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Investing Knowledge I wish I'd have at a younger age.
Investing Knowledge I wish I'd have at a younger age.
1) Patience
You're doing yourself a disservice in investing IF you cannot mentally handle a market dip.
You won't lose money in the dip if you don't sell in the dip.
You're doing yourself a disservice in investing IF you cannot mentally handle a market dip.
You won't lose money in the dip if you don't sell in the dip.
2) Stock Picking
If you're going to invest in single stocks (which I don't do much of), you should have the HIGHEST conviction.
If you're not prepared to see that stock drop 30% tomorrow and still feel confident in that company, I would recommend you don't buy.
If you're going to invest in single stocks (which I don't do much of), you should have the HIGHEST conviction.
If you're not prepared to see that stock drop 30% tomorrow and still feel confident in that company, I would recommend you don't buy.
3) Diversification
Diversification (index funds, ETFs, Mutual Funds), helps capture the broader market, and reduces your risk of 5% return on a stock pick vs. a 10% overall market average, for example.
For most investors doing it themselves, this is best.
Diversification (index funds, ETFs, Mutual Funds), helps capture the broader market, and reduces your risk of 5% return on a stock pick vs. a 10% overall market average, for example.
For most investors doing it themselves, this is best.
4) Time Horizon
Just 2 of the last 11 decades have averaged a negative S&P 500 return. 2!
If you invest for multiple decades, with a long term mindset, your chances of success go up DRASTICALLY!
Just 2 of the last 11 decades have averaged a negative S&P 500 return. 2!
If you invest for multiple decades, with a long term mindset, your chances of success go up DRASTICALLY!
5) No FOMO
Investment fads will come and go. You'll almost pick that stock/fund that then goes up 5x, or more.
I sold #GME 3 months before it erupted. And you know what? I'm at peace with it. Emotions will lead to you irrationally making bad changes to your strategy.
Investment fads will come and go. You'll almost pick that stock/fund that then goes up 5x, or more.
I sold #GME 3 months before it erupted. And you know what? I'm at peace with it. Emotions will lead to you irrationally making bad changes to your strategy.
6) READ & GROW
There is a wealth of information on the market and how to invest.
Invest in yourself. This is a great course to simplify the process of investing! Just $20, affiliate link below
https://gumroad.com/a/1068504179
There is a wealth of information on the market and how to invest.
Invest in yourself. This is a great course to simplify the process of investing! Just $20, affiliate link below
https://gumroad.com/a/1068504179
