Many people have, at one time or another, taken some of their hard-earned funds, and decided to put them in the stock market. These well-meaning individuals either acted on a tip they saw on CNBC, or actually believed one of those crazy faxes/emails that said XBXB @ $0.17/share was the next Microsoft. These people thought they were being smart, but they probably just ended up lining the pockets of brokers and mutual funds when they lost money on their 'investment'. I know, because I've done it, too.
Part of the problem we face is that we are big underdogs in the investment channel. We, as individuals, have access to hordes of information. Yet, we don't even scratch the surface of our knowledge potential. We invest without carefully reading financial statements and company reports, looking instead to message boards and TV stock 'experts' for guidance. If you own mutual funds, do you know what companies those funds are holding? Most people have no clue.
Investors can be lumped into two categories: smart money and dumb money. Most individuals are 'dumb money'. Smart money regularly beats the market, and includes many mutual funds. Dumb money generally loses. Dumb money often over-reacts to market pressure.
There are a few ways to avoid becoming 'dumb money'...
First, forget about short-term investing. If you plan to rapidly buy & sell stocks, statistics show that, on average, you will lose, and maybe lose big. Long-term investors don't easily get scared off by market fluctations, 10% price swings, or a bad earnings report. Plus, they don't have to pay the transaction fees over and over like the day traders do. The best way to ensure that you will make money investing is to find your initial investment vehicle, and leave your money alone.
Second, don't go along with the crowd. Example: Walmart's stock has been a great investment over the last 5 years, right? Wrong! It's actually lost about 5% during that time. Yet, if you watched CNBC, you'd swear that Walmart was the best thing since sliced bread. Find a strategy that makes fundamental good-sense, and don't throw your money into a stock or fund because it's a big name.Finally, diversify! If you're in it for the long-haul, you need to make sure that some really bad news doesn't keep the kids from going to college.
That's it for now. Check out
Scott is the inventory control manager for a large winery, and maintains and publishes stockmarketplus.com, his own financial blog.
Netting Noteworthy Returns Through 'Distinctly Active' Investing Financial Advisor Magazine
Democratization of Real Estate Investing PR Newswire
3 Top Recommendations for New Investors The Motley Fool
Some millennials and Gen Zers are closing investing accounts over inflation. Here's why that may lead to regrets - CNBC
Some millennials and Gen Zers are closing investing accounts over inflation. Here's why that may lead to regrets CNBC
Annual Invesco Global Factor Investing Study Finds Investors Are Continuing to Adopt Factors to Navigate the Inflationary Environment; Increased Demand for Fixed Income Factors - PR Newswire
Annual Invesco Global Factor Investing Study Finds Investors Are Continuing to Adopt Factors to Navigate the Inflationary Environment; Increased Demand for Fixed Income Factors PR Newswire
Lauren Taylor Wolfe says it's just too risky for investors to ignore ESG amid recent pushback - CNBC
Investing in sustainable cities ESG Clarity
Investing in Health for All - Project Syndicate events.project-syndicate.org
It's Not Enough to "Invest in What You Know" Advisor Perspectives
Millennial Money: Get kids set to invest with these accounts Insurance News Net
Stock Market Updates and Economy News The New York Times
The importance of Investing in Sales Training - HFA Home Furnishings Association
The Lazy Girl's Guide to Investing in the Stock Market The Everygirl
Levi Strauss: Investing At An Undervaluation (NYSE:LEVI) Seeking Alpha
IFC and other impact investors return to backing Ukraine startups, with new $250M fund aimed at founders under the gun - TechCrunch
IFC and other impact investors return to backing Ukraine startups, with new $250M fund aimed at founders under the gun TechCrunch
10 Types of Investments GOBankingRates
Investing in the Future: ASCTE Cuts Ribbon on New Campus Huntsville Business Journal
7 Ways To Know You're Ready To Start Investing GOBankingRates
Unilever CEO set to leave after GSK debacle, arrival of activist investor By Reuters - Investing.com
We were mostly buyers during this turbulent week for stocks. Here's a recap of all our trades - CNBC
Confused About Investing? Here's a Great Option to Fall Back On The Motley Fool
Goodyear investing $125m in commercial, earthmover tire expansion European Rubber Journal
Analysis | Everything You Need to Know About ESG Investing And the Backlash to It - The Washington Post
Analysis | Everything You Need to Know About ESG Investing And the Backlash to It The Washington Post
Should You Really Be Buying Stocks Right Now? The Motley Fool
Buying the Stock-Market Dip Is Backfiring. Investors Keep Piling In Anyway. - The Wall Street Journal
Buying the Stock-Market Dip Is Backfiring. Investors Keep Piling In Anyway. The Wall Street Journal
BlackRock and Mike Bloomberg agree that measuring climate risk and investing in clean energy is smart capitalism - CNBC
BlackRock and Mike Bloomberg agree that measuring climate risk and investing in clean energy is smart capitalism CNBC
Ad-Spend Tracker MediaRadar Wins Investments From Thompson Street Capital, Endicott Capital - Variety
Got $2,000? Invest In These 2 Perpetually Growing Stocks The Motley Fool
It's critical, not controversial: Why we must double-down on nature investments | Greenbiz - GreenBiz
Is it Time to Start Boarding the ARKK? - Investing Daily Investing Daily
Pelosi Says Bill on Investing Rules for Lawmakers Will Face Vote This Month The New York Times
Ontario Investing an Additional $90 Million into Skills Development Fund - Government of Ontario News
Ontario Investing an Additional $90 Million into Skills Development Fund Government of Ontario News
Bitcoin Trendline Failure Investing.com
Ministerial Statement on Global Action Plan calls for investing in and supporting health workers - World Health Organization
Ministerial Statement on Global Action Plan calls for investing in and supporting health workers World Health Organization
XRP Falls 10% In Bearish Trade By Investing.com Investing.com
S&P 500: Index Investing Is Done Seeking Alpha
Moomoo Partners with Macquarie University to Launch A New Research, Bridging The Knowledge Gap on Socially Responsible Investing - Yahoo Finance
Moomoo Partners with Macquarie University to Launch A New Research, Bridging The Knowledge Gap on Socially Responsible Investing Yahoo Finance
Is It Really Safe to Invest in the Stock Market Right Now? The Motley Fool
Shareholders Meeting Changing With Times
A significant number of corporations that settled accounts in the past year are ready to hold their annual shareholders meetings.In this year's meetings, more than 300 companies plan as their main focus of attention defense measures against hostile takeover bids.
