Why You're Losing Money in the Stock Market?
๐ If you had invested $10 000 in Warren Buffett's Partnership in 1956 and, then followed him and invested everything in Berkshire Hathaway $BRK.B you would have $11.4 billion today. In the S&P 500 $SPX500 , $6 million. However, most people would not have achieved this. The stock market is a winning game but ๐ต๐ฌ% ๐ค๐ ๐๐ฃ๐ซ๐๐จ๐ฉ๐ค๐ง๐จ ๐ก๐ค๐จ๐ ๐ข๐ค๐ฃ๐๐ฎ ๐๐ฃ ๐ฉ๐๐ ๐ข๐๐ง๐ ๐๐ฉ๐จ while the 10% who make money fail to beat the market. It is easier to win a gold medal at the Olympics than to beat the market. Why is that?
๐ค When I started as an investor, I was down 24% in 6 months. The main reason was that I didn't know what I was doing. You need to know whether you're going to be a defensive investor or an enterprising investor, then you need to have a ๐๐ก๐๐๐ง ๐๐ฃ๐ซ๐๐จ๐ฉ๐๐ฃ๐ ๐จ๐ฉ๐ง๐๐ฉ๐๐๐ฎ.
โThe second reason why most people lose money in the markets is that they are ๐ฃ๐ค๐ฉ ๐ฅ๐๐ฉ๐๐๐ฃ๐ฉ. My best ever investment is GameStop $GME where I made over 3300% profits. I started investing in September 2019 and at some points, I was down 60%, I didn't sell. I just kept investing since I believed in my analysis. I had to wait over a year to break even and 17 months to make these massive profits.
๐บ The main reason, however, why I believe investors lose money is because they want ๐จ๐ค๐ข๐๐ฉ๐๐๐ฃ๐ ๐ฉ๐ค ๐๐๐ฅ๐ฅ๐๐ฃ ๐๐ซ๐๐ง๐ฎ ๐๐๐ฎ. You don't have to trade every day, you don't have to look at your portfolio every day. Warren Buffett looks at his portfolio only every two weeks. The market will react to most news but this news is not going to matter in the long term.
๐ค ๐๐ฃ๐ซ๐๐จ๐ฉ๐ค๐ง๐จ ๐๐ก๐จ๐ค ๐จ๐๐๐ ๐ช๐ฃ๐ง๐๐๐ก๐๐จ๐ฉ๐๐ ๐ง๐๐ฉ๐ช๐ง๐ฃ๐จ, the returns of Berkshire Hathaway are 20% per year in the last 56 years, Peter Lynch did 29% per year, what makes you think you can make 50% every year? That's why investors jump from stocks to stocks. They see a stock going up, they will buy it, then when another one is going up, buy the other one. This is bad strategy. You buy stocks when they go down. You need to be a contrarian in the markets.
Watch the full video on YouTube:
https://www.youtube.com/watch?v=XueeNa8EDOU&list=UUPO3uUyoXSaFWG-Ldq1mqEQ&index=1
ย
๐ฌJoin my INVESTMENT RESEARCH PARTNERSHIP for all my analysis and research, along with a course for investing for beginners for free๐ฌ
https://ishfaaqpeerally.teachable.com
๐ New to investing? Here's my investing COURSE FOR BEGINNERS with over 150 lectures ๐
https://ishfaaqpeerally.teachable.com/courses/enrolled/721696
๐ฃ๏ธJoin my private investing FACEBOOK GROUP for more ๐ฃ๏ธ
https://www.facebook.com/groups/IshfaaqInvesting/
๐ฌ Join my DISCORD CHAT ๐ฌ:
https://discord.com/invite/t9YvXfU
๐ WEBSITE - Subscribe for Weekly Newsletter ๐:
https://www.ishfaaqpeerally.com/