Top 5 Mistakes Beginners In The Stock Market Make
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Today we do a stock market for beginners 2019 type video where we chat about mistakes beginners in the stock market make. This video is called the top 5 mistakes beginners in the stock market make. These stock market investing mistakes can cost you a lot of money if you make them. By avoiding these mistakes you will not only lose less money on mistakes but also make a way bigger profit on gains. If you are wondering how to invest in the stock market first check out my stock market for beginners 2019 video.
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Well, good day subscribers hope you’re having a great day out there. As always, if you’re new here I am Jeremy and today I want to take you guys through the top five mistakes beginners in the stock market make if you are been investing for less than a year, today’s video is going to be one of the most important videos you can possibly watch.
Because I’ve been in the stock market for over a decade now, I’ve seen a lot of people coming in this game, I’ve seen a lot of people leave this game. And I’ve consistently seen some big mistakes made by new investors in the market, those I want to share with you here today.
So it will save you a lot of money. And it will put you on the right track to making the most money possible. Okay, it being that I’ve been in this privileged position. As far as like being on YouTube for over three years now, I’ve gotten to see, you know, mistakes made by beginners and beginners and beginners.
And a lot of times, they’re the same exact mistakes made over and over again, just by the next one coming through, because there’s always new people coming in on the stock market. And I’m consistently seeing these five mistakes made time and time again, by folks that are kind of newer in the stock market. Okay. Also, I have my private stock market group, and I get to see mistakes that are made by some folks in there.
Now most folks in there are actually like more advanced investors. But there are a lot of people who join that group and are very new investors, and they get to see their mistakes. So it’s almost always the same five mistakes, guys. So we’re gonna go ahead and get into this, I hope you guys get a ton of value out of this of this video, that’s going to save you a ridiculous amount of money down the road guys.
And let’s get into this already guys coming in at the first one is a time and time again, I see new investors in the stock market get into this frame of mind where basically they worry about short term success, they’re so worried about short term success. So essentially, meaning they’ll buy a stock. And if that stock goes down, they think they’re horrible investors, something like that.
And that’s just absolutely the worst mindset you can have getting into the stock market, you’re going to take stock market investing serious, you cannot care about your short term success, you have to be focused long term. How do we I build accounts over time? How do I build this account over the next three years, over the next five years, your frame of mind really needs to be thinking long term, and not Oh, my gosh, I bought this stock.
And it happened to go down today. And now I’m down on the position and I’m down $15 on this position. And what am I going to do? If you’re worried about so much into the short term success when it comes to stocks, it’s going to be a very hard game for you.
And that’s not just stocks, that’s investing in general, you wouldn’t ever buy, let’s say you are a real estate investor, right? You would never buy a real estate property and think, okay, I bought this property. Okay, let me hope it goes up in value today. So I can sell it tomorrow or something like that. That’s not usually how you think.
But in the stock market, since you can see stock prices every single day, new investors in the stock market, they get caught into this trap where they judge themselves based upon their first couple investments. And I’m telling you, that’s just a big, big mistake, because you’ll start to get into a place where you think the stock market is not for you.
But I’ve been in the stock market for over 10 years. And I don’t even judge myself based upon short term success or something like that. So why should you you should absolutely not do any Think about it this way. Okay. If you were, let’s say you wanted to become a great basketball player, right?
You wouldn’t just think oh, my gosh, I should be able to drain three pointers, like it’s nothing you would think, okay, I’m probably gonna, you know, be really bad at this at first. But with practice, and with time, I’m going to get better, I’m gonna get better, I’m gonna get better.
And it’s the same exact thing with stock market. So don’t think you’re going to have a massive amount of success in the short term. It can happen for you, but don’t think it’s going to happen for you. And don’t worry about it, think long term think how am I going to build wealth over the next 2345 years or something I always bring up to my stock market group members, I always say, guys, listen, it’s all about growing into the future.
And I try to always remind them this when we’re in a tough market, because when you’re in a tough market, that’s where a lot of folks really get caught up in the short term negativity and things like that. You always got to have focus for the long term and building accounts.
And what I’ve seen time and time, again, is the folks that had that long term mindset and are focused on building their accounts over the next three years, five years, seven years, 10 years. Those folks are the ones who actually do it. Those folks are the ones that go from $3,000 invest up to $10,000 invested to $15,000 invested 250 $1,000 invested to six figures.
