9 Tips To Transform Your Finances & Career

Yesterday I wrote about 7 key lessons from my $700,000 in trading profits the past 7 months, but I also have a weekly newspaper column (Metro) now where I give 3 tips per week.

Here’s a list of some of those tips, very useful for everyone, not just trading challenge students or traders, but EVERYONE who is interested in making more money and having the career they’ve always dreamed of:

3 common stock market mistakes:

Mistake #1: Getting married to your stocks

Human beings long to be loved for long periods of time and that’s why so many of us go the route of marriage. Over the past 100 years the US stock market has risen dramatically so those who invested long-term and “got married” to their stocks have been rewarded handsomely.

But times change, nowadays many marriages end in divorce, many should end sooner than later and the US stock market does not reward long-term investors as it once did as exemplified by the lost decade 2000-2010 where most investors only broke even or endured losses. Don’t get married to your stocks; think of them more as teenage love affairs – passionate and most definitely fun, but not lifelong relationships.

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Mistake #2: Not Accepting And Taking Losses

We are all wrong at various points in our lives, but we usually can cut our losses and move on instead of not acting and wallowing in self-pity. Especially in the stock market. Sadly, far too many people refuse to accept their financial losses and do everything they can to avoid dealing with their mistakes. They double up on their position, or even triple up, as the price goes against them, rationalizing that by dip-buying, they will eventually enjoy greater rewards when proven right.

But because most traders and investors lose in this game, adding to a losing position usually only adds to their pain in the end. Don’t put yourself in this situation; losses can be a very slippery slope and most big losses begin as small losses that can be cut quickly by admitting the mistake and moving on.

Mistake #3: Trusting Tips

Friends, family, co-workers: everyone loves speculating on stocks; it’s practically a national pastime! Unfortunately, academic studies show that tips and the majority of people who invest and trade based on their gut lose more times than they win and the odds of success are worse than going to casino.

Don’t give into the urge to gamble in the stock market. If you want to invest, buy quality blue-chip companies, and remember not to get married to them for life, and ignore speculative, longshot tips.

3 Hot Stock Sectors To Watch:

Hot Sector #1: Mobile internet stocks

The growth in mobile Internet usage has exploded the past few years and the stock prices of companies benefiting from this trend like Yelp and Facebook have similarly exploded. Startups with no revenues or profits but booming user growth like instagram and SnapChat have become worth billions in record time.

When looking for “the next big thing” in this sector be on the lookout for mobile applications and websites that are simple and fun to use with wide mainstream appeal. Unlike traditional stocks, you don’t have to worry about pesky revenues or profits, so it’s basically a popularity contest and the rewards in this contest are in the billions of dollars. Investors and traders take note.

Hot Sector #2: Marijuana stocks

With more and more states legalizing marijuana, this sector was the single hottest sector in the entire world for the first few months of 2014. Things have cooled down a bit recently as those initial gains could not be sustained, but I fully expect this sector to rise again in the future given the trends and popularity of this “medicine”.

Signs of a comeback will include tremendous press and further legalization news ideally together with uptrending stock prices in all of the most popular marijuana stocks. I won’t mention them here since they are all so speculative, but be ready for when the press picks up this story again and then simply buy the strongest marijuana stocks that get the most positive press and social media mentions.

Hot Sector #3: Apple related stocks

The hottest, most popular technology company on the planet has created a cottage industry of those who speculate on new products, everything from the upcoming iPhone to the rumored iWatch and products that could fundamentally change the health and medicine fields, transportation and home entertainment.

Similar to the marijuana sector, I won’t play the rumor-game as too many do so I won’t mention any specific companies that could benefit from working with Apple on any of their upcoming products. That’s because I’ve never made much money buying rumors given their low odds of success.

For buying Apple related stocks, I will wait for specific product announcements and then act quickly once their new partners/suppliers are confirmed, as the stocks of those companies will benefit greatly in the coming weeks and months on sheer hype alone, no matter if the products are ultimately successful in the long run.

3 Tips On Becoming/Proving Yourself An Expert

1. Don’t say “I don’t know”: Most people are confused about one thing or another and they’re not looking for someone like them; they want someone with definitive answers. Now I don’t want you to lie about knowing something when you truly don’t know, but if you want to be taken seriously and have clout, simply point the confused person in the direction of what you actually do know.

Nobody knows everything, but most of us are experts at certain topics so it’s your job to show that. Make sure others know about your experience and knowledge by shifting every situation and every conversation to what you know and what suits you best.

For example, I’ve made millions by trading penny stocks so while the majority of finance is geared towards larger companies; I only teach and talk about what I know, even if it is a smaller niche.

2. Social proof: Just because you think you’re great and talented at something does not mean anyone else will – you have to prove it in a very public fashion. Thanks to the internet, anyone in the world, no matter your background, education or net worth has the ability to prove themselves every day using social media tools like twitter, Facebook and via blogging, chatrooms and forums.

If you want credibility then don’t be afraid to speak your mind, and remember to do it convincingly and spread it as much as you can to anyone who you think will listen.

On the internet there are many people who claim to be stock market geniuses. I’ve differentiated myself from the crowd by verifying my track record and earnings and continually make enough real-time calls so people know my success is not just in the past.

3. Testimonials: The value of your expertise is only as good as what your customers and others in your field say about their experience with you. Thanks to websites like Yelp, Tripadvisor and Investimonials (a financial product review website I own), people and businesses are being graded publicly by customers like never before.

If you are going to claim your product, service or expertise is useful and worthwhile, you had better be able to back it up!

Because I wholeheartedly believe in what I teach my students and because I know how hard I work to provide such a quality product, I not only welcome customer testimonials, I encourage them. Even constructive criticism helps you mold your expertise into something more useful.

Be very wary of experts and businesses that claim great achievements, but don’t have the references and customer testimonials to back up their claims!