Do you have any money invested in the stock market? If you don’t, or if you do but don’t do well, this episode of the Titanium Life podcast is for you. Not too long ago, I was a part of a roundtable of Orange County business owners. I was asked if the stock market is ripe for buying or selling. My answer was that the market is always ripe for buying if you know what to buy.
Now I’m no investment guru. When I talk about buying stocks at a discount, keep in mind that I’m not a licensed investment professional. I’m simply speaking from my own successful investment experiences.
The Trick to Buying Stocks at a Discount
It is impossible to time the market. You might get lucky once or twice, but making a bunch of short-term moves is usually a recipe for disaster. With buying stocks at a discount, you want to look at the market long-term. I plan on not touching my money for at least 10 years. If you don’t look at investments like this, you shouldn’t be in the market.
It’s almost impossible to lose all of your money if you invest for the long-term. You’ll be able to outlast any short-term falls in the market. In fact, you’ll start looking at these periods as a “sale” for stocks.
My wife went shopping at the outlets last week and she took full advantage of the great sales. How come we don’t get excited when stocks fall in value and go on sale? This is the philosophy behind buying stocks at a discount.
Don’t Do Anything That Causes You to Lose Sleep
The stock market is not a casino. You should not approach it like a gambler. It’s a slippery slope to putting money you can’t lose into the market, and that’s when it starts to make you lose sleep.
Now, you know I am not a fan of sleeping too much, but I am a fan of quality sleep. You should only invest money in the market you are comfortable with losing. This means making sure all of your living expenses are taken care of before putting money in the market.
Succeeding in the stock market comes down to knowing yourself. What is your risk tolerance? Put a small amount of money in safe stocks if you have a low-risk tolerance. Put some more money on a high-risk, high-reward stock if you have a higher risk tolerance.
Get Your Finances in Order So You Can Start Buying Stocks at a Discount
You need a firm grip on your finances before you can really take advantage of the stock market. You still need a healthy amount of money to invest, even when buying stocks at a discount. If you’re like most people, you probably feel like it’s impossible to save money with your current financial situation. Hiring a financial life coach is a great way to change your attitude towards money. Schedule a consultation with Titanium Success to start making the most of your income.