Investors, so on and so forth. Those ones that actually have that mindset are the ones that make it really far and the ones that fail and the ones that give up and the ones that quit the game are all the ones that were so worried about if they lost their $20 in the stock market or something like that.
Okay, don’t worry about short term success worry about company fundamentals worry about investing for long term worry about building accounts for the long term. Okay, that’s Mistake number one, by the way, miss you guys hit a thumbs up if you’re going to enjoy this video.
Let’s get into number two already. Mistake number two that I see from beginners in the stock market all the time is this mistake that basically they buy into stocks blindly. What do I mean by this? They don’t even know what to look for in stocks and they start buying stocks.
They’re like, Oh, I heard about some stock over here. Oh, this stock seems really exciting. They don’t even know what to look for. They don’t know PE ratios. They don’t know company fundamentals. They don’t know how to value a company versus its peers.
They don’t know any of the stuff but they just start buying stocks. And I’m telling you, if you go into anything with no knowledge on, like, what to look for and what not, you’re gonna cost yourself a lot of money, especially when you’re investing.
No matter what market you’re investing, I don’t care if it’s a stock market, real estate, crypto, gold and silver commodities, anything you could possibly think of, or just like small businesses, you’re investing like private businesses and things like that doesn’t matter where you’re investing your money, you always got to go in with a plan in like an understanding of this is how I value this thing.
This is why I should put some money in this thing. But so many times I see people buy stocks blind, not even knowing what to look for in that stock, okay, you’ve got to have a plan in place, it’s going to be very costly. If you don’t want to like read books or take courses or things like that, right?
It’s going to cost you a lot more money by basically learning all the things step by step, I highly suggest you read some great books out there, the Intelligent Investor, the Little Book of Common Sense investing, okay, I have a book called modern long term stock market investing secrets that’s on Amazon, there’s so many different great books, you can get an idea of the strategies and the things to look for in stocks, when buying stocks, okay.
I also offer courses that go into exactly what I look for in stocks, you don’t have to get those products, but I can promise you, you need to absolutely have a plan in place. Because it is going to take you years, if you don’t ever read books, you’ll never watch courses and things like that and learn the different ways on how people invest.
Then you’re going to be starting way behind everybody else, you can accelerate your plan by doing the research upfront on knowing Oh, I need to look for this in stocks by people that have actually been in the market for a long period of time. And if you decide, no, I’m not gonna do that. I’m just gonna wing it, you’re gonna probably lose yourself a lot of money.
And that’s unfortunate, because like all things, it does take work. It does take research in order to be good at something, okay? Personally, over the past year, I’ve looked a lot into real estate investing, because I’m interested in possibly over the next few years becoming a real estate investor over time, okay. And I could have just jumped in and started real estate investing right away, but I don’t know anything about the markets.
Okay, so what have I been doing over the past year, I’ve been reading countless books on real estate investing, I’ve been watching courses on real estate investing, because that’s the way I want to diversify my wealth over time, I need to learn from folks that have been in these markets for 510 1520 years, and have a ton of tips they can give me in either their books or the courses because that’s going to give me an idea.
And I’m not going to be going into real estate investing blind and just winging it and hoping for the best and I’ll just learn on the spot or something like that. I’ll actually have a plan in place. Oh, no, this is how I actually value this property. Okay, this is what type of rental income this can do for me, oh, this over here is going to need to be fixed.
Oh, that’s probably going to cost me I have a plan in place. Okay. It is so important, guys. You’ll cost yourself so much money if you just invest blind, okay, by the way, there’s still going to be learning that has to be done even after you read the books, even after you take courses, you still have to actually go out there and execute it, okay.
But it’s going to accelerate your learning in a massive, massive way in years of time, rather than, you know, just hoping for the best and winging it. Okay, let’s get into Mistake number three. Mistake number three, I see beginners of stock market make all the time. This one is the most frustrating of the five. Okay, this one for me, is the most frustrating.
And it’s consistently made by folks that are new in getting into the stock market. Okay. And that’s essentially buying a stock just because someone else did. You heard that the person on CNBC was buying this stock. And so you just went ahead and bought that stock, because you’re like, oh, they’re dressed in a fancy suit, they must know what they’re talking about.
Or I mentioned a stock on the YouTube channel. He like, oh, Jeremy has been in the market for over 10 years, oh, he’s had this stock be good. And this stock be good. Okay, this next one he invested is going to be the next great stock or something like that. Let me just buy it. I don’t know anything about the stock.
