Hey, thanks for the response and sorry for the delay!DesertDiva wrote: ↑Wed Dec 25, 2019 1:10 pmMany people believe they can beat the markets or develop some kind of secret process to produce above-average returns. They may realize that many before them have failed, but they still believe it won’t happen to them. “This time it will be different.”
The problem is that no one can predict the future. Any individual stock can suffer severe losses. Look at what’s happening to FedEx right now. All is takes is a negative headline, a management misstep, loss of competitive advantage, etc, and the downfall to an individual stock can be sudden and swift. Indexing removes the shock of these events and stabilizes your portfolio.
You need to learn more about Indexing. Go to the “amazon” link at the top of this page. Read Bogle’s book carefully. Then read “The Bogleheads’ Guide to Investing”. This approach may not give you the adrenaline-rush you are seeking, but it will give you a solid, disciplined approach to managing your investments.
You know, that's so interesting, how you talk about the psychological reasons for believing one can "beat the market" even though no one else can... to be honest, that's exactly how I feel, haha! I'll be honest with you... I'm totally new to this world, and I can acknowledge that my feelings are probably coming from a place of naivety, but I still can't help to stop feeling them, haha... This reminds me a lot of something else - have you ever played poker? Texas holdem poker? I played that game for years, and in that game, stems a very similar philosophy or mindset - the mindset that "I can beat the house, because although this game is largely luck, there is still a great deal of skill involved" ... you know, one of the best arguments these poker guys like to use is - if poker is all luck, then how come the same 10 players show up to the final table each year in the world series of poker? It's a good argument, but it falls apart when you realize that those 10 players are exceptionally gifted, mastermind players, one in a million, and even the extremely good veteran poker player wouldn't come close to them... maybe in the same sense, there are a few, small number of people who can consistently trade individual stocks and beat the market over and over again, and those people are just mental freaks of nature that no one else can even come close to.. would you agree with that comparison?
Also, about indexes - what do you think about dumping all my money into XLK? the tech ETF?