Another important tip for beginning stock investors

I wanted to add another important tip for beginning stock investors. This one is very simple – don’t get discouraged.

In my last blog post, I attempted to convince young people that they should be investing in the stock market. I used my friend as an example of someone who blew it. Let me really flesh this story out.

So, my friend blew an opportunity to make tons of money. This was 2008. I had already sold two houses and used that money to buy stocks. The market was free-falling. I knew that this was the perfect opportunity to buy because when everyone else is getting out, you should get in.

Within four years, the market doubled. That $5000 would have been $10,000. Not a big deal for someone who’s rich, but for a middle class guy, nice chunk of change. And I also advise to be continually buying.

Who am I to give advice?

This is an excellent question. Now, let me be clear. I am not bragging, just telling you the truth. I am a guy who came from a working class background, who made a ton of money between stocks and real estate.

I’m not rich. Rich means a net worth of at least $30 million. I’m not there yet. However, we’re well off and my wife and I can now afford whatever we want and we take some pretty fat vacations every year. I still have to keep a day job because my band isn’t profitable yet.

So, if you want to be well off, you might want to consider what I’m saying. If you want to be rich ($30 million net worth or more), I’m not qualified to tell you how to do that just yet.

Back to the stock advice

So, the quick tip I wanted to throw in – you can’t get discouraged. You’ll have bad years where you lose money. Don’t throw in the towel. Learn from your mistakes.

But, keep investing. Keep feeding your investment portfolios and if you’re being smart, you will make a lot of money.

If you don’t have time to study, simply buy index stocks. DIA is the Dow Jones Index. SPY is the S&P 500 Index. Both are excellent stocks to buy and hold. When the indexes take a nose dive, buy tons of them.

You don’t have to be a crazy nutcase like me and sell your rental houses and throw every single penny into stocks when the indexes collapsed. However, I will say it made me a ton of money doing that.

Buy tons of the stocks when the indexes dive. When stocks have a long bull run, be more cautious. But still buy. Just don’t get too greedy. Learn about stop losses.

That’s it for now. I strongly, strongly tell you to not get discouraged. Investing in stocks is for the long term. I’m talking in decades, not years. Invest heavily in your 20s and 30s and you will have a fantastic life in your 40s.

About

Roman is an artist, composer, writer, and travel junkie, and he can still throw a football

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