Being a new investor can be a tough learning experience, especially since newbies are prone to making mistakes. The good news is that there are plenty of free resources and tools out there to learn from — especially if you are going to spend some time reading through top stock market and finance blogs. From 401k investing to day trading, there is pretty much a blog out there for everything.
No matter what direction you plan to take, it’s important to realize that your money is always at risk — no matter what the investment. With all of that in mind, let’s take a look at some of the most commonly made mistakes by investors without a lot of experience.
Following the Hype… Read the Blogs, But Research Your Actions
Just don’t do it. Resist the temptation to buy stocks or shares that everyone else is rushing to buy. This is something that you might find on a wide range of websites and blogs that provide stock alerts. In most cases, any website or blog freely recommending stock tips like this, they are probably already in and looking to dump shares when everyone else jumps in. This is something that is also discussed on many personal finance blogs, as new investors are always looking to get rich quick with their investments.
There are also many newsletters, Facebook groups, and social media accounts that you can follow for such alerts as well. Don’t take emails or “reports” that promote certain types of securities at face value. If you do, you could be at risk of falling for a pump-and-dump scheme. If you spot an exciting new investment opportunity that everyone is talking about, first do your research. Assess both the pros and cons before investing your money.
Failing to Assess the Quality of Individual Investments
Let’s say you hear about a hot new sector that everyone is investing in. You may read news articles about it and see promising analyses or reports. So you go ahead and buy a stock within that sector. But several months later, your investment is worth nothing. What happened here?
Again, you likely came across some great information (so you thought) on another website or blog, but probably didn’t dive deep into the full story. This is something we are seeing a lot of the in the regulation space right now — whether it be with medical, bitcoin, marijuana, or even sports betting stocks. All of these spaces are super new and super hot — so the information on each of them might be light, and the stocks can heavily swing in either direction in a moments notice.
With that being said, don’t buy just any stock or invest in securities just because the overall industry is doing well. Consider, for example, the cannabis industry. With eight states having legalized marijuana, and a dozen more contemplating it, the sector is on a hot streak right now. This is especially true with so many benefits coming to light around CBD, and how it can actually improve inflammation and pain levels for a wide range of auto-immune diseases and health issues.
If you look at the value of marijuana stocks over the past decade, it’s steadily been on the rise. However, that doesn’t mean all cannabis stocks are worth the same. Medical marijuana stock is worth far more than recreational companies. The reason being that Jeff Sessions, the firmly anti-pot attorney general, might go after recreational weed even in states that have legalized it.
But no one is out to get medical marijuana. In fact, doctors and policy experts are looking to medical marijuana to curb the opioid crisis. If you are investing in medical pot stocks, then you are making a great investment. But the same cannot be said of recreational weed.
We covered a lot in this section, but again, if you are already following these individual topics through well-known and trusted blogs, this should be nothing new to you. Don’t just look at stock market and investing blogs for your information, always remember to go right to the source and view users forums as well.
Using Blogs and Trading Comparison Sites to Review Fees
New investors are highly likely to put money in mutual funds, index funds, ETFs, and so on. But one thing newbies ignore about such funds are the fees. Look at how much you have to spend in administration fees compared to returns. Otherwise, whatever you earn in returns would just get eaten up by all the fees associated with the fund.
Similarly, calculate how much of fees charged by brokerage firms, investment advisors, and the like affect your returns. Your final profit would rely on these calculations.
NerdWallet, one of the top financial blogs online, is highlighted in the screenshot below from Google thanks to their awesome list of discount brokers and the fees associated with each — yet another perfect example of how reading financial blogs can save you money and help you learn more in the process.
The bottom line is that new investors must be willing to research investments and the costs associated with them thoroughly. Never dive into a new sector or buy stock without being certain of what you are spending your money on. Good research and background checks are crucial to investing safely.
Therefore, be aware of the above mistakes and fix them before it is too late, but also make sure to stay active and always read up on the latest technology, financial and stock trading blogs on the internet today. If you are really devoted to the idea of becoming a professional trading, be sure to consider your options with starting a blog of your own and documenting your journey.
