When I decided to write my beginners’ investment guide, The Stock Market Is For Everyone, I did so for the following reasons:
1. My own lack of knowledge over a lifetime had cost me millions of dollars personally.
2. After years of trading and following the market, the lightbulb finally went off in my mind, and I realized that long-term investing can work!
3. The stock market, in my opinion, is the best wealth-building vehicle that exists for the average Joe.
These are the reasons I chose to write my book.
I want to address a certain group of people tonight – the non-believers.
I’m referring to those of you who have never invested, and dismiss the stock market out of hand, knowing very little of anything of which you speak.
Many people view the stock market as a “casino”, a “lottery”, and/or “rigged” due to something negative they’ve seen in the news. Are there bad actors in the stock market? Absolutely.
But here’s the thing: there are bad actors in any market you could name. This includes real estate, which stock market detractors often tout as being a wise investment.
I have met traders that went broke – myself among them. I’ve also met people that lost their life savings in real estate.
There’s a distinction that is of utmost importance here: I am not encouraging anyone to trade. What I’m urging you to do is invest.
Here’s the difference:
Traders think in the short term. In trading, the goal is to buy and hold for a minute, an hour, a week, or possibly a bit longer. The focus is always on the short term.
Investors think in the long term.
The odds of making money consistently through trading are 10% at best. Ninety percent of day traders fail.
Here are the odds of making money if you buy and hold a quality stock for longer periods of time:
If you hold for 1 year, the odds are 70%.
For 5 years, the odds are 85%.
And if you buy a quality stock and hold onto it for 10 years, the odds of you making money on that investment are 100 percent. I repeat: 100 percent!
Do those numbers reflect a system that’s rigged?
Not to me!
If you look at the background of most Congressmen, you will notice that the vast majority own stocks – and have for decades. Not because they received an “inside tip”, but because they understand the power of compound interest.
Compound interest can turn a penny into $10,700,000 over 30 days, if it doubles daily! Obviously, that will never happen, but the point here is to show the power of compounding.
To all the non-believers out there…I hope that this post has caused at least some of you to become “former non-believers”. My goal is to help as many people as possible to achieve financial freedom through investing.
It’s my sincere hope that you stick around and keep reading this blog. And if you’re ready to invest, I hope you’ll pick up a copy of The Stock Market Is For Everyone. It’s short, it’s easy to read, and it’s available in paperback and ebook formats.
To your wealth…
Click the image of the book at left to be taken to its Amazon page. (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)