Be The Master Of Your Financial Fate

"Time is our greatest ally in investing", that has always been the advice that we always get from finance professionals and experts. Though there is some significant truth in it, time alone is not efficient enough for us to get the most out from our investments. Market timing is important as time itself. Both time and right timing, if done and made right, can give us maximum results from our investments. 

But why do we often hear about "time" and rarely hear about "market timing" from these professionals and experts?

The answer is relatively simple. These professionals and experts know how to time the market and they are using our money to earn profit as well. Here are the reasons why these people give "time" as an advice for investments.

1.) These professionals and experts handle our money differently. While we let it "sleep and grow", these people are actively trading, buying low and selling high, and earning profit on a consistent basis. The end result? They earn more than us and even without letting any penny out of their pockets. Thus, it makes sense why some financial institutions have this so called "lock in" period because it can give them an ample amount of time to earn significantly and at the same time minimizing their risk because of the longer duration of having our money on their hands.

2.) Because of the market volatility and unpredictability, we may hand your money over to them when the market is not doing good. By heeding to the advice that "time" is our greatest ally in investment, such professionals and experts get more room to patiently wait for the right entry in the market to buy low. Buying low means more upside or growth potential.

3.) Time has not just been associated but has been exclusively linked to investments. Let's take a look at how an investor and how a trader is defined. An investor is defined as somebody who looks long term while a trader is somebody who buys and sells in a short period of time. Worse, traders are often associated as gamblers because of the unpredictability of the market. Investors are traders. Anybody who buys and/or sells trades irregardless of time. This erroneous definition of an investor and a trader gives the negative notion to our minds that an investor is way better and less risky than a trader.

This is not to put down the reputation of finance professionals and experts and even agents and brokers but the point of this one is just for us to further enhance our financial IQ and correct our distorted mindset about being a trader and an investor. These people know how to handle money in a much more effective way than we do. If we want to be more efficient with our money, it makes some real sense for us to learn the things that they do.

Its quite ironic that most of us went to school, have a career, and earn money yet we weren't taught of how to handle and value money. We may never know everything that these people do (its their profession and career in the first place) but at least improving our financial knowledge will make us more efficient in handling our finances. The worst thing that we can do with our money is to hand it over to other people without even knowing how they are handling it.

Mathematically, individual traders outdo mutual fund firms (individual traders handle mutual funds in the first place). An average good and logical trader could earn a conservative 20% in a month to as high as 50% or even more. Some stocks even go more than 100% in just a matter of days or weeks so we see the potential that these people have. Mutual funds conservatively grow by 12% in a year or as high as 40%-50% in a year. What individual traders earn in months is earned by mutual fund firms in a year. See the difference if we handle our investments correctly or at least know where to put our money and how they are managed?

Invest in knowledge before putting money on the table. Knowledge reduces risk significantly and increases the potential of growth. Its just like earning a degree. If you do well in school, you will acquire the necessary knowledge and skills which will give you a good pay later on. Increasing your financial knowledge will make money work for you.