I got into stocking investing right after I got my first paycheck because I heard stories how some people got rich through stock investing. So I must say that I have been investing in the stock market for about 20 years now. Did I get rich through investing in the stocks? I certainly wish I did, overall I did make a little bit of money but not significant that I can claim I am getting rich via the stock market.
The reason I haven’t lost money in the stock market yet which I believe is the stock picking software program I purchased a while back. It cost me almost $2000. I bought the program from a well-known financial company which provides stock investing advice & services. With that program, I can pick stocks based on the criteria such earning per share, broker ranking, dividend…etc., which a whole lot easier to pick the stocks than asking tips from friends and coworker or the recommendation from the so-called stock market gurus.
The other reason of not losing money if not making any is time. You have to spend time watching your portfolio if you are the do it yourself type investor. But for most of the investors, time is a luxury. They have to go to the nine to five job and most of the time, the stock market opens at the same 9 to 5 time schedule.
But even if I tried pretty hard in doing the best I could to avoid lost in the market, the stock market simply is quite volatile. For example, I purchased 2000 shares of a stock recommended by the stocking picking program for $ $0.28 per share back in May this year and I noticed the price has been dropping but all the sudden it jumped to $24 a share last Friday. But I didn’t really get too excited about this, especially this stock is missing from the stock holding position list on the stock broker’s website. So I called the stock broker’s office and found that since the stock is listed on NASDAQ, the stock has to maintain a certain price to continue to be listed, so the company did a 9000 to 1 share split, meaning if I had 9000 shares of this stock before I will receive 1 share to $24!! Since I only own 2000 shares of the stock, I will only get a fraction of a share, the value so insignificant, I might as well just write it off from the list.
Anyway, this is to show you how silly the stock market can be. Do not depend on the stock market for your retirement. Diversify into real estate investing and other hard assets such as gold & silver as well. The best way to retire comfortably is to have the reliable source of passive income streams, the stock market is certainly not one of them.