Link to join StockHub free investing discord server: –~–
Well good they they’re subscribers and welcome in today i’m going to share with you some of the biggest mistakes i made as a beginner in the stock market the five biggest mistakes that i made in the stock market now if you’re a beginner in the stock market you kind of know where you’re in your first year like it’s tough i realize like it’s tough when you’re first
Kind of getting going because it’s a whole new foreign language you’re learning when you’re starting to learn about stock market investing right all these terms are thrown around all this stuff you know you don’t know what strategies the right one to go after there’s a million different strategies right than the right there’s so many different companies there’s so
Many different things up there it’s difficult when you’re first getting started it takes some time ok so kind of what i want to share with you guys today is my 5 biggest mistakes i made my first like six to nine months kind of actually starting to invest guys so i hope you get a ton of value out of this now first off like a lot of people always like to say to me
We’re not a lot of people but there’s always some people that say why do you suggest young people to start investing in the stock market if anything they should just be in etfs or index funds or something like that well there’s a it’s much better to get started young one reason is because if you’re young and you’re getting started you probably don’t have crap for
Money okay so it’s much better than if you screw up and you only have a thousand dollars to invest right and you make a three hundred dollar mistake then you wait till you’re 40 years old in the start when you have a hundred thousand dollars let’s say and you lose thirty thousand dollars also start working investing by building your accounts up and building your
Accounts up it puts you in more of a mind that you want to you know try to make more money and save more money so you can have more money flooding into those accounts it makes almost like a goal out there it’s hard to get in that mindset for most people including myself without having something they’re building up right if i wasn’t for stock market investing and me
Investing on stock market i probably would’ve just been like the average person like just spending all of my money i get right because there was bit there would have been no goal at the end of the line right what just saved money in a bank account and doesn’t earn anything but by getting involved with the stock market right in making compound it returns and whatnot
That’s very interesting to me okay and the last reason is the majority of people that just kind of like to throw it off they just throw it off forever okay they’re kind of like oh no next year i can start in that or five years from now ten years their whole life goes by and they never did anything right they happened so often with people starting businesses right
A lot of people are like old man i would really want to start this business oh i really want to do this and then they put it off for a few more months oh no i don’t want to get to this point then they put it off another year in another five years and then their whole life her whole life went by and they never did it right so that’s the reason you just want to get
Yours you want to get your feet wet if you make a mistake hey man it’s so much better and make us a mistake when you’ve got little money then you make a mistake when you got a lot of money saved away guys so i hope you enjoy this today make sure if you’re new to the stock market you click that first link in the description with his videos over that goes into my stock
Market investing mastery course that shares everything that i actually look for in a stock it even has my private email address in there so in case there’s any questions you have in regards to that course i can answer them right on there so the first one is i started looking into penny stocks okay the first mistake out of these five is i started looking into penny
Stocks what an absolute waste of time that was i guys that was such a waste of time so penny stocks first off i’ve been in the market for a decade now never met one person ever that has made money trading penny stocks over the long term it’s just not possible except for a few people i’m gonna explain that here okay so there’s a few head people that kind of actually
Do make money in penny stocks over the long term first off penny stocks are stocks that are traded you know a little tiny like in the penny penny area right the majority of them 90 plus percent or basically i would describe a lot of them as scams i would describe a lot of them as companies that there’s no underlying business there they’re just still traded out there
On some of these otc exchanges and whatnot okay so they just haven’t been delisted and things like that people mess with these penny stocks all the time okay never met a person in real life who made money from them over the long term it in the market for ten years guys met so many met so many thousands of people in the market never met a person but there are some
Head people okay there are some head people that actually make money in penny stocks over this long term how do they do this well basically they build up an audience of people okay they build up a massive audience of people and they get all these emails and whatnot and all these phone numbers and whatnot and what they end up doing is these head people they will
Buy into one of these little penny stocks okay that have you know market cap and a few hundred thousand dollars maybe they have a market cap of a few million dollars super super small companies okay the majority companies i talk about on my channel have billions upon billions of dollars in market cap okay there monster corporations okay these type of companies
Might have a few hundred thousand might have a million they’re super small there’s usually almost no underlying business below there that there may be some speck ting or something right but basically they’ll go ahead and they’ll buy into this stock okay they’ll go ahead and buy into the stock over the course of weeks maybe the course of months all right then what
They do is they go ahead and they put out like a newsletter or something they say hey everybody gold go buy this stock is gonna go 50% tomorrow make sure you buy it in the open everybody goes out and buys that stock in that stock shoots up meanwhile this head person they bought all they acquired all their shares over the course of a few weeks are a few months down
