Photo by thelastminute
When I graduated college in 1994, I did not know anything about investing. Nothing. I have written before about how I spent money like it was going out of style back in those days, and one of the things that I did with my money was chase stocks. Remember the internet boom? I was there – buying and selling stocks and not having a clue about what I was doing! Everyone I knew was making a killing in the stock market, so I had to get in, right? I should have stayed out.
While it’s true that I did make some money on a few stocks, the majority of them were losers. Did you invest in any losers during that time too? I felt like an idiot – here I was throwing money at companies I had never even heard of because I had heard something from somebody about how they were poised to take off. I should have just put most of my money in a trash can, as I probably had a better chance of getting some of it back
I guess my point is that if you do not understand investing in individual stocks, either take the time to do so or just invest in mutual funds (i.e. index funds) and let the professionals do the work. I had no place investing in stocks and I deserved to lose whatever money I did. Too many people chase stocks hoping to get rich and end up losing their shirts. Don’t let this be you!