ECONOMIC OPPORTUNITIES IN A RECESSION

Why do the rich get richer, and the poor get poorer? The answer is understanding how money works in the economy and in our personal lives so that we can make the system for us. One such way is knowing when to invest in an opportunity when it appears. For many of the wealthy they invest during a recession. Why? It is during a recession when prices tend to go down. They understand the logic of buying low and selling high. This approach has been adopted in the real estate Market as well as the Stock Market. However, many sectors within the stock market have many different seasons of highs and lows. Being able to identify these opportunities within these sectors is the key to being successful in making a profit. How does one get started?

1. EDUCATE YOURSELF IN HOW THE FANCIAL SYSTEM WORKS.

Today we live in the Information Age. What might have worked in the Industrial Age will not apply to the Information Age because the rules have changed. Those who learn how to adapt to the rules of the Information Age will prosper while those who don’t will get left behind. How does one go about adapting? By taking the time to educate yourself in how the Information Age works. The internet is very rich in supplying information on this and many other topics. Also, you can invest in your financial education by reading books and articles that deal with the subject. It is a lot cheaper than getting a college degree. Not that I am saying it is necessary wrong to get a college degree, but that some college degree majors have been known to become obsolete in the passing of time. Today we find ourselves in a world where information is constantly changing at a faster pace and being able to decipher the latest information from what is obsolete will be essential in being successful. A good example is the Crypto Currency Market. Those people who took the time to understand this market where able to take action in the early stages so that they would be able to make a profit. Those who did nothing ended up with nothing. However, those who were able to recognize another opportunity in the Crypto Crash were able to get out of the market so that they could reinvest their profits when the bottom was finally reached. These are only a few examples. By educating yourself in how the financial system works you can train yourself to spot these opportunities as they present themselves.

2. PAY YOURSELF FIRST.

Another reason why the rich get richer, and the poor get poorer is because the rich have learned to pay themselves first. In the book called “Rich Dad Poor Dad” the author (Robert Kiosaki) mentions this. The Rich makes it a habit of taking no less than 10% of their earnings aside for themselves so that they can build up capital for investing purposes. This practice goes all the way back to the ancient Babylonians where the cradle of civilization first began. An excellent book to read on this topic is called, “The Richest Man In Babylon” by George Clason. This book is a classic. Even today we find many televangelists practicing this principle by instructing their parishioners to give 10% to the church. It would be wise to learn from them by giving ourselves 10 %. We can do this immediately while we are taking the time to educate ourselves so that way, we can be ready when we recognize an opportunity to invests.

3. USING THE TOOLS THAT THE INTERNET OFFERS.

Whether you choose to invest for the long run, or trade stocks, ETF’s, commodities, etc. It would be wise to take advantage of the tools that the internet provides you. Some websites that allow their clients to buy and sell stocks provide certain indicators to help assist their clients by knowing when to buy, and sell. There are many to choose from. Yahoo Finance has many to offer that are free. Now keep in mind that one shoe does not fit all. I would encourage you to do your homework and discover what indicator, or Indicators work best for you. Not everyone's style of investing is the same. Discover what works for you. Also, you could hire somebody to do the research for you, but it will cost you money. Some websites do provide information on the current stage of the markets latest news. You just need to take the time and do your research to see what is available.

4. PRACTICE MAKES PERFECT.

Before you actually make an investment with your hard-earned money it would be wise to practice your skills by doing something called Paper trading. Paper trading is basically trading make believe money instead of real money. Think of this as a simulation to doing a real trade. TD Ameritrade has a platform where you could do this. This can save you from losing money by working out the kinks with make believe money. Keep in mind that people learn by making mistakes. Paper trading allows you to make those mistakes without losing money. That way when you feel you are ready you can have the confidence in making real trades online.

5. NETWORK WITH OTHER LIKE-MINDED INVESTORS.

I recommend that you use social media to network with other people who are like-minded like yourself. This can be done through Facebook groups or blogging websites. This is an excellent way to encourage yourself and others to learn from each other and share opportunities as they present themselves. Not everyone will share your passion and desire to make passive income online. There always will be nay-sayers in your life. You have to realize that there will be people who will try to keep you down by discouraging you to be the best you can be. They tend to play it safe. You need to be choosy in who you associate with. Sometimes you can’t depend on friends and family. That is why I recommend social media. It is an excellent way to network with other people who share your passion. Take advantage of it.

Conclusion: There are more opportunities to prosper than ever before thanks to the internet. As the Greek Proverb goes, “FORTUNE FAVORS THE BOLD.” It all takes action on your part to make it a reality. You have to put in the work. Believe in yourself. It can be done. Now go do it.