1 A Beginner s Guide to Financial Freedom through the Stock-market Includes The 6 Steps to Successful Investing By Marcus de Maria The experts at teaching beginners how to make money in stocks Web-site: Details of free tutorials:
2 Don t put off taking control of your finances another minute every minute is costing you lost growth and compound interest! The first step is to acknowledge the fact that you need to take control of your own finances. If you acknowledge this, then half the battle is won. If you give control to others, they might just lose your hard-earned money! No-one, and I mean no-one, is going to care more about them than you. This makes you the ideal candidate to take control of them. The second step is that you must find the right vehicle to get you where you want to go. If you are in a job dreaming about becoming a millionaire, you are going to need to do something either different or additional to what you are currently doing, like investing, to get you there. Choose from The 5 Pillars of Wealth The most popular choices, which will help you become wealthy of financially or financially independent in the shortest possible time, are: - Investing in the stock-market - Investing in property - Marketing a service or product on the internet - Owning your own, traditional business - Career or job As you can see, the stock-market is by no means the only vehicle to get you where you want to go. However, I am here to tell you that it is the easiest to access for beginners and the simplest, fastest way to get started, especially if you are serious about making money. Figure a: Why you must consider the stock-market as a source of income Job Normal business Property Marketing on internet Can you protect yourself if the market goes No No No No Yes against you? Location Totally flexible you can stay at home No No No No Yes and do it No competitors the more people do it the better No No No No Yes Recession proof No No No No Yes Can you make money within seconds / No No No No Yes immediately? Constant and massive demand for your business No No No No Yes Guaranteed to exist in the future - Fad proof No No Yes No Yes Can anyone do it, regardless of sex, age or No No No Yes Yes physical ability? Can you do it without having customers? No No No Yes Yes Are you are totally in control at all times? No No No Yes Yes Can you do it without staff or other people No No No Yes Yes helping you? Is only very low starting capital required? - No No Yes Yes No meetings No No No Yes Yes You can stop activities if you have to and get out No No No Yes Yes easily Huge and unlimited profit margin No No No Yes Yes Stock
3 You absolutely MUST consider the stock-market as an additional stream of income. All it takes is hours to learn my simple and fun strategy, then 2 hours a week to make it work, and in just a few months from now you could be enjoying 3% -6% GROWTH PER MONTH! You will require focus, dedication, discipline and time to get it right but so do most good things. The point is, start today and in a relatively short period of time you will be on the road towards financial freedom. Once started, you will soon discover that using this smart Investing strategy will improve your performance in other areas of your life also. Your mind and thought patterns will become faster and sharper, and you will start to notice opportunities and possibilities in other areas of life like never before. As your investments grow so will your confidence and self esteem etc. The 3 most asked questions concerning the stock-market 1. What is the stock-market? The stock market is the name for the place where company stocks are traded. Think of it as an enormous cash vault, in which resides a large proportion of the world s wealth. Some of it is destined to be yours - it just waiting to be placed in your trading account if you are prepared to learn! So exactly how do we get in? Normally a vault is kept secure by a big lock with a combination. If you know the combination, you can gain access. In the stock-market, the opposite is true. In the stock-market, there are countless combinations you can choose from. As a beginner, which one do you choose? 2. What about the risks? Serious entrepreneurs will be glad to know that it is not a get rich quick scheme. A student of ours once said of our teaching, it is like passing the driving test for investors. Driving is a great metaphor for investing. As a beginner, you could get into a car and start driving. But you need proper instruction to avoid making mistakes and crashing. It s awkward at first, but after a few lessons, a test and some practice, you are looking at faster and better cars to travel with. In the same way once you learn to invest you can get from where you are now financially to where you and your family want to go. 3. Can a beginner like me make money? Beginners can make money in the stock-market and very often do so. In fact, there are even four basic reasons why beginners with just a computer and internet access have more chances of succeeding than the professionals. Professionals are restricted in an industry that is highly regulated because they are dealing with large sums of other people s money. We on the other hand can do what we want because we are dealing with our own money. Most professionals are not allowed to make money when the market goes down or even sideways, whereas we can. Most professionals are not allowed to buy into a company and sell within a short period of time, whereas we can. Most of them are restricted to the companies they are allowed to invest in, whereas we are not restricted. Finally, most professionals are not allowed to insure or hedge themselves