Cheapies Never Go Far in Blogging
Someone wrote me a few moments ago. I quoted my sponsored post price. He replied asking for my best price. I told him all prices are final. Literally, I told him kindly but clearly to take it or leave it. He replied, asking me to accept his offer for $10, which is absurdly lower than my $11 sponsored post rate. I am joking; just seeing if you pay attention LOL 🙂 Anyway, his $10 offer is MUCH lower than my sponsored post fixed price. PLUS I already told him twice my fixed price, and to take the price or to leave the price. I *also* mentioned how all prices are final. Of course, I immediately labeled his email “spam” so all future emails, barterings and silly cheap-ness flow directly to my spam folder. I will never see him or his emails again. Nothing personal. But I have no time or energy for cheapies because if you are so filled with the fear of poverty that you completely ignore my emails, I cannot respect you as a blogging business partner.
This is why cheapies never go far in blogging. Imagine this lost blogging soul. He ignores my emails to ask for a ridiculous price on a sponsored post. I label his email “spam”. After 10 or 20 more pro bloggers label his email as “spam”, every single email he sends to bloggers winds up in the blogger’s spam folder. Almost all bloggers never check their spam. Most delete all spam emails without checking the emails. Imagine sending 500 emails to spam folders daily? That marks 499 to 500 emails no blogger will ever see, only to be deleted immediately.
Pay Up to Play Up
Moving up in blogging circles requires you to invest more money into your blog. From paying for your domain and hosting, to paying for your theme, to paying for your blogging education, to investing in sponsored posts advertising your business, the bigger money and greater traffic awaits in higher blogging circles, where money flows freely. Prospering people who buy your products and services without hesitating meet you through friends in higher blogging circles. Same thing happens offline. Jeff Bezos does not do business with someone who cannot afford my $7 eBooks. He does business with serious entrepreneurs who freely invest money in mutually beneficial ventures. Life works that way. Birds of a blogging feather flock together. Imagine if the $10 sponsored post cheapie paid my full price instead? I place the post, his business gets greater exposure in front of prospering eyes and he nets more sales and profits. He makes $100, or $1000 or more, earning more money to boost his sponsored post budget and to move him out of poverty. But the mental illness of poverty prevents him from seeing beyond “I HAVE NO MONEY! I NEED TO ***ONLY*** PAY $10 FOR EVERY SPONSORED POST I PLACE!!!”
He may place a few $10 sponsored post on terrible quality blogs with broke readerships. Truthfully, he should just donate the $10 to bloggers who place his sponsored post for $10 because said bloggers have either 5 daily readers or readers who cannot afford to spend $1, let alone, $100 or $1,000…or perhaps, both. Yikes. Pay up. Play up.
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How Much Confidence Do You REALLY Have in Your Blog?
Watch this video I recorded in Brooklyn Heights today:
Sweet view, eh? I made a powerful point too. Bloggers sometimes boast of their confidence and clarity. Puffing themselves up, they believe deeply in themselves and in their blog. Critics? Who cares? These dynamos seem unstoppable. Belief! Success is on the way, right? Awesome. Then, after mentioning their blog in front of a parent or sibling or cousin, their loved ones make fun of “blogging”, telling these idiots to “get a real job”. OUCH! Like a balloon being popped, your loved ones took a pin to your ego, deflating you. AND showing how you genuinely have little confidence in your blog. Turns out, you feel filled with doubt and pure uncertainty about your blog AND in yourself, blogging-wise. This is a good thing. Critics trigger and unearth deep fears you need to face, feel and release, to reach the next stage of your blogging career. So…how much confidence do you REALLY have in your blog? Talk about your blog to friends and family members, or to strangers. You will find out. Fast. Because these folks are non-targeted and often highly NOT interested in blogging.
