These are the WORST Stock Market Investing Money Traps to avoid, and the best investing strategies to learn that will help make you the most money long term - Enjoy! Add me on Instagram: GPStephan
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FIRST: GETTING OVERLY CONFIDENT.
Once you start getting OVERLY CONFIDENT about your ability as an investor, you begin losing your edge. It becomes easier to overlook issues, ignore the fundamentals, and otherwise - invest without regard to the risks. I think that LITTLE BIT of humility will go a LONG WAY for EVERY INVESTOR - and, usually - the more you realize that you don’t know everything, the more likely you are to make money.
SECOND: GETTING IMPATIENT.
Impatience ends up leading to impulsive, short sighted decisions, it implies that you know how to best time the market - and it reinforces that it’s OKAY to sell once you get bored with a company for not constantly going up. The reality is, PATIENCE is one of the best qualities that you can have in not only investing, but also - LIFE.
THIRD: DO NOT TO OVER-LEVERAGE.
The point where people get in trouble is when they BORROW TOO MUCH, and don’t have enough to cover themselves in the event of a market downturn. Even though it will HELP you earn more money when everything is going up - it will take MORE FROM YOU when everything is going down, and that deserves preparing for.
FOURTH: DO NOT BLINDLY INVEST
When you jump into an investment because someone else gave you a tip, or because you trust what they’re dong…you’re making an uneducated decision to basically trust that other person with your money, when they have absolutely NOTHING at risk for being wrong. If you feel COMFORTABLE handing someone else your money and telling them: “here you go, make me money” - then go for it. But, if you wouldn’t trust that person to have the passwords to your accounts…you shouldn’t follow what they do.
FIFTH: IT HELPS TO DIVERSIFY
This means your whole portfolio isn’t JUST cryptocurrency, or JUST real estate, or JUST a few individual stocks…but, instead, you spread your money through as many different options as possible.
SIXTH: DON'T KEEP TOO MUCH CASH ON HAND
That’s because, over time, you lose money two ways: ONE, inflation lowers the relative value of your money by 1-3% per year…OR, you miss out on the profit you OTHERWISE would have made if you kept your money invested. Instead, analyze how much you’d need in order to pay your bills for 6 months, assuming ALL of your income went to $0…keep THAT amount in cash, plus whatever else you absolutely need to sleep well at night…and then, ideally from there, invest the rest of the money.
SEVENTH: DON'T PANIC SELL
My rule of thumb is this: if nothing has fundamentally changed about your investment besides it being down…don’t sell it. ONLY sell an investment if the REASON you bought it has changed, and you no longer believe in the long term outlook….otherwise, HODL.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*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.
ENDING SOON: Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1850): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
THE NEW PODCAST: https://www.youtube.com/channel/UCMSYZVlQmyG8_2MkIKzg0kw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
FIRST: GETTING OVERLY CONFIDENT.
Once you start getting OVERLY CONFIDENT about your ability as an investor, you begin losing your edge. It becomes easier to overlook issues, ignore the fundamentals, and otherwise - invest without regard to the risks. I think that LITTLE BIT of humility will go a LONG WAY for EVERY INVESTOR - and, usually - the more you realize that you don’t know everything, the more likely you are to make money.
SECOND: GETTING IMPATIENT.
Impatience ends up leading to impulsive, short sighted decisions, it implies that you know how to best time the market - and it reinforces that it’s OKAY to sell once you get bored with a company for not constantly going up. The reality is, PATIENCE is one of the best qualities that you can have in not only investing, but also - LIFE.
THIRD: DO NOT TO OVER-LEVERAGE.
The point where people get in trouble is when they BORROW TOO MUCH, and don’t have enough to cover themselves in the event of a market downturn. Even though it will HELP you earn more money when everything is going up - it will take MORE FROM YOU when everything is going down, and that deserves preparing for.
FOURTH: DO NOT BLINDLY INVEST
When you jump into an investment because someone else gave you a tip, or because you trust what they’re dong…you’re making an uneducated decision to basically trust that other person with your money, when they have absolutely NOTHING at risk for being wrong. If you feel COMFORTABLE handing someone else your money and telling them: “here you go, make me money” - then go for it. But, if you wouldn’t trust that person to have the passwords to your accounts…you shouldn’t follow what they do.
FIFTH: IT HELPS TO DIVERSIFY
This means your whole portfolio isn’t JUST cryptocurrency, or JUST real estate, or JUST a few individual stocks…but, instead, you spread your money through as many different options as possible.
