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Stocks are notching higher highs, but a lot of would-be investors are still on the sidelines.
Some have been scared of the market forever. Some have been scared since 2008. And some have been scared of getting back in since the election of Donald Trump.
Scared investors who avoid the markets during uncertain times think they're making the smart play. But being scared doesn't make you money, it costs you money. Over your lifetime, it will cost you a lot of money.
Here are the reasons why you shouldn't be scared, how to successfully invest, and how to play the market right now…
The Two Rules for Successful Investing
Investing is easy because it's personal. It's all about you. Who knows you better than you do?
You can become a highly confident and successful investor if you just trust yourself.
When it comes to advice from anyone else, there's a lot of really good counsel out there… but there's also a lot of really bad brokers out there dealing in self-serving advice.
There are, of course, good brokers and good registered investment advisors, and there is a huge difference between those two. I'll help you to understand the difference next week (and it may shock you).
But, in the end, it's you.
Being a confident and successful investor boils down to two things:
- Invest in what you understand, and…
- Don't be afraid to make small mistakes.
Yes, mistakes mean maybe losing some of the time.
To my first point: invest in what you know. If you know cars, think about buying shares in car companies, parts companies, or a company in an industry that serves the automobile industry.
If you like beauty, fashion, or shopping, invest in the cosmetics industry, the clothing industry, or other retail companies.
Essentially, if you buy shares in companies whose business you understand, you'll watch the stocks you're invested in.
And that's critical. Investors lose money because they lose sight of the stocks they're invested in. They don't follow them. That's no one's fault but their own.
If it's your money, no one is more responsible for your money, future, or potential to become wealthy than you. It's your job to make money in the market. Learn to love your work.
To my second point: If you've been scared, get over it. You're in charge and you're going to be a smart, successful investor.
You get over the scared part of investing by simply accepting that the market can be a strange beast. Stocks don't always do what you expect them to do.
Successful investing is all about learning from your winners and losers. But, let's face it, it's losing that hurts and scares us.
Everyone loses sometimes. The trick to learning from this is to lose small and figure out what just happened that cost you some money. That goes back to knowing the companies you're invested in, knowing what's going…
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.