Saving is as necessary to Wealth Accumulation, as rain is to growing flowers.  But Saving is not enough!!  Once you start saving some money, you need to get that money working as hard for You, as you do for it.  This area is about investing in Mutual Funds, GICs, ETFs, Stocks and Bonds.  In my opinion there are only three ways for the average EMPLOYEE to become wealthy.  One is Investing in Real Estate, the other is Market Investing, and the last is, to Start a Business.  The second choice is what this section is about.

If you know me, then you will know that I spent a lot of time making Blizzard Entertainment rich by playing computer games.  It was a bad habit.  I have replaced that bad habit with a better one.  (I am a recovering WOW addict.)

I now play a better game, the STOCK MARKET.  (The wife may not agree with that statement. LOL)  I don’t devote quite as much time to stocks as I did to gaming, but it’s close.  Although I will say, that some of what I learned in the Market Place of WOW is very much the same as on the Stock Market.  I’ve been Market Investing for about 14 years now, and I am no expert.  I have never met an “Expert” either.   Though I have definitely met some people who claimed to be Experts.  (X is an unknown quantity.  Spurt is a drip under pressure.  So an EXPERT, is an unknown drip under pressure.)   I have had some successes, and also many failures.  But I have learned a lot in that time, and look at my failures as how I have paid for my education.  I just wish my lost money would re-spawn as easily as my character did every time I got killed in WOW.

I am like many of you, I didn’t have thousands of dollars to start.  So almost all of the books and seminars on investing that I read and attended, were difficult to apply.  I have not found a book, as yet, that talks about investing starting with only $500.00 dollars.  I call people in this category “MICRO INVESTORS”.  Since there is so little information out there for “Micro Investors”, much of what I’m going to talk about has been learned by actual experience, the hard way.

The pages under the Investing heading will talk about the information that you will need, and maybe more importantly, the attitude you will need, to be a successful Micro Investor.  All this information comes from the Micro Investor point of view.  If you have $50,000.00 to start investing, then you are not a Micro Investor.  There is a huge difference between having a $50,000.00 and $500.00 investment budget.

The articles here are for people who do their own investing, so the first thing you need is an online trading account.  There are a ton of people out there that will offer “Online Trading”.  Here is your first piece of advice, use a reputable firm.  In Canada, use one of the major banks.  Since you will want to transfer money between your everyday banking accounts and your Trading Account this makes life easier.  The major banks may not have the cheapest commissions, but they are well regulated, and the income tax forms they give out, are recognized by Revenue Canada.

I will warn you now that most Financial Planners and Investment Advisers will warn you against stock investing if you only have $500.00.  They will suggest that you begin your education with Mutual Funds.  That may not be the worst advice.  I recommend that you practice with stocks through your online account for at least 6 months to one year, before you ever use real money.  It will take at least that long to learn how to use the “Investing Tools”, that come with your trading platform.  It will also allow you to develop the mindset, rules, and knowledge that you need to trade successfully.  Mutual Funds are a good place to park your money while your learning.  Mutual Funds as a “Market Investment” is like learning to drive a car by taking a cab.  It’s just not the same if you don’t have control.

Besides you’re investing to make yourself wealthy, not the banks and investment companies.  You will soon see that much of the “Financial Advice” out there is far more beneficial to the Banks and Mutual Fund companies than it is to you.  With all that said, welcome to the exciting world of “Micro Investing.”

Keep Learning: Uncle E