If You Know Nothing About Stock Markets, Try Investing This Way

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Photo by The New York Public Library on Unsplash

Many investors fall flat on their faces because they overcomplicate things.

You only need to do one thing that most are unwilling to do.

Buy and never sell.

All you need to do is hit a few price rockets. Because almost all price rockets have been through hell at least once and were on the verge of bankruptcy.

Getting out in these hard times would be the stupidest thing you could do.

The problem is that we don’t know until afterward.

That’s why I keep all my stocks forever. I am not thinking about selling. Remember, I also have bankruptcy cases in the warehouse. That’s part of it.

ETFs are a wise thing

Save them monthly. Let the savings plan go. Be careful about the costs. Many products are very similar. Often it doesn’t make much difference. It is important to get started.

Don’t try to evaluate the stock market in your short or medium-term

You usually lose more than you can gain. In the long run, stocks are the best asset class there is. So stick with it. Don’t get in and get out. Stay on the ball.

If you prefer to buy individual stocks, concentrate on big companies

Don’t be afraid to let winning stocks run. Experience has shown that investors tend to sell their winning stocks too quickly. Another central problem is overconfidence (that’s why ETFs are so good). Try to make rational decisions. Inform yourself comprehensively, and decide for yourself.

Don’t be afraid to focus on specific stocks/sectors

Warren Buffett does this. He owns mainly banks and insurance companies. His biggest investments include Apple, Coca-Cola, Bank of America, American Express, Wells Fargo, Kraft-Heinz, and US Bancorp.

Avoid fashion/Twitter topics

Keep an eye out for red flags.

If you want to invest for the long term, you should avoid risky bets. A high proportion of sellers of a particular stock/asset should be a serious red flag (they are not idiots).

Reduce taxes. Avoid too many reallocations

Try to avoid short-term profit realization as much as possible. Better to piss off the tax administration for not realizing profits by selling your earnings.

Don’t get upset. It is not worth it.

Buy stocks and mutual funds and never sell. That’s it and nothing else

If you can’t increase your savings, you may need a part-time job. There are always ways to save something.

Expand your deposit with a side hustle.

I have saved more than half of my net salary for a long time. If you plan to retire early, a high savings rate is important.

The current unemployment rate is low. This is really a great time to invest if you have a good job. People can find work — including older workers. Of course, this depends on their skills.

People need to be prepared to invest in their skills until they are 45 or 50 if they don’t build up financial reserves.

Anyone who doesn’t have passive income streams (side hustle, scalable incomes, dividends, ETFs, rental income) is going to have to work forever.

In addition to your work skills, you need to take care of your health. Invest in your health, especially when you are young and middle-aged.

You don’t even need to have a gym. You can do a good sports program even without a gym: cycling, walking, running, swimming, push-ups. It costs almost nothing. It costs $0. But it is effective. Sitting for a long time makes you sick, sitting is like smoking.

I have participated in several running competitions (including marathons). A healthy lifestyle is important to me.

It consists of getting enough exercise, and not smoking or drinking too much alcohol. Getting enough sleep — I have to work on my sleep.

Invest in your older self when you are younger. Take out some kind of longevity insurance for your body — with enough physical activity and a healthy diet.

I save where I can.

I usually cook my own meals, sometimes I make a big soup. And save the rest for a day or two. Sometimes I go to a restaurant with my girlfriend.

I don’t buy much. Just what I need. I make sure I have used everything before I buy more. If I buy too much and too soon, I might not want something and it will rot in the fridge or in the cupboard. So I only buy what I need today or tomorrow.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.