4 Bizarre Things You Will Only Learn After Losing a Lot of Money on the Stock Market
Learn from those who already learned
The stock market is the worst place to start investing. The guys on wall street know this well.
If you ask 8 random people where to invest money, it is easy that 7 people will tell you to put in stocks.
Investing in the stock market may not be the best place to start. These are the 4 things they will never tell you about investing in the stock market.
You need a lot more money to make money
To invest and diversify well, you need a lot of money. You will need at least 10 or 20 different stocks to be safe and generate good returns.
The amount will depend on your portfolio, but imagine that a single Google stock is worth $2,000, Meta is worth $100, and Apple is worth $3000?
This affects both the initial capital and the time-to-time investments you make. Besides money, diversifying your portfolio well requires deep knowledge. And you must choose companies from different sectors, and countries, and also get your choice right.
It’s okay if you like the numbers, charts, analysis, and the investment itself, otherwise, there are more comfortable and cheaper alternatives to invest your money than investing in the stock market.
One example is global mutual funds that already invest in many companies around the world. With a single fund, you invest in the economy around the world for one-thousandth of what it would cost for you to create your stock portfolio.
You need a lot of time and money to learn
Playing soccer, investing, taking pictures with an iPhone, and drawing have one thing in common. These are all skills that are not developed overnight.
They have a learning process that consists of trying, seeing the result, and repeating until you master the technique.
Investing in the stock market is also the same thing.
No good investor developed his method in two days without having suffered losses. Anyone who says otherwise is lying, just like anyone who claims to have an infallible method for investing at all times in the market.
Learning to invest takes a lot of time and will cost you more money than you think. From mistakes when choosing which stocks to invest in, to failures when buying and selling (buying before it goes down and selling before it goes up).
Or even another typical mistake like making more trades than you should (and paying the mandatory commissions).
You have to be calm to do well
This is the biggest mistake investors make these days. They buy on the green and sell on the red.
That’s how the theory of stock market investing can be summed up. The problem is that doing is much more complicated than saying.
Most investors buy on the upside, when it is most expensive, and sell on the panic when the value falls. They are driven by emotions.
Sometimes something as simple as following your plan and investing all the time in the market can make all the difference.
This is something about investing in the stock market that most Wallstreet guys won’t tell you. Because your profit depends on the number of trades you make. Every time you buy or sell a stock, they make money from the commissions they charge.
What matters to the Wallstreet guys is that you trade, win or lose, because then they always win. That’s why they send so many buys and sell signals, investment opportunities, and recommendations via email.
And the same goes for most influencers who sell stock market courses.
Would you pay a fortune for a course that only recommends that you buy and hold?
Possibly not. You would feel cheated.
Influencers don’t tell you how they make real money
A broker makes money every time you make a trade. The more often you buy and sell, the more money you will generate for them in commissions. It doesn’t matter if you made or lost money.
What about an influencer who sells stock market courses?
The vast majority of them only make more money from these courses than from their investments. If they made so much money on the stock market, they wouldn’t be training other people to invest.
You don’t need any course to invest in the stock market. Buying and holding is the only thing you have to do.
If you like to analyze stocks, dive into the market, and invest, perfect. If this is not your case, there are better, simpler, and more profitable alternatives to invest in the stock market.