“Is Stock Market Investing a Sure Thing?” You wouldn’t believe how many people ask me if investing in the stock market is a sure thing.
And in this little blog post, I’m finally going to address the matter of stock market investing as a sure thing once and for all.
Now to be sure:
I totally understand why people are looking for a stock market sure thing. It’s a classic struggle between fear and greed. You see, on one hand…
People want the reward of the stock market. They appreciate the stock market goes up. But they don’t want to take on the risk either. So instead they are left hoping for a sure thing in the stock market.
But can you have your cake and eat it too?
Why There’s Only One Sure Thing in the Stock Market:
The only sure thing in the stock market is that there are no sure things. I know this probably isn’t what you wanted to hear. But it’s the truth.
And here’s why you’d be wise to listen:
When you remember that there are no sure things in stock market investing, you are much less likely to get suckered into paying for a “sure thing.” And that’s a sure-fire way you can save money.
When you remind yourself that there are no “sure things”, you stop getting hyped up about the latest penny stock products, or shelling out for a hot new “trading system.” You won’t fool yourself into thinking you can find a stock-market-magic-bullet. Instead, you’ll see these tools as ways to round out and help you incrementally improve your stock trading.
Stop looking for tricks and tactics to beat the market and focus on improving yourself. When you look inwards to objectively analyze your stock picks and investment research methodology you embrace reality and make the uncertainty of no sure things work in your favour.
One More Nearly-Sure Thing in Stock Market Investing:
In case it’s not clear, anyone who is promising you a sure thing in the stock market is little more than a snake-oil salesman. The only sure thing are no sure things.
Before we get too jaded and pessimistic there’s one more point I want to share with you, okay?
And that is…
While you can never know with 100% which stocks will go up, you can usually bet the stock market as a whole will go up. It’s not a sure thing. But over the course of history it has tended to be true. Just take a look for yourself…
As you can see from the chart above, even though there have been lumpy periods in stock market history, over the long term the stock market (as an index) has gone up. And hey…
If you’re still not convinced, just look at these long term charts of the S&P 500 and the Dow Jones Industrial Average.
So I don’t want to call this a sure thing. Because markets go up and down. But over the last 100 years the stock market has (for the most part) gone up. And the passive index-based investing strategies advocated in books like The MoneySense Guide to the Perfect Portfolio can help you take advantage while minimizing your risk.
But anyone who promises a anything more specific than the above is likely trying to convince you of a “sure thing” that simply isn’t, make sense?
And By The Way: If you’re looking for more information to help you improve your ability to find winning stock picks I encourage you to download my free eBook below. There are no sure things, but it will tell you how I came up with a hybrid technical and fundamental approach that helps me consistently make profitable investing decisions. You’ll also get free tools and tips each week to help you become more knowledgeable about the stock market.