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:


Investor's Business Daily

IBD's Best Mutual Funds 2017 Awards | Stock News & Stock Market ...
Investor's Business Daily
Except for the Harlem Globetrotters, repeat winning is hard. Even our Best Mutual Funds 2017 Awards winners have few repeats from last year.
Should you invest directly in equity or via mutual funds?Economic Times
Are you risk averse? Give hybrid mutual funds a chanceFinancial Express

all 10 news articles »

Motley Fool

The Worst Funds for Your 401(k)
Motley Fool
And all three of these options are far cheaper than the average U.S. stock mutual fund's expense ratio of about 1.25%. However, notice that there is a 65-basis-point difference in gross expense ratio between the highest- and lowest-cost funds on the ...
Mutual fund group aims for fee transparency with 'clean shares'San Francisco Chronicle

all 4 news articles »

Bloomberg

ETFs Are Giving Mutual Funds a Run for Their Money
Bloomberg
Mutual fund ownership of equities is at its lowest level in nearly 13 years, according to a research note from Goldman Sachs Group Inc. Meanwhile, exchange-traded funds are becoming an even bigger force in the stock market, the team led by Chief U.S. ...

and more »

US-based stock mutual funds take in most cash in a year -ICI
Reuters
By Trevor Hunnicutt NEW YORK, March 1 Fund investors' aversion to riding the market's highs showed signs of waning as stock mutual funds attracted the most cash in a year in the latest week, Investment Company Institute data showed on Wednesday.

and more »

Moneycontrol.com

Time to be careful: Fund managers are shying away from stocks
Moneycontrol.com
A look at the portfolio of ICICI Prudential Balanced Advantage Fund, the largest mutual fund scheme In India investing in stocks reveals that the exposure to stocks have been cut over last one year. The net equity investments of this scheme are down to ...

and more »

Barron's

ETFs Chasing Mutual Funds as Stock Buyer
Barron's
Mutual funds' outflows since last year have driven their equity ownership to a nearly 13-year low, according to Goldman Sachs. ETFs, meanwhile, are growing by leaps and bounds as a stock market force. “Corporations and ETFs will continue to drive ...


Mutual funds invest over Rs 2000 crore in stocks in February
Economic Times
Mutual fund managers purchased stocks worth a little over Rs 2,000 crore in February --- making it the seventh straight month of positive inflow in equities --- on sustained participation by retail investors. Fund managers have been investing ...

and more »

The Indian Express

Mutual Funds' exposure to bank stocks hits record Rs 1.2 lakh crore in February 2017 end
The Indian Express
Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 1.2 lakh crore at the end of February, primarily on account of cheaper valuations. In comparison, fund managers had ...

and more »

Utility Stocks for Retirement Investors: 1 Stock, 1 ETF and 1 Mutual Fund
Investorplace.com
While utility stocks have taken it on the chin lately with the Federal Reserve starting to raise rates, the reality is, they still make sense for retirement investors. Utilities For Retirement Investors: 1 Stock, 1 ETF and 1 Mutual Fund. Source: 401(k ...


CNBC

Why mutual funds could be on their way to another lousy year
CNBC
The improvement comes amid multiyear lows in the tendency of stocks to correlate up and down together, as well as an elevated level of dispersion, or the difference between returns for various sectors. Stock pickers in actively managed mutual funds ...
Stock pickers lift performance in battle of the benchmarksFinancial Times

all 4 news articles »
Google News

When Should I Sell?

People are always asking me when should I sell my... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

E-mini Day Trading - Day Trading for Beginners - Stock Market Timing Software

I mean it when I say that. While plastic silverware... Read More

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

Living Trust Investing: Income Considerations when the Grantor Dies

A common problem I often see when working with living... Read More

Stock Market Education; Day Trading for Beginnners; How to Pick Stocks

The trading method you employ to approach the stock market... Read More

Making a Stock Watch List

I am taking the time to help others learn the... Read More

Good News?

As the man said, "I've got some good news and... Read More

Trading Education: The Best of Both Worlds!

I made my very first investment in the stock market... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Your Trading Objective: Why is that so Important?

You've decided to try your luck at trading stocks or... Read More

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Prosperity

It has fallen upon the consumer to make our economy... Read More

Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains... Read More

Choosing A Fund

For years I have been saying you must have a... Read More

Valuation

Every day I hear from the "experts" on CNBC-TV and... Read More

Evaluation I

An insane person cannot evaluate an insane evaluation system.As you... Read More

China Syndrome

There has been great condemnation recently because China has been... Read More

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More