So now you're about to put money into your account. You're going to fund your accounts. And in this video, we're going to talk about the three mistakes you should avoid when you are funding your investing accounts. This is actually a very exciting activity. I still remember when I first funding my account, I was very happy. I have a lot of great expectation to grow my portfolio, and I was very excited. So I'm sure you are the same way. And just want to give you a couple of pointers when you find your account. So then you can afford to stay mistakes that I did. So the first one is don't use money. You don't have. Now it's very straight forward, but I've seen people do it. I have talked to people to have done it and they lost money. So don't invest with money you don't have.

And this includes a home line of credit when you are first investing, because you don't have a proven investing strategy. You shouldn't use any credit card debt to fund your account because the interest rate is crazy high, like 30% per month or per year. There's no way you're going to make that back from investing. You shouldn't really use a personal line of credit as well, even though the interest rate is low, unless you're very, very confident dad, you can make back the money. And a reason why I'm really against using borrowed money to invest in the market is because you can actually lose that capital. And what you really want to avoid is to lose that capital because once you lose it and you need to make it back, and if you cannot, because you don't have an invent, a proven investing strategy yet that you need to work extra hours overtime, get a second job or whatever to pay back that loan.

And that's not going to be a good experience for you. So if you really, really want to use leverage, because in the last two videos, I did talk about leverage. Then you want to use stock options and you want to use it in a way where it limits your risk. What, you know, your exposure ahead of time. You don't want to use options where the risk is unlimited because you might get, you know, 49 trays successfully, and one bad trade will wipe out your account and actually talked to someone last week about it. And that was exactly his stats. He made 49 or 47 great trades. And the last three trades wiped out his profit for the year. So he wasn't very successful when he's using stock options, because it is complicated now. But once you master stock options and make it work in your favor, you can get a great return.

For example, like 30% a year at an Investing Accelerator here's a case study from Fion where she made 32.7% from FedEx in approximately five months. And this is actually her first investment after she has gone through the program. She's very proud of it. It is fantastic. She used options to multiplier return and limits her risk at the same time. And she didn't use any borrowed money. And that's how it should be. Now, the second mistake that people make is that they use their family's money. I have seen people borrow from their sister and they lose it as seeing people borrow from their parents' retirement money and they lose it. So if you are thinking of using someone else's money, they need to have the utmost care when you are using someone else's money. Now, when you're dealing with CPAs like chartered professional accountants, like myself or CFAs or any other financial experts, there's actually a term called a fiduciary duty.

And it means that you need to take care of your clients and you need to provide them with the best service possible and give them the right recommendations possible. And you are responsible for their success. And I think that's a very important concept because if you ever borrow or get your family's money, you need to be sure that you're right. You need to be sure that you will succeed and you can help them make money or else you can potentially lose their money and ruin your family's relationship. Now, the third mistake I see people make is that they use a margin account. Now in the previous video, when I talk about how to invest a hundred thousand dollars, so then you can retire by 55. I said that I don't like margin accounts. I don't, I have a margin accounts, but I don't use any margin within it.

And the reason is because there's something called a margin call. If you have used margin, you probably know what a margin call us and have you have experienced a margin call. You know, how horrible that feeling is. And a margin call is when you are borrowing money from your broker to invest in the market, you can actually borrow more than what you have obviously, but you need to commit a minimum deposit amounts. And that means your portfolio cannot dip below a certain figure. So let's say you have $10 and you borrow $10. So you have $20. So your portfolio might not be able to dip below $5. And if your portfolio suddenly dip below $5, even for one single second, the broker can call on your loan, which is your margin. And they can force to sell your, your holdings immediately without your consent. And that is really the downside of a margin account.

So I use a margin accounts many, many years ago, and I got margin called many ties until I learned a lesson to never use a margin account. Again, I've wished that's, you will never use one. And if you are looking for leverage, you can look for alternative means of leverage instead of using a margin account. Because if you get a margin call, then chances are all your holdings will be wiped out immediately and you will incur a giant loss. So just keep that in mind and stay away from margin accounts. So the last tip is really when is it okay to use all the sources of money I just mentioned about now, in order for you to use money, someone else's money, you need to make sure that you are profitable. You need to make sure that you have a proven strategy. And that is so, so, so important because if you haven't tested it for a year, two years or even three years, you can't really say you have a successful strategy.

And if you haven't learned it from someone that can make that kind of return, then you can really say you have a successful strategy. So you shouldn't put other people's money at risk. Because imagine if you are making $50 an hour, $40 an hour, $30 an hour, you have $10,000 and he gave it to a friend or a family you trust because that person is going to invest for you. And he just lost it in half a year. That's a lot of hours wasted for this person. You know, that person needs to make it back. That's probably going to ruin your friendship or your family relationship. So you will be responsible for your dads. So make sure you are comfortable. You're confident when you're dealing with other people's money. And if you want to learn more about investing and how I invest in markets, so then I target 30% return a year using stock options.

Then you probably want to click on the first link below and register. So I don't use any margin accounts because I don't make margin. I use stock options to multiply my return, which is quite an advanced and complicated topic. And when you click on the first link below, you'll find a very detailed webinar where I go through a lot of important investing concepts. And that's really going to open your mind to new investing ideas and how you should think about the market and how you should think about investing as a whole. So I packed a lot of value in there, and if you wish to learn the entire investing strategy step-by-step so then you can master it within the next four weeks using around four hours a week, then you want to join investing accelerator. And once you go through the learning phase of the program, that it will take around one to two hours a week to manage your portfolio is fairly passive.

Because for myself, I take around one to two hours a week to manage my portfolio, and I do my full time job, so on and so forth. So you don't need to put in that much time when it comes to investing, as long as you know what you're doing, because what's important for you is to avoid the mistakes that you can make. Then you will be making a better decision. So that's pretty much it for the next video. I'm planning to talk about what to expect in 2021, when it is after the election and how you should invest, what are the two possible scenarios that you should pay attention to and be prepared for? So I'll see you in the next video. So thank you for watching! I hope you enjoyed the video, please help support me by like subscribe and you can watch the next