Sh*t Your Stock Broker Will Never Say: Strategies For The Beginner Investor
Like most first time investors, you wonder if you should manage your own money or hand it over to a professional money manger. Thoughts like stock investing is so complicated or I never had any formal investor education run through your mind. Well, they shouldn’t. Managing your money can be easy as 1-2-3 and 75% of you will outperform the market, as long as you invest intelligently.
The sooner you learn how to invest in stocks the better off you will be. The first thing you need to do is remove emotion from the equation. Investing is a science not an art. If you think and act like an intelligent investor you will do better than 90% of the professionals who collect fees to do so. Do not buy or sell based off of emotion, in fact an intelligent investor doesn’t buy or sell that much anyway. An intelligent investor is not an active trader. If you follow this rule you have just the same chance to outperform someone who has formal investor education.
Image provided by: Carl Richards | Behavior Gap
The second thing you need to do is block out all the NOISE! The media has to report on stocks 24 hours seven days a week. They have to put up talking heads and pundits spewing out contradictory advice all day long. This is how they make their money. From now on I want you to disregard the following:
- sensational headlines
- economic forecasts that don’t come from .org(s), .gov(s) or ,edu(s)
- sell alerts
- buy alerts
- talking bulls
- talking bears
- and anything a stock broker tells you
Investing in stocks is easy, all you need to do is learn how to invest properly and stick to your plan. Not only will you be making the right decision for your stock investments, but you will also SAVE a lot of money. I understand that most small towns have stock brokers and offer helpful advice, especially for somebody who has no idea how the stock market works, BUT you don’t need them. All you need is to get educated on stocks and learn how to invest yourself. By using these FREE tools to help you get educated you will SAVE thousands of dollars on fees. Open up your own brokerage account and save money.
It all comes down to this, if you are smart enough to pass these 5 free stock investing lessons then you should take investing into your own hands, if you aren’t then you shouldn’t be in the stock market anyway. The markets have closed and Mr. Broker meets his buddy after work. As they proceed to drink way too many beers, they discuss the days events, which mostly concern how hot Maria Bartiromo looked on CNBC that day. Is this how you want the guy managing your money to behave?
Full Disclaimer: I used to be a stock broker and had my Series 7 FINRA license. If you found this article to be helpful or if you have any comments I welcome your feedback.