Top 5 Mistakes Beginners in the Stock Market Make in 2018
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Today we do a little stock market for beginners 2018 video! This video is about mistakes beginners make in the stock market. Enjoy!
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Top Five mistakes beginners in the stock market make I cannot wait to share this one with you guys here today. These are five massive mistakes that I see beginners in the stock market make all the time, okay, within the first few weeks.
The first few months of investing, they make these mistakes over and over. Or sometimes these mistakes actually happened before they ever actually invest a dime in the stock market, okay, and they cost people so much money, they have no idea.
So I hope you guys really enjoy this, if you’re someone that’s within there, they’re just kind of learning of getting in the stock market. Or maybe you’ve been in the stock market for a few few months now, or maybe little less than a year.
I think today’s video is going to save you a lot of money and just kind of realize it the mindset problems and the mistakes beginners make in the stock market all the time, guys. So I hope you really enjoy this as always make sure you follow me on Instagram.
If you have not already always post a ton of content on there, guys. Alright, let’s get into this. The first the first big mistake I see beginners in the stock market make all the time, okay, actually happens to be with before they ever actually invest a dime in the market. Okay.
And what ends up happening is they say, now is not a good time to start investing. Okay, I’ve heard this countless times over the past decades, I’ve been in the stock market for about a decade now.
And I’ve heard this time and time again. Okay. When I first started, when I bought my first stock, it was toward the end of 2008. Okay, it was toward the end of 2008 2008 was the year that the economy was going into recession, everything was getting ugly.
It was just the stock market was going down and down and down. And from that first investment I made, you know, for several months, the stock market just went down and down and down. Okay.
It was ugly, and things bottomed out in 2009. And then they started to go up from there. Okay. So, you know, right here, right off the bat, what I could have said is, oh my gosh, it’s 2008 I shouldn’t invest it.
So we’re going into a recession. Now at this point, stock market keeps going down every day. And I could have done what other people told me and said, don’t invest any money. Okay? And I’m gonna tell you, that’s the worst mistake I could have ever made.
I if I would have decided not to invest in 2008. Guess what, I wouldn’t have invested in 2009 or 2010 or 2011, or anytime in between, right? Because the most important thing with getting in with anything is starting okay.
It’s starting, this is the most important thing. All right. I had a few $100 to my name. What the hell did I have to lose? What am I going to buy with a couple 100 bucks? I think my first investment was like 247 or $257, or some very low amount.
You can’t even buy it a half of iPhone for that you can even buy half a iPhone for $247. Right? What am I What do I have to lose? Right? Starting is the biggest key. Okay. And my first investment if I recall.
I did lose money on that. I think I mainly lost like the trading commission because trading commissions were like 9095 every time you bought and sold a stock back then by the way, you should be thankful now that you guys get to start in a position where you can invest in Robin Hood and it’s like free trades.
It’s like insane for me to even think about you guys haven’t made but the starting is the key. So what people do is they scare themselves all the time. They say Now’s not the time to invest. Okay. And what ends up happening 2010 so 2010 through 2012.
I could have you know made a million excuses on why I should invest all people caught talked about was Double D at that time and no, not the double D’s you’re thinking of. We’re talking about double dip recession.
Oh my gosh, guys, 2010 through 2012. It was on TV all the time. But double dip recessions come and get out of the stock market. If you’re looking to get involved with stock market don’t invest.
Double dip recession, double dip recession. It’s common. It’s common. It’s common. It’s common. That’s what we heard all the time. Okay. The elections came and came and went and whatnot.
2013 came around, you know, people were saying all you shouldn’t invest Obama just got reelected. Obama’s a socialist, blah, blah, blah, whatever, you know, they would say about Obama.
They would give themselves reasons to not be invested 2014 through 2015 it was old China might be slowing. And you know, get out of the stock market if you’re looking to get in the stock market.
Don’t get involved with the stock market. Okay. 2016 came? Oh my gosh, is Trump might be elected. Oh my gosh, Trump could take our old economy down 2017 Oh my gosh, North Korea 2018.
Now oh my gosh, Chinese China tariffs is always a rhyme and reason to not get involved with the stock market. Always okay. There’s always a reason to not invest in the stock market.
And there always will be there will never be a perfect time to start investing. Okay, there will never be a perfect time to start investing. The key is to start investing. All right. Now, if you have a ton of money behind you already hundreds of 1000s of dollars, millions of dollars, then you just take it slow, okay.
You don’t say Oh, I got a million dollars. I’m gonna invest my whole million dollars in the stock market tomorrow. No, you take it slowly you invest in chunks. But the majority of people watching this video right now.
If you’re a beginner in the stock market, you have little to no net worth, which means you’re probably have less than $5,000 in the bank. And a lot of you guys watching us right now have less than $1,000 total net worth. Okay? And that’s fine.
That’s where I was at. Okay, in 2008. All right, and I started and that was the most important investment I ever made. It was the most important forget the investments that you know.
I made 2030 $40,000 on those were not the most important. The most important was that first 200 some dollar investment, because that’s what got me to start the other gains over the years never happened.
