I wanted to write this article after my frequent reminders and discussions with my brother about controlling his emotions and expectations as an investor.
Last year, my brother opened his first investment account and invested all the money he got.
However, I had to guide him as he had spent zero time learning about investing and finances.
He followed my recommendation to buy a low-cost S&P 500 index fund with the intention of holding it until he was ready to retire.
But as with all new investors, there was a fear of missing out. Seeing Nvidia's explosive growth had him asking questions like why I didn't recommend that he buy Nvidia instead.
My answer has always been to buy whatever you want if you can back up your choices with sound reasoning.
If you have the time to research individual companies and their industries, then yes, buy what you believe in. However, if you don't, stick with a simple strategy like investing in an S&P 500 index fund.
A reason like Nvidia's stock price is going up much faster than everyone else is not a good reason to buy the stock.
"So you're saying I must wait until I'm 50 to be a millionaire?"
In essence, yes.
With most investments, such as stocks and crypto, you won't go from $10k to a millionaire in a year.
And before I get showered with comments pointing to people who became millionaires from stocks and crypto in a short timeframe, plenty of people also lost all their money attempting the same feat.
This brings me to the main idea of this article:
If you want to make money fast, use methods where you control the input.
Create Income Streams That You Control
If you want to make a ton of money quickly, create income streams you control. What does this mean?
It means creating income streams where your actions directly affect your results.
For example, if you're a blogger, you can write more, play with headlines, share your articles on social media, and use other strategies to get more viewers and, ultimately, earnings.
If you buy real estate, you can renovate or redevelop the property to make it worth more.
But if you buy a few shares of Apple stock, what can you do next month to change Apple's stock price meaningfully?
Unless you're a billionaire or an influencer with a loyal following of millions, nothing much.
When you have so little control over a stock or cryptocurrency's performance, consistently earning 1000%+ returns is impossible.
If you're looking for annual returns of greater than 30%, you need to find it in income streams that you control.
Curb Your Expectations
Of course, I'm not saying you shouldn't buy stocks or crypto. Investing is still something I recommend everyone to do.
But before you invest, you need to set your emotions and expectations.
If you want to make money fast, you will find more success in building income streams where you control the result based on your efforts.
Want more investment news and analysis? Seeking Alpha is my first stop for all my research. Take a look at the Seeking Alpha platform here.
Financial Disclaimer: The views in this article are the author's personal views. This commentary is provided for general informational purposes only. It does not constitute financial, investment, tax, legal, or accounting advice, nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this article should consult with their advisor. The information provided in this article has been obtained from sources believed to be reliable and is believed to be accurate at the time of publishing, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Investing in stocks, bonds, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Their values change frequently, and past performance may not be repeated.
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