Will Rogers explained it simply and succinctly. "Buy stocks low, wait til they go up, then sell 'em. If they don't go up, don't buy 'em!"
There IS no guaranteed successful way to approach the stock market, which is why I don't. But I used to, and I'll tell you what I...
Best answer: Will Rogers explained it simply and succinctly. "Buy stocks low, wait til they go up, then sell 'em. If they don't go up, don't buy 'em!"
There IS no guaranteed successful way to approach the stock market, which is why I don't. But I used to, and I'll tell you what I learned.
We all learned in 2006-2008 that the stock market is a sucker's game. The big brokerages were caught selling stock they knew were bad to trusting customers, so they could bet against them. They have always favored big institutional investors over small individual investors. The brokerages themselves were caught doing insider trading, manipulating stock prices, etc. I found that stockbrokers will always recommend some stock that's good for -them-, that they will make a profit whether you do or not.
So if I was investing in the stock market, first I'd open an account at a no-commission brokerage, so nobody has an incentive to scam me. Then I'd look at mutual funds and ETFs (Electronically-Traded Funds). There are thousands of these, and for each one there's a brochure showing how much the fund has made in the last year, the last five year, maybe ten years, and the life of the fund. IOW you can see exactly how well the fund has done in the past. I'd divide my money between a handful of these funds, all in different sectors, to spread the money around and minimize overall risk. Then I'd own those funds for years and years and not just keep moving my money around.
NEVER EVER EVER trust a broker for a recommendation. They all seem fixated on the idea that they should be billionaires by 30, and that anything they need to do to chase this goal is totally justified. Back when I was investing, I had one broker who did a good job for me, for about a year, and then he quit because, he said, the business was so cut-throat. Every other broker would call me every few days (if I allowed it) and recommend some stock I'd never heard of, and I lost money on almost all of them.
4 days ago