I recall mentioning my blog to my fam about 10 years ago. Before doing this, I believed I felt super confident about my blog and self. I BELIEVED in myself! Wild-eyed, ignorant, deluded newbie blogging excitement covered up the fact I doubted myself and my blogging abilities, horribly. After that little chat – even though no family member seemed terribly critical – I felt like crap. Awkward, and lost, my family’s questions triggered deep fears in me. I doubted myself. I doubted my blog. In truth, I had no idea what I was doing because I refused to learn from pros. Bad idea. Naturally, I gained confidence after this session – eventually – because I faced and felt doubts eating into my blogging confidence.
The quickest way to gain blogging confidence is to discuss your blog and what you do with anybody on earth, from friends, to fam, to strangers. Never try to convince or influence or convert folks, because doing so shows your lack of confidence. Let people live their lives and make their choices. Your job is to see how shy or clear you feel discussing your blog. Shy bloggers feeling awkward chatting blogging with folks simply feel filled with fear. Blogging fears need to go for you to succeed. Speak about blogging in public. Broadcast live in a public spot. Record videos in busy spots with heavy foot traffic, as I did above, in Brooklyn. Face, feel and release self-conscious fears that need to go for you to reach the next stage of blogging growth.
One way to be a smarter and richer blogger is by facing your blogging fears routinely. Speaking to or in front of fam or strangers about your blog certainly unearths some of those deep fears. Do it. See where you are at, confidence-wise. Being straight with yourself is hands down one of the quickest ways to accelerate your blogging success. Relax, share your blogging exploits and honestly assess how you feel, to increase your blogging success.
Writing: Your Best Blogging Friend
Writing helps you succeed with blogging. Because writing gives you credibility. Credible bloggers land clients, sell eBooks, place sponsored posts and drive steady traffic, too. Write your rear end off. Write 500-1000 words daily. Write to be confident. Write to be clear. Write to gain credibility in your blogging niche. Of course, most bloggers struggle because few bloggers practice writing offline, daily. Bloggers only write when they publish a blog post or guest post. BIG mistake. Most bloggers publish posts infrequently, meaning you get in little writing practice. Not good.
Why do you believe you can just show up, write and publish a post and become successful quickly? If blogger were this easy, guys like me could have gone pro within weeks of buying my domain and hosting. Alas, it took me thousands of hours and years to go full time because I had to practice writing, creating and connecting to be REALLY good at blogging. Skills, exposure and credibility flow to bloggers who tirelessly practice all aspects of blogging. Everybody else fails and quits.
All money you make through blogging flows to you because people trust you and your blog. Writing skillfully – with confidence and clarity – is the only way people trust you and your blog. The more you write, the more skilled a writer you become. The formula is genuinely simple. But quite uncomfortable to put into action, sometimes. Few bloggers want to practice writing with nobody watching. Some bloggers foolishly skip writing practice because they believe writing offline for practice wastes their time. This is like saying you waste your time practicing shooting hoops in a lonely, empty gym if you aspire to make it to the NBA. NBA stars practiced 10,000 hours or more, often times in quiet, lonely gyms, and always *in private, out of the public eye, with nobody watching*, to become skilled enough to go pro. Expect to take a similar journey in order to become a professional blogger.
Writing is your core skill. If you write well, you make money online. If you write poorly, you do not make money online.
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Every way to profit – out of these 15 strategies – can work quite nicely if you practice writing offline daily. Practice to become confident. Practice to become clear on your writing. Confident, clear writers write with authority. Writing with authority inspires trust in your readers. Again; this is a simple process. But sometimes, this process feels uncomfortable. Nudge through discomfort. Write, write and write some more. People who trust you based on your writing skills tend to buy your eBooks, hire you to coach them, hire you to freelance write for them and buy sponsored posts on your blog. Be diligent in writing. The money flows to you based on how much you practice writing. Plus, practicing your writing makes you prolific. Being prolific increase your blog traffic and blogging profits, too. No downsides exist to writing offline daily. Only upsides. So….write!
Practice in private. Shine in public.
Any successful blogger you envy now practiced writing so diligently that you would never envy their writing practice. After having written millions of words both online and offline, nobody envies the work I put into going pro. But being free to circle the globe? Worth it!
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