I originally started off investing in real estate, got into the stock market in the mid 1990's, the options market in 2000 and then the CFD market in 2004 and later the foreign exchange and commodities market in 2006. So today I recognize the importance that there is no one strategy or market that works all the time.Everything moves in cycles whether its real estate, stock market, forex market or the commodities market, everything moves in cycles. The important thing to recognize is that it's possible to make money in both
rising and falling markets, so money is just moving around these different markets. If the stock market is booming then some other market is doing poorly. If the real estate market's faltering then the money is shifting somewhere else, money isn't being made or lost it's simply changing hands. It's only being made or lost from a point of view, money is just moving back and forth and this creates opportunity.
We live in a fantastic time where we have the technology available where I can trade out even on my i-Phone or my computer, I can trade any market in the world. I can trade the Forex, commodities, options,
CFD market all from the computer. I can trade international markets, the US, European, global and Australian market, I can even control up to 50 to 100 times more money than actually have in my own account
and I can do that with a high degree of safety by using insurance on my trades. So the opportunity to build wealth today is unlike it's ever been before and it's constantly improving and becoming more exciting with new instruments that are emerging.
If there is one thing I want to share with people it’s the importance of recognizing that there is not just one strategy. I meet so many people that invest in real estate or they just buy some shares and sit on them
and frankly that is not a wealth creation strategy, that's a very basic investment strategy, but that's not a long term successful wealth building strategy. To seriously build your wealth to get to a point where
you have more money than you'll ever need for the rest of your life and more importantly the knowledge of how to make more money than you'll ever need for the rest of your life, it's critical that you learn to
understand that there are multiple different markets, that there are different strategies, there are multiple different opportunities.
Today my favourite markets to trade are the commodities market and the foreign exchange market, the main reason is because commodities such as oil, gold, silver and natural gas, to name a few,
can never go to zero, there is always an underlying demand for commodities. Same thing with foreign exchange, trading the Australian dollar, the US dollar, the Euro, the Pound, the yen, none of these markets are ever going to go to zero, unlike a company, where
company shares can in fact go to zero and we've seen in the past companies like Lehman Brothers, Bear Stearns, General Motors, some of the biggest, oldest companies in America and arguably the world have literally gone to their knees and collapsed and become bankrupt. So whereas stock market trading you do have that underlying risk of the market going to zero, be it at a pretty small risk, I prefer trading commodities and foreign exchange because:
A. the markets can't go to zero and
B. there is far more leverage possible, you can make a lot more profit at a much shorter period of time and protecting the trades is often easier and cheaper than in the stock market.
Daniel Kertcher is featured in the Mr Millionaire Book