Let me share something with you if you are new to investing.
If you select individual stocks, you will eventually pick losers.
Some will be short term. Some will be long term. But you will, without a doubt, pick a loser.
Should you give up and not even try?
You just need to understand that part of the process is that not every company’s stock will perform.
Business models change; sometimes you don’t see the change coming. Or you may buy a stock fully aware of the inherent risk, and it does not perform.
This is why we own at least 15 stocks: because it only takes one winner to make up for many losers.
Losses feel far worse than up days in the short run. We are genetically wired to feel losses deeper than we feel winners. But remember: that is in the short run. Not in the long term.
* The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats. If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others! Thank you. *