SIXTH: DON'T KEEP TOO MUCH CASH ON HAND
That’s because, over time, you lose money two ways: ONE, inflation lowers the relative value of your money by 1-3% per year…OR, you miss out on the profit you OTHERWISE would have made if you kept your money invested. Instead, analyze how much you’d need in order to pay your bills for 6 months, assuming ALL of your income went to $0…keep THAT amount in cash, plus whatever else you absolutely need to sleep well at night…and then, ideally from there, invest the rest of the money.
SEVENTH: DON'T PANIC SELL
My rule of thumb is this: if nothing has fundamentally changed about your investment besides it being down…don’t sell it. ONLY sell an investment if the REASON you bought it has changed, and you no longer believe in the long term outlook….otherwise, HODL.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*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.
What's up you guys, it's graham here so no surprise. Investing throughout this last year has been one of the most eye-opening experiences for so many people in a very long time. In a span of 365 days, we've seen some of the worst single day. Point drops in history, followed by a 30 to 80 market decline, followed by the shortest bear market in history, followed by the largest point increases in history, followed by a brand new record, all-time high, and now people are beginning to question whether or not the market has Just peaked before we fall back down and experience it all over again.
Now, typically, we could just chalk this up to normal market volatility and then move on with our day, but not this time, because throughout the last year i've seen so many people make some very serious mistakes with their money that have easily cost them. Thousands or tens of thousands of dollars or more and if that's not bad enough, all of those mistakes were easily avoidable, had they just been aware of them and known what to do ahead of time. So today, let's go over the seven most common worst. Investing mistakes that you could make this year and then how you could not make those mistakes and make money instead and best of all all of this information just comes at the low cost of one single like on the video.
However, if you've already done that you're thinking to yourself, but graham i already hit the like button before, you told me to do that. What else can i do to support your channel? Well, good question? Graham, you could also subscribe and hit the notification bell and, if you like, free money use the link down below in the description and weeble is going to be giving you two free stocks that are potentially worth all the way up to 1850. And if you watch into the end, i'm going to be showing you the two free stocks that i got so you can see how much those are worth so with that said, you guys thank you so much and now, let's begin the first mistake you have to Avoid is getting overconfident, here's the thing in a bull market. Everyone looks like a genius back in march of 2020, you could have very easily created a dart board of random stocks, thrown a dart blindfolded then invested in those companies, and you will have made money.
In fact, a few months ago, i even invested a hundred thousand dollars of my own money using a monkey to randomly pick stocks out of the s p, 500 and guess what that monkey portfolio has made money. And it's currently beating the s. P. 500..
Literally, a monkey right now picking random stocks is beating the index. Just let that sink in the point i'm trying to get at is that when everything is going well, it's easy to think you're. This amazing investor, who has a magic touch - and you know what maybe you do, but once you start getting overly confident about your abilities as an investor, you begin losing your edge. It becomes a lot easier to overlook issues, disregard the fundamentals and invest without considering the risk simply because hey you know what so far it's worked out. Well. Overconfidence might also cause you to hold on to a really bad investment for too long, because if you were confident enough in the first place to buy it, then you're definitely confident enough not to sell it right wrong. That is most likely to cloud your judgment in making sound rational decisions and from there you lose money. Now, that's not to say that you can't be a talented investor and i've seen so many people who have been instrumental in helping me through the ins and outs of real estate, investing and creating a diversified portfolio.
But those people usually have the experience and the expertise to know that they don't know everything. They still acknowledge that there's always going to be a missing piece of information and that anything can happen. I think a little bit of humility is going to go a long way for every single investor and usually the more you realize that you don't know everything the more likely you are to make money, and the second mistake that almost all of us are guilty of. At some point is getting impatient, there's been so many times where i've seen someone hold on to a really really great stock.
But then, after a few weeks of it not pumping to the moon, they go and sell it and then try to time the next big winner. But what usually ends up happening is that as soon as they sell that original stock finally starts trending upwards and they miss out on the opportunity, because they constantly jump from one stock to another. Impatience like this usually ends up leading to impulsive short-sighted decisions. It implies that you know how to best time, the market, and it reinforces that it's okay, to sell something that you get bored of, because it doesn't constantly go up.
