Do You Need an Investor Coach or a Facilitator?

Another NFL season has ended. Sadly the Packers were not crowned champions this year. However, 2013 looks to be a great year for the Pack.

Green Bay Packers Head Coach Mike McCarthy. Ph...
Green Bay Packers Head Coach Mike McCarthy. Photo by Thomas J. Grant, Skaneateles, NY, USA. (Photo credit: Wikipedia)

While watching the playoffs and the Super Bowl I couldn’t help but notice the winners had a total team effort, players, coaches and support staff. Each had a factor in the success of the team. Imagine if the players made all the decisions. Many of these decisions would be emotional, in the heat of the battle. There are many cases where the coaches make emotional decisions based of public opinion.

The coaches who make these emotional decisions most times are unsuccessful and inevitably fired. Some have short term success, but in the long run will fail. To be successful teams need a plan, a process and the discipline to follow their plan.

Recently I have been watching TV commercials with some Wall Street bullies luring investors to do it themselves. These bullies have the tools and trading strategies to lead investors to success. Keep in mind these bullies need investors to trade and trade often. It’s a classic case of bait and switch.

These bullies tell you that you can call an expert for help. Unfortunately for you this help is nothing more than order taking. These experts are what I call investment facilitators.

The investor will call during an emotional time in the markets and want to make some ill-advised trades.

These facilitators will be more than happy to accommodate.

Like all sports we need a coach to help us develop a prudent process and remain disciplined. If you are working with an investment facilitator, STOP.

These facilitators do not have your best interest in mind.

Everyone needs a coach to guide them through the emotional times in the markets. We need a coach to help us develop an investment policy statement and more importantly keep us focused on our long term goals.

If there were no short term down periods in the market, the return premiums would not be realized.

Investors need to avoid listening to the financial pornography of the media and hire a coach. There are three simple rules to successful investing:

  • Own Equities
  • Globally diversify
  • Rebalance

Although simple, investors need to remain disciplined NOT trading.

  • Cramer and His Colleagues Are Killing Your Returns
  • Chasing Carriages and Investment Returns
  • Should You Get Out of the Equity Markets?
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