Why the Majority Fail at Stock Investing > NetSparsh

Home
>
Stocks & Mutual Fund
>
Why the Majority Fail at Stock Investing

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in many new investors each year, only to send them home crying to their friends and family. Why do so many people fail when it comes to the stock market? The reason is very simple: Hard work! Most people are looking for a quick buck or a fast path to riches. This is not the case when it comes to investing in individual stocks. If you wish to invest in stocks, treat it like a business, NOT A HOBBY. For example: A retail outfit can't make money if it doesn't have goods to sell, the same goes for investors, without cash, you can't invest. What do I mean? All investors need rules and you need to follow these rules or money WILL be LOST. If you lose your initial investment, you are out of business (just like the retail store). I don't necessarily care what your rules are but they need to be proven and then followed to a "T".

Think about this for a moment: How much time do you spend researching and following up on your investments? Most people will spend more time researching their next car to buy, their next pair of sneakers, the best suit, the best dress, the best pasta sauce, etc. but these same people rarely spend more than 15 minutes a month researching their own stocks. I know of a person that spends hours clipping coupons (saving cents to a few dollars) but just minutes investing thousands in stocks.

This is why the majority of people FAIL at investing, because they don't know what they are doing, they don't care to know where their money is and they don't know who to hire to invest their money. If you are not interested in learning how to invest properly using your OWN system of trial and error over many years, I suggest that you invest in mutual funds or similar diversified vehicles. Over the long run (minimum 20 years), mutual funds and dollar cost averaging will give you favorable results with minimal worries. I will elaborate into methods that can be used to invest successfully in individuals stocks in following articles.

About the Author:

Chris Perruna

http://www.marketstockwatch.com

Chris is the founder and CEO of MarketStockWatch.com, an internet community that teaches you how to invest your money with solid rules. We don't stop at just showing you our daily and weekly screens, we teach you how to make you own screens through education. Through our philosophy, you will be able to create your own methods and styles to become successful.

In The News:

20 stocks where mutual funds raised stakes in Sept quarter Economic Times

Classroom | How diversified should my stock or mutual fund portfolio be? (Equity: Part 11) Moneycontrol

Should I continue with my SIP in HDFC Mid-Cap Opportunities Fund? Economic Times

Worried by market volatility? These mutual funds help control risk Economic Times

Corporate tax rate cuts: Mutual funds use rally to offload winners Business Standard

Lost money in mid cap, small cap mutual funds during last two years? Here's what you should do Business Today

Great time for NRIs with staying power to invest more in India Moneycontrol.com

India’s biggest fund house buying bank, infra stocks; mounts contra bet in auto Economic Times

When should you redeem your mutual fund investments? Use this 6-point checklist to decide Economic Times

'ITC, Kotak Bank among 5 stocks which could create wealth in next 2-3 years' Moneycontrol.com

Sebi tightens rules for debt mutual funds Economic Times