The reality is, patience is one of the best qualities that you could have not only in investing, but also just in life. The markets never just consistently go up and there are going to be times where nothing happens, or even the market goes down and that's normal. The goal is to plan, invest and think long term in 10-year increments, and when you become impatient, you inadvertently become reactive and when you become reactive mistakes, frequently happen and money is lost in order to be patient, you must endure short-term loss for long-term gain, because that's What matters the most at the end of the day, impatience, is really just another form of emotion and, as we all know, emotion has no place in investing. So if you want to avoid this mistake, all you got to do is rest assured that time is on your side and as long as you're investing in financially sound companies for the right reasons, long term you're going to be fine as long as you don't screw, It up and you subscribe now.
Third, the mistake i really want to warn people about is not to over leverage. Now, when i say leverage i'm talking about borrowing money, this might include mortgage debt or a margin account or any money that you have, that you will eventually have to pay back and when it comes to this, i'm definitely not a dave ramsey who's like no guys. No debt at all - that's bad, not at all avoid it pay off that two percent mortgage as soon as you can, but i am a firm believer that the right amount of debt can actually make some sense as long as you're reasonable with it now. I've said this before, but borrowed money is very much like a fire if you treat it with respect and caution that fire could keep you warm, it could cook your food and it could make sure you don't get the runs from food poisoning. But if you're careless and don't pay close attention to it, it has the potential to burn down your house and ruin you financially. So i'm not gon na sit here and tell you: don't borrow money because that's bad, but do it responsibly and make sure it doesn't overtake your portfolio. For example, when it comes to myself. As of now, i own about eight and a half million dollars worth of real estate, with about four million dollars worth of mortgage debt, with an average interest rate of three percent fixed for 30 years now, besides my personal residence, the rest of that debt is on Cash flowing rental properties that earn enough money to pay off that mortgage debt plus sum and profit, and that is really the extent of my debt.
That's an amount to me where, if the markets were to collapse, i would still be okay and if i absolutely needed to pay it off, i could the point where people get in trouble is when they borrow too much and don't keep enough on the sidelines to Cover themselves in the event of a downturn, even though debt like this is gon na help, you make way more money when the market is going up. It's gon na take even more from you when the market goes down and i think that's something worth preparing for. So keep all of your debt to a reasonable point where it doesn't overtake too much of your portfolio and make sure you could lock in these interest rates as low as you can for as long as you can. That way, you know how much it's going to cost you every single month and you could better plan for that now.
Fourth, under no condition should you be investing blindly. I honestly see this is a really big problem online and if you go to reddit, there's no shortage of people willing to believe anything. They read just because someone came up with a really convincing argument on why a stock is suddenly about to go to the moon, or maybe they see one person making a whole bunch of money and they think to themselves well, if that person can do it and They're making money so could i like, i would venture to say that for every one person who bought gamestop under 30 dollars, there were 10 people who bought it above 100.. I think that's a telltale sign that you're not investing on any of your own fundamentals, but instead because you saw it online and think it's going to go higher because everyone else says it will now. Maybe that's not the best example, because it probably would have gone a lot higher had trading not been halted, but regardless a lot of people bought into this simply because they wanted to make money as fast as possible and print attendees. And that is where people get burned anytime, you jump into an investment, because someone else gave you a tip or you trust what they're doing you're, making an uneducated decision to basically trust somebody else with your money when they have absolutely nothing to risk for being wrong. If you feel comfortable handing someone else, your money and telling them here, you go, go and make me money with this, then go for it. But if you wouldn't trust that person to have the passwords to your account, then you shouldn't blindly follow what they do.
Instead, what you should do is listen to as many different perspectives as you can follow up on the recommendations understand why they made those investments in the first place and if you understand it and find that it fits with your own personal. Investing philosophy then go for it, otherwise it's probably better not to invest in anything than blindly invest in someone else's recommendation. Without doing your own research number five, i'm gon na be a boomer and say it. It helps to diversify.
This means your portfolio is not just crypto, it's not just real estate or it's not just stocks, but instead you spread a little bit of your money everywhere. Now i will admit when i was a young gram. Stefan i was so confident and happy about having a hundred percent real estate, like i worked all day as a real estate agent, just to save that money to then go and buy real estate, and if i had any cash left over in my account, it was To go and buy more real estate, that was it, but it worked really really well. So i was like.