4 in case the market goes in the wrong direction. This is like driving without insurance. Again, we can do all of these things. The 6 Steps to Successful investing 1. Find a strategy that suits your personality and lifestyle Learn how to make money A seriously wealthy trader (trading his own money, not institutions ) once said to me, Marcus, you know more about trading than I do. Up until that time I had been on course after course searching for the Holy Grail, having spent over $50,000 in the process, so I thought I did know a lot about trading. He then looked me square in the eyes and said, yes, you know how to trade. The difference is, I know how to make money. This sentence struck me like a freight train. The truth is we shouldn t be interested in learning all the different ways one can trade, which can confuse people. Rather, we should choose one strategy that suits our personality and lifestyle and then master it until we start making money. This is exactly what I went on to do. Ironically, the strategy best suited for me turned out to be one I had learned on the very first course I went on! by concentrating and mastering one, maximum two strategies Do you mean I don t need to know lots of different strategies? That s exactly what I am saying. I hope you are breathing a sigh of relief. There is no Holy Grail. You don t need to learn a lot of different strategies - just pick the one that seems like you. Perhaps it is one that you can do in the evenings or one you can do at the weekend. Then learn all the rules around that strategy, until you have thoroughly mastered it. that take advantage of all three market movements Did you know that markets go only in three directions: up, down or sideways? So doesn t it make sense to focus our energies on 1 or 2 strategies that can take advantage of these three market movements? As the experts in teaching beginners, we have found two strategies that take advantage of these market movements and that are ideally suited for beginners. One of these takes just 2 hours a month, always on the same weekend each month and still makes anywhere between 3-6% a month. Yes, I really did say a month which equates to 36-72% a year. And these are just the beginners strategies, but let s learn how to drive before we step into a Ferrari. For details on these strategies, come along to our free evening tutorial. To register, go to The next few pages contain probably the most powerful information I can share with you, so if you have read this far, you are about to be rewarded. 2. Make small returns, re-invest and compound your money! After you have decided on strategies that takes advantage of all market conditions, you need to do 2 simple things: a. Let your profits run and keep your losses short This is linked to point a. above, and this is where most people get it wrong. They take their profits too early when they feel they have made enough (what is enough?!) and do the opposite when they are losing money. They watch as their losses get larger, hoping that the stock will turn around, even though their rules tell them to cut their losses short at, say 10%. As the 10% turns to 15% or 20% loss, they feel even worse
5 and now rationalise that they really cannot sell the stock. Worse still, some even buy back into the stock, thinking it is now cheap c. Compound your returns Now the question you might be asking is how can you become financially free on just 3% a month? Surely you need to be aiming at 100%? Nothing could be further from the truth. This is why: The Eighth Wonder of the World - Compounding Albert Einstein called compounding the Eighth Wonder of the World. Take a look at the compounding sheet below: Can you see that if you started off with, say 10,000 in your trading account and you made just 3.5% a month (most stocks move this much in a day), then you would make 350 in your first month, in just 2 hours. Figure b: Compounding sheet (Note: this is theoretical. Commissions & taxes not included) WITHOUT ADDING ANY ADDITIONAL CAPITAL!! INITIAL AMOUNT 10,000 % return / month (3.5% per month) JAN 10,350 15,640 23,632 35,710 53,961 81, , , , , , ,659 1,466,732 2,216,333 FEB 10,712 16,187 24,460 36,960 55,849 84, , , , , ,848 1,004,632 1,518,067 2,293,904 MAR 11,087 16,753 25,316 38,254 57,804 87, , , , , ,118 1,039,794 1,571,200 2,374,191 APR 11,475 17,340 26,202 39,593 59,827 90, , , , , ,202 1,076,187 1,626,192 2,457,287 MAY 11,877 17,947 27,119 40,978 61,921 93, , , , , ,129 1,113,853 1,683,109 2,543,293 JUN 12,293 18,575 28,068 42,413 64,088 96, , , , , ,929 1,152,838 1,742,017 2,632,308 JUL 12,723 19,225 29,050 43,897 66, , , , , , ,631 1,193,187 1,802,988 2,724,439 AUG 13,168 19,898 30,067 45,433 68, , , , , , ,269 1,234,949 1,866,093 2,819,794 SEP 13,629 20,594 31,119 47,024 71, , , , , , ,873 1,278,172 1,931,406 2,918,487 OCT 14,106 21,315 32,209 48,669 73, , , , , , ,478 1,322,908 1,999,005 3,020,634 NOV 14,600 22,061 33,336 50,373 76, , , , , , ,120 1,369,210 2,068,970 3,126,356 DEC 15,111 22,833 34,503 52,136 78, , , , , , ,834 1,417,132 2,141,384 3,235,778 But how long does it take to get from 10,000 to 500,000? It takes just 10 years and 6 months. What other vehicle can match that? It is the next part which is the Eighth Wonder of the World: how long does it take to make another 500,000 to get to 1 million? Does it take another 10 years? Take a good look at the chart above so you see for yourself. It actually takes just another 1 ¾ years. 1 ½ years to make an extra 500,000. Now that s what I call exponential growth. And it doesn t stop there. As you can imagine, if you carry on you can make another 1,000,000 in another 1 ½ years. That s 1,000,000 in 1 ½ years. And it continues like that: 2,000,000 in another 1 ½ etc. This is the power of compounding. It is so powerful that we all need to use it, start using it for our children so that you have a lump sum for them when they come of age, teach them how to use it, use it in your pension plans etc. This is without adding any additional capital. Can you imagine what would have happened if you would have added some more money in year 2? So WHEN ARE YOU GOING TO START? What is your next excuse? Is it you are too old, or too young, don t know enough, you have a tooth-ache or are you simply going to make the decision you should have taken a while back and start today?
