Truth about How to Invest in Stocks Online [3 Wall Street Lies]

I’m sharing the secret to investing in stocks
and it’s going to surprise a lot of investors out there. In this video, I’m revealing the biggest
investing mistakes and myths along with how to avoid them and beat your investing goals. We’re talking how to be a better investor
today on Let’s Talk Money. Beat debt. Make money. Make your money work for you. Creating the financial future you deserve. Let’s talk money. Joseph Hogue with the Let’s Talk Money channel
here on YouTube. I want to send a special shout out to everyone
in the community, thank you for taking a little of your time to be here today. If you’re not part of the community yet,
just click that little red subscribe button. It’s free and you’ll never miss an episode. This video is going to be an eye-opener for
a lot of investors and I’ll tell you why. I’m going to reveal the secret to investing,
something most of the Wall Street banks don’t want you to know and something that goes against
most of what you hear in the media. The secret is that investing is not about
making money, it’s about not losing the money you make to Wall Street lies and the
worst investor mistakes. Think about it. Anyone can make money in a bull market. The stock market doubled in the five years
to October 2007, that’s a return of almost 15% a year and the same has been true in the
bull market starting in 2009. Making money is easy. Not losing money, not so much. The crashes in 2000 and 2008 destroyed half
the market value of stocks. Worse still is data from Dalbar Research that
shows the average investor made just 2.6% a year during the good years because of those
Wall Street lies and mistakes we’ll be talking about. I’m going to detail all of those in this
video, the three worst Wall Street lies and the biggest mistakes that lose your money. Then, in a special free webinar I’m offering
to subscribers of the channel, I’m going to show you a goals-based investing strategy
that will take advantage of those big run-ups in stocks but save you from the biggest losses. The webinar is completely free, I’ll leave
a link in the video description below to sign up. In it, I’ll guide you through every step
of my goals-based investing course, a 12-lesson course on customizing your investing strategy
to meet your needs. The webinar is free and will give you everything
you need to get started. I don’t believe in holding anything back
to sell people into my course. It’s just there for those that want a more
hands-on and detailed approach and I’ve added a coupon code in the video description
below so check that out. But let’s get to those three lies Wall Street
tells investors and the two biggest investing mistakes almost everyone makes. I’ve seen these Wall Street lies first-hand
when I worked as an equity analyst, when I worked for venture capital firms and big banks. The goal wasn’t to make clients money, it
was to entertain, excite and keep them coming back for more. It’s with these Wall Street lies that the
investment industry and the media sells billions in advertising and collects billions more
in fees. And the first here is that investing is about
picking stocks and making huge returns. This is an easy one to believe because all
you hear about on TV or the internet is stock picking. You look at triple-digit returns on a stock
and your eyes turn into dollar signs as if you were a cartoon character. The problem here is that picking stocks means
you’re constantly glued to the TV or that investing blog, looking for the next hot stock. You trade in and out of stocks, running up
thousands in fees, and the losing picks even out your winners. I like to call this the ‘What’ of investing,
what you invest in. The truth is that the ‘How’ of investing
is so much more important. How you set up your investments and how you
invest is going to help you reach your goals and with a fraction of the time and stress. Our second Wall Street lie here is that you
need to worry about a stock market crash. Now if this is a lie, why did I just say the
secret to investing was about not losing money? How can you not worry about a crash if your
goal is to not lose money? Because there are two ways you can try not
losing money in a stock market crash. One is that you can constantly worry about
a crash, spend hours a week watching the news and try timing the market with stock trading. That way is going to mean spending thousands
in trading fees, constantly losing sleep over your investments and probably not going to
save you a dime when a crash does come. The second way is to use a long-term approach
that aligns your investments with your risk tolerance, with stock prices and with your
goals. This way takes less than a few hours a year,
if even that, and helps you avoid the full force of a crash. Now, this second approach isn’t going to
save you from losing any money. I lost just over 20% of my portfolio in the
2008 recession. That was pretty mild against a 50% loss in
stocks and I was ready to take advantage of cheap prices in 2009 but there was still some
pain. That second approach is in rebalancing your
investments to match your goals and taking advantage of different assets including bonds
and real estate funds when stocks start to get expensive. Our third lie Wall Street tells investors
is that investing is complicated. This is a favorite one of the industry because
they like to look smart. The army of analysts, media pundits and advisors
love to make investing complicated with different strategies and formulas. This does one of two things to investors and
both are good for the industry. First, it keeps you glued to the TV or that
investing website for the next strategy or stock pick. The average investor doesn’t have time to
analyze stocks all day so they leave it up to the analysts and then just let them recommend
every stock. That takes us back to those billions in advertising
and trading fees. And then some investors just give up. They don’t want to worry about their money,
they don’t want the constant stress, so they just hire an advisor. That means about a 1% management fee each
year, which doesn’t sound like much until you add it all up. If you started with $10,000 and invested $200
a month with an advisor, that tiny 1% annual fee would cost you over $105,000 over 30 years. At a modest 7% annual return, your investments
would have grown to over $300,000 if you had managed them yourself but you’re left with
just $197,000 because you were scared into going to an advisor. Investing is not complicated. Life, Life is complicated. World peace is complicated. Investing is easy. And it’s easy because we’re going to look
at those bigger-picture goals, we’re going to make investing about the how instead of
constantly picking stocks and trying to time the market. Now these three Wall Street lies really feed
into the two biggest mistakes investors make, falling into that returns-based strategy and
over-trading. That returns-based strategy of chasing stocks
really only does one thing, it keeps you scared. It keeps you scared that you’re not picking
the right stocks, that you don’t have enough information, that you’re going to get wiped
out in the next market crash. This leads to so many mistakes like panic
selling, using complicated options strategies and investing on margin to boost your returns. The end result is most investors see their
portfolio go nowhere. Think about it. The stock market surged four-fold over about
nine years from early 2009 but what happened in your portfolio? Not accounting for deposits, has the value
of your portfolio jumped four-times over that period? Are you sitting on a 400% return on your investments? If the answer is no, then you’re probably
stuck in that returns-based investing strategy and you need to find a solution. All this is why that goals-based investing
strategy is so important. It’s going to make investing personal for
you, for your goals, and is going to keep you from falling into that returns-based investing
strategy that loses money. Don’t forget to click through and sign up
for that free webinar where I’ll detail the entire goals-based investing strategy,
how to get started and how to manage your own investments. In about half an hour, I can show you how
to be successful investing and how to manage your portfolio on just a few hours a year. We’re here Mondays and Wednesdays with the
best videos on beating debt, making more money and making your money work for you. If you’ve got a question about money, just
scroll down and ask it in the comments and we’ll answer it in a video.

