Investing in the stock market

[Forgettable]

I have invested approximately $30,000 in the stock market since 2018.
The money I have contributed has been in relatively equal monthly amounts since I started.
My portfolio is worth approximately $61,000 now.

[Afrospinach]

Hindsight is 20/20. Pretty naive to think you can compete with professionals and high frequency trading as a private investor. It's basically gambling. Everything you ever read about stocks is known by the people involved weeks beforehand and already in the price.

I wish I could read you the opening paragraphs in one of my books from one of my risk management classes from university. I am paraphrasing and don't do it justice but it was something like:

"one of the most insufferable things about dealing with the stock market is you have to listen to everyone's winning strategy whereas statistically the truth is the only people who consistently beat the CML are people who work at stock exchanges."

Nobody is out trumpeting about how much they lost on the stock market, everyone can look at a stock that was worth nothing yesterday and is worth thousands today then say "hey that is easy" see OP.

[Thereturn]

I invest solely in broad index trackers (world, s&p, aex) with de. NSDQ being the exception.
Started in januari, made 20% overall last year. But i invest for the long term, not planning to cash out for the next 20 years unless im forced too.

Putting in 3k per year because im on the conservative side. I dont want my stock portfolio to go over 30% of what i have in the bank. Aside that im planning to get into real estate with a friend. Never bet on one horse.

[XDurionX]

I wish I could read you the opening paragraphs in one of my books from one of my risk management classes from university. I am paraphrasing and don't do it justice but it was something like:

"one of the most insufferable things about dealing with the stock market is you have to listen to everyone's winning strategy whereas statistically the truth is the only people who consistently beat the CML are people who work at stock exchanges."

Nobody is out trumpeting about how much they lost on the stock market, everyone can look at a stock that was worth nothing yesterday and is worth thousands today then say "hey that is easy" see OP.

Exactly. /tenchars

[Rasulis]

I wish I could read you the opening paragraphs in one of my books from one of my risk management classes from university. I am paraphrasing and don't do it justice but it was something like:

"one of the most insufferable things about dealing with the stock market is you have to listen to everyone's winning strategy whereas statistically the truth is the only people who consistently beat the CML are people who work at stock exchanges."

Nobody is out trumpeting about how much they lost on the stock market, everyone can look at a stock that was worth nothing yesterday and is worth thousands today then say "hey that is easy" see OP.

I think we need to differentiate between short-term vs. long-term investments. Most short-term investors, such as day traders, probably have more losses than wins. Long-term investors can play it safe. A strategy of 40% tech sector funds with 50% in communication, customer discretionary, health care and customer staple funds is pretty much guaranteed steady growth for the last 3 decades. Even taking into account the 2000 dotcom and 2008 great recession. Was there ever any doubt that tech and health care will keep growing? The same with consumerism which is basically the backbone of most economies.

[palwisp]

"one of the most insufferable things about dealing with the stock market is you have to listen to everyone's winning strategy whereas statistically the truth is the only people who consistently beat the CML are people who work at stock exchanges."

There are plenty of individuals who have beat the stock market average.

[palwisp]

I've lived through the Tech boom and bust.

Everyone always goes on about that like the tech investors were suckers. Fact is if you had amazon in your portfolio in the 90's you made a ton of money however many other companies you had. Most tech investors did have amazon, and they made millions.

Bear this in mind if you hear someone talking about how hard it is to beat the market, because they are getting their info from hack journalists rather than actual experience and knowledge.

[umidzevs]

This is a good way to make money. If you understand what you are doing

[kail]

You don't get my point. All the information you can "research" is already reflected in the price of the stock and thus useless. Every history, every projection, every trend is already reflected. There'S a reason why insider trading is forbidden.

If you're talking about short gains via day trading, I agree that is akin to gambling. You're betting on how high specific stocks will rise within single or multiple days and try to cash out on whatever meaningful gains you see.

Long-term investing is pretty much-having trust in the future. You don't need to get the stocks as early as possible like day trading, the information doesn't have to be as new and fresh. It goes even further with index funds or exchange-traded funds where you have trust in a collection of companies to which few do detailed research on most of them.

