The More You Know

It wasn’t just a catchy social public service announcement series on NBC for a couple of decades. The more you know, the more you’ll be able to build wealth.

Just blindly following the herd, thundering or not, may cost you a lot of money. But learning more about the market, taxes, and the nature of investments can give you confidence to either act or not act, whatever the case may be, and save you from losing an inordinate amount of money during moments of market turmoil.

Many people lost their gains in the recent market downturn, and I was unlucky to be among them. In fact, I lost a significant portion of my earnings due to my lack of knowledge and experience.

Are you familiar with all those tech stocks that shot up like a rocket when everyone was suddenly working from home? My friends and I were fortunate enough to see that trend coming.

We invested, made money immediately (on paper), and thought we were geniuses, but then…

Arrow

those stocks came crashing back toward earth, with us still in the aircraft. (And, upon selling some, we suddenly owed taxes and fees, which further decimated our “genius” status.)

But I wasn’t discouraged by that. I was determined to make money with these investments. I continued to educate myself and learn via experience because I wanted to be good at it.

IPOs can be a risky investment, as most people tend to lose money on them, and I did, too. While it may be possible to make a profit through luck or timing, it’s important to have a clear strategy for when to sell.

The Hype is Not Worth It

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