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Not trying to be a hater, but if you follow most investing advice, you can do really well in the stock market. Don't try to pick stocks, just buy low load index
by SkipperCat 5y ago
Not trying to be a hater, but if you follow most investing advice, you can do really well in the stock market. Don't try to pick stocks, just buy low load index funds (SPY, Russel2000) and hold onto them. Doing that, you can get above 6% yields over the course of a few decades.
This has worked really well for so many people. Its boring, there's nothing sexy about it but you will retire with a decent chunk of cheddar.
You'll never do well trying to trade individual stocks. Even the pros screw that up constantly. There's a huge industry trying to convince you to trade, but that's so they can make commissions and make $$$ on flow.
Be a boring investor and find an exciting hobby instead.
- sitzkrieg 5y agoa large part of the problem seems to be people who should be investing wanting to trade so that they can say they're a trader and platforms like robinhood make it easier to actively trade
- cudgy 5y agoIf everyone buys the same index funds, then all the money chases the same stocks within those index funds. The system feeds on itself resulting in overpricing of the index stocks which may not work out well during a sell-off. Index funds have risks too.
- costcofries 5y agoIf more people invest in an asset, the price of the asset increases because its value also increases. This isn't overpricing, or the 'system' feeding itself, this is the value of assets increasing..
- cudgy 5y agoYou are ignoring all the other stocks in the market that are not part of an index, which should represent better investment value in the scenario. Do you really want to only invest in the peak priced assets in a market?
- costcofries 5y agoYour perceived peak is exactly that, a perceived peak. You go and try to time the market, I will continue to DCA, I know what has historically proven a more effective strategy.
- cudgy 5y agoYou missed the point entirely. It’s your money.
- SkipperCat 5y agoFair point, but you can purchase the Vanguard Total Stock Market Index Fund which has pretty much the entire stock market. That way, you're only betting on the direction of the total market. And as history shows, it will most probably creep up at 6 to 8% over the long haul.
- joejohns 5y agoBeing able to read this one helped me realize what I needed to do. It's quite hard to become a trader, especially if you're quite an emotional one. One way is to hold long-term and find that thing you love.
- deleted 5y ago[deleted]
- xondono 5y ago> Be a boring investor and find an exciting hobby instead. This. Too many people think that investing and trading are the same thing, they are almost opposites.