So you want to be a successful investor ? It is possible. And doable. Quite easy to be honest. You only need some discipline, common sense, couple of hundred euros every month and 20-30 years. That‘s it. Problem that most new investors face is dullness. Investing is boring. You only have to make one or two transactions every month. For 20 years. And that is it. That is all what it takes to become a successful retail investor. But you want to do more, don’t you ? You want to trade stocks and currencies, invest in the hottest IPOs and ICOs, ride all the waves, short corporate fuck ups and do all the other cool stuff. Everyone wants that. But, at least based on academic and field research, by doing all this you will most likely hurt yourself financially (and emotionally). According to number of studies, activity in financial markets, at least for retail investors, has a high inverse correlation with success. This means that the more active retail investor is, the less he is expected to make over long periods of time. Its up to you to decide whether you want to have some fun or make money. You can either have an expensive hobby called trading or buy a sweater vest, make that one transaction every month and see your portfolio grow. Both routes have their own benefits. Just clearly understand your goals before going down one of them. Investing is simple. It just takes lots of time and discipline.

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Marius ČiuželisInvestor / Advisor / Social Entrepreneur
Investing is simple. But NOT easy. That was our main thesis few years ago when MC Wealth Management was still actively advising HNWIs > https://www.slideshare.net/mciuzelis/investing-is-simple
4 months ago
Tautvydas MarčiulaitisFinance
Fair point. Edited.
4 months ago
Danielius VisockasR&D @ Neurotechnology; Burger geek; Sound processing
Could you share few of the studies regarding the inverse correlation with successes?
4 months ago
Tautvydas MarčiulaitisFinance
Danieliau, eg Trading is Hazardous to Your Wealth: the Common Stock Investment Performance of Individual Investors (B. M. Braber, T. Odean)
4 months ago
Mangirdas AdomaitisArtificial inteligence, Data science
Tautvydas what about passive investing while stock picking? Or does stock picking imply high activity?
3 months ago

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7 investment lessons from Mom. Part 1. When economies and financial markets clearly go separate ways with economies all over the world searching for a bottom while financial markets flirting at their all time highs it's worth to refresh some basic rules how to safeguard your investment portfolio. And who is the best adviser if not... your Mom? I am sure your Mother has a saying, or an answer, for just about everything… as do most mothers. Every answer to the question “Why?” is immediately met with the most intellectual of answers “…because I said so”. Seriously, Mother is a resource of knowledge that serves us well over the years. They may teach us the basic principles to staying safe in the world of financial investments too. Below you will find some basic rules every Mother teaches hers kids: read and re-read them. Then read again. I am sure they will help you to become a better investor. 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That means quite simply have a mechanism in place to protect you when you are wrong with an investment decision. First of all, you will notice that I said “when you are wrong” in the previous paragraph. You will make wrong decisions, in fact, the majority of the decisions you will make in investing will most likely turn out wrong. However, it is cutting those wrong decisions short, and letting your right decisions continue to work, that will make you profitable over time. Any person that tells you about all the winning trades he has made in the market – is either lying or he hasn’t blown up yet. One of the two will be true – 100% of the time. Understanding the “risk versus reward” trade off of any investment is the beginning step to risk management in your portfolio. Knowing how to mitigate the risk of loss in your holdings is crucial to your long-term survivability in the financial markets.

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