6 If you want to put your own data into the chart and play around with it to see how long it takes for you to reach your first $million, go to come along to our free tutorial on investment-mastery.com. It is free and it will motivate you to start. The problem with most people is that they don t want to go through the learning of the first few years. See the chart below? It shows how exponential the curve of the compounding sheet looks 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , when viewed as a picture. It doesn t really move much in the first few years does it? Most people want to get straight to year 5 and above, when it really starts taking off, but as you can see you have to go through year 1 4 to get to year 5. And yet so many people I meet on an almost daily basis are so eager to grow their money fast and make their money grow exponentially will be willing to take on risk which quite frankly a beginner just doesn t need to when they know about compounding 4. Simulate or virtual trade (not paper trade) Paper trading, where you guess a point where you would have bought and you guess a point where you would have sold does not reflect in any way how you would have reacted in a real life situation. So what we recommend to our clients is to simulate or virtual trade. I wish someone would have told me that when I started! It has saved our students 0000s. Using a virtual account brings with it some of the emotions you are likely to experience when trading for real, like fear and greed. The idea is stay with virtual trading until you make money on a consistent basis. Only then can you consider using your hard-earned money. 5. Invest with a part of your money Finally when you are ready, start putting some money into the trades. I say some money because you won t want to put all your money into the market, even though you have spent time practicing. Money management is key and we could devote a whole article just to this subject. For now, divide your money up into chunks that you feel comfortable with. For example, if you have $10,000, divide your trades up into $2,000 until you get comfortable. Once you are comfortable with investing larger chunks you can do so. Remember it is better to have a small profit of a larger sum than a large profit of a smaller sum because in the latter you are taking on more risk. As a rule, we don t like risk. 6. Maximise your returns even further! Once you are being consistent, it is time to look for a way to maximise your gains. The best way is to find a vehicle where you can make more money faster doing the same thing or only slightly adapting what you are doing. For example, you have a strategy using stocks that is making you good returns. Now you can start using some of the margin the broker has given you. When you set up a broker account, sign up for a margin account. So when you wire $5,000 over, you will notice that you have an extra $5,000 which the broker lends you, bringing you a total
7 of $10,000 to invest with. This is how simple it is to double your returns by essentially keeping to the same % of risk. Another way to speed up dramatically is by trading options. We don t have the space to explain options but suffice to say that they are a great tool to make money because you are leveraging your money to a high degree. This way you can graduate from driving an average car to driving a Ferrari. As you leverage your money you take on more risk, but the point is that at this stage you are ready to do so because you have the skill and emotional maturity to do so. I meet a lot of people who unfortunately start trading options immediately without even knowing the basics. Like any fast car, you need to know how to handle it and beginners don t. It has been my pleasure to give you a short insight into the world of the stockmarket. Now it is up to you to TAKE ACTION. If you require information on how to get started, go to for a free evening seminar. What to do next! Don t delay act immediately. Get in contact with us and let us know how we can help you or sign up to our free tutorial evening. For more information, go to Invest with passion and profit! Marcus de Maria Head Investment Coach Investment Mastery Ltd