Too good to be true?
13/02/10 21:39 Filed in: Collectanea
Too good to be true vs. you think you have found a
winner?
How do you deal with the problem of not knowing what you do not know? Like asking everyone not here to raise their hand.
Greed vs. optimism? Taking a risk vs. knowing how to manage the risks you are taking?
Many investors think inside information or a secret formula is the key to success. If you attend investment seminars the pitch from stage always has an element of ‘run to the back’ so you too can buy into the course, seminar or other materials where you will learn the secrets.
It has been said that 80% of the people who attend a seminar will never do anything with the material. It becomes shelf-ware and it gathers dust. An opportunity lost in some cases. That said, how can you tell if the material on offer is going to be good value.
1. Will you actually take action? When was the last time you attended a class or read a book and not applied what you learned? When was the last time you put your mind to something and actually put to work what you learned? The biggest risk of failure actually starts with the student. The person who is too lazy to apply what they are buying is never going to succeed independent of the quality of the information provided.
2. If you are in the 20% that actually does take action, make a promise to yourself that you will not buy more material until you have earned back what ever you are about to spend on the present offer. Make it produce what it has cost you to get started before you increase your investment. If you are not sure you can do so why spend the money in the first place. If you lack the commitment or think you will need more than the info being offered, rethink what you are about to buy.
3. Can you get the same info from a book, from online forums or other places? A seminar, course or package of information might be worth the price if it is well put together. Or you can get the same info from a book that will cost less than £50 or £50. Some are even available at a library where you do not have to pay to view the content. If the book is a winner after reading it for free buy a copy.
4. The web has a lot of useful info so check there. Just understand that many times the web will have only a partial view. Most people who contribute to a forum or provide a short write up will be providing a narrow slice of a bigger story. A book published in a more classical fashion typically is more complete or substantial.
5. Final point. When trying to deal with what you do not know you do not know, probe a little. Take a step forward and see what else you bump into. In many situations you are learning in the same way you peel an onion. You need to find out more each time you peel back a layer. You also start to understand better what certain information really means when you have some experience. Your perspective changes what you read, what you hear, what you see if you are watching a video.
A final warning. If you are buying something understand how the person selling it is motivated. Do they get their money upfront independent of how you do? Are they paid based on your performance like a joint venture or profit sharing structure would imply? If they can win when you fail be very careful. Be responsible for your own performance but do not trust them to be providing independent advice as to if you have what it takes.
John Corey
How do you deal with the problem of not knowing what you do not know? Like asking everyone not here to raise their hand.
Greed vs. optimism? Taking a risk vs. knowing how to manage the risks you are taking?
Many investors think inside information or a secret formula is the key to success. If you attend investment seminars the pitch from stage always has an element of ‘run to the back’ so you too can buy into the course, seminar or other materials where you will learn the secrets.
It has been said that 80% of the people who attend a seminar will never do anything with the material. It becomes shelf-ware and it gathers dust. An opportunity lost in some cases. That said, how can you tell if the material on offer is going to be good value.
1. Will you actually take action? When was the last time you attended a class or read a book and not applied what you learned? When was the last time you put your mind to something and actually put to work what you learned? The biggest risk of failure actually starts with the student. The person who is too lazy to apply what they are buying is never going to succeed independent of the quality of the information provided.
2. If you are in the 20% that actually does take action, make a promise to yourself that you will not buy more material until you have earned back what ever you are about to spend on the present offer. Make it produce what it has cost you to get started before you increase your investment. If you are not sure you can do so why spend the money in the first place. If you lack the commitment or think you will need more than the info being offered, rethink what you are about to buy.
3. Can you get the same info from a book, from online forums or other places? A seminar, course or package of information might be worth the price if it is well put together. Or you can get the same info from a book that will cost less than £50 or £50. Some are even available at a library where you do not have to pay to view the content. If the book is a winner after reading it for free buy a copy.
4. The web has a lot of useful info so check there. Just understand that many times the web will have only a partial view. Most people who contribute to a forum or provide a short write up will be providing a narrow slice of a bigger story. A book published in a more classical fashion typically is more complete or substantial.
5. Final point. When trying to deal with what you do not know you do not know, probe a little. Take a step forward and see what else you bump into. In many situations you are learning in the same way you peel an onion. You need to find out more each time you peel back a layer. You also start to understand better what certain information really means when you have some experience. Your perspective changes what you read, what you hear, what you see if you are watching a video.
A final warning. If you are buying something understand how the person selling it is motivated. Do they get their money upfront independent of how you do? Are they paid based on your performance like a joint venture or profit sharing structure would imply? If they can win when you fail be very careful. Be responsible for your own performance but do not trust them to be providing independent advice as to if you have what it takes.
John Corey
|
