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Some "free game" for #stocks in [THREAD] formAs we kick off the second half of 2020,
Let's look at TEN(!) important #investing hacks to help
beginners succeed in the stock market.
1. "Know Your Investment"
New investors constantly invest in what they see/hear about online/TV, NOT what they understand.
Know how a business makes $ inside/out, so that you can both recognize opportunity
And see storm clouds on the horizon.
Do your homework!
New investors constantly invest in what they see/hear about online/TV, NOT what they understand.
Know how a business makes $ inside/out, so that you can both recognize opportunity
And see storm clouds on the horizon.
Do your homework!
2. "Become Comfortable With The Color RED"
People get sick about seeing red in their investment accounts.
However, the only way you avoid it is to perfectly time a bottom on a stock price.
That almost never happens.
Don't let the sight of RED make you sell low.
People get sick about seeing red in their investment accounts.
However, the only way you avoid it is to perfectly time a bottom on a stock price.
That almost never happens.
Don't let the sight of RED make you sell low.
3. "Turn RED Into Green"
On the other hand, lower prices should make an investor happy
Assuming you have done your due diligence (see #1),
Lower share prices mean that quality companies are "on sale".
Buying quality when it's cheap is how big money is made over time.
On the other hand, lower prices should make an investor happy
Assuming you have done your due diligence (see #1),
Lower share prices mean that quality companies are "on sale".
Buying quality when it's cheap is how big money is made over time.
4. "Buy Quality"
I get asked about so many penny stocks, or speculative companies.
Focus on finding "quality" companies to invest in.
A company should be growing, profitable, and not have too much debt.
These companies create value over the long term, not destroy it.
I get asked about so many penny stocks, or speculative companies.
Focus on finding "quality" companies to invest in.
A company should be growing, profitable, and not have too much debt.
These companies create value over the long term, not destroy it.
5. "Hold Winners"
When you successfully find a "winner", that company is probably going to create value over the long term.
Don't be the person who sold the next $AMZN for a 20% gain.
Only to see it rise 10X over the following decade.
Think "big picture"
When you successfully find a "winner", that company is probably going to create value over the long term.
Don't be the person who sold the next $AMZN for a 20% gain.
Only to see it rise 10X over the following decade.
Think "big picture"
6. "Don't Marry Your Stocks"
I like to buy quality stocks with indefinite holding periods in mind.
HOWEVER, there is no such thing as "until death do us part"
If your investment case for a stock falls apart, don't be afraid to get out.
I like to buy quality stocks with indefinite holding periods in mind.
HOWEVER, there is no such thing as "until death do us part"
If your investment case for a stock falls apart, don't be afraid to get out.
7. "Trader vs Investor"
When you see people talk about stocks, some think like a trader, others like an investor.
A trader seeks short term profits.
An investor will buy a stock with long term value creation in mind.
You CAN make money with both, but know what you are.
When you see people talk about stocks, some think like a trader, others like an investor.
A trader seeks short term profits.
An investor will buy a stock with long term value creation in mind.
You CAN make money with both, but know what you are.
8. "Investments & Trades Don't Mix!"
A trade should never turn into an investment, and vice versa.
This is called "moving the goal posts",
And is only going to cause you to lose money in the long run.
You need to stay consistent.
A trade should never turn into an investment, and vice versa.
This is called "moving the goal posts",
And is only going to cause you to lose money in the long run.
You need to stay consistent.
9. "Risk In Moderation"
It's natural to want to "swing for the fences".
But it should never be the main component of your investment strategy.
Build a "core" portfolio of quality stocks
So that you can speculate with money you can afford to lose.
It's natural to want to "swing for the fences".
But it should never be the main component of your investment strategy.
Build a "core" portfolio of quality stocks
So that you can speculate with money you can afford to lose.
10. "Have Fun"
Investing is something that you need to enjoy and feel
passionate about.
Investing is a process of constant education,
and you are less likely to stick with it - if you hate doing it!
Investing can be satisfying on multiple levels!
Investing is something that you need to enjoy and feel
passionate about.
Investing is a process of constant education,
and you are less likely to stick with it - if you hate doing it!
Investing can be satisfying on multiple levels!
Following these tips will put any new investor in a position to succeed 
If you think this will help someone you know,
Please RETWEET
More tips and information can be found throughout my timeline @TheeFinanceGuy
If you think this will help someone you know,
Please RETWEET
More tips and information can be found throughout my timeline @TheeFinanceGuy
