The New Paradigm Investor

In today’s rough and tumble economic environment, investing is no longer simply a choice – it’s an absolute necessity. The need for investing is significant in light of our longer life, greater imbalance between income and expenses, and the diminishment of our purchasing power due to inflation. In this book, I establish that investment is a necessity and not a luxury choice due to the above-mentioned factors and dynamics. I aim to demystify the common misconception that you should consider investing only when you are wealthy and thriving.

If it seems, however, that you’re living to work rather than working to live, then what’s the solution? In fact, there’s really only one solution: You need to supplement your income with investing.

Of course, that begs the question, why then do so many people not invest? One possible answer is that most of them don’t realize the importance of investment and how necessary it is. But the most likely reason is because the majority of the population either doesn’t know how to invest or they don’t feel they have enough money to pay for their expenses, let alone for inversing. That’s why they (starting with you) need to read this book!

You need to be serious in learning how to invest successfully so you will be able to cover any shortcomings from your regular income. In this book, you’ll learn winning strategies for successful investing.

In this book, I establish that investment is now a necessity for the average American and no longer a luxury for the privileged few. The investment world, like so many other disciplines in the modern era, has undergone tremendous changes. To be a successful investor, we need to have a solid understanding of the various dynamics of this new investment world. A new day has dawned, and it requires a new investment approach.

New 21st Century investment paradigm

The investment world is in the midst of a paradigm shift. This comes as bad news to those who fail to recognize it, or for those who do indeed acknowledge the change but fail to adapt to it. Conversely, investors who wisely utilize the new conceptual framework and prevailing paradigm will succeed and enjoy better performance from their investments. The new 21st century paradigm is all about achieving higher performance with less risk in a speedy manner. This represents a major departure from what was once, not that long ago, commonly accepted practice. Now, short term and flexible investment management and decision making is the order of the day. It replaces protracted, inefficient long term buy and hold strategies that are no longer practical in today’s investment environment. The new paradigm investment matrix, such as Exchange Traded Funds (ETFs), for example, is swiftly replacing mutual funds, its old counterpart. This is because 21st century investors display more inclination toward risk in exchange for higher performance by embracing hedge funds and other exotic investment strategies.

To be a successful investor and achieve a great performance from your investment, you need to change the way you were taught and trained about investing. The old ways of doing things are simply not going to work anymore. You need to learn and understand new concepts, tools, and investment models that are more suitable and productive for the current information age. The advent of technology has enabled us to obtain information much faster than ever. The Internet makes all of the information you might need only a simple mouse click away. There’s no longer any need to get locked into an investment idea or any particular stock. That type of conundrum belongs to the old ideas we were taught that insisted that to make a great return we should buy and hold for the long term, as that was the only way to be profitable. Otherwise, we were told that we were trading “noise.” However, we saw many of Wall Street’s darlings drop from their historical high to almost zero while we held them. So much for buy and hold!

In this book, you’ll learn the necessary steps to construct a winning portfolio according to the new investment paradigm. In constructing your portfolio, we’ll go over the steps that you should take: