New answers tagged

0

I am the OP. I guess I didn't register the account fast enough, and now I am cut off from my own question. Thank you to everyone who took the time to offer some advice. I wanted to step back a few days, see what happens, digest your answers. Here are a few things I realized: I got spooked by reading a few articles such as this one. Having my positions go ...


1

I don't think you're trading or investing. I think you're throwing your hard-earned savings at the market and hoping that it works out. Luckily it's not going that well for you and you're realising that you're making mistakes before you get into something that you can't get back out of. I think the first step is to decide whether you want to be trading or ...


1

Your question is equivalent to: How do I know when to quit performing open heart surgery? PS: Tried my hand on three patients so far, but unfortunately they did not make it... It is amazing how many people enter the financial markets thinking they might just be "naturally good" at it with zero training beforehand. The truth is, this job is very ...


-1

Stop immediately. You are not investing, you are trading. 99.99999% of amateurs that try their hand at trading simply lose most of their money. Stop immediately. If you wish to invest for the long term, do so - perhaps just an index fund or purchase a house.


2

If your reason for investing is not much more than "X is a big company, the stock is low/high/going up/going down [and the market is low/high/going up/going down]", then you are probably not great at investing. You could get lucky, but that wouldn't make you good at investing. I don't even want to say "if your strategy outperforms some index, ...


14

(Because your original question asked "How do I know when to quit investing?"...) You haven’t been “investing” at all; you’ve been trying to time the market. “Investing” generally means buying assets and holding them for a long time regardless of market conditions. “Trading” is generally the word people use for trying to pick individual stocks or ...


1

I will add to the other answers that you are done investing when you need to take out the money in order to use it or feel like you have enough for the rest of your life and want to reduce risk (reduce variance) you can then switch to having a bigger percentage of your assets in savings or bonds. Until then you should keep investing because only long term ...


2

I’ve been doing this for 20+ years, and this is by far the most difficult year to pick individual stocks. So, yeah, just buy a low cost ETF in this environment. Probably SPY at this moment. Buy QQQ if it ever pulls back to its moving average. Valuations are at record highs for biotech and tech stocks. Valuations look like 1999, with a key difference: ...


12

How do I know if I'm bad at investing? You already know the answer, don't you? You are not alone: buying individual stocks is extremely risky and extremly difficult. Even highly paid fund manager have a really hard time keeping up with automatic index funds https://www.nerdwallet.com/blog/investing/index-funds-vs-mutual-funds-the-differences-that-matter-...


19

If you are investing in stocks, the best way to tell is to see how you compare against the S&P500. In general, that's your baseline. The problem is, you've only been investing for a few months, so it's hard to see trend lines. Maybe if you stick to your plan, you'll do really well in a year or in ten years. But similarly, if you've beaten the S&P500, ...


Top 50 recent answers are included