If you really want to make money in stocks you have to understand these 3 costly mistakes that most subpar investors are making. If you know these costly mistakes you’ll be ahead of 95% of the investors out there already!
When I first started learning about stocks the first thing I did was turn on CNBC and started watching the Talking Heads talk about stocks, the stock market, and business all day.
I was becoming a stock investor… (Sarcasm)
I watched and watched and tried buying the stocks they would talk about on the shows, but nothing was really doing well. Part of it was, I was expecting to buy these stocks and they would suddenly pop up and I would make a bunch of money and then move to the next one.
It didn’t work that way. I just wasn’t making the progress I expected.
I started reading about stocks on Yahoo and Google and I was buying and selling, but I just wasn’t getting very far. I thought to myself, how am I going to make a career of this when I wasn’t making steady gains?
This is pretty much how my stock investing learning phase started. I was making small gains and then pretty much losing them back on the next trade.
On top of all this, I was paying $7 every time I bought a stock and $7 every time I sold it.
The talking heads were talking about the next great stock, I’d buy it, and then not much of anything would happen.
This is a pattern that most beginning stock investors get into. They can’t seem to get ahead because they’re too focused on what others are suggesting rather than understanding how to pick solid stocks on their own.
So, what are you suppose to do? Well to start:
Ignore the Pundits
If you want to be successful with stocks, turn off CNBC.
CXO Advisory https://www.cxoadvisory.com/gurus/ did a study of the so called stock gurus and graded them on their accuracy in making successful stock predictions. You’re probably already guessing how it went.
It was not good. Most stock predictors had about a 50% and below success rate. You’d be just as good flipping a coin at those rates.
If you want to be successful in stock investing, don’t bother with the TV or internet pundits. You need to understand how to pick successful stocks on your own.
What About Mutual Fund Managers?
Ok, so if the TV and internet gurus aren’t reliable what about the people who actually manage other people’s money for a living?
Mutual fund and hedge fund managers pick stocks for people for a fee.
So if they’re making money investing for other people you’d expect them to be good right? You’d think so, but that’s not exactly how it goes.
MarketWatch https://www.marketwatch.com/story/why-way-fewer-actively-managed-funds-beat-the-sp-than-we-thought-2017-04-24 reported how many fund managers actually did better than the overall stock market which you can invest in for a lot cheaper.
It was about 1 in 20. Yes, about 1 in 20 fund managers actually did better than the stock market in general. So, what’s the point in using a fund manager? There really isn’t a good point. On top of poor performance they charge fees which you could avoid all together.
Maybe Financial Advisors Can Help Us?
Financial Advisor performance varies, but most people will probably see the same performance as fund managers.
With an over focus on risk diversification and fees on top of that there generally isn’t much gains left over for the actual investor.
Financial advisors will either charge a monthly fee, a per visit fee, or a percentage fee all for subpar gains.
What Can You Do?
If you can’t count on pundits, the fund managers, or even the financial advisors what are us millennial investors left to do?
Do what we do best. Manage our investments ourselves.
You may be thinking, but how would I know any better than one of these professionals.
*Well, check this out guys. Even if you just invest in the overall stock market (an S&P 500 Index ETF, I’ll tell you more about these later) you are beating over 95% of all pundits, fund managers, and advisors!*
That info above is worth so much money over your lifetime.
You can beat all those fancy managers and do it without all the fees! If you’re already using one of the above then start thinking about getting rid of them.
I’ll tell you more about the S&P 500 Index ETF soon and I’ll be showing you how to invest in winning stocks that do even better than the S&P 500!
What I’m about to teach you is what I call the The Stock Badass Strategy. You’ll learn how to match and even beat the stock market, pundits, fund managers, and financial advisors! More info coming soon!
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CREATOR OF MONEY BADASS WITH MY LOVELY WIFE KRISTA