Top 10 Mistakes Beginners in the Stock Market Make!

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What are the top ten biggest mistakes i see beginners in the stock market make over and over again today i’m gonna share with you guys those 10 biggest mistakes good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking about the top 10 biggest mistakes i see stock market beginners

Make over and over and over again guys i see he’s constantly made in it it’s frustrating but it’s it’s natural to make these mistakes because you’re just getting in the market guys so let’s just go ahead and get right into this so the tenth one i see people make over and over again is getting into stocks just for the money they get into it just because they heard

You can make money in the stock market they heard you can make money this way that maybe they’ve seen someone real-life make money they see the guy on tv who’s a famous investor warren buffett or whoever making money from stocks and like i wanna get in stocks you gotta understand just like all things in life if you want to really be good at it or especially if you

Want to be great at it you’ve got to have a passion for it it’s got to be bigger than it’s just for the money at the end of the day guys if you want to be a professional athlete you need a lot of talent but you also need an exam work ethic and to work hard for 20 years straight to become as great as you want to be right if you want to become that great person at

That sport you need to love that sport and have passion for it because it’s gonna be hard to keep pushing on day in and day out if you don’t truly love it at the end of the day guys so make sure you’re not getting in stocks just for the money it’s got to be because you truly enjoy looking into companies finding the next great stock to invest in all those kinds of

Things you’ve got to absolutely enjoy the whole process behind it if you don’t enjoy that process it’s gonna be very hard for you to substained that type of work ethic that’s needed into a stock market investing year after year after year guys so that’s the that’s the one of the biggest mistakes for sure i see just people getting into it just for the money you think

It’s easy money or something let me just invest in some stocks the number 9 mistake i see stock market beginners make all the time is investing too much right off the bat now this isn’t usually an issue for younger investors people like myself that got in 18 19 years old when you don’t have crap for money my first investment i think was like 200 or 300 dollars

It was like nothing guys when i see this one is usually it’s older people people in the 30s people in their 40s sometimes even people in their 50s who have never really invested in the stock market or at least have not picked stocks maybe they have a 401k or something but they never really liked our stock picker for instance like i teach on my channel right and

Sometimes i’ll see them they already have good sums of money saved up you know forty thousand eighty thousand one hundred twenty thousand whatever and they’ll just start investing like crazy we’re off the bet tens of thousands of dollars you don’t want to do that right off the bat if the best the best scenario is you you’re young and you get in when you don’t have

Much money in you experiment and you kind of get the ball rolling if you lose some money okay it’s a little bit of money if you’re older and you make some mistakes right off the bat and you’ve already got $10,000 in the market a hundred thousand dollars in the market a million dollars in the market those are gonna be very very costly mistakes at the end day it’s

Not going to be like oh i lost ten dollars gonna be like you lost thousands of dollars more unlikely so if you’re a little bit of an older investor you’ve got a good chunk of change safe don’t just go crazy right off the bat like start off you know say you you want to eventually invest a hundred thousand dollars in stock market you think that’s the place for you

Do it you know start off slow maybe go ten thousand in over the first you know six months then maybe if you’re feel comfortable after those six months maybe add another twenty thousand in and then if you feel another more comfortable after another six months then add another thirty thousand in and then add the rest of next six months but don’t just go push it all

In there right off the bat guys that’s a huge mistake i see number eight is not putting in the work as with all things in life if you want to be good and especially if you want to be great at something in life you need to absolutely put in the work you have to put in the work at the end of the day what does it mean to put in the work it’s doing all the research

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Necessary to find a great stock to invest in and go out and invest in that stock it’s reading all the reports that 10k is the 10-qs list and a conference calls researching about this company fully googling any news about a finding you know information about the ceo from the past and decisions they may have made in the past and why that might impact them in the

Future you need to research tons of stuff guys you’ve gotta be willing to put in the work if you’re not willing to put in the work you will always just be an average and or you may even lose money in the market it’s a hard to make money in the market unless you’re in the perfect scenario when the markets just shooting up like this year it’s a phenomenal year to be

In the market right the markets are just shooting up there’s tons of stocks that are way up and a lot of the hype stocks or up you know way up the super popular ones like the shopify’s the amazons you know apple google like some of the biggest names out there facebook the hype names those talks are all doing phenomenal so a lot of beginners can get in the stock

Market and just put money in those and in a year like this it just seems like oh this is easy well guess what not every year is like this within the nasdaq sup 20% and we’re only what eight or nine months through the year guys that does not happen all the time a lot of years it’s it’s a grind it’s a grind some years the market goes down you’re not really putting

In that full research work and then you’re not gonna get those great gains over time guys you’ve got to be willing to put in the work number seven mistake i see beginners in a stock market make up time and time again is diversifying too much so let’s say you’ve got a thousand bucks in the market right you’re a beginner in the stock market you don’t have a ton when