If I don’t start the channel you’re watching this on right now. never happens. If I don’t decide to start, nothing happens if you don’t decide to start there will always be a rhyme there will always be a reason on why you shouldn’t invest in the stock market now just get used to.
It because guess what’s going to happen next year is going to be another reason and the following year and the following year in every single year for all of eternity there will be reasons why you shouldn’t start investing now. Okay.
And the truth is starting is the key guys. That’s the first massive mistake beginners in the stock market make. Let’s get into number two. The second huge mistake that I see stock market beginners make all the time guys is they buy a stock just because someone else is buying a stock and this is a massive mistake.
I try to mention this. Anytime I do any stock market for beginners video, I try to mention this one because it is a cardinal sin of investing and explain to you right now. Right. So I talked about stocks all the time I’m buying on this channel all the time, every single month.
I got a super popular series on the channel for stocks I own, which is the four biggest investments I own. I also have another series of talks about the stocks I’m looking to buy and then the fourth month Okay, so Jeremy’s here, and you know.
Jeremy has his stocks, okay, Jeremy has his stocks that he’s picking alright. Great for him cool for him. And that’s fun to listen to and whatnot is fun to get research ideas. But you should never buy or sell based upon what Jeremy is buying himself.
You should never ever do that. If you want to look into those companies and see if that’s one in like it actually look into and you’re like, Oh, I actually believe in this company actually think this is a great investment.
And all you just got was idea for me. That’s okay. But when you start buying or selling stocks just because someone else’s whether it’s me, whether it’s some guy on TV, whether it’s an article, you bet online, that’s a cardinal sin.
Here’s why any, the obvious part would be okay, the stock could go down. But this is not the main reason, right? Because also the stock could go up and you can make money. Regardless whether that stock goes up and you made money from that stock, or you lost money from that stock.
You are missing the whole point of investing, okay? The whole point of investing is that you take Khan troll, okay, you take control over your financial life. That’s the whole point of stock picking, okay? It’s not just to make money, because if it was just to make money, go invest in an index fund.
I can almost guarantee you over the next 20 3040 years, you invest in a simple index fund that tracks the s&p 500, you’re all you’re almost guaranteed to make a lot of money, okay, you’re almost guaranteed.
So if it was just about making the money, then there’s no point in doing all the work and the research involved with stock picking, okay. It’s all about getting control of your financial life.
And you actually realize, Oh, my gosh, I’m buying part ownership in Amazon, or Google or Apple. I’m actually literally part owner of this corporation now at this point, that is a game changer in your mind and set you on a path that will take you away higher levels, just buying or selling stock, because someone else it does.
It’s idiotic. Like I said, it’s not because the stock will go up or down. It’s just because you’re putting control in someone else’s hands. Okay? Which is never in a smart decision. All right.
It’s never ever a smart decision. Take control for yourself. All right. You know, that’s why on this channel, I try to always, you know, teach people how to fish. I want you guys to learn how to actually do it.
Because I don’t know how, you know, maybe I’m gonna still be on YouTube three 510 years from now, still doing videos all the time. Cool, but maybe I won’t be maybe I’ve moved on to other businesses and whatnot.
And you know, next thing you know, I got some other business and I don’t post ever on on the financial education channel. If I haven’t educated you guys and taught you all this stuff, then then what good did I do? Right.
I never taught you how to fish. So that’s the that’s the bottom line. Guys. The whole game is control. Do you want to make money? Yes. And is the whole point of stock picking the one of the points at least to hopefully make more money than you can make other places? Yes.
But the main point is the fact that you’re taking control your financial life and you’re not putting it in the hands of someone else. And I’m telling you, if you’re picking just somebody else’s stocks, you’re putting it in their hands, man, and then you’re not doing yourself any good because you’re not taking control of your financial life.
Alright, let’s get into number three. The third mistake is Beginners in the stock market make all the time is in their mind, they have this like idea that the stock market is either super hard, super difficult, or super easy.
It’s one of the two, they either have like this notion in their mind that oh my gosh, the stock market is like, you got to be a genius, you gotta be like, the world’s smartest person to be good at the stock market or, or, you know, oh my gosh, stock market investing is so easy.
You just like sit around in your couch all day and do it. And really, it’s somewhere in between there, okay, the stock market is not super hard, you don’t have to be a genius, you don’t have to have a college education to be a successful stock market investor, okay, what you need to have is a good strategy.
And what you need to have is work ethic, okay. And the last thing I’ll say you need to have is you need to have kind of like the emotional intelligence to handle losses in the stock market, and handle gains, you need to be able to handle both.
You have those three things, more likely, you’re gonna be a very, very successful investor, okay. But at the same time, you got to understand this isn’t super easy, you do need to put in the work for this, okay.
You need to read the 10 Ks, you need to read the 10 Q’s, you listen to conference calls, you need a Google News about your companies and see what’s going on there. You need to do all that type of stuff you need to keep up with what their quarterly earnings is, are and what not.
