How to invest in stocks the right way and avoid the myths told by Wall Street.
I’m sharing the secret to investing in stocks and it’s going to surprise a lot of investors out there.
What you’ve heard for years online and in the financial media is wrong and sometimes there to fool you. The conventional wisdom and the rules of investing are often there to take your money.
In this video, I’m revealing the biggest investing mistakes and myths along with how to avoid them and beat your investing goals.
Reserve your spot on the FREE webinar now. Step-by-step to creating an investing plan that works for YOU! Get your ticket here.
What Investing Online is Really About
This video is going to be an eye-opener for a lot of investors and I’ll tell you why. I’m going to reveal the secret to investing, something most of the Wall Street banks don’t want you to know and something that goes against most of what you hear in the media.
The secret is that investing is not about making money, it’s about not losing the money you make to Wall Street lies and the worst investor mistakes.
Think about it. Anyone can make money in a bull market. The stock market doubled in the five years to October 2007, that’s a return of almost 15% a year and the same has been true in the bull market starting in 2009.
Making money is easy.
Not losing money, not so much.
The crashes in 2000 and 2008 destroyed half the market value of stocks. Worse still is data from Dalbar Research that shows the average investor made just 2.6% a year during the good years because of those Wall Street lies and mistakes we’ll be talking about.
I’m going to detail all of those in this video, the three worst Wall Street lies and the biggest mistakes that lose your money. Then, in a special free webinar, I’m going to show you a goals-based investing strategy that will take advantage of those big run-ups in stocks but save you from the biggest losses.
The webinar is completely free. In it, I’ll guide you through every step of my goals-based investing course, a 12-lesson course on customizing your investing strategy to meet your needs.
The webinar is free and will give you everything you need to get started. I don’t believe in holding anything back to sell people into my course. It’s just there for those that want a more hands-on and detailed approach.
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3 Worst Scams in Investing
But let’s get to those three lies Wall Street tells investors and the two biggest investing mistakes almost everyone makes.
I’ve seen these Wall Street lies first-hand when I worked as an equity analyst, when I worked for venture capital firms and big banks. The goal wasn’t to make clients money, it was to entertain, excite and keep them coming back for more.
It’s with these Wall Street lies that the investment industry and the media sells billions in advertising and collects billions more in fees.
And the first here is that investing is about picking stocks and making huge returns.
This is an easy one to believe because all you hear about on TV or the internet is stock picking. You look at triple-digit returns on a stock and your eyes turn into dollar signs as if you were a cartoon character.
The problem here is that picking stocks means you’re constantly glued to the TV or that investing blog, looking for the next hot stock. You trade in and out of stocks, running up thousands in fees, and the losing picks even out your winners.
I like to call this the ‘What’ of investing, what you invest in. The truth is that the ‘How’ of investing is so much more important. How you set up your investments and how you invest is going to help you reach your goals and with a fraction of the time and stress.
Our second Wall Street lie here is that you need to worry about a stock market crash.
Now if this is a lie, why did I just say the secret to investing was about not losing money? How can you not worry about a crash if your goal is to not lose money?
Because there are two ways you can try not losing money in a stock market crash. One is that you can constantly worry about a crash, spend hours a week watching the news and try timing the market with stock trading.
That way is going to mean spending thousands in trading fees, constantly losing sleep over your investments and probably not going to save you a dime when a crash does come.
The second way is to use a long-term approach that aligns your investments with your risk tolerance, with stock prices and with your goals. This way takes less than a few hours a year, if even that, and helps you avoid the full force of a crash.
Now, this second approach isn’t going to save you from losing any money. I lost just over 20% of my portfolio in the 2008 recession. That was pretty mild against a 50% loss in stocks and I was ready to take advantage of cheap prices in 2009 but there was still some pain.
That second approach is in rebalancing your investments to match your goals and taking advantage of different assets including bonds and real estate funds when stocks start to get expensive.
Our third lie Wall Street tells investors is that investing is complicated. This is a favorite one of the industry because they like to look smart. The army of analysts, media pundits and advisors love to make investing complicated with different strategies and formulas.
This does one of two things to investors and both are good for the industry.
First, it keeps you glued to the TV or that investing website for the next strategy or stock pick. The average investor doesn’t have time to analyze stocks all day so they leave it up to the analysts and then just let them recommend every stock. That takes us back to those billions in advertising and trading fees.
And then some investors just give up. They don’t want to worry about their money, they don’t want the constant stress, so they just hire an advisor. That means about a 1% management fee each year, which doesn’t sound like much until you add it all up.
If you started with $10,000 and invested $200 a month with an advisor, that tiny 1% annual fee would cost you over $105,000 over 30 years. At a modest 7% annual return, your investments would have grown to over $300,000 if you had managed them yourself but you’re left with just $197,000 because you were scared into going to an advisor.
Investing is not complicated. Life, Life is complicated. World peace is complicated.
Investing is easy.
And it’s easy because we’re going to look at those bigger-picture goals, we’re going to make investing about the how instead of constantly picking stocks and trying to time the market.
Biggest Investor Mistakes
Now these three Wall Street lies really feed into the two biggest mistakes investors make, falling into that returns-based strategy and over-trading.
That returns-based strategy of chasing stocks really only does one thing, it keeps you scared. It keeps you scared that you’re not picking the right stocks, that you don’t have enough information, that you’re going to get wiped out in the next market crash.
This leads to so many mistakes like panic selling, using complicated options strategies and investing on margin to boost your returns.
The end result is most investors see their portfolio go nowhere.
Think about it. The stock market surged four-fold over about nine years from early 2009 but what happened in your portfolio? Not accounting for deposits, has the value of your portfolio jumped four-times over that period? Are you sitting on a 400% return on your investments?
If the answer is no, then you’re probably stuck in that returns-based investing strategy and you need to find a solution.
All this is why that goals-based investing strategy is so important. It’s going to make investing personal for you, for your goals, and is going to keep you from falling into that returns-based investing strategy that loses money.
Reserve your spot on the FREE webinar now. Step-by-step to creating an investing plan that works for YOU! Get your ticket here.
Don’t forget to click through and sign up for that free webinar where I’ll detail the entire goals-based investing strategy, how to get started and how to manage your own investments. In about half an hour, I can show you how to be successful investing and how to manage your portfolio on just a few hours a year.