3 reasons most people should not trade/buy individual stock:
1. Skill: The NYSE lists about 3000 companies. Do you have the skill to analyze them?
Can you study their management reports?
Do you know why Moderna > Gilead?
Do you know why AT&T has a better moat than Verizon?
1. Skill: The NYSE lists about 3000 companies. Do you have the skill to analyze them?
Can you study their management reports?
Do you know why Moderna > Gilead?
Do you know why AT&T has a better moat than Verizon?
2. Time:
The best investment firms hire the best students from top schools and give them 10 to 20 companies to study 24/7/365.
These guys wake up, sleep, and dream a single category. Why do you think you can do a better job than them with your 1hour a week stock routine?
The best investment firms hire the best students from top schools and give them 10 to 20 companies to study 24/7/365.
These guys wake up, sleep, and dream a single category. Why do you think you can do a better job than them with your 1hour a week stock routine?
3. History.
Historically, the 24/7/365 analysts I mentioned in (2) actually underperform index funds and mutual funds in the long run.
IT IS VERY HARD to pick stock successfully.
medium.com/makingofamilli…
Historically, the 24/7/365 analysts I mentioned in (2) actually underperform index funds and mutual funds in the long run.
IT IS VERY HARD to pick stock successfully.
medium.com/makingofamilli…
How then should most people approach the stock market?
1. Buy an index fund and forget about it.
2. Buy a diversified fund like @Overwoodng and forget about it.
3. Play the stock market ONLY with money you can afford to lose.
Don’t gamble with your money.
1. Buy an index fund and forget about it.
2. Buy a diversified fund like @Overwoodng and forget about it.
3. Play the stock market ONLY with money you can afford to lose.
Don’t gamble with your money.
Just to clarify:
If you have the time, skill, and research tools, you can make a good living via stock trading.
But MOST people don’t.
If you want to play the stock game, do it well.
Learn finance and buys a Bloomberg terminal. Don’t just wake up and start trading.
If you have the time, skill, and research tools, you can make a good living via stock trading.
But MOST people don’t.
If you want to play the stock game, do it well.
Learn finance and buys a Bloomberg terminal. Don’t just wake up and start trading.
