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Simple Lessons for Peace and Profit in Stock Market Investing
Thank You for Subscribing to The Wealthy Dummy! Here are my 9 simple lessons learned
over 20 years of investing. My intention is that they will bring peace and profit to your
investments.
#1 Make Money Your Honey. Most of us have an ugly relationship with money. We don’t like
it, but need it. We believe money is the root of all evil. We put it down. We waste it. We flaunt it.
We covet it. We are jealous of those who have it. Here's my million dollar idea for you:
Understand your beliefs about money. If you are not at peace with money, you will self
sabotage. Your money beliefs and your intentions for wealth and prosperity must be aligned.
#2 Automate your Investments. Use your banks' Bill Pay service to pay yourself first by
investing CONSISTENTLY and AUTOMATICALLY. Choose a mutual fund or ETF (Exchange
Traded Fund) and invest weekly or monthly. Start small, think big. When you receive a raise, a
tax refund, a bonus, or a gift, first give thanks. Then send a portion of it to your investments.
Your future self will thank you for it. Automation emasculates fear and greed -- the emotions
that sabotage stock market success. Automatic investing over the long haul is the
investor's best friend as it lowers the average cost of your investments through the
fluctuations, and neutralizes the knee jerk reactions to fear and greed.
#3 Make your Mistakes Early. Losses are Tuition Paid to Learn the Nuances of the Stock
Market. Despite quotes attributed to Warren Buffet, mistakes are inevitable in investing. I
have made every investing mistake possible. However, I made my mistakes early in my
investing journey. Over time, the stock market is very forgiving and you will recover from
mistakes. Never repeat mistakes or let small losses become large ones!
#4 In the Stock Market, Boring is Beautiful. Wall Street panders to our ego by offering up
creative fads to beat the market. However, study after study has shown that 80% of Wall Street
money managers cannot beat the market benchmarks consistently. These are the folks who
spend every waking hour living and breathing the stock market! If professionals cannot beat the
market benchmark, average investors -- with less time and knowledge -- cannot. In stock
market investing, boring and average is the way to wealth. If you are looking for excitement, go
to Las Vegas. At least the casino will pay for your seafood buffet before they skin you at the slot
machines. Never seek excitement and adventure in the stock market. Pick the lowest cost
index ETF (Exchange Traded Fund) or mutual fund, that allows you to start small, and add small
investments, with zero commissions (most brokers have them). Automate it, and let
compounding work its magic.
#5 KISS the Stock Market (Keep Investing Stupid Simple). If you struggle to explain your
investment rationale to a 10 year old, find another investment. We make investing
unnecessarily complicated by trying to find the next winner. Instead, embrace human ingenuity,
and invest in the total market. We cannot predict which sector, or stock, or innovation will
succeed. Invest in them all. That is what a total stock market tracking index does. Index
tracking empowers us to invest in all human endeavors pursuing happiness and progress. If
you are optimistic that the future will be better than it is today, then the stock market is the best
wealth building tool to participate.
#6 Understand the Power of Compounding. Albert Einstein called compounding the 8th
wonder of the world. Time in the market -- not timing the market, is the best way to compound
market gains. It's important to ride the gyrations of the market. Gains and losses are

