Have you ever wondered what are the best ways to succeed in investing and portfolio management? Yeah, me too.
Sometimes the most efficient way to know what to do is to turn things upside down.
So, if you want to know what are the best ways to destroy your portfolio and never succeed as an investor, apply these methods!
Stop Learning as Soon as Possible
One of the most efficient ways of ensuring you don’t evolve as an investor is to stick to things you know, and aggressively refuse to learn anything new.
Learning new things may lead to undesirable results like being aware of your biases or finding flaws in your investment strategy, so you want to stay clear of compromising your thinking.
Overall, increasing your knowledge usually just complicates things, so learning the basics is plenty enough.
Make Decisions Solely Based on Stock Price
Stock price is one of the best and most versatile sources of information out there.
For example, if the stock price is down 50%, it’s most likely a great bargain because it’s a lot cheaper than before.
Also, the longer the stock goes down, the more probable it is to bounce back since it can’t possibly drop forever.
Don’t Research What You Invest In
There’s no real reason why you should know about a company’s fundamentals like its financial situation or long-term business plan.
After all, you’re here to make money, not learn accounting or become a business expert.
Browsing through stock forums and a couple of news headlines is plenty enough.
Use a Lot of Leverage
If you really wish to succeed as an investor, you need to use leverage.
Especially during strong bull markets when stocks tend to go up fast, you should use as much leverage as possible.
Now, you might feel that stocks are becoming expensive, but that just means there are more people in the market to buy your overpriced stocks.
There’s always a greater fool, and it’s almost guaranteed that it’s not you!
Keep Diversification to a Minimum
Diversification is for those who don’t have the knack for picking stocks.
You know that the ones you’ve picked will do well, so there’s no reason to lower your returns by diversifying.
After all, when you really know what you’re doing, the future can be predicted quite accurately.
Always Double Down on Your Losers
Remember the stock that’s down about 50 percent and can’t possibly go any lower?
Well, buying more of it is an effective way to make sure that you come out on top when the stock bounces back. After all, a stock can’t keep going down forever.
If you’re really serious, you should sell your winners to buy more of your losers. That way you get to have a more focused portfolio that’s full of future winners!
Constantly Trade Back and Forth
This one’s a great way to make sure you don’t accidentally get to benefit from compounding returns.
If a stock you bought doesn’t live up to its promises in a couple of weeks, it’s time to let that one go and buy one that does.
Of course, you’re bound to pay some fees and expenses, but they don’t really matter when you make up for them in handsome returns.
Also, the probability of buying the right stock increases the more trades you make. So, eventually, you’re bound to land a winner that makes up for all your losses.
Invest Money You Can’t Afford to Lose
The age-old advice of never investing what you can’t afford to lose is not only outdated but it’s also meant for investors who don’t know what they’re doing.
So what if you temporarily risk your retirement savings? You’re bound to get a handsome return for them eventually anyway.
After all, it’s not really a risk if you know what you’re doing.
Base Your Decisions on News Headlines
Reading the news is a great way to know what’s going on in the financial world.
The experts out there are, statistically speaking, correct most of the time, so you’d be a fool to ignore them.
What’s important to remember is that the media’s number one concern is to provide you with relevant and valuable information; not to sell you anything. That’s why they never use eye-catching or extreme headlines that could make people succumb to panic.
Use Complicated Investment Vehicles Without Understanding the Risk
The easiest and fastest way to make money in the stock market is with options, futures, and of course, leveraging cryptocurrencies.
The best part is that you can easily learn how to make money with them by watching a YouTube tutorial or two.
Normal individual stocks tend to move so slowly that it’ll take forever to make money with them, which is why you need to invest in something that offers quick returns.
Some say that these turbocharged investments in risky asset classes are dangerous, but they’re just jealous of the high returns and don’t know how to do it themselves.
Never Look Back on Your Mistakes
Reflecting back on your mistakes can take a toll on your mental well-being. When it comes to investing, it’s best to sweep your mistakes under the rug and move on.
As mentioned before, the more trades you make, the more likely you are to succeed.
Therefore, the most effective way to forget your mistakes and make up for them is to go big on your next investment as soon as possible.
Constantly Change Your Investment Strategy
If you give your investment strategy a couple of months and it still doesn’t work, you should try something completely different.
A successful investment strategy yields almost immediate results, so if it takes longer than that, you’re most likely doing something wrong!
Better yet, if you have a talent for stock-picking, you can skip creating an investment strategy altogether!
Make Your Investment Decisions Quickly
If you hear a hot tip from your neighbour’s friend, you should act immediately. By making quick decisions you make sure that you’re among the first ones to find that hidden gem.
That opportunity will slip your fingers in no time, so often there’s no time to do any research, but that’s okay. The best investments are the ones that you’ve got a certain feeling about.
Remember to Regularly Compare Your Portfolio to Others
The best way to make sure you’re on the right track is to constantly compare your portfolio to others.
That way you’ll know what works and what doesn’t and can act accordingly.
In fact, changing your entire portfolio to whatever has worked for someone else in the past is one of the best ways to ensure that you get on board the success train.
Believe Everything You See
Remember that TikToker who quit school, became a millionaire at 21, and how he makes over $20,000 per day by trading less than 10 minutes?
In fact, the average investment TikToker has a net worth of more than 5 million dollars.
There’s no reason why someone would lie on social media. After all, how could they have that lavish lifestyle if they didn’t have the money?
So, if you’re falling behind compared to them, there must be something wrong with you.
