No secrets when it comes to smart investing

It is true that to be successful in the field of investing, you need to understand the products you are using and have an investment strategy. Given most people's busy lifestyle, acquiring this knowledge can be a sacrifice of time people are unwilling to make. Further, the topic of investing can be perplexing if you are new to it. It is these weaknesses that some seminar presenters prey on. These presenters sell seminars that offer an easy to swallow pill.

These types of seminar usually follow a familiar pattern. Firstly people are attracted by the advertisement which uses words such as "secrets revealed", "empowered" and "lifestyle" and have many testimonials from satisfied customers. All of the emotive words suggest that there is an easy way to make money in shares, and once the secrets are discovered, a dream lifestyle is the only possible outcome. Pictures of fast cars, large houses and yachts often accompany these ads.

The next step is the introduction night. These are usually held in a downtown hotel and run for a number of hours. Depending on the state of the market, these could be free or entail a small charge. The message is the same as the ad; your life will be so much better once you discover the secrets. It is here you first learn the total price of the subsequent seminars, and it may be in the thousands. Remember, thousands now for a dream lifestyle, is a small price to pay, isn't it?

The problem with this dream, is that there are no secrets! No one has ever found one method or system that can consistently return profits over the long term. The market is constantly changing, what works today may not have worked in the past and may not in the future. People who invested in seminars as little as two years ago, most likely learnt strategies designed for that market environment, and ones which may under perform in today's markets.

Seminars that offer untold riches are usually based on a mechanical system. This results in buying or selling when the "system" says so, with no thought as to why. This is fine for as long as it works, however when it doesn't, there are only two choices: continue to use it and suffer increasing losses, or go to another seminar.

What successful investors have is an understanding of investment products and the risks which accompany them. There is no easy way to get this knowledge, it takes time and effort. The process of gaining this knowledge is invaluable, not just for the discovery of what investments can return, but the realisation of the investor's personality and tolerance of risk. Put simply, are you a risk taker or a conservative investor? These answers lead people to a relative comfort zone, they understand the risk and the rewards, and are prepared for the possible outcomes.

The better way is to treat investing as a serious business. Learn as much as possible and seek help from reputable sources. There are no secrets. If the return offered by a seminar looks too good to be true it probably is.

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