There's rolling dice and hopinh RNG will dictate if you won or lost on the spot and there's trust in companies to continue growing their profits. You could technically call them both gambling in the basic sense of the word but there is a clear difference between the two.

[smityx]

Let us know how you are doing when the next 2008 comes around. Remember these things are cyclic. Bubbles got to burst and pyramid and bs financial schemes only go for so long until it's discovered or the top cashes out.

[Soulcreep]

Does anyone else invest? I started in March and have made 10x's the amount I put in. It's been a pretty crazy ride and it hasn't been easy (Have to keep up with current events and read around 2 hours a day of market analysis. Plus you actually have to know how everything works.) but damn it's fun. I read that only 14% of Americans actually invest in individual stocks which makes me sad because it almost feels like free money at times aside from doing the research.

Fun fact: If you invested $100 in Dominos Pizza in 2010, you would have made $4000 off it since then. Or if you invested $100 into Tesla in 2010, you would have made $9,000. It made me realize how much banks are scams holding your money, investing it themselves, and giving you 0.3% interest per year while they make boatloads.

Ameritrade for life! AMD

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Everyone always goes on about that like the tech investors were suckers. Fact is if you had amazon in your portfolio in the 90's you made a ton of money however many other companies you had. Most tech investors did have amazon, and they made millions.

Bear this in mind if you hear someone talking about how hard it is to beat the market, because they are getting their info from hack journalists rather than actual experience and knowledge.

Amazon wasn't a stock in the 1990's.

[TaniaNio]

I should agree with you. Keepeng money at the bank is detrimental

[Carsonn1]

a nice idea i think

[Zan15]

Ameritrade for life! AMD

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Amazon wasn't a stock in the 1990's.

1997...so....ya...it was.

adjusted it would be about 1.53 a share.
So for every 100 shares you would now have $209,215 on your $153.00 investment

[Rasulis]

1997...so....ya...it was.

adjusted it would be about 1.53 a share.
So for every 100 shares you would now have $209,215 on your $153.00 investment

Playing it safe - $100 each month into FSCSX for 30 years for a total contribution of $36,000 - your end balance would be $846,853.62.

[mariopepper]

I used to invest into cryptocurrency back in 2016. Now I don't have any extra-money to invest yet. Moreover I've heard news about bitcoin. They predict it will cost much more then now. I still own some btc on my bitcoinofficial wallet and I guess it was right decision for me - not to sell it when I had an opportunity.

[Soulcreep]

1997...so....ya...it was.

adjusted it would be about 1.53 a share.
So for every 100 shares you would now have $209,215 on your $153.00 investment

I stand corrected, you're right, barely in the 90's.

[Selastan]

I'd like to, but don't know how. As in, the actual physical actions I need to take in order to do so. Every time I try to research 'how to invest in stocks' it's just 'buy this, sell that' and not 'go here, click here'.

[Forgettable]

I'd like to, but don't know how. As in, the actual physical actions I need to take in order to do so. Every time I try to research 'how to invest in stocks' it's just 'buy this, sell that' and not 'go here, click here'.

You find a broker.
For me, I use Questrade (I live in Canada).
Some banks offer the ability to trade stocks also, such as TD.
There are also mobile apps that can do it too, such as Robinhood.

[Vash The Stampede]

The stock market will crash at some point in 2021, guaranteed. So I wouldn't be investing money into it unless you're willing to lose that money. It did crash in 2020 but thanks to government intervention the stock market is higher than ever. Stock buy back is a bitch, and at some point the Fed has to cut the tit off from the market to avoid hyper inflation. Or don't and watch as a gallon of milk costs $10. The higher the stock market rises then the harder it'll fall.

The Fed buying assets, flooding the market with Liquidity, while also buying High yield Debt ETF's, is the reason why it's doing as well as it is. This is many trillions of dollars being poured into the stock market. Remember that while they can't pass a stimulus bill with stipulations. This is also the definition of socialism for the rich because they are clearly not allowed to fail.