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How To Invest In Stocks In 2023
In this video we go over how to invest in the stock market during these volatile market conditions...
📈 How To Invest & My Portfolio: https://theinvestingacademy.teachable.com/p/theinvestingacademy?coupon_code=SALE&product_id=4455382
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2020 has probably been the weirdest year that I have invested in, ever since I started Investing many moons ago. Now I got to say I feel sorry for those new investors out there who are just getting into the stock market, because it’s very hard to navigate these dodgy waters if you do not know what you are doing.
But that’s the reason why I’m making this video. I want to provide a framework that is going to help you steer through these, let’s just say interesting times and not get burnt! Now it’s not going to make you an investing genius in one video, but what it will do, is get you on that right pathway, to investing well during volatile times.
I’m going to share with you 5 tips that I use, Buffett uses, the best investors use them, to beat other investors and win long-term…
Tip 1: Get Your Emotions In Check (Ready For A Crash)
One of the things that is going to be separating the average investors from the quality investors during these times, is those who can handle emotions. Jordan Peterson advises that we be the reliable one at a relative’s funeral.
It’s important that we take that advice further and relate it to investing. Particularly investing in and after a market crash…
You see this is the mindset that 90% of investors take on. When they see their stocks go up, they feel very happy. They go tell their friends at the bar, how much money they made, they check their stocks weekly if not daily, their emotions are all caught up in the ups and downs of the stock market.
However the small percent of investors that do the best, are the ones, who do the opposite of what these guys do. The investors that win, are actually when their stock goes down because it means its gotten cheaper, so they can buy more at a cheap price.
Over the long-term they know the cheaper the price that they buy into stocks, the higher their returns will be. It’s because of this exact concept that Buffett says “you’re dealing with a lot of silly people in the marketplace; it’s like a great big casino and everyone else is boozing”.
“buy low, sell high!”. Unfortunately most investors do the opposite.
Tip 2: Choose An Area That You Are Competent In
If you want an advantage over other investors, if you want to be getting those high level returns, you need to be investing in areas that you know well. So what I recommend is you take a step back and you assess the areas that you know well. Ok, if you’re a young guy, it might be gaming, artificial intelligence, social media, some type of technology business.
If you’re older, your advantage might be in businesses that are more mature. Perhaps hospitality, travel, wine, food, you know something along that nature.
You know Buffett he only sticks to those more mature business models that he knows well. The likes of sees candy, which sells sweet products. That business model has been around for ages and Buffett understands it. Or the likes of insurance which Buffett put many hours into getting his head around. He knows that game so well, that he can pick the companies that are good investments.
And you should be doing the exact same thing as Buffett. As I say if you’re young, and you like gaming, well you probably have a better idea then most of what companies are going to lead in the future. And what industries will take off.
That’s why one of Peter Lynches most famous quotes is so simple but so genius. He says "Know what you own, and know why you own it." - Peter Lynch.
You see most investors they want to make money in every industry. They want to talk at the bar to their friends about all the companies they own. But rarely do they stick alone to the industries they know well. Rarely do they understand exactly what it is they own and why they own it. That’s why you shouldn’t be like most investors.
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DISCLAIMER: It's important to note that I am not a financial adviser and you should do your own research when picking stocks to invest in. These are just some of my viewpoints, by no means would I recommend watching one YouTube video and then immediately buying that stock. This video was made for educational and entertainment purposes only. Consult your financial adviser.
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