You need to keep up with all this stuff. Okay? It’s very, very important. You need to also pay attention to what the competitors are of companies you’re buying, you need to pay attention to all this stuff. Okay.
So it absolutely does take a work ethic to be successful in the stock market. But is it super hard? Do you need to be a super genius to do it? Absolutely not guys, that is such a such a lie.
Anybody that says, Oh my gosh, I make money from stocks. I’m so intelligent. I’m so smart. Now, you know, it’s just not true. You know, it’s just not the way it works. Guys, if it was true like that.
If it worked like that, the people with the highest GPAs were a no and had some decent work ethic, right? The high people with the highest GPAs would be the richest people in the world.
And it’s not the way it works, guys. It’s not the way it works. So, you know, just take that for what it is. It’s not super easy. It’s not super hard, you can do it. But you need to have some work ethic and a somewhere in between.
Let’s get into number four. Number four, a huge mistake I see beginners in stock market make all the time is they get caught up in day to day price fluctuations. Okay, day to day price fluctuations, oh my gosh, today, my stock went down.
Oh my gosh, today, my stock went up, oh my gosh, today, my stock didn’t do anything Why did not do anything they get so caught up in what that stock did in that particular day that it takes actually focus away from where your attention needs to be okay, what what goes on on a day to day doesn’t matter.
Guys, if you have my type of strategy, which is long term investing, you’re investing for companies 2345 years out, what goes on with that company on on one day, or one week, or even one month for that matter is pretty relevant.
What matters is is where that business, the underlying business is going, okay? What are their actual financial results? What does that balance sheet look like? What’s the income statement look like? What’s the CEO saying, okay, have that conference call sound, that’s the real game.
This game of where the stock price went in the short term, all it does is take your attention away from where it needs to be. And this happens for people in stock market all the time that are kind of newer to the game, that I’ll get you no comments.
Oh, my gosh, the stock market went down today, you know, 1% Okay. And like, what, like, what’s the big deal? Oh, my gosh, I bought another stock and I went down 3% today, did I make a huge mistake? What you just bought into that stock, you know.
A week ago or a month ago in a wind to happen to go down? 3%. And you think you made a mistake? Like, are you not a long term investor, you should be judging off of what’s going to happen over the coming years, not what happened over the past week.
You know, same thing, Oh, my gosh, I invested in the stock man. And I just invested in yesterday and already went to 5% should I sell? What are you doing man price, the day to day price fluctuation should not matter, right.
And let’s let’s talk move 50 plus percent in one way or another, then also maybe we’re talking but that’s pretty unrealistic, okay, that’s pretty unrealistic. So don’t get caught up in the day to day present price fluctuation.
It’s just going to stress you out, it’s just going to bother you. It’s just gonna, you know, take your attention away from where it needs to be, which is looking for Gritten, the next great company, that’s where your attention should always be looking for where’s the next great company.
And making sure all the companies you’re currently invested in are great companies, and they’re fighting off their competitors. Well, that’s where the attention needs to be not where my stock price happened to move in that particular day.
Let’s get into the last one. Number five, the number five huge mistake that I see beginners in the stock market make has to do with basically a psychological makeup that some people do based upon what happens on a short term period. Okay.
So let’s say we have Person A and we have Person B. Alright, both Person A and Person B buy their first stock and they buy their second stock, okay? Both of them buy a first stock and they buy a second stock.
What will end up happening is most people just how old they are as an investor based upon whatever happens. So let’s say this person ate here, what his first stock goes down, and his second stock also goes down.
And this person, their first stock happens to go up in the second stock happens to go up. What ends up happening is Person A says, I suck at the stock market man is a big casino, man, I need to get out of this.
I’m done investing, okay? That’s what they’re gonna think. Okay. And then this person over here, what a lot of times what goes on with them is they’re, they’re like, Oh my gosh, I’m the greatest investor of all time.
No one’s better than me. I’m smarter than everybody. I’m gonna be the next Warren Buffett. All right, this is what ends up happening. Okay, short term, whatever happened short term with those stocks, they will end up judging how good of an investor they are off of the short term stuff and it’s like, dude, you need to let this play out.
Okay, you can’t know if you’re, you’re got a knack for stock market investing or if you’re going to be successful at it, based upon your first investment or your second investment, you need to base it upon years of being in this right. It’s the same thing.
I can’t judge myself if I can be a good three point shooter based upon going out there for one day and shooting three point shots, right? Or even the second day, give me some time.
Give me some practice time and then we’ll see how things pan out. Right. Same thing if I happen to have make some good shots at first day, doesn’t mean I’m gonna be Steph Curry.
All right, it doesn’t mean I’m Steph Curry. So don’t get too caught up in whatever happens in a first or second investment guys just realize it’s a process you get better as time goes on. As long as you keep putting in the work ethic you stick to a correct strategy, long term focus, that’s where it needs to be guys.
So I hope you really enjoyed this top five mistakes beginners in the stock market make all the time. Let me know in that comment section if you have made any mistakes in the stock market. I would love to hear from you guys. As always, make sure you follow me on Instagram if you have not already Vega for watching. Have a great day.