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#1) Invest in a company that a friend, family member, or hot stock you find online without doing any research


You suffer losses


Many will quit at this stage and think the game is rigged


You suffer losses


Many will quit at this stage and think the game is rigged
#2) Start watching CNBC and investing based on what "experts" recommend & you begin passing off this knowledge as your own


You get overloaded with bullish/bearish sentiment and a wide array of trading strategies (stocks, options, bonds, forex, etc)


It all cancels out


You get overloaded with bullish/bearish sentiment and a wide array of trading strategies (stocks, options, bonds, forex, etc)


It all cancels out
#3) Begin educating yourself
You read the go-to books of the industry (The Intelligent Investor, Securities Analysis, One Up On Wall Street, 100 Baggers, etc) + @SeekingAlpha + @themotleyfool


You’re beginning to develop a base for fundamental analysis
You read the go-to books of the industry (The Intelligent Investor, Securities Analysis, One Up On Wall Street, 100 Baggers, etc) + @SeekingAlpha + @themotleyfool


You’re beginning to develop a base for fundamental analysis
#4) Put capital to work in companies that have reasonable fundamentals


You finally have a plan in place
Things are finally looking good…


You finally have a plan in place
Things are finally looking good…
#5) Experience your first correction/bear market and you panic sell


You revert back to CNBC to see what’s going on, only to see in big red font that says “Markets in Turmoil” and every guest is predicting doomsday
You think you can sell the top and catch the bottom


You revert back to CNBC to see what’s going on, only to see in big red font that says “Markets in Turmoil” and every guest is predicting doomsday
You think you can sell the top and catch the bottom
#6) Market starts to rally and FOMO sets in
You rebuy the securities you sold at higher prices and experience your very first wash sale.


You tell yourself that the next decline you will hold steady
You rebuy the securities you sold at higher prices and experience your very first wash sale.


You tell yourself that the next decline you will hold steady
#7) You learn the benefits of $ cost averaging first hand


Don't be afraid to average UP
There's usually a reason why a stock goes up over time
Your capital is a finite resource, the goal of an investor is to deploy it in a stock(s) that have the best risk-reward profile


Don't be afraid to average UP
There's usually a reason why a stock goes up over time
Your capital is a finite resource, the goal of an investor is to deploy it in a stock(s) that have the best risk-reward profile
#8) You start outperforming the market and your ego begins to grow


Once you start tasting success, it’s easy to think you’re better than other market participants


The markets will sober you very quickly the more you think you’re an omnipotent being


Once you start tasting success, it’s easy to think you’re better than other market participants


The markets will sober you very quickly the more you think you’re an omnipotent being
#9) You will suffer catastrophic losses that make you wonder if this is really for you


The pendulum swing of emotion will eat away at you


Take a step back
Do an autopsy of your decision making
Make sure ego isn’t your downfall and tighten up your evaluation processes


The pendulum swing of emotion will eat away at you


Take a step back
Do an autopsy of your decision making
Make sure ego isn’t your downfall and tighten up your evaluation processes
#10) You discover who you are and find the niche that allows you to succeed


There are a million different ways to be a successful investor


The key is finding out where you fit best


Find a niche where you are more knowledgable than others
Good things will happen


There are a million different ways to be a successful investor


The key is finding out where you fit best


Find a niche where you are more knowledgable than others
Good things will happen
#11) Don’t stop learning


Things are always changing around us


Make sure to keep that burning desire to learn and use social media as a platform to connect with some of the greatest minds in the investing world


Things are always changing around us


Make sure to keep that burning desire to learn and use social media as a platform to connect with some of the greatest minds in the investing world
Losing money is sometimes the best teacher


You can reduce your losses by investing in your knowledge base before starting


I highly recommend the following twitter accounts for NOT stock advice but to better understand their mental framework for decision making…


You can reduce your losses by investing in your knowledge base before starting


I highly recommend the following twitter accounts for NOT stock advice but to better understand their mental framework for decision making…
