Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Three Investing Lessons From the Tour de France

InvestorEducation / Learning to Invest Jul 09, 2009 - 11:10 AM GMT

By: Money_and_Markets

InvestorEducation

Best Financial Markets Analysis ArticleRon Rowland writes: The Tour de France is underway! Here in Austin many of us are fans of local hero Lance Armstrong. His record-breaking seven Tour victories are an inspiration to anyone facing a big challenge.


You see, this isn’t just another race … the Tour de France is a multi-week trek over steep mountains and across wide valleys, totaling thousands of miles. Every day brings new challenges. And winning the Tour is one of the greatest athletic feats in the world.

Lance Armstrong may be the greatest athlete alive today.
Lance Armstrong may be the greatest athlete alive today.

Most of us will never even compete in such a grueling race, much less win, but we’re all in a race for financial success. And the definition of that “success” varies from person to person. Whether you’re aiming for the stars or you’re satisfied with the simple life, you can still learn a few things from the Tour de France.

Lesson # 1: Prepare For the Race

The Tour de France officially lasts about three weeks. The reality is that it starts years and maybe decades earlier — when the racers begin training as competitive cyclists.

Indeed, you can’t just jump on a bike and head over the Alps like Hannibal on an elephant. First, you have to train your body — and your mind — to take on the ordeal. If you don’t, you’ll collapse from the strain within minutes.

Likewise, investing success takes training, practice, and experience. Yes, some people possess a natural talent for reading the markets. Others just have “beginner’s luck.” But what if you aren’t one of them?

The truth is that life is tough. However, with grit and determination you’ll be stunned by the kind of obstacles you can overcome. This is just as true in cycling as it is in investing. What’s more, there are several steps you take right now to get on the path to success. For example, you can:

Winners train hard!
Winners train hard!
  • Educate yourself with trustworthy resources like Money and Markets. Does it take time? Of course. Yet every minute is an investment in yourself — the one investment that is sure to pay off big.
  • Find a good coach to show you the ropes. Few people cross the finish line alone. You need support from people you trust. But beware: Not everyone who says they want to help has your best interest in mind.
  • Practice small before you go for the gold. However much money you have, resolve to keep most of it safely in cash until you are confident in your abilities. Even then, keep your bets small.

Lesson # 2: Remember Your Team

The Tour de France is a team effort. The team leaders get the headlines and publicity, but they’re the first to admit they don’t earn it by themselves.

Each cycling team has a variety of specialists: Sprinters, climbers, helpers, and others who all work in their own way to push the leader ahead in the “general classification.”

Your investment portfolio also has specialists:

  • The CEOs of the companies whose stock you own
  • Mutual fund managers who are handling your assets
  • Newsletter editors who give you recommendations

All of these professionals work for you. By working together, they drive the team leader — that’s you — towards success. If you pick them well, and they do their jobs right, you’ll reap the reward.

Lesson # 3: Focus On the Long Haul

Unlike most other competitions, the Tour de France is actually a series of more than 20 daily races, or “stages.” The winner is determined not by who wins the most stages, but by who has the best overall time.

The road to success is long and winding.
The road to success is long and winding.

Some stages are relatively easy. Others are much, much harder. While the media likes to focus on the winners of each stage, what counts is the total elapsed time.

In fact, it’s quite possible to win the Tour de France without finishing first in a single stage! Greg LeMond, another famous American cyclist, did exactly that in 1990.

What does this tell you? Steady and consistent returns are the route to success. Wear yourself out on one stage and you’ll likely fall behind in the next.

In the same way, winning big in any one year does not guarantee a lifetime of investment success. Simply put, if you have a banner year, it may mean that you’re taking too much risk and just got lucky. And your luck will run out sooner or later.

Suppose, for example, that you make a nice 10 percent return this year, next year, and the year after — in fact, you make 10 percent a year for twenty straight years! You think you’re a genius and keep on betting.

Then the twenty-first year brings an 80 percent loss. Oops. There goes your winning average — and possibly that comfortable retirement you thought was locked in.

Moral of the story: If you’re ahead in the race, don’t take needless risks. Trying to impress the crowd is a good way to lose your lead … it can happen in the blink of an eye.

The 2009 Tour de France is taking place right now. Meanwhile, your race for financial success is well underway, too. And your odds of winning it will go way up if you take these three lessons to heart.

Best wishes,

Ron

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules