Headline: How to get me Rich by Investing in the Stock Market!!!

Date: 11/14/2020

Body:  Promise of future riches!!!  Breathless excitement!!!  A truly outstanding investor wants to share with ME how to get rich on trading stocks.   But, first, I have to subscribe to his newsletter for at least $49 per year.  We have all received offers like this one either virtually or in the old-fashioned snail mail.


I have done some research on the guru in this article, and he seems to have a pedigree behind him, and I do not doubt that he is far smarter than I might be.  But the fact is simple: By reading his newsletter (any newsletter, really) he is not talking to YOU alone.   Instead of a one-to-one video-conference, his forum is the equivalent of a Zoom call with thousands of participants.  Being that he is human (and ostensibly, you are too) there cannot be one-to-one communication in such a forum.  For this reason and many others, he cannot be dispensing truly inspired stock trading ideas tailored to you and you alone.   It’s just not possible, regardless of how brilliant he is.

For your interest, there are indeed educational programs that aim to help you write advertisements and Sales Letters just like this, and I have personally taken the course in hawking a financial newsletter.   In a way that I don’t think they totally meant; it WAS quite an education.    They teach you techniques to inflame your prospect’s greed, tug at heartstrings and even make some educated guesses about the demographic description of your ideal customer.

For instance, the guru might make many correct guesses about you: your age, education, even getting pretty close to your income, and all of these things are important when recommending investments.  But, without knowing things like your risk preference or your time horizon, his recommendations might be totally inappropriate for your situation.    Even beyond making thousands of dollars from the stock market (and being able to brag about it at cocktail parties when they start up again) one must be able to sleep at night.

It seems to me like Mom and Dad were right on this one, too.    “If it seems too good to be true, it probably is.”

For my money, there is only one way to make money on the stock market, and it’s very “simple”:

  1.  Pick good companies that provide goods or services that are impossible to outsource.
  2. Write down why you bought the stock and at what price you’ll sell it, being happy that you’ve succeeded.
  3. Make the purchase, and stay in the position for the long-term.

Of course, my tongue is firmly in my cheek, because each of these “simple” statements can be unpacked into a pile worthy of a backpacking expedition to Antarctica.  But, the boil out is pretty simple: The process is (should be) a slow one.  It takes a good while to do research sufficient to find a company worthy of your hard-earned money.   It is very difficult to stomach the flips and turns of a turbulent market, and stick to your plan.  And pressing that TRADE button can be terribly difficult.

Don’t get me wrong, newsletters can be powerful helpers in your education on the stock market.  Often, they are filled with important information, often discussed in an entertaining manner.  (I personally receive several and enjoy perusing them sometimes.)  But, at the end of all things, you have to be comfortable with the investments that you make, and able to explain to at least yourself, why you made them.  Until you can do that with a crayon, (Per Peter Lynch) you might be better off putting your money elsewhere.  Perhaps you can give it to me?

Editor’s Note: Please note that the information contained herein is meant only for general education: This should not be construed as Tax Advice.   Personal attributes could make a material difference in the advice given, so, before taking action, please consult your tax advisor or CPA.

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