Frequently Asked Questions
The following FAQs are typical of what most people want to know about TRAIN2INVEST when they first investigate who we are. If you have additional questions, please email us at info@train2invest.com. We will be pleased to answer them.
1. Who is TRAIN2INVEST?
Train2Invest is a leading investment education company headquartered in Winnipeg, Manitoba, Canada. Since our beginnings in 2004, we have over taught over 2600 individuals and families how to self-direct their portfolios. Our students range from novice investors (those that have little to no experience) to people who have traded on their own for many years. In all cases their desire is to be more in control of how their money is working and they are looking to create consistent, profitable returns above the industry average.
2. What does TRAIN2INVEST do?
TRAIN2INVEST provides a step-by-step education and training program that teaches individuals and families how to master self-directed investing in the stock market. We teach, train and coach our student to success using a proven strategy delivered through a comprehensive learning environment. Because people cannot develop good habits and a functional skill-set in a short period of time, our education, training and coaching process is 6 months in length followed by optional support based on student needs. We deal with the intellectual, psychological, and emotional aspects of investing. We focus on three primary areas; preservation of capital, risk management and money management to teach a process of achieving consistent, profitable growth year after year.
3. What will I learn if I take your course?
We teach our students the principles, skills and mind-sets of making informed investing decisions following a strategy of creating small consistent returns within a shorter period of time. Their goal in active investing is to achieve a 1% gain within a 14 day period – growing approximately 20% to 30% per annum on a compounded basis. Our students learn a variety of different concepts that in the end will enable them to make sound decisions on buying and selling shares. We cover topics such as financial excellence, risk assessment and management, global markets, geopolitical events, fundamental analysis and technical analysis. In addition to active trading, our students also learn how to work with their complete portfolio. In some cases this means both short-term trading and long-term investing.
4. Why should I consider taking the TRAIN2INVEST course?
Most people look at self-directed investing as too difficult a challenge primarily because they see the stock market as very complex. In all likelihood, you have been brought up with many theories and/or myths of investing which dictate how you do things today. However, if you take the time to gain knowledge and develop a skill that creates confidence, it is much easier to embark on new paths. The TRAIN2INVEST course is geared to develop this knowledge a little bit at a time to reduce fear and anxiety and replace those feelings with confidence. Self-directed investing done right is very beneficial to you as an individual and to your family. Consider how your financial picture will change if you gain the ability to grow your portfolio by 20% to 30% a year. No one cares more about your money than you therefore you should not only understand how it is working but also be able to take an active role in making those important investing decisions that meet your goals and objectives.
5. I already use a financial advisor to do my investing. Why would I change?
Using a good financial advisor is an important aspect of investing and a great asset to building your wealth. But having a financial advisor does not remove your responsibility of understanding what is happening with your portfolio and knowing what questions you should be asking to make sure you are getting what you want. In many cases however, financial advisors are really just mutual fund sales people being paid to generate new business for their company and are not positioned to understand your goals and objectives. And on top of that, financial advisors are not the ones who are actually making the decisions with your money. Often this is the fund managers. Without a good understanding of what your money is doing and where it is being invested, you may soon realize that the “plan” you are following isn’t necessarily the right one or the best one for you. In addition, the fees most people pay to have someone manage their money will eat up over half of their potential profit over the life of their investments. That can be a huge cost for mediocre returns.
6. 20% to 30% seem like a very big numbers. They seem too good to be true. Are they?
We certainly acknowledge that those numbers are big compared to what most people get today on their investments. The average rate of return for managed money right now is about around 5%. GICs pay about 2% and bank accounts pay next to nothing. How can we talk about 20% to 30%? Think of it this way. Most people look at investing as a single decision that needs to grow a certain amount over time. This strategy is called “buy and hold”. Coupled with extreme diversification (like a mutual fund) the result is typically a lower rate of return. However if you change the way you look at investing and consider the benefits of small, consistent gains, 20% to 30% is achievable. We teach our clients to focus on 1% gains within a 14 day period. If you made 26 decisions during 1 calendar year that made you 1% on, you will have achieved (with compounding) a 30% return on your invested money. It all comes down to good choices and good money management skills.
7. If this works, how come my mutual fund doesn’t return 30%?
The goals and objectives of a mutual fund manager are very different from your objectives as an investor. And the rules they have to follow are also much different than the rules you can follow. In addition, it is much easier for you to move your money individually in and out of the market than it is for a fund manager to move hundreds of millions if not a billion dollars around. On top of that, your money with a mutual fund is only part of a very big pot and therefore does not get personal attention. Quite different if you are managing things on your own.
8. Why 1% and 14 days?
Two reasons. First, 1% is a very achievable return. Consider that if you buy a $30 stock, it only has to go up 30 cents (plus the cost of trading which is usually pennies per share) in order for you to make 1%. Second, 1% also removes any greed out of the equation. Knowing you can achieve a small gain on a consistent basis within a short period of time, means you will become a lot more confident about putting your money to work. As for 14 days, this is simply a reasonable guideline. Many times our students will achieve their 1% profit target in a few days leaving them ample time to do any additional research for their next decision.
9. What makes TRAIN2INVEST different from other training companies?
Most companies that teach people how to trade do so with a piece of software. They are actually training you how to use the software. Unfortunately that still leaves you in the dark when it comes to knowledge since you are now simply relying on software to make decisions for you. The TRAIN2INVEST program focuses on developing your knowledge and skillset first and then teaches you how to use software as a tool. We realize that many companies promote the ‘easier’ approach. That is to say they do all the work for you. But at the end of the day, how willing are you to risk your family’s retirement and inheritance money on what some programmer developed and says will be foolproof? Knowledge is always the best investment.
10. You said the course is 6 months long. Am I in class all that time?
No. We work with our clients for 6 months because we want them to be successful. The TRAIN2INVEST learning process is separated into 3 phases. Phase 1 is education delivered one class per week for 10 weeks. Phase 2 and 3 are research, practice and coaching where you apply the knowledge you have gained to begin trading and improve your decision strategies. Check out the Phase descriptions on other tabs in this page.
12. Do you make anything off of my money?
Not at all. We deliver education. We are not financial planners, advisors, stock brokers or in any way connected with the financial services industry for the purposes of profiting off of your decisions. We do not recommend stocks or give investing advice. We do however, provide you with some of the very best education you can receive about making well-informed, sound investing decisions.
13. How much money do I need to invest?
This of course is a personal decision. Most people will start with a self-directed Tax Free Savings Account. That is a great growth opportunity since the profits are all tax free. When they see success, it is only natural that over time they increase the amount they actively control. It is not uncommon to invest $50,000, $100,000 or $250,000 when you are comfortable.
14. I am interested. What do I do next?
If this all makes sense, we encourage you to participate in one of our webinars. There you will learn more details of our whole program and be able to quantify if this is the right thing for you. Webinar details can be found on this site under the tab Webinars. There are also a list of FAQs there as well for what we will cover.
15. How much does this all cost?
Of course this is a very important question but one we like to provide after we have had at least one conversation. Everyone needs to consider cost as it relates to the value of what you receive. Like all education, someone will tell you that you can get what you need for next to nothing (think university degrees on the back of matchbook covers) and someone else will tell you that you need to spend tens of thousands of dollars to get a Ph.D. in investing. We like to look at it a different way. Return on investment. If you are serious about putting your money to work, then you need to consider not only what education costs, but also what you are paying today relative to what you are achieving. Unfortunately, too many people are paying as much in fees as they are getting in returns. That’s expensive investing.