Here right and they are the sellers they’re selling their shares off meanwhile all these people are buying and eventually over the course of that day it ends up dying off and the shares just start going down and down and down and the head person looks like a genius because they keep making money from this okay you say well why doesn’t this work with you know a big
What would this work with apple what would this work with microsoft why would this work with qualcomm those companies are too big to make something like this work right because those companies have billions upon billions of dollars in in market cap right so in order to get those stocks to move at all you need billions upon billions of dollars to be flooding in
That you’re not going to get that from an audience right that’s why warren buffett if warren buffett says he’s a greatest investor iver right he’s got more clout by far than everybody else put together basically in the stock market investing space right warren buffett comes out and says he bought a stock a b and c that stock doesn’t go up 20 30 40 50 percent the
Next day even know people know he’s the greatest investor ever right why because there’s takes so much money to come into a stock to even get it to go up 5% or 10% it’s just not realistic guys so even the guy was the most cloud out there he can’t even get a stock to fly up like that oh wait you’re doing it with penny stocks it’s very very easy because it just takes
Well you know $10,000 coming in maybe a few hundred thousand dollars to come into it which you can easily build if you got a big bass right and then it’s just this guy just keeps looking like a genius because the stock flew up real quick and he i’m not making money he’s like oh look at i made this money again and it brings in even more people in more people guys
And it’s just not the way to go at all believe me if it was that easy and it attracts a lot of people because a lot of people think they see a penny stock and they’re like oh man it’s only i can buy so many shares it’s only two pennies right now i buy so many shares of this i only have $200 i could buy somebody shares and maybe it grows to be a hundred like that’s
Just so unrealistic guys that’s just not the way the game works okay this is not the way the game works but a lot of people are attracted by it and you know it just seems so easy all this person just sends me an email or a text alert or whatever and i can just put my money in the stock and it’ll just make me all this money or i just look at this little technical
Graph when i say oh it went to this it did this little thing right here i need to buying it guys it’s just not possible make money over the long term in penny stocks in my opinion unless you’re that head guy you’re the head guy you can just keep doing this rinse and repeat over and over and over and over again there’s a reason there’s been millions upon millions
Of people that have made money over the long term by long term investing okay there’s a reason there’s no one ever that has made money over the long term trading penny stocks and less they happen to be that head guy guys let’s go into number two second biggest mistake i would make as a stock market beginner is i had very little money right i had very little money
Getting started just like most people when they’re young i was like 18 19 years old when i started investing right had are they any money i was had like 300 dollars to invest okay so i had this $300 and you know i might be able to save another 100 plus dollars a month and kind of start funneling that into my account but i had very little money so the way i viewed
This was that got $300 how do i get rich from that $300 and what stock can make me rich i want to get rich from this $300 it’s so unrealistic guys it is so ridiculously unrealistic and what you’ll end up doing you’ll end up making a lot more mistakes by kind of going after this oh let me become rich from a stock type thing it’s just not realistic guys let me stick
300 dollars in this and somehow it grows to be three million or something it’s not practical it’s not gonna happen okay what i should have been focusing on is i got three hundred dollars okay how do i get more money i should have been focused more around income right but not just that i should have been focused on okay how do i turn this $300 into three hundred and
Twenty dollars okay how do i turn that three hundred into three hundred and twenty and then how do i turn that three twenty into three fifty and how do i turn that 350 into four hundred okay more realistic things that are actually practical to do not let me buy a stock for three hundred dollars and it’s gonna somehow make me rich like that’s just not gonna happen
Guys that just puts you in the wrong type of mindset and set you up for failure because when you don’t become rich from that three hundred dollar investment olson you start doubting yourself you’re like all i can’t make money in this i’m not gonna become rich that’s just not realistic guys you should never view the stock market as a way to get rich it’s just a thing
That can help you get rich the same way real estate investing a lot of those kind of things are right you should view it as this is gonna help me get to be rich right it’s not gonna make you rich in the end okay you need to get rich by making a big income flooding that money into real estate investing or stock market investing which i like to do right or whatever
Your way of investing is then that helps you get rich even richer okay so that’s what you do there let’s get in number three all right the third mistake i would make is i did not put in the work the work necessary to be a successful investor see as with all things in life if you want to be successful at something you need to put in the work i was not putting in the
Work my first six nine months on the stock market right my version of work at that particular time was let me go read an article about a stock that somebody else wrote and maybe i can get an idea of that stock in you know if they like it maybe i can invest in there or something like that if they pitched a good enough idea then i should invest in that stock that’s a
Huge massive mistake you need to do the research work you need to be reading the ten case you need to be listen to the conference calls okay you need to be doing all that kind of stuff you need to look at what their last quarterly numbers are you need to do the research work necessary for you to become a good investor if that’s something you you aspire to do right