Why should i do anything else, but, as i got older, i realized that i could achieve pretty much the same returns and play it way safer by investing my money elsewhere. Over this last year, i placed a lot of emphasis on the stock market, crypto and other alternative assets. As of now, my portfolio consists of 50 real estate, 28 stocks, 15 cash, 5 percent other and two percent crypto, and my next goal is to have just as much money invested in the stock market as they do in real estate. Now, when it comes to this, concentrating your investments might very well help.
You expedite your wealth building early on, but after a while it becomes a lot more important to scale back on risk, diversify your investments and just generally play it a little safer and i think for any long-term investor. This is probably something you should start doing sooner than later. Number six is something i've definitely been guilty of, and that's keeping too much cash on hand. This is almost the exact opposite problem of everything else i previously talked about, but funny enough. It could end up losing you the most amount of money in terms of opportunity. Cost now don't get me wrong. It is important to keep enough cash on the sidelines to cover a six month. Emergency fund pay down margin, debt as needed, or otherwise, act as a buffer.
In the event, something comes up. It's also reasonable to keep more cash in your account, just in case a good opportunity comes up, but there's certainly a point where you could begin keeping too much cash out of the markets. That's because over time you lose value two ways. One inflation lowers the relative value of your money by one to three percent every single year or you miss out on the profit you otherwise would have made had you just invested your money instead now i will openly admit this, but had i invested all of my Money as soon as i got it right into the markets immediately, i would be up way more than i am today.
I've kept a big chunk of cash on the sidelines because it gives me peace of mind knowing that, if anything were to happen or come up, i have enough sitting there to be okay, but i knowingly pay a cost for that, and that comes with the territory. If you are playing it too, safe and constantly keeping your money out of the markets, just waiting for the perfect crash i'll tell you that timing is just never gon na happen. Either the markets go up and you miss out or the market crashes, but at the very bottom there's a chance. It's going to crash even further, so you're not going to buy in and even once the market finally starts going up.
You're going to anchor its value to the lowest point, so it's always going to be expensive relative to that. So don't be that person! Instead, what you should do is analyze how much money you need to pay your bills for six months, assuming all of your income. Just dried up and went to zero then keep that amount in cash plus. Whatever else you absolutely need, and then after that, invest everything else into the markets consistently any excess cash you keep beyond.
That is going to come at a cost, so figure out what that cost is to you and then stick with that plan. And, lastly, we got ta talk about this one. It's not getting your two free stocks down below in the description just kidding i'll show you my free stock shortly, but number seven would be do not panic sell. Now i get it, there's no worse sinking feeling than opening up your account and seeing nothing but red and then being tempted to sell out and wait for it to drop.
So you could buy back even lower, but the truth is it almost never works that way. Instead, once you sell, it opens up pandora's box and it becomes so much easier to sell other investments, because you have the mindset. If i sold this stock, then i may as well sell this stock too, and while i'm at it, i may as well sell that one and this one over here and i'm sure. As we all know, timing, the markets ends up pretty bad for a lot of people. My rule of thumb is this: if nothing is fundamentally different about your investment, besides the fact that now it's down in price, don't sell, if you don't need the money, also don't sell it. If you're in an emotional state of fear, don't sell it, i've only sold a few stocks ever and i have to say i regret every single time i have sold with the exception of one. That was a pure gamble that just happened to pay off, but that was it and if i could go back in time and just not sell anything, i wouldn't everyone makes mistakes, but it's so important to learn from those mistakes. So you don't keep repeating them over and over again only sell an investment when the fundamental reason you bought it has changed and you no longer believe in their long-term outlook.
You could also go and look at this in reverse. Would you pay the price it's currently trading at to buy the stock right now? If the answer to that is no, then why are you holding on to it? This just makes you really analyze every investment for what it is and makes you realize why you bought it in the first place that way, you're not going to make any spontaneous choices that you might regret now. As far as where to go from here, i really believe that if you actually follow this advice and stick with it, it's going to be very difficult for you to lose money long term. When you take all of these mistakes out of the equation, you give yourself the gift of time, knowledge and safety.
Investing doesn't need to be complicated and it doesn't need to be confusing. All you need to do is buy into an s. P 500 index fund did hold long term there. I said it now.
The whole video is just a fancy way of ending up. At the same point, and now, of course, if you want to see the free stocks, i got let's open them up. So the first one we got is zynga not bad 11 and 21 cents, and then we got ford 11.76. So if you want your two free stocks, the link to that is down below in the description and those stocks could be worth all the way up to 1 850.
