Our guest contributor, Stevie Zenith, wrote a blog on 3 Ways to Dominate 2016 with inspiration from rapper Future. The ways to dominate include consistency, no comfort zone, and not comparing yourself to everyone else. I liked his post so much, that I felt these same ways Future is dominating the music industry, are ways people of color can dominate the investment world. Check out my variations of Mr. Zenith’s post below. You can also check out his blog in full here.
A major key to investing is consistency. After you’ve got the right education (thanks BMEX) and found out what you want to invest in (thanks #WhatATimeToBeInvesting Bootcamp), then you need a plan that can be repeated over and over to produce favorable results. One misconception in the market is that you will win every time. Heck, even the Golden State Warriors just took an L to the Milwaukee Bucks during their phenomenal run to perfection. But you must stay the course and know that profit will always trump pennies. Profit is the big picture while pennies are the little pictures along the way. If you invest in two different stocks (both costing you $200 each), then why would you focus on losing $100 from one when you just gained $400 from the other? That’s still a $300 profit or 75% return on your investment. Now look, I don’t like losing just like the next person, but you can’t worry about the battle when winning the war is the true prize. Find a plan that works and even if you pick three winners out of every 10, the key is to make sure those winners are more profitable than the losses from the other seven. Like the Jay-Z song says, “Stick 2 the Script.”
2. No Comfort Zone
Now you’re probably thinking, “How can I be consistent if I’m venturing out of my comfort zone Doc? Well, although the two are related, they are not the same. Stepping out of your comfort zone in investing simply means taking initiative and just doing it. You may figure out a consistent plan to follow, but how are you going to find it if you don’t get away from your normal money habits and do something outside the box? Many millennials have most of their money in cash. Actually 40% of their portfolios are in cash per CNN Money. The three main reasons millennials don’t invest are: 1) lack of money 2) lack of knowledge, and 3) distrust in the markets. With new age investing apps like these 4 Ways Millennials Can Invest in 2016, a great learning center right here at BMEX, and a strong sense of community amongst African-Americans, there’s no reason why not to step out on faith and get your numbers up in the financial sector.
3. Don’t Compare Yourself to Everyone Else
Warren Buffett. Carl Icahn. Reginald F. Lewis. George Soros. These are well-known and historic investors and business men. Each on is arguably the best at what he does, but how did he get there? They all got there by believing in themselves and developing their own way to financial success. Now we all need some help along the way and there is nothing wrong with unity, but when you starting comparing your portfolio to the next man’s, then you’re in deep trouble my brother. Constantly trying to be or be better than the next investor will do nothing for your portfolio. You have to focus on your plan and goals then find out how YOU CAN ACHIEVE them. Period.
Investor Takeaway: It’s time to be a Jumpman (Jumpman) in the investment world because you deserve some really big rings.
Stevie “Zenith” Johnson is a songwritter, blogger, and business creative consultant. Find out more about him and his powerful movement at www.aimforyourzenith.com.