Speculation or Investment - The Quiz

Everyone gets what they really want out of investments.

All investment is speculation.

Even burying your money in the ground has risk of inflation loss and memory decay.

entrusting your money to another is a greater risk, you always care more about your money then someone else - unless they plan to steal your money.

Life is risk, you need to learn how to manage risk and enjoy variance, not avoid them.

THE QUESTIONS

1) Do you lie to yourself successfully?

?) Do you set your watch 10 minutes ahead so you think you are running late?

2) Do you have blind spots you refuse to acknowledge?

?) Do you fully agree with anyone or any human institution?

3) Do you rely on third or fourth hand information?

?) My teacher said - a book said - that ------- believed ....

4) Do you believe statistics and published reports on performance and trends?

?) Figures don't lie, but liars sure can figure.

5) Do you refuse to ask directions, are you slow to admit when you are wrong?

?) Do you have a hard time laughing at your errors, and moving on?

These five questions point out personal growth areas required for your success in speculation or investments.

The truth is although there are millions of ways to make money in the markets - none of the ways are easy to find - none of them last long.

You have to be honest with yourself to cut inevitable and frequent losses short or sit still while potential profits grow. This personal honesty is not common - but neither is great success.

To profit over the long term you have to know yourself. Here is a last question if you were able to say 'no' to a few of the above questions.

6) Have you had investment success before?

?) At what level did it stop? Did you lose everything when the losses started?

If you are sabotaging yourself, research yourself before doing your market research.

Developing a flexible and accurate view of your strengths and weaknesses will be critical to your speculation success.

return to top of page