by Brian Price

Created on: July 25, 2008

Saving for the future is always a admirable venture. We all know how to cut costs to provide more to save but at the end of the day what good is saving if you do not couple that with some basic investing success. Why save $1000 at the end of the month to invest it at the wrong time in the market in the wrong way and have it fall in value to just $800 or less?

Clearly, there are other areas to use savings that do not involve investing in the stock market, yet why not invest your savings in the stock market. You can do it and you can win. All it takes is a macro or large market view. Avoid the traps of micro or individual stock view as the risk increases and the reward is questionable. Yes, even $1000 can get you started in the stock market and you can begin winning. To build real wealth you must invest the savings to let them grow. In order to invest you need to spend a little time getting to know the market.

The market moves in cycles. Mastering these cycles will provide the avenue for savings to grow and become wealth. It is generally easy to master the signals as long as you focus on the macro market. The larger market.

Think of the market in terms of it going up (long) and it going down (short). There are trends to the long and the short and the market so far this year has had three different turns in these trends. Jan 3 we trended short. March 15th we trended long and June 1 we trended short. We are currently trending short. If you invested any savings in the market after June 1 that investment lost value. Savings become easier if we stop losing.

In order to stop losses and start winning I subscribed to a national newspaper and in this newspaper there are three sections that help me to gauge the direction of the market and move long or short with my savings to build wealth. It would stand to reason that the market can be gaged day to day and week to week with data. People do that all of the time. If top stocks are moving up in price more than the same top stocks are moving down in price then the market as a whole is increasing. Yor savings is building wealth. When this trend reverses. When the winning top stocks are less in vlaue than the losing top stocks the market has reveresed its trend and if you stay long you will lose wealth. If you move short, you will gain wealth as the market moves down. You need to master these moves to take your savings and build wealth. The cycle moves so far in 2008 have been strong with the market moving down from Jan 3 to March 15. Up from March 15 to June 1 and down from June 1 to now. Mastering these trends and adjusting from short to long to short again has proven to be the best way for this author to buld enough wealth to retire at 41 and go back to college fulltime. Crunching this data from this newspaper takes me 15 minutes per night and applying that to a trading platform using ETF's to spread my risk has been exceedingly helpful to my wealth creation from my savings platform.

If you are ready to take your savings and learn a little about markets then you can build enough wealth to enjoy life on your terms. It starts with savings, but that is only the first logical step.

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