Sunday, July 16, 2017

Stocks, Sports Cars, and Growing Up

Trading stocks for many are like owning a sports car. While It may seem like fun, they both often end up being an expensive habit.

I've had cars that have turned into nothing but money drains. I've also traded stocks, trying to predict futures, and ending up losing nine times out of ten.

In both regards, I'm growing up and moving past my mistakes.

Don't get me wrong, I've actually made some trades that have turned out well. For example, a couple years ago I made 30% on Tesla. Yeah...I wish I still had those shares. Ironically, I sold it because I needed the money for above expensive car.

But, I've also made a lot of wrong predictions and lost a hundred dollars here and hundred dollars there. Also, buying *cough *cough penny stocks is a really really bad idea. And something I've never (just once or twice) done.

Overall over the past 3-4 years that I've dabbled with active stock trading, I probably ended up pretty much even, perhaps even a minor loss overall.

If I had just put the money I spent in stocks into a Vanguard fund or something similar, I'd have been far better off today.

I learned the hard way, but you don't have too. Do your research and consider carefully before predicting stock prices.

While I may purchase a stock or two along the way, my money will be sticking like glue to Vanguard from here on out.

Need more convincing? I'll write more about why I love Vanguard soon, but until then, check out JL Collins' Stock Series.

- 2nd Gen FI

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