ilmscore | Investing Mistakes - Why Beginners Lose Money in the Stock Market

Investing Mistakes - Why Beginners Lose Money in the Stock Market

Published: 2020-06-05
Status: Available | Analyzed

Predictions from this Video

Total: 10
Correct: 0
Incorrect: 0
Pending: 10
Unrated: 0
Prediction
Topic
Status
Beginners should avoid penny stocks on the OTC market and stick to reputable exchanges like the NYSE or Nasdaq.
"don't buy penny stocks from the over-the-counter market the OTC just stick to your stocks on reputable exchanges"
Penny Stocks
Pending
Beginners should not attempt day trading as they are likely to lose money against professionals.
"if you are a beginner do not try to be a day trader you know again you are new to the stock market if you're trying to go buy sell buy sell intraday just constantly you're gonna end up losing money"
Day Trading
Pending
Swing trading (holding for days, weeks, or months) is a recommended strategy for those who want to engage in active buying and selling after gaining experience.
"if you want to be doing the buying and selling I'll okay if that's gonna be the case you should do swing trading which is at least holding for a few days or a few weeks or a few months like a longer hold period"
Swing Trading
Pending
Attempting to time the market is futile as future outcomes are unpredictable.
"don't try to time the markets we don't have crystal balls even the best stock pickers don't have crystal balls meaning that we don't know the future"
Market Timing
Pending
A staggered approach, investing a fixed amount each month, is recommended to average into the market and avoid overpaying.
"if you want to get into the market get into the market with a staggered approach you know just little by little like you can set some money aside each month to deploy into the stock market like a systematic approach"
Dollar-Cost Averaging
Pending
Dividend yields of 20-25% are a red flag and warrant extreme caution due to the high likelihood of dividend cuts or share price plummeting.
"if a stock is paying a too-good-to-be-true dividends that's a red flag you know I've covered this in the dividends stock video that I have out there there's gonna be stocks that have dividend yields of like 20 percent of 25 percent that should be a red flag"
Dividend Yields
Pending
Diversification is crucial; investors should not concentrate all their funds in a single stock, even if it appears solid.
"don't put all your eggs in one basket I mean this is investing 101 you need to make sure you diversify don't fall in love with the stock no matter how good no matter how solid you think that stock or that company is you need to diversify"
Diversification
Pending
Stocks with very low average volume are risky because they may be illiquid, making it difficult to sell them.
"if the average volume of the stock is very little then you need to be careful because if you bought that stock you might be trapped in that stock meaning that you could not even sell that position"
Stock Volume
Pending
Stocks with dollar volume in the tens or hundreds of thousands are a red flag, potentially trapping investors.
"if you are looking at a stock that has volume in dollar values in the tens of thousands or hundreds of thousands that is a that is a red flag because again it might be a trap"
Low Dollar Volume Stocks
Pending
Building an emergency fund should be prioritized before investing in the stock market to avoid forced selling at unfavorable times.
"if you do not have an emergency funds you should probably build that up first before putting money into the stock market"
Emergency Funds
Pending