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Investing In Stocks: 5 Rookie Mistakes To Avoid At ALL COSTS

Published

5 years ago

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There’s something about capital markets that captivates everyone: Some think stocks are an easy way to make a quick score. Others, on other hand, liken stock to gambling.

And then there are some who just don’t have a clue about stocks at all.

(Fret not, #WealthGANG, we’re here to serve!)

But why is the stock market so fascinating? What causes people to be completely overawed by it?

Despite the many myths, it is extremely easy to trade in the markets; you can actually get started on your smartphone for less than $10.

But to trade stocks successfully? Now that’s another story—despite what those in-their-20s Instagram crypto money managers and scammers want to tell you.

For all the myths, biases, (mis)beliefs and misconceptions, you can still hedge your bets by following a disciplined blueprint. In this case here, we will share with you what not to do.

Here are X common investor mistakes to avoid at all times.

Mistake #1: Thinking you can make a quick buck from Wall Street

This is probably the single biggest misconception about the stock market. Investor legends like Warren Buffett always maintain you need to invest over a long-term horizon to book big profits.

And even if you have stories like the ‘Teenage Bitcoin Millionaire,’ trust us on this one! They’re the exception, not the rule.

Mistake #2: Investing on impulse

Many investors jump into trading based on hype—kinda like Bitcoin, which surged to record highs in December before losing billions of dollars since, sometimes in 24-hour periods.

In other words, decision to enter the stock market’s based on an impulse. There’s no proper entry strategy and no exit strategy.

This is not how an investment decision should be made. Every investor should realize that investing in the stock market is a long-term play—it’s definitely NOT a get-rich-quick scheme.

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

-Paul Samuelson

Mistake #3: Following the hot tip! 

Investors are all on the lookout for hot leads and stock market tips. But in reality, there aren’t any. This mistake is exactly how the “Wolf of Wall Street”got people onboard with his schemes.

Even if someone does have a hot tip, you have to watch out for human nature: People may skew positively towards stocks they own—and negatively towards the ones they don’t.

The reality is this: There are qualified analysts who spend all day researching market trends and metrics.

Investment managers and brokers then share these analyses with premium clients. Much more credible info, yes. However even after receiving this analysis, there is no guarantee the investor will see an ROI.

Warren Buffett is a firm believer that investors can grow wealth by just replicating the indices instead of looking for multi-baggers and stocks that are expected to crush the market.

“If stock market experts were so expert, they would be buying stock, not selling advice.”
Norman Ralph Augustine

Mistake #4: “Buy/Sell Strategy”

This is probably the biggest misconception of all. Many investors, impulsively, end up buying a stock just because they see the price surging. (Again, think Bitcoin in December.)

As the price continue to climb, they’ll sell the stock and make a huge profit. The so-called Buy-Hold-Sell Strategy

But that is not how the stock market works. (Buffett’s mantra is buy-hold-and don’t watch too closely.)

If you do buy a stock, hold it for some time and then sell…you don’t have any guarantees the stock will rise.

A better play—aside from Buffett’s, obviously—is the borderline cliched “Buy Low/Sell High” strategy. In this strategy, an investor buys a stock on the downslide instead of when the price is rising.

All the investor has to do is hold the stock until a price correction occurs. If the stock is fundamentally strong, the price will increase. This will be the time to sell it off and earn a profit.

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett 

Mistake #5: No clear investment objective

Every investor should define, clearly, what his or her investment goals are.

The rule of thumb of investing is the higher the risk, the higher the return. So if the market return is less, then—needless to say—the risk involved is deemed less.

There are two forms of securities, generally: Stocks (equity) and bonds (debt).

Stocks

Equity stocks tend to have higher risks associated with them. However, there is a tremendous potential to earn capital gains from equity shares—but with the caveat that you should be prepared to lose your investment

Bonds

Bonds and fixed income instruments are relatively less risky than equity shares. They offer periodic returns in the form of interest but are still prone to market risk.

