I will start off with the two best timeframes. The best timeframes to invest in stocks, and also to invest in mutual funds, are between 12-15 weeks.
I would never invest in stocks after the time frame of 12 months. In that time frame, I wouldn’t be able to beat the stock market.
When is the best time for mutual funds?
When one can beat the market over the entire period of the fund, or over a smaller percentage of that period.
So, you can invest in stocks and mutual funds for as long as you want, and still beat the market.
And you can win money, so long as you are prepared to win. If you want to win at anything, you better be ready to win.
This means having a good time plan and not taking anything for granted.
2. Be prepared to lose money
I like to tell my clients: “Do not make mistakes and always keep your head down.”
When money is on the line, most people make mistakes. And so do I and many others who are in the finance industry.
Most people make bad investment trades, or bad time trades, when there is much more profit to be made from trading the market.
But, if you make a mistake, you might be out a significant amount of money. A bad trading strategy is a money losing move.
You might have to lose the majority of your income.
And I have experienced that first hand. Just recently I experienced a major loss before I even had time to recover my losses.
It’s not that I’ve made bad decisions, or done bad things, or I was lazy, or that I made a stupid trade.
No, it’s just that money is on the line.
If that money is to be made profitably, and you think you can make it, then you have to expect losing some money because you’re wrong.
For instance: I was wrong in assuming that the bond market was a low risk investment, I was wrong in assuming that banks’ credit ratings should be very high.
Yes, it was very risky to take certain risks.
But when you think you can make much more profit out of the same risk, that’s not the right move.
I was wrong because I didn’t think I had enough evidence.
And I was wrong because what I saw wasn’t the right signal