TOPIC: valuable lessons that I learned from over 20 years spent in the investment industry

Twenty years ago it was almost impossible for a rookie to invest in the financial markets, but nowadays, with the evolution of the industry, it is very easy to make money, without needing the help of the big guys - the investment banks. They all want you to believe that you couldn’t handle your money without them because you are their profit maker, but I will debunk some myths by sharing with you 7 valuable lessons that I learned from over 20 years spent in the investment industry.

1. Fees and inflation will eat up your money - If you are a retail client, there’s absolutely no way to make money, unless you get the knowledge and do everything by yourself. By reaching out to an investment bank for advice, you find yourself paying fees for every trade you make without even knowing.


2. The investment fund companies are great marketers but they often fail to deliver - They are not interested in the retail customers, they’re interested in the high net worth guys, and they will market their offers in the best way possible. They promise more than they could deliver, in the hope that someone will bite. And who gets fooled most often? People without the necessary knowledge who want to become rich overnight.


3. Making profit is everyone’s goal – Investment bankers don’t work for their clients, they work for their employers and shareholders. Their main purpose is to make a profit and only then, give you the leftovers – a small share just to keep you going.


4. It’s all about making it sound complicated – This industry is so simple, there are only a handful of fundamentals that you need to know, like, you want to buy low, sell high, make good returns and avoid bad papers. But they come up with complicated definitions and terms, just to give you the impression that you wouldn’t last a day in the financial market without them.


5. Commission is king – Of course your banker is nice to you and available all the time, but this is just marketing because the more they sell, the bigger the commission, and the bigger the yearly bonus.


6. Use brokerage online accounts – The times have changed, but the private banks still offer you trading by phone or email, where you have no control of the price you pay. On the other hand, there are brokerage accounts where you can sign up online and you can trade knowing the exact price you’re paying.


7. Internet gives you valuable information, 24/7 – All the investment banks have the same resources of information and you have them too because everything is out there on the Internet. A simple Google search tells you for free what others charge a fortune for.

There is one simple conclusion that you can draw from these 7 lessons and that is that if you want to master the game of money, there’s no way around, but putting the time to learn the fundamentals. I encourage you to take just a few minutes every day to go online and do your research, and I can guarantee that in a year from now, you will have a really big knowledge and you will be able to manage your funds without any help.

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