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Retail investor: I've been investing 5 years & I'm barely up. Starting to think this doesn't work.


Me: What have you been doing?
Retail investor: Bit of everything. Swing trades, some options, a few stocks people were hyping.
Me: So 5 years of trying to beat the market by being "ACTIVE."
Retail investor: Yeah pretty much.
Me: & what did plain $Q do over those same 5 years?
Retail investor: ...way better than me.
Me: So the market worked fine. The activity/strategy is what didn't.
Retail investor: That's kind of depressing.
Me: It's actually the good news. You don't need more skill. You need to stop doing most of what you're doing. Build a base in $VOO & $Q, never sell it, buy a few great companies when they re on sale & let it be the collateral when you sell 1+ year portfolio secured puts... Thats really it.
Retail investor: So the fix is doing less trades but better trades?
Me: For me it was. & that also applies to Warren Buffett. Look at this chart of the nasdaq in the last 5 years... You could have made 1 single trade and made 98% ROI... DON'T COMPLICATE IT!
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BD_Sajib
a day ago
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GateUser-51793dea
a day ago
First Review
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