I don’t know anything about it. I’m just gonna buy the stock anyways, it is a massive, massive, colossal mistake. If you’re buying stocks in the stock market, only because someone else did. Okay, I can’t even begin to explain to you how foolish it sounds when somebody that’s actually been in the stock market for a long time.
Here’s somebody bought a stock over here. And they blame it if it went bad, because they just bought that stock. And they heard it from somebody else, or they did good on and they’re like, thanks for mentioning that stock. I happen to buy it and you just made me a bunch of money or something like that.
I’m just like, What is going on? in the stock market? If you want to be successful over the long term, you yourself have to be good at picking stocks and you can’t count on others to hopefully try and make you money by mentioning stocks or something like that, okay, you need to be the one fully researching stock.
Here’s what ends up happening, okay, somebody on television or on the internet or somewhere will mention the stock that they’re buying and why they’re buying that stock. Somebody just jumped in that stock without researching it without doing the background due diligence work on why you know, the maybe they shouldn’t buy that stock or why they should buy that stock, they go ahead and jump in and the stock will go down in a short period of time.
And what happens countless times is that new beginner in the stock market gets scared because they don’t even know anything about that stock. So how are they supposed to have confidence that sometimes they don’t even have a plan. So they’re buying stocks blind that they heard from somebody else, they’re just throwing money around the stock dips in the short term goes down 5% 10% 15% they sell out of that position for a loss and they say screw the stock market.
It’s a scam Out of this thing, I just lost 1015 20% of my money, oh my gosh, what am I going to do. And it’s like, if it was that easy to just invest in the stock market, like that would be a beautiful thing, right? If just every stock that someone happened to mention, like, always went up or something like that, like that would be a beautiful, beautiful thing.
And every single person in the world would be a stock picker, I can tell you, it’s not that easy, you actually need to do the real research work, you actually need to do the study on companies, you actually have to look at those financial metrics, you have to actually look at the business ball, you actually have to look at the competitors and things like that, you have to actually do some work if you want to make money in this game.
And you’re going to cost yourself so much money if you’re just buying stocks, because someone else did some most foolish thing a person stock market could do the most. And I wish I could just like send a chip into like every baby’s brain that’s ever born. And it’s just like it is like a chip in there.
And it says, Do not just buy a stock because someone else buying a stock. I wish I could do that. But unfortunately, that’s probably the biggest mistake that will continue to be made for generations and generations into the future. It is what it is. But make sure you don’t make that mistake.
Okay, let’s get into number four Mistake number four beginners in the stock market make when they’re starting to research stocks and starting to look at like what to look for in stocks and whatnot, it could be a lot of information that the stock market is complicated in general, learning all the things to actually you know, go ahead and look for in a stock that is very complex.
And it takes time to learn that it doesn’t just happen in snap of the fingers, you actually have to take time learn all these things and get better and better. So they’re getting in the stock market. And basically, they just there’s a lot of information, they think they’re not smart enough to become a stock picker, they’re like, ah, I must not be smart enough. Because this stuff is complicated.
And I’m having to rewatch videos to learn from this. And I must not be smart enough. And let me just tell you, when it comes to picking stocks to hopefully make money in them, you don’t have to be a certain IQ. Okay, there’s no such thing as being smart enough to invest in the stock market. There are people that are highly successful in the stock market and graduated with a master’s degree in business.
Okay. There’s also a ton of people that are highly successful in the stock market. And our high school dropouts are people that never even went to college. Okay, there’s no like, you have to be a certain intelligence, you have to have a degree in order to be a successful stock market investor.
There’s no such thing as that. Okay, what there is a such thing as is, what is your work ethic? Can you handle volatility in the market stocks are always moving up and down, every single day in the stock market stocks are moving up and down, you know, if the stock market goes up, a bunch of stock can move up huge, the stock market goes down a ton of stock, go down a bunch and all those movements in the stock market, you got to be able to handle volatility.
Okay, so those are two of the most important things you need to have. And neither one has to do with whether you have an 85 iq or 100, IQ or 120 iq or anything like that. Okay, can you work hard? Can you stay discipline? And can you handle the volatility that comes with the stock market, if you can’t do those types of things, then it is going to be hard for you to have success in the stock market.
If you just want to be lazy and be a stock picker, this is probably not the game for you. Okay, if you can’t handle the fact that your money is going to go up and down in value all the time in the stock market, then this is probably isn’t the game for you. If you can’t stay disciplined, then this probably isn’t the game for you.
