How to Bet on Stocks and Not Get Burned

Summary:

Welcome to The Wealth Equation podcast! On this episode of the podcast, your host, Maurice L. Wilson, tells you how to bet on the stock market and not get burned. Maurice clarifies that it’s not wrong to speculate on stocks and you don’t have to invest in just one way. When it comes to buying stocks, a mix of strategies is good.

Then, he discusses three things you need to invest and not get burned: First, you need the ability to do fractional share investing. Second, you need to be able to invest 25% of your portfolio. Third, you’ll need research and monitoring tools so that you can know what to buy, what to keep, and what to get rid of. Maurice goes more in depth on each of these points.

Lastly, Maurice explains a strategy for investing. You’ll learn about the 25, 50, 100 strategy that helps you get rid of loser stocks and focus on winners!

 

Key Quotes:

“It’s important to understand that it’s not wrong to speculate on stocks. I find in the financial world there is this tendency to make people invest one way.”

“First, you need the ability to do what’s called fractional share investing.”

“Investing 25% allows you to only risk a quarter of your money and therefore let’s say that quarter goes down 50%. You’re looking at less than a 13% loss for the portfolio. Conversely, if that gamble pays off, you’re looking for a 25% gain or more.”

“If you aren’t trying to double your money then you’re probably not speculating in the right areas of the market and you’re wasting your time.”

“You need a way to screen for stocks based on a certain criteria to create a list of stocks that you want to bet on. Then you need monitoring tools because you’re going to need a way to monitor the performance of these stocks, so you know which ones to keep and which ones to get rid of.”

“Ultimately, with betting on stocks, you want to get all of your money in one stock if possible. Because that’s what’s going to allow you to maximize the performance of a great investment.”

“There’s a tendency in the stock market to focus on overly complicated processes. That’s not how we do it over here.”

 

What We Covered:

0:35 – It’s not wrong to speculate on stocks, there is no one way to do it

2:25 – How should we bet on stocks?

3:14 – Fractional shares

3:38 – Invest 25% of your portfolio

4:29 – Research and monitoring tools

5:28 – The 25, 50, 100 strategy for investing

 

 

Connect with Maurice:

https://www.wilsonwealth.com/

https://www.linkedin.com/in/mauricewilson