market, can lose it all.

When We Lose Humility, We Lose Everything

The Bible says, “Pride comes before a fall” (Proverbs 16:18).

In big bold letters, write this verse on a poster and hang it on a wall. Look at it every time you put your money in the stock market.

I believe humility is the noblest characteristic of the human being. Humility will protect you and keep you alive. Here’s a guarantee: When you lose humility, you’ll lose happiness, inner peace, and all your money included.

I’ve observed that it’s easy to be humble when your money is down. When your investments aren’t growing. But when your investments are soaring, it’s a little bit more difficult to be humble.

For TrulyRichClub members who started investing early last year, you’ve seen your money grow beautifully.

And because we know that the Philippine Stock Market will experience a boom in the next three years, I must say this to you again: These are dangerous times.

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The Friends of Pride

Reason?

The sudden increase of wealth deceives you into thinking that you’re wiser than you

think you are. Before you realize it, pride sets in. Arrogance sets in. Braggadocio sets in. You look at your stock market earnings and say, “Boy, I’m good.”

When pride comes in, greed isn’t far behind.

Like smelly mold that mushrooms on old bread, greed multiplies in your heart. You want more. This slow growth is too slow for someone as wise as you.

This SAM stuff is for beginners. Neophytes. Kids in kindergarten. You ask,

“Where’s the real money?”

Day by day, your appetite for risk increases.

Danger is now spelled E-c-s-t-a-s-y.

You start looking for more exciting stocks.

You start putting money on companies that you know nothing about.

Because the hot tip came from someone reliable. Someone formidable. Someone

of authority. Surely he knows what he’s talking about. And in a few days, your

money grows by 10 percent. And 20 percent. Even 30 percent. My gosh! You feel very good. You feel very rich.

You feel very intelligent.

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The Alien Monster Living Inside You

And the ugly three-headed monster of pride, greed, and danger is mutating. It grows larger inside you every day. Soon, it takes over you. Like an alien life form within you. And it becomes uncontrollable. You’re now simply the host. You’re no longer in charge… the three-headed monster is!

You can’t stop trading. It’s become a drug.

And you keep betting with bigger money. The rush of excitement is intoxicating. You hit bigger jackpots.

Your money doubles in a few weeks. Triples in a few days. The euphoria is exhilarating. It’s no longer just about the money. It’s the thrill of winning.

But one day, it happens.

There was no warning.

The three-headed monster bursts out of your abdomen, splattering your entrails all over the room. You die in one painful scream, your body parts scattered on the floor. The alien beast within you has grown so huge, you were no longer a worthy host. So it moves on, taking all your money. And your soul as well.

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How Disaster Happens

This doomsday happens to all gamblers.

Whether they play in the casino or in the stock market.

Let me describe it to you: Your last few bets were the biggest you ever made. And then BOOM—you lose a lot of money. The stock plummets like a rock, bringing your wealth with it. You feel like a mouse drowning in an Ondoy flood.

Frantically, you look for another hot stock. You call up friends. Because you need to recover your losses.

You receive a tip.

You put whatever money you have left. You close your eyes and click the “Buy” button.

You go in when the stock was selling at 62 centavos.

You start praying to every god in the universe. Jesus.

Allah. Buddha. Jose Rizal. John Lennon. Willie Revillame.

The next day, your hot stock moves up to 68. And then 76. And then 83. And then to 96 centavos! You smile from ear to ear. Your prayers have been answered. The gods have been good to you.

As you’re about to click the “Sell” button, you’re making all sorts of promises to yourself. “I’ll never do this again. I’ll never go after penny stocks again. This will be my last bet.

Starting tomorrow, I’ll be a good boy and follow Bo’s SAM…”

As your finger is poised on top of the mouse button to click “Sell”, you pause. “Just a little bit more. When it hits one peso, I’ll sell…

All of a sudden, from 96, you see the share price dip to 93.

“The price is just resting,” you encourage yourself, “it will go up again soon…”

And then the unbelievable happens.

The price goes down.

Way down.

In a snap, the price drops like a metal ball from 93 to 28 centavos.

You feel like someone hit you with a giant sledgehammer.

You stare at the screen.

You blink. This can’t be. Is this a computer glitch?

“This has to go up,” you try to comfort yourself. “I’ll just try to breakeven. If it goes back to 62, I’ll sell…”

But from 28, it falls to 14.

You can’t breathe.

You can’t move.

Finally, the price settles at 3 centavos.

You’re now officially wiped out.

You’re zero. Nada. Zilcho. Nothing.

You want to die.

At this point in your life, the monsters of pride, greed, and danger leave you.

And humility returns…

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How Humility Can Save Your Life

Friend, it doesn’t have to be this way.

Humility can save you.

When you see your investments grow (like now), give humility a bear hug and don’t let her walk away.

You need humility to save you from the three-headed monster. Do the boring SAM thing for the rest of your life.

And be happy with slow growth.

No wonder God wants you to remain humble.

You need it for your survival.

May your dreams come true,

Bo Sanchez

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P.S. SAM is very humbling. Because when you invest each month in our select stocks, it’s so simple, anyone can do it. Even a kid can do it. What is there to brag? Nothing. And there lies its beauty.

P.S2. As promised, we are expanding WealthStrategies. We welcome on board my friend Dean Pax Lapid, who shares his insight below on building a truly rich business.

P.S3. In our next issue, I’ll share about many people I’ve met who have been duped by scams. I’ll talk about how you can protect yourself from them. I’ll tell you the telltale signs that you need to watch out for…

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Dream On: Why Sleep is So Important (Infographic)

2012-02-24T00:36:00.002+08:00

Source: http://frugaldad.com

Investor luranski

Warning: These Are Dangerous Times in the Stock Market

Dream On: Why Sleep is So Important (Infographic)