STOP INVESTING by Timing the Market or a stock!

Don’t try to beat the stock market, just invest in it. By simply just investing in the broad market S&P500 index consistently, with time you’ll grow your wealth. So, it's really about time in the market, NOT trying to time the market, is how you will successful grow your investment over time. 

 

Picking individual stock is very complex. Even most professionals with many years of experience cannot beat the market returns consistently. A reason why is because picking individual stocks relies on timing and can be too narrow of a choice for consistent positive returns.

 

Timing is unpredictable. The biggest challenge is trying to time when to best buy a stock so it can go up and trying to time when it’s best to sell before it goes down. A much better way to invest would be to buy the board market index, and the best and most popular and diversified option is the S&P 500 index. 

 

To buy the S&P 500 index, open a brokerage account and you can simply buy an ETF (exchange traded fund) of the S&P500 index. The most popular ETF to buy of the SP500 index is the symbol “SPY”. There are others too, but start with this as it’s the most broad index with the most diversity in individual companies such as Apple, Microsoft, Netflix, Facebook, Tesla, etc. 

 

The challenge and magic of successful investing with great results is to keep investing through “dollar cost average.” That means, to invest consistently on a schedule of every other week or month, for example, and keep doing so over time. By doing this, you’re able to average out your cost per of what you’re buying/investing, so as often as you normally buy, you’ll be buying more share when its price is lower and you’ll be buying less shares when its price is higher - over time, you’ll buy it at a better average price. Also, through dollar cost averaging, you don’t have to stress about timing when is best to buy. 

 

See chart below: 

 

Comparing to an individual stock, the S&P 500 index is more consistent performing and they automatically rebalance with great performing companies in each sector getting selected. See the charge below: 

 

 

Everyone needs to invest to grow their savings to at lease keep up with inflation (protect our money from losing its buying power as costs of daily items increase over time). The best and simplest way is to invest is to invest “passively” in the S&P500 index, and to invest consistently through dollar cost averaging. For more get information and to ask specific questions, please join our free online learning community.