You’ve got a thousand bucks in the market right i see all the time and time again where people have 20 30 stocks invested that thousands bucks like don’t be done diversify do don’t have that much money to even diversify especially if you’re young you should not be diversifying crazy amounts like that like because guess what you’re in stock number 27 is probably a

Crap stock there’s no way you’ve found 27 great stocks to invest in no way there’s no way you found 27 great stocks to invest in and all those stocks are fairly valued or undervalued no way possible that stock 27 is probably a crap company or it’s probably an overvalued company so you’re just stuck your money in an overvalued company or a company you don’t really

Believe in that much that’s a really bad decision guys if you’re a newer in the market you should hold 5 to 10 stocks if you’re older in the market you have a substantial amount of money then you should probably hold 10 to 15 maybe up to 20 but i still don’t even recommend 20 i recommend 10 to 15 even if you’re older and you got a substantial amount of money in

The market guys because once you start getting too many too many stocks within a day you’re gonna be in a lot of bad stocks probably hit the end of the day guys so and you don’t ever want to go you know too far the other way where they’re only in like one or two stocks because then you’re so heavily reliant on one or two stocks you never want to be there i’ve

Been there before i’ve gone all in on the stock or all in on two stocks in and that’s a dangerous place to be as well you don’t want to be that reliant on something like that guy so try to stay in that you know anywhere from five to fifteen stocks that is that is really the best place you really want to be especially if you have small amounts of money invest it

The number six mistake i see stock market beginners make a lot of times it’s not fully realizing you can lose money and i know that sounds like a funny one well investing of course you can lose money not a lot of people fully get that through their head and that’s why a lot of people will try stock market investing maybe their first stock they lose money on and

Like screw that some out of this the stock markets a scam i lose money a whatever you’re going in your when you invest in anything realize you have the chance to lose all of your money not just some of it you have the chance to lose it all you definitely have a chance to lose some of it when you make any investment especially in the stock market where you know

Prices fluctuate literally monday through friday unless there’s a holiday right every single week prices fluctuate guys so just expect that you may lose money it’s very possible that you will lose money in your first year very possible guys you’re probably not the best data right off the bat and unless the market shot up that year you probably lost money so just

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It just expect that there’s a possibility that when you’re a beginner in the stock market you can lose money get that fully through your head and that will help you get over that hurdle of oh my gosh i lost money as i’m out of this it’s a scam or i can’t make money in this somehow i give it some time at the end of the day realize it’s possible you can lose money

Number five mistake i seen beginners of stock market make it’s thinking to short-term like they think to short-term like they think you know one of their investments was either not successful because the stock market went down in the short term or they think they’re a great investor because one of their stocks just happen to shoot up in a short term later don’t

Think short term you need to be thinking long term about this stuff realized prices fluctuate for a lot of different reasons just because of stock you invest in went down in the short term does not mean you made a bad investment over the long term in the short term if you’re a short-term trader or something like that yeah it means you made a bad mistake but if

You’re a long-term investor which is what i preached on this channel what your stock price did over the last week that’s not you made a great investment or a bad investment then they don’t think short turn about this stuff don’t make judgments on your investments over what is going on in the short term focus long term what’s going on over the next couple of years

And that’s where your focus should be and if you lost money over you know a three year span a five year span in the stock then you absolutely made a bad mistake but if you lost money in a three-week three-month span come on guys that’s way too short term unless that’s your philosophy of being a short term trader which i would never recommend to anyone ever because

I’ve never seen it done successfully over the long term but don’t think short term guys just focus on the long term focus on the vision don’t get caught up in the the short term price movements at the end of the day number four mistake i see beginners in a stock market make is caring too much what others think about their stocks so many times people care way too

Much about what another person thinks about their stock there’s gonna be tons of articles written out there about your stocks there’s going to be people on tv that talk about your stocks there’s gonna be people in the internet that talk about your stocks negatively or positively you can listen to them but don’t don’t don’t make that judgment don’t make a judgment

Whether to buy or sell a stock based upon what someone on the screen said to you you know whatever article you were reading oh i’m bearish on such-and-such stock because of such-and-such like don’t make your judgment based upon what someone else thinks whatever you think is what matters at the end date i get so many people always asking me about particular stocks

And i i’m like you know blessed to be in that position where people care enough about my opinion on a particular stock but at the same time i always answer back you know my opinion on such-and-such stock is a relevant one because i might not even follow that stock closely to because my opinion doesn’t matter if they if i could count up how many stocks i didn’t

Really believe in or would not have invested in that went up massively it would be higher than the ceiling would be ridiculous guys and how many stocks you know you know warren buffett did not invest in the greatest investor ever warren buffett how many stocks is warren buffett passed on and maybe he looked into a herd of and have gone up hundreds of percent of

