How to Make Money with Stocks ( Even When They are Crashing )

Episode 054

Titanium Life With Arman Sadeghi Success Down to a Science

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What if I told you I have a strategy to make money with stocks that I used to make money in the aftermath of the Great Recession? It’s true. I’m going to share my 6 rules of investing so you can understand how I did it.

How to invest in stocks

Rule 1: Only Invest What You Can Afford to Lose

Imagine you earn, and spend, $5,000 a month. You cut your expenses down to $4500 a month. You can now “afford to lose” $500 a month in the stock market.

Imagine you earn, and spend, $5,000 a month. You cut your expenses down to $4500 a month. You can now “afford to lose” $500 a month in the stock market.

Those who lose everything when a stock crashes have dug their own financial grave. Don’t treat investing like gambling. Only invest what you’re comfortable losing.

Rule 2: Invest money in stocks in Relation to Your Personal Risk Tolerance

There is plenty of investment advice on the Internet, and a lot of it is biased. Those with a high personal risk tolerance will give more aggressive advice, while those with a low personal risk tolerance will give more conservative advice.

The good news is there are ways to make money with both styles. It all comes down to how much risk you can tolerate personally.

Rule 3: Buy Only for the Long Term

I buy every stock with the intention of keeping it for 10 years. I don’t always keep every stock for 10 years, but this mentality protects me from knee-jerk reactions to short term rise and falls.

In fact, when the stock price of a company I believe in goes down, I think of it as a sale. Low-priced stocks are a buying opportunity.

Rule 4: Only Invest in Companies Based on Your Own Personal Knowledge

Professional stock brokers base their decisions on a variety of complex factors. Average investors, on the other hand, shouldn’t be concerned with anything outside the realm of their own experience.

You should invest in a company based on your personal experience with and knowledge of said company.

I have a Tesla, and I absolutely love how it drives. I believe in the company’s CEO and the electric car industry as a whole. It’s these factors that drove me to buy my stock in Tesla. Use this same philosophy with your investments.

Rule 5: Invest in Good Times…Invest More in Bad Times

“Buy low, sell high.” You’ve probably heard this investment advice before. In reality, it isn’t that easy to do. When people are selling, it is usually in reaction to a short-term market plummet.

Remember rule 3? This is why buying for the long-term is so important. This mindset gets you to strategically invest during the bad times in order to reap the rewards in the next market boom.

Rule 6: Make Use of Leverage if You Have the Risk Tolerance

When you buy stocks, you can use leverage to get margin. In layman’s terms, this lets you invest more than you have. Say you have $100 to invest. Leverage would let you buy $200 worth of stock.

Think of leverage like credit. It can work in your favor if you use it strategically, or it could bury you in debt.

Let’s recap my six rules to make money in stocks:

  1. Invest Only What You Can Afford to Lose
  2. Invest in Relation to Your Personal Risk Tolerance
  3. Buy Only for the Long-Term
  4. Only Invest in Companies Based on Your Own Personal Knowledge
  5. Invest in Good Times…Invest More in Bad Times
  6. Make Use of Leverage if You Have the Risk Tolerance

If you’re an executive ready to take their investments to new levels of returns, then schedule a session with Arman today.

Description

Arman Sadeghi’s Titanium Life Podcast is a truly life changing force that encompasses every aspect of life. Topics covered are Business/Career, Health, Wealth, Relationships, and overall Fulfillment and Happiness. For more information go to https://titaniumsuccess.com/ or Arman’s next Titanium Live event!