Buy: Hold: Sell: Jump
I'm sitting here at my computer desk with a cup of coffee at my elbow. The coffee rest in a mug, the mug garnished with the words Buy, Hold, Sell, Jump, vertically along its sides.
Annuity Investment - The Whole Truth
Do you ever feel like you haven't been told the whole truth? Kind of like something is missing? Well, you are not alone.With many investors awestruck over the last several years by the declining stock markets, many feel like they're out in the cold.
Chinas Great Missed Opportunity
While a U.S.
By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios.
Larry, Moe and Curley, Investment Brokers
Larry, Moe and Curley were sitting in their favorite restaurant just off Wall Street having their usual 3 martini lunch and were discussing the day's events and their client portfolios.Larry:"I had 12 calls this morningfrom customers wanting to know why the market was going down".
Gold; What Type of Gold to Buy
JewelryThe advantages are:? Gold Jewelry is the easiest of the gold to buy and has the enjoyment of being able to be worn.The disadvantages are:? Retail Jewelry is often marked up by 300% or more in the shops.
Have Analysts Gotten Honest?
It caught my attention when I heard an analyst on a popular financial news program tell investors to sell a stock because too many analysts liked the company, citing the fact that there were no sell ratings.It seemed perfectly logical to me that analysts wouldn't be telling investors to sell 3M (MMM), which has one of the most consistent positive earnings records in the history of the stock markets.
Discover the Foundation of Retiring Wealthy - The IRA!
Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course.
When NOT to Invest
Unfortunately, many investors who are seduced by the lure of easy money try to become "active" investors before they have the skills, the resources, or the appropriate intellectual framework to do so.This is not to say that investing in stocks is extraordinarily difficult .
25 Ways to Find Companies to Buy
When you start your program to purchase your "ideal" company, you quickly realize that your ultimate success will depend on two primary skill sets: 1) Your ability to FIND viable companies that are for sale, and 2) Your ability to effectively qualify the potential acquisition investment once found.This article is about only step one, how to creatively find viable companies and one's that are able to be purchased.
Has your broker ever told you that a stock is "overbought" or "oversold"? He probably went on the explain that the stock you own (I hope you didn't) had gone down so far that it now was oversold and due for a rally. He might also have encouraged you to buy an equal amount to "dollar cost average" your position so that when ("if"- he didn't say that, I did)) it did go back up you could "get out even".
Copy Cat or How to Use a Successful Trading System
How many books have you read about successful traders? How they did this or that and made a fortune and are still doing it. You say to yourself, "I'm going to follow his method and get rich".
Trend following also called momentum trading is the simplest and safest method of stock market investing. It puts you in stocks and mutual funds that are going up and gets you out when they start down.
Is a SEP Plan Right For Your Business
A SEP is a special type of IRA. Under a SEP plan the employer creates an IRA account for each eligible employee, hence the name SEP-IRA.
Before You Invest You Must Read This
It is important to answer the following questions before you begin to invest any of your money. The answers to these questions will help to guide you to when, what, where, and how much to invest.
An Old Dividend Stock Investment Idea, for a New Generation
Death and taxes! The certainties of life! And then, of course, there are the mortgage payments, the utility bills, phone bills, the car payments and thirsty automobiles. Add that to the grocery and clothing bills, and there appears to be more then just death and taxes as certainties of life.
Why have Investment Plans for the Stock Market
If you do not have an investment plan in the stock market you are subject to impulses, urges, hunches, premonitions, strong feelings, greed, panic, fear, indecision, and just plain foolishness. In my opinion, without a plan, without that clear conception of a total stock market investment strategy, the chances of successful investing in the stock market are pretty slim.
Why You Need To Buy and Sell Gold Coins (Part 2)
How to Collect Rare CoinsFor Fun and ProfitTime has proven that collectors tend to make the most money in rare coins because they search out "undervalued coins" and buy during market lulls. Buying in today's market climate offers you superb upside profit potential.
Finding False Gold in Penny Stock
As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business.
|home | site map|