All those three things are the most important things in the stock market. And none of them have anything to do with whether you are smart enough or not. So don’t get caught up in that game of thinking you’re not smart enough because you didn’t go to college, or I didn’t get good enough grades in high school or something like that, like that has nothing to do with anything, it has literally nothing to do with anything, guys.
So don’t don’t get caught up in that game. And just realize, regardless of what your intelligence level is, like God given or whatever, okay, whatever your intelligence level is, it’s gonna take time to learn this game and become super confident in yourself.
And there’s no such thing as I’m not smart enough. Okay, let’s get into Mistake number five already guys, Mistake number five that beginners in the stock market make is basically this one is more prevalent to some of the folks that get in the stock market when they’re already in the 30s 40s or 50s. Okay. And it’s basically when you invest too much money too fast.
All right, the stock market is a perfect place to get involved with when you’re you know, let’s say anywheres, between 18 years old and about 30 years old. Why? Because most folks that are 18 to 30 don’t have much money to their name, like they’re just starting out their financial life.
And most folks in those age brackets, they don’t have a lot of money. So they might have hundreds of dollars or might have 1000s of dollars to their name. So it’s not like they have a massive amount of wealth built up or something like that. Okay, the folks.
I worry about sometimes that are getting in the stock market, or folks that are, you know, in their mid 30s in their 40s in their 50s in, they actually have a good amount of money saved, you know, 10s of 1000s of dollars, or hundreds of 1000s of dollars of like savings and these get into the stock market, they think I want to grow that money in the stock market is a great place to grow money.
Unfortunately, if you have no experience in his game, it means you’re probably going to make some mistakes and there’s a greater likelihood that you don’t have a ton of confidence built up in yourself. As we talked about before. The more experience you get in this the more confidence you have someone like myself has been in for over.
10 years and has seen a ton of markets, you know, stock market crashes, stock market corrections and all these sorts of things, bull markets and trade wars and blah, blah, blah. I’ve seen all these different things. It just builds confidence in myself. You’re just getting involved with this.
You’re in your first year or so and you have let’s say $100,000 life savings, and you plow that in the stock market right away, you’re probably going to make a lot of mistakes, you’re probably going to get really scared, especially if a stock correction happens. Or if something goes wrong with one of your stocks, you’re going to get scared out of this game real fast.
And you could have just lost yourself a ton of ton of money. And then you might even get into the mentality of, Oh, I got to try to make it back as fast as possible. So then you get into even more speculative stocks, and maybe those don’t work out and you lose even more money. It’s just kind of a bad, bad downward spiral.
Okay? don’t invest too much money too fast. Invest at your own pace. Let’s say you have $25,000 of life savings, okay, you have that in your savings account, you’re like, eventually I want to get all that money, or most of that money, put in the stock market. Okay? go at your own pace. Just go watch one of my courses, don’t just go buy some investing book or whatnot.
And think you know, everything right off the jump and just start, you know, plowing all that life savings rate in the stocks right away, deploy it in increments, like maybe saying, Okay, if you have 25, let’s say you have 25,000 that you want to eventually get in the stock market, maybe one month, you you put 2000 in your account, the next month, you put another 2000 next month.
You put another 2000 and then you feel more confident your investment decisions, and then they you put another 4000 that account then the next month if you’re still feeling very confident you can put another 4000 But don’t just all put it all in one day or something like that, because you’re probably gonna make some mistakes.
And you don’t have the confidence built up time in the market equals confidence in the market and the more time you’re in it, the more confident you’ll get, which means you can invest bigger and bigger amounts of money and more and more of your wealth can be tied up in the stock market but don’t rush into it all in one day.
That’s once again a tip for a lot of the folks who already have a lot of money the best place the best time against all in the stock market is when you don’t have a lot of money when you only have a few 100 bucks to your name or a few $1,000 to name that’s actually the best time to get involved in the stock market in my personal opinion is not when you already have a half million dollars or something like that.
And if you have that type of money, make sure you are being very cautious on how you invest and make sure you’re taking it one step at a time not just rushing money in your accounts because you want to grow it to a million dollars tomorrow.
Something like that guys, I hope you enjoyed this video. Hope you got a ton of value out of it. Make sure you hit that thumbs up button today. Thank you for watching, have a great day. Share this with somebody that maybe wants to get in the stock market.