I’ve been reading about investing in the stock market for some years now, although with the market rising and rising, there seemed to be better investment opportunities to attend to, such as crypto and P2P lending. This doesn’t mean that I have totally abandoned the idea of investing in stocks, however.
On the contrary, I had actually invested in some hand-picked stocks that I had a good gut feeling about, and sold them all off at 100% profits in recent months. Of course, investing based on gut feelings is not something that anyone recommends, but sometimes an educated guess does the trick. Or maybe it was just the fact that so many stocks have performed well over the past 4-5 years due to the bull run that we’ve been experiencing.
That’s one thing that makes this perilous territory in my view. You never know if you really have an edge on the market and can thus book some nice profits, or if you are just gambling and happened to get lucky.
I also have a few friends from the IT space who bet much bigger stakes than me on tech companies and have turned millions in profits, and while I find this inspirational, I’m again unsure if they had an edge or whether they gambled big time and luckily got the desired outcome.
Every great stock — without exception — has put its shareholders to the test
If you can't endure the maximum drop,
you won't ever earn the maximum pop pic.twitter.com/IGjl96u7H8
— Brian Feroldi (🧠,📈) (@BrianFeroldi) February 7, 2021
When seeking success, I usually like to pick a topic, find the best performers and learn how they do things, and then try to figure out a winning blueprint. It’s worked for me in several endeavors through the course of my life, but I have yet to find that blueprint in the world of stock investing that I can really trust.