23 Replies to “Truth about How to Invest in Stocks Online [3 Wall Street Lies]”

  1. Watch Next –> Two signals flashing red on a stock market crash…must watch to protect the money you've made! 😲

  2. Investing and building wealth should be boring. You don't get extra credit for making your investments complicated. Don't buy into the hype of the financial media. Great video Joseph!

  3. Got a question: Due to my legal status in the US (I was a foreign student until 4 years ago) I wasn't able to get a real job until 30. I just became debt free, but I feel like I'm behind on my investments. I would like to catch up to where I would have been had I started investing in early 20s. Obviously, my strategy was to invest in more or less aggressive growth in the beginning, but now doesn't seem like a good time. Should I save money on the side and buy in when the market is low or is there a way to invest now and still get a good deal? I'm not worried about losing money in the long run, but I feel like I need to invest it as efficiently as I can.

  4. Hey man you do a good job but you need to take a break you be on YouTube too much you are over doing it

  5. These videos are so helpful! Investing is overwhelming/scary to a lot of people and learning the truth through videos like this makes it so much less intimidating and easier!

  6. There are so many lies out there! I just learned about even more hidden fees than we even realized in certain funds and retirement accounts. Makes us lose money! 😱

  7. Hey Joseph, love your videos. What do you think about buying a rental property before a personal home? I'm currently in a low rent property in a good area, and would not be able to afford a home here. But there are surrounding areas that are more affordable. Thoughts?

  8. Joseph, do you have a portfolio for people to follow or do you just give generalized advice on investing?

  9. So many lies… investing can be for anyone! Just put some time into learning and valuing stocks. Practice and experience will improve your results!

  10. I am an awesome job on these videos. It's really great to have people on YouTube that really care about this stuff and are willing to give accurate and transparent information about the topic.
    I don't know if you'd be interested but I think it would be really awesome to see, maybe, a video series where you choose a small handful of stocks to track and tell us your thoughts as the market moves over time.

    From what I've seen on YouTube there aren't hardly any videos talking about results of their Investments or actual examples.

  11. Great advice! The obsession in the financial media with stock picking is downright pathological. And paying high fees to a Mutual fund salesperson makes no sense.

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