Should I stop being so bearish?

ConfusedInvestor

Junior member
14 2
The reason I started investing is that at the end of '17 a friend told me about the Robinhood app and eventually i decided to hop on board at the beginning of the next year. Overall the experience has been pretty interesting in fun, but a lot of times I like to just buy stocks, watch them go up (since we are still in the middle of a bull market) and then sell them when i have marginal gains. Last year I only made $16 bucks mostly because I didn't sell netflix at the right time. I saw a bunch of articles about the stock being overpriced, if i was still hanging on to it now i would have lost less money on that trade.

The thing that has overall been the most satisfying way to invest my savings is just to buy 4 week treasury bills, re-acess my financial situation, and buy them over again. It's very consistent. Ideally I would like to get more than a compounded 2.4% return on my cash, but overall the stock market has been doing really well and I can't help but to think the prices are over-inflated. Should I invest some money in further education? Seems kinda silly with the internet having so much free info. Or, should I just wait until the next recession?
 
  • Like
Reactions: Akinozragore

NVP

Legendary member
