You know the greatest problem for most people who dabble in the stock market is that they keep losing money non stop!
You have tried all kinds of courses, trading strategies, investing strategies.
You have even followed many gurus who keep telling you about the state of the stock market. They teach you how to trade, how to invest and they have a great portfolio that keeps growing.
After following them for 6 months, you wonder why you are still not making any money.
You keep losing money non stop.
The amount of pain and frustration is so great that you can't even speak about it to your spouse and close friends.
If you are losing money in the stock market, here are 3 things you should do:
Stop Your Trading Immediately
I know you have been trying and trying to trade stocks in the market. You have gone through many courses, and you have a spirit that never gives up.
You should be able to be profitable in the stock market within 6-9 months.
However, if you are not profitable trading even after that amount of time, perhaps trading is not for you.
You might have a day job, family issues, children etc.
Chances are they are interfering with your trading. Therefore, you should focus on investing in the long term and not do short term trading.
Stop Following Gurus Or Stock Tips
You may have found the perfect stock advisor or investment letter.
However, they often come with many recommendations. You may not be able to follow all of the recommendations.
If you do not have a strong conviction to own the stock, you won't follow through.
You might have a stock newsletter that gives you trading recommendations. But do you have the discipline to follow every one of them?
It's great to have 10 winning trades in a row. But trading rarely happens that way. You might have 2 winners and 1 loser.
Your emotions will keep you from following through the 10 or 20 or 50 trades that is recommended for you to be profitable in the long run.
Start Investing In Something That Has Been Positive For The Past 100 years And You Will Stop Losing Money In The Stock Market
Is there a stock or investment that has gone up an average of 10% per year for decades and even a century?
Depending on which year you start and end, yes there is.
There is an investment that has gone up 8%-12% per year for a very very long period of time.
The investing legend Warren Buffett has given the investment vehicle of choice.
When asked how a normal person should invest their money, Warren Buffett stated that they should find a low-cost index fund that mimics the S&P 500.
That's because over a period of 10 years, 90% of fund managers fail to beat the market.
On average the S&P 500 index has gone up by 10% annually.
This is what $100k invested in the S&P 500 would be after 30 years. That is at a rate of 10% return annually.
At the end of 30 years, your investment of $100k would have grown to more than $1.7 million.
Many of you would have lost more than $100k in stocks. What if you had just put that $100k you lost into a S&P 500 index and forget about it for the next 30 years?
So, what index fund could you buy to own the S&P 500? You don't need to buy every company in the S&P 500.
Just consider buying VOO which is the Vanguard S&P 500 Etf or FXAIX which is the Fidelity 500 index fund.
They have a small expense ratio.
If you have been paying attention...
You would now have a solid way to make money in the stock market.
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