Hey guys, welcome back to my channel! Today we’re talking about investing and how to avoid losing money like many retail investors do. It’s not easy, but it’s definitely doable if you follow some key factors.
First things first, you need to do your research. Don’t just throw your money into any investment vehicle without knowing what you’re getting into. You need to understand how the company makes money, what they manufacture or what kind of service they offer, where they operate, and so on. It’s like going on a first date, you wouldn’t go on a date with someone you know nothing about, right?
Another factor to consider is beta. Beta measures volatility or how moody your company’s stock has acted over the last five years. If your company drops or rises in value more than the S&P 500 over a five-year period, it has a higher beta, which means higher risk. On the other hand, a lower beta means that a stock doesn’t react to the S&P 500 movements as much as others, making it a defensive stock and much safer.
If you don’t have time to watch the market every day, look for dividends. They provide a steady stream of income and are like interest in a savings account. The best dividends are normally issued by large companies that have predictable profits. But before you invest, look for the company’s dividend rate.
Lastly, don’t overlook the importance of reading stock charts. Learning to read them takes time, but the most basic chart reading takes very little skill. If an investment’s chart starts at the lower left and ends at the upper right, that’s a good thing. If the chart heads in a downward direction, stay away.
Remember, nothing takes the place of exhaustive research. But if you want to protect your assets, invest for the longer term by taking advantage of dividends and finding stocks with a proven record of success. Stay away from risky and aggressive trading strategies unless you have the time and resources to do so. Thanks for watching, and don’t forget to hit that like and subscribe button!
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Disclosure: This video was done by myself, and it expresses my own opinions. This is not investment advice or financial advice and it should not be taken as investment advice or financial advice in any way shape or form. I am not receiving any form of compensation for this video from the company or organization that I am expressing opinions about. This video is for entertainment and or educational purposes only.
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