So with that said, you guys thank you so much for watching. I really appreciate it as always make sure to destroy the like button. Subscribe button and notification bell also feel free to add me on instagram, i posted pretty much daily. So if you want to be a part of it, there feel free to add me there.
As my second channel, the gram stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that. And lastly, if you want these two free stocks down below in the description enjoy, let me know which ones you get. Thank you so much for watching and until next time,. .
The more you know about your customers, the more you can provide to them information that is increasingly useful, relevant, and persuasive
Trusting someone else with your money- Yes researching thoroughly is critical. Avoid those scammers.
you talk like the words are meant for me
Those snippet videos he included in his explanations were hilarious!!
I just try and keep it very simple. I invest in big proven companies that have been around for a while and will most likely continue to be around. Walmart, apple, tesla, microsoft, Ect. I just put my money in them and just wait. They all be worth way more money in ten years. Just wait and let the money work.
rite next coming years stocks and real estate les get it 🤑
I could have used this before i blew my account up. ope
WHAT IF I AM ALREADY SUBSCRIBED & I BEEN ALREADY HIT THE BELL? WHAT DO WE DO GRAHAM WHAT DO WE DO?
See long-term investments just like Ramsey… Ahhh, I mean, Schrödinger's cat. Don't do this with Ramsey…
The best time to grow a tree was 20 years ago, the second best time is today—Chinese proverb
Nobody becomes a millionaire or a billionaire by working for others and depending on them. Good investment brings millions of dollars, and consistency brings billions. The market is all about crypt0 at the moment now.
allright, you had me at monkey portfolio. Take my Like, well deserved!
So I'm from germany and very new to all this but so interested in your videos and also in the free stocks but I can't get them. Like the public stocks in your more recent videos. I can't get these because this app or website is not supported in germany. Sadly also understanding what you're talking about is sometimes very hard 😂. But I do like the way that you're supporting and teaching newbies like me with free stocks and your videos!
I PRAY THAT WHO READ THIS AND INVEST WILL BE SUCCESSFUL, IF YOU WANT TO BE SUCCESSFUL HAVE THE MINDSET OF THE RICH, SPEND LESS AND INVEST MORE. DON'T GIVE UP YOUR DREAMS.
Stick with Bitcoin and hold on to it and keep investing. Soon you will be a millionaire.
Remember this comment: currently is subsuber count is pi 3.14
Great video! Great tips! You're so knowledgeable.
JESUS CHRIST LOVES YOU AND CARES FOR YOU HAVE A GOOD DAY EVERYONE
I'm curious about the 1-3% a year inflation. So many things I see now are 200-400% the price from even 20yrs ago. How does that even out?
should i sell the free stocks i've received if they're decent?
I have a hypothesis that Zynga and other mobile gaming companies are going into see a surge in gains as mobile gaming becomes more popular.
It's funny how the markets mess with our heads. I KNOW what NOT to do when the markets are tanking, or when they're going through the roof, but I can feel the pull to do something stupid. It's something I actively have to fight. I think 9/10 times the best action is to do nothing. He's right, patience is so important when it comes to investing. Formulate a solid strategy, and stick with it, no matter what.
😭😭 I bought in above $300 😭😭 last time I invest blindly
If you're gonna buy options. Don't buy weeklies.
Never never never bet on money you can’t afford to lose. The stock market is a betting game — but do it responsibility. Don’t put all your eggs in one basket. Have the money to cover your debts if you need to. This advice you gave is exactly what my grandfather used to tell me decades ago. It is still valid advice. Nice job.
Would love to hear your opinion on where to keep money when saving up for another investment property.
Okay hear me out. WE NEED AN UPDATE ON THE MONKEY🐵
I'm of the opinion that you should have two pools of capital: "aspirational" and "retirement" capital. The retirement capital should be invested in index funds and target date funds and should be the larger of the two (at least to start). The aspirational pool is for riskier plays.
Warren buffett says " if you dont find a way to make money while you sleep you will have to work hard untill you die"
Bought some cruse stocks when they were on “sale” now I have 84% return.
" If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability. "
–Henry Ford
The willing dashboard suddenly kneel because result conspicuously squeeze following a important fork. descriptive, piquant maria
Smash the like button, ☝️ up there & down here 👇, go on ….. smash it ….. Hard…. Harder…. On 2nd thought use a hammer 🔨🔨.