Just by reading what somebody else wrote about it that’s a horrible decision one because you didn’t do the work behind us you don’t even know if those the facts they’re spewing are correct rate too because guess what guys it’s a huge mistake when you buy a stock because of what somebody else said okay because when that stock starts to go down austin you’re gonna
Panic and probably sell or how do you even know you’re in the right stock or anything like that like going off of someone else’s judgment is the easiest way to lose money in this game it’s the easiest way and i don’t care how much you respect them i don’t care how much you look up to them i look up to warren buffett as the you know the investing god right warren
Buffett goes buys a stock tomorrow i’m not buying that stock okay unless i happen to fall eerie search that company and i love that company he bought if that matches up then i go buy it but just because warren buffett bought the stock doesn’t mean i’m gonna go buy the stock guys that’s a huge that’s a huge mistake i see so many people making they think oh this
Person over here said let me buy to buy the stock i’m gonna go buy it no guys that’s the easiest way to lose money real quick mistake number four i would make in my first six to nine months investing is i would look for dividends okay so dividends is basically money paid out to you as a shareholder okay and what i would look at is i would just look at whatever yield
A stock worth was paying okay so i would just kind of like do a filter or something you know from whatever website i was using back then in 2008-2009 and i would filter you know what’s the biggest dividend yields out there so i look at them and i say wow look at this stock if he’s at 10% dividend yield wow that’s a huge dividend yield and i look at some other stock
And they would pay you know a 3% and i’d be like well there’s ten percents way better than this three percent well there’s some things you got to understand about dividends okay there’s a lot of companies that pay dividends but the dividends they paid out in the past does it mean they’re gonna pay that on the future okay because some of these companies take out debt
They take out debt to go ahead and be able to funnel money to pay out that dividend so they’re actually taking out loans they actually making the business worse by taking out these loans just so they can feed money those shareholders okay just so they can keep those people interested in the stock and invest in a stock it’s a huge problem there guys how would you even
Learn something like this well you look at their eps what’s the eps coming in the door if this company has $1 of eps but they’re paying out a dollar and 50 in dividends right they’re paying out a dollar fifteen dividends but their earnings per share is only a dollar you got a problem there that means they’re either taking money off that balance sheet to go ahead
And pay out to you as a shareholder or they’re taking out debt either ones a bad story guys either one’s a bad bad story then you need to make sure you’re in companies that pay dividends and can potentially pay them in the future like because they have enough cash because their eps is much higher than what they pay in all those type of things guys so just because
You co this dividend yield is ten percent doesn’t mean it’s just a ten percent it might go down to zero right and also if you’re a long-term investor like being in a company that’s taken out debt and making those type of decisions that’s not the company i want to be involved with a company that thinks that short-term in nature when i’m in the stock for probably
Next two three four or five years it’s not a company i want to be involved with guys so number four is all about the dividends mistake number five i made my first six to nine months in the stock market and this was probably the biggest mistake i made was i had no real strategy i had no real strategy guys i didn’t have a strategy when you are doing anything in life
You need to be going in with a proven strategy okay especially with investing you can’t just be winging it and doing whatever okay the majority of people i’ve seen lose money okay out there never stick to a proven strategy they’re all over the place they’re like oh i want to be a long-term investor but then you look at them in their stock goes down five percent
And they sell it off you know three months after they invested it’s like dude why did you go ahead and sell that stock off right there you just bought it i thought you said you bought it for the next five years well it went down 5% i was afraid it’s gonna go to that 10% you’re not sticking to it and like that’s not a realistic investing strategy a stock goes down
5% and you sell it and you’re supposed to be a long-term investor okay if anything you love that company you should have been buying more well i do really like that company but i was just afraid it might keep going down that’s not a real strategy okay guys that’s not a real strategy that works over the long term you need to have a proven strategy without a proven
Strategy that has worked for an investor after investor then you’re just winging it and that’s what i was doing my first six to nine nine months in the market like i was just winging it i was messing around with some super high-yield stock said who knows what what was behind them or thera had a billion dollars in debt or whatever happened there i was doing things
Like i was just you know if oh this stock looks like they could potentially go up ten thousand percent because someone wrote an article about it or whatever guys like those aren’t real strategies okay if you’re investing in a stock market if you’re doing anything you’re putting your money into something you need to have a strategy behind it and you need to stick to
That strategy you can’t just be jumping all over the place and doing this thing you know in this thing that’s the easiest way to lose a lot of money over the long term guys so i hope this video helped a lot of you beginners out immensely if there’s any advanced investors i would love to hear from any mistakes you guys might have made your first you know six months
Twelve months in the market i would love to hear from you guys and so when everybody that’s watching this video cuz i can guarantee you there’s gonna be a lot of beginners in the stock market that watch this video over the next you know several months in several years so any information you can kind of give out there will help everybody out and as always guys thank
You for watching and have a great day
Transcribed from video
Stock Market For Beginners HUGE MISTAKES I Made By Financial Education