A short-term investor looking for minimal risk is better off buying treasury bills and government securities.

Whether it’s cashing out on tech stocks with high upside or just collecting tax-free yield from municipal bonds, your investments should be in line with your objective.

“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch

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Money

Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today

Published

12 months ago

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April 30, 2023

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Airbnb Experiences: 5 Easy Ways To Make Extra Cash Today

Airbnb is a great way to earn money by renting out your home or apartment.

However, did you know that you can also make money by offering experiences on Airbnb? Here are five easy ways to make extra cash today by creating and offering Airbnb experiences.

1. Offer a food tour

If you love food, why not share your passion with others? Create a food tour experience in your city, showcasing the best local cuisine. You can offer a walking tour or a bike tour, and include stops at local markets, restaurants, and cafes. This is a great way to meet new people and earn money at the same time.

2. Teach a skill or hobby

Do you have a skill or hobby that you’re passionate about? Share your knowledge with others by offering an experience on Airbnb. You can teach anything from photography to cooking to yoga. People are always looking for new experiences, and they’re willing to pay for them.

3. Host a cultural event

If you come from a different culture, why not share it with others? Host a cultural event, such as a traditional dance, music, or art class. This is a great way to showcase your culture and make some extra cash.

4. Offer a nature experience

If you live in a beautiful area, offer a nature experience on Airbnb. You can offer a hiking tour, a kayaking trip, or a birdwatching tour. People love to get out into nature, and they’re willing to pay for it.

5. Host a wellness retreat

If you’re passionate about wellness, why not host a retreat? You can offer yoga classes, meditation sessions, and healthy meals. This is a great way to help people relax and recharge, while earning some extra cash.

In conclusion, offering experiences on Airbnb is a great way to make some extra cash. With these five easy ideas, you can get started today.

For more ideas and tips on how to make money, check out this Airbnb guide inside our academy.

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Money

10 Tips for Making More Money with Your Airbnb Listing

Published

12 months ago

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April 30, 2023

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If you’re an Airbnb host looking to increase your revenue, there are several strategies you can implement to make your listing more appealing to potential guests.

Here are 10 tips for making more money with your Airbnb listing:

  1. Set competitive pricing: Research the prices of similar listings in your area to ensure you’re offering a competitive rate. Consider lowering your prices during slow seasons or offering discounts for longer stays.
  2. Offer extra amenities: Providing extra amenities, such as a pool, hot tub, or complimentary breakfast, can make your listing more attractive to guests and justify a higher price.
  3. Invest in high-quality photos: High-quality photos of your space can make a big difference in how many bookings you receive. Consider hiring a professional photographer to capture the best aspects of your listing.
  4. Keep your listing up to date: Make sure your listing accurately reflects the current state of your property. Update your photos, descriptions, and amenities regularly to keep your listing relevant and appealing.
  5. Respond promptly to inquiries: Quick responses to guest inquiries can lead to more bookings and positive reviews. Make sure to check your messages frequently and respond as soon as possible.
  6. Provide excellent customer service: Going above and beyond for your guests can lead to positive reviews and repeat bookings. Make sure to communicate clearly and address any issues promptly.
  7. Offer local recommendations: Providing guests with recommendations for local restaurants, attractions, and activities can enhance their experience and justify a higher price for your listing.
  8. Allow instant bookings: Allowing guests to book instantly can make your listing more appealing to those who need to book at the last minute. However, make sure to set clear guidelines for instant bookings to avoid any issues.
  9. Offer discounts for repeat guests: Offering discounts to guests who have stayed with you in the past can encourage repeat bookings and increase your revenue over time.
  10. Keep your space clean and well-maintained: A clean and well-maintained space can lead to positive reviews and repeat bookings. Make sure to keep your space clean and address any maintenance issues promptly.

Implementing these 10 tips can help you make more money with your Airbnb listing and improve your overall hosting experience. Happy hosting!

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Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

Published

2 years ago

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August 25, 2022

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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