May 16, 2022

Stop Buying Stocks | Why 80% Will Lose Money

Thank you to Wealthfront for sponsoring this video! Open up a Wealthfront investment account today through my link and get your first $10,000 managed for free https://wealthfront.com/graham - Add me on Instagram: GPStephan GET YOUR FREE STOCK WORTH UP TO…

Thank you to Wealthfront for sponsoring this video! Open up a Wealthfront investment account today through my link and get your first $10,000 managed for free https://wealthfront.com/graham – Add me on Instagram: GPStephan

GET YOUR FREE STOCK WORTH UP TO $1000 ON PUBLIC & SEE MY STOCK TRADES – USE CODE GRAHAM: http://www.public.com/graham

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MARKET SENTIMENT BLOG: https://marketsentiment.substack.com/

MARKET TIMING:
This graph shows the AVERAGE PROFITS from each trader over a 12-month span…and, at the end of the day…79.5% of them lost money. The MEDIAN return was -36.3%…only 1 in 5 people who tried day-trading were able to just BREAK EVEN…and, statistically…you were also nearly just as likely…to lose EVERYTHING.
https://marketsentiment.substack.com/p/day-trading

First, for many active traders – there tends to be a lack of diversification.

Two, OVERCONFIDENCE leads people to trading more aggressively…and therefore…losing more money.

Three, EMOTIONS gets in the way.

And FOURTH: You’ll want to justify all the time you spend researching stocks…which, leads people to make riskier, profit-driven decisions that cost them more money.

DOLLAR COST AVERAGING: https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/

This analysis takes two completely different approaches: One invests $100 per month into the market over 40 years…and the other saves $100 per month, and invests it PERFECTLY…DOWN TO THE HOUR…at the “precise bottom” of each crash between the market top…seems like there would be a clear winner, right? WRONG…in fact, the “buy the dip” strategy UNDERPERFORMED 70% of the time!

Schwab also did a similar study, and simulated how you would perform had you been able to buy at the lowest point in the market, every single year, for 20 years consistently…and, surprisingly, that only AVERAGED a 1% higher return annually than someone else who just bought randomly every single month.
https://www.schwab.com/resource-center/insights/content/does-market-timing-work

So, that’s why – even though my portfolio is DOWN about 9% so far this year…honestly, it doesn’t matter…and, as fun as it is to keep up to date with everything happening on a daily basis…for me, the investment strategy doesn’t change, and that’s also why – after awhile, investing becomes repetitive.

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For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

Graham Stephan receives cash compensation from Wealthfront Advisers LLC (“Wealthfront Advisers”) for sponsored advertising materials. Graham Stephan is not a client and this is a paid endorsement. Graham Stephan and Wealthfront Advisers are not associated with one another and have no formal relationship outside of this arrangement. Nothing in this communication should be construed as a solicitation, offer, or recommendation, to buy or sell any security. Any links provided by Graham Stephan are not intended to imply that Wealthfront Advisers or its affiliates endorses, sponsors, promotes and/or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated otherwise. Investment management and advisory services are provided by Wealthfront, an SEC registered investment adviser. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance.

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice. Public Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/