Thousands of percent there’s been massive amounts of them so don’t care too much about what another person thinks about a particular stock care what youth about that stock you done day it’s fine to listen to people’s opinions but don’t make a judgment of a buy or sell based upon another person’s opinion at the end of the day guys it’s a big mistake i see number

3 biggest mistake i see stock market beginners make is buying penny stocks and a lot of these pink sheet companies a lot of these penny stocks and pink sheet companies and all these different little mumbo jumbo is a two penny stock or whatever the majority of those they don’t have to disclose any financial information they don’t have to get audited the same way as

A nysc stock would like an apple or something like that they don’t have that you can just literally write down whatever numbers you want i could literally come out with my own penny stock probably within the next week that you guys could invest in it would be based upon the financial education channel rate and i could write down whatever numbers i damn well please

On the revenue on the balance sheet make up whatever i want oh yeah we brought in ten billion dollars in revenue this year and no one’s there to audit it with a lot of these penny stocks guys it’s not regulated the same way most stocks are regulated in the nasdaq in the nyc s&p 500 why they still even allow it is beyond me why the government still even allows

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Penny stocks to exist these pink sheet companies have stopped it it’s mind-blowing to me but i see time and time again beginners in the stock market given little stocks because they think they can it’s an easy way to make money when you’re in those type of stocks generally speaking it’s like you minds will go to the casino a matter of fact i would rather go to the

Casino then mess with a lot of those penny stocks because you have no clue what’s going on with those companies or if there’s even an underlying company that exists underneath that company guys or whatever that paper says it mandate so i see this time and time again people messing with these type of stocks and it’s painful for me to watch because they don’t know

What they’re getting involved with it’s literally gambling and you know some people love to gamble and some people believe in gambling and you know say they’re the best of poker or whatever or the best at playing a slot machine whatever whatever whatever but in my opinion don’t ever mess with penny stocks number two biggest mistake i see stock market for beginners

Make is buying stocks with poor balance sheets i thought us stock market beginners they don’t even really do enough research and a companies one two they don’t really look into balance sheets you need to have companies that have phenomenal balance sheets you don’t want to be investing in companies with poor balance sheets because if you were less or with company

With a poor balance sheet and that company comes upon some hard times or something in the economy happens that company’s at a big jeopardy of potentially going out of business and filing for bankruptcy and you losing potentially all your money especially if you don’t sell out you know early enough so i see that with the stock market for beginners a lot i see them

Invest in it’s this stalker that’s talking it’s like have you looked at the balance sheet on that they got ten billion dollars in in debts and they got a hundred million dollars in cash like what happens when those debts come due and what happens if that profitability of roads over the next year or two what’s going to go on with that company they’re gonna have to

Somehow either restructure that debt which when you got that much debt you probably can’t or you have to go out of business guys so i see stock market beginners make this mistake all the time going into poor balance sheet companies don’t do that guys just invest in companies have fun nominal balance sheets now before we get into number one mistake i see beginners

In the stock market make over and over again check out my 11-part stock market investing mastery course which is linked in that descriptions the first thing linked there if you are a beginner in the stock market that course should help you phenomenally if you’re an advanced investor that should help you as far as understanding the way i invest in pick stocks guys

The number one mistake i see beginners in the stock market make time and time again is buying stocks outside of their circle of competence what does this mean this means when you buy a stock that you don’t fully understand what that company even does you don’t fully understand where that company gets the majority of its money you don’t fully understand where the

Company’s vision is going i see this time and time again where somebody just hears about a hot stock and they put money into that stock without really understanding what that stock even does what that company even does to make money maybe they know just a very small amount of it but they don’t really have a full understanding when you go to invest in this company

Make sure it’s a company you have a full understanding of guys don’t mess with companies that you don’t fully understand if you want to buy you know apple stock for instance you better understand the majority of apples revenue comes from iphone and next is probably the mac and that ipad after that in services and you better understand what growth rate sees that and

You better understand you know how much smartphones are growing in the developing markets like china and india and places like that you better under stian all the stuff you’re gonna invest in a stock like that you can’t just like oh i phone i got an iphone so there i can buy an iphone you know apple stock down and a guys you got to fully understand these companies

You’re about to invest in where they’re getting their money and where they expect to be getting their money from two years from now three years from now five years from now guys i hope you really enjoyed this day top ten mistakes i see beginners in the stock market make all the time leave it a thumbs up if you really enjoyed this if you just came across this channel

You may want to subscribe we talked personal finances on channel we talked entrepreneurship i’m an actual business owner and giveaways so many business steps we talk stock market investing more than anything thank you for watching guys and have a great day you

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Top 10 Mistakes Beginners in the Stock Market Make! By Financial Education

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