Welcome to My Stock Market Basics! It took me more than a decade of losing the stock market game to realize that investing isn’t about picking stocks or getting rich quick.
I was the typical investor in my early 20s. I started investing in the stock market while serving in the Marine Corps, spending hours every week listening to stock market news and stock tips. I traded in and out of my stock picks and ended up under-performing the return on the market by a wide margin.
It seems I’m not alone in losing the stock market game due to bad investing decisions and relying on analysis from investing ‘experts’ on TV. The average investor earned an annual return of just 2.6% on a stock and bond portfolio over the ten years through 2013. That’s compared to returns of over 7% on stocks and nearly 5% on bonds.
Click through to find out how to actually WIN the stock market game and the strategy you can use to win in a lot of other games in life!
Why is it so hard to break bad investing habits and win the stock market game? Even when we know we shouldn’t be trading in and out of stocks or gambling in high-risk penny stocks, we just can’t seem to help ourselves.
I almost gave up on stock investing and sold my stocks
I ended up giving up on my stocks for a few years in my late 20s, putting everything in index funds. This wasn’t the solution either. The funds invested blindly in indexes and always underperformed by at least the management fees.
I also found out that I liked investing and following the stock market. Putting everything in index funds was boring and felt a little like giving up the fate of my financial goals to some fund manager I would never meet.
There had to be a better way to play the stock market game without stock trading and losing to the same investor mistakes.
Check out these 8 Stock Market Basics that will help you stop losing money in stocks.
Getting Back to the Stock Market Basics
I started working for a few local financial advisors on a freelance basis, researching companies and writing investor newsletters. I loved being a part of people’s financial planning and helping them understand investing.
I started studying for the Chartered Financial Analyst (CFA) designation in 2009 to get more involved in investment analysis and get a job with bigger Wall Street investment managers. The CFA designation is the gold standard in professional ethics and analysis for investment analysts and asset managers. It consists of three six-hour exams over three years with each year’s curriculum in the thousands of pages. I’ve got two undergraduate degrees and a Master’s in Business but the CFA exams were by far the hardest tests I’ve ever taken.
When I started working for Wall Street investment firms and a Canadian Venture Capital firm, I learned something most investors never suspect. To earn higher returns for their clients, most successful asset managers use little more than the stock market basics!
I still had to do detailed financial statement analysis when writing stock research reports but the ultimate decision to invest client money always came back to a few basic investing rules.
My Stock Market Basics is Your Source for Investing Advice to Win the Stock Market Game
I now work mostly through my blogs but I still write for several investment newsletters and advisors. I created this blog to share my experience in investing and the stock market basics that will help you make better investing decisions.
You won’t find overly-complicated analysis about stocks or how to trade your way to big returns. You won’t find any short-term strategies to make a quick investing profit. What you will find is solid advice on how to create your own personal investing plan and where to find the best investments to meet your goals.
Check out a few of the articles below to get started in understanding the stock market basics. Check out some of our investing books and courses. I’ve put more than a decade of professional investing experience into a few books and video courses to give you the tools to get started investing.
I share my stocks and all my investments right here
I don’t just use stock market basics to tell other investors what to do like so many other investing blogs. I use these same stock market rules to invest my own money and I share my investments with readers. On the My Stocks page, you’ll find all of my investments in five funds I’ve created on Motif Investing.
I switched almost all my investing to Motif early in 2016 because of its advantage in saving money on stock trading fees. You group up to 30 stocks in one fund and then buy them all for just one commission, saving hundreds of dollars in fees.
Not only do I save money by investing on Motif but it’s a great way to get instant diversification by investing in a group of stocks rather than putting all your money to just one. Since I started applying stock market basics and investing in stocks on Motif, I’ve found I worry less about the ups-and-downs of any one stock and enjoy investing a whole lot more!
Stock Market Basics is the Main Street Investors’ Blog
I’ve done well with my stocks and investing over the years but I still keep to the basics in investing. I’ve seen the complicated Wall Street stock trading programs, I’ve helped put some of them together while working with advisors, but the basics are all you really need to make money in stocks.
Check out some of the investing ideas on the blog and you’ll see what I mean. You can watch CNBC or read other investing blogs and get a hundred ideas an hour but you’ll only lose money to stock trading fees and bad investments. We talk about the bigger ideas here on My Stock Market Basics, like how to get the free money and how to invest for the long-term.
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I run three other blogs along with this one,
Looking for tips and tricks to reach your financial goals? Visit PeerFinance101
Looking for ways to make money from home and ditch the rat race? Visit My Work From Home Money
Want to raise money from the crowd but need help crowdfunding? Visit Crowd101