Wall Street’s bright lights lure many investors every year and send them home crying to friends and family. What is the secret to so many losses in the stock market? It’s simple: Hard work and smart working are the keys to success in the stock market. Many people want to make quick buck or find a path to wealth. Private stock investing is different. You should treat stocks as a business and not a hobby if you want to invest in them. You can’t make money selling goods if you don’t have cash. A retail shop can’t keep its customers happy. Investors can’t do the same. What does this mean? You need to follow the rules for investors. You are out of business if you lose your initial investment. While I don’t care about your rules, they must be proved and followed up with an “S”.
This is how you think about it: How long do you spend researching and following up on investments? Many people spend more time searching for their next car, their next pair of sneakers, the best suit or the best dress, and the best pasta sauce. These same people seldom spend more than 25 minutes per month researching their stocks. One person I know spends hours sorting coupons, saving cents and a few dollars, but invests minutes in stocks.
Many people fail to invest capital because they don’t know what to do, don’t care where their money is, and don’t know how to find the right person to help them. If you don’t want to learn how to properly invest capital using your OWN system through trial and error over many years then I recommend that you invest in mutual funds and similar miscellaneous vehicles. You will see the benefits of mutual funds and dollar cost average over the long-term (minimum 10 year). There are no worries. In the following articles, I will discuss how to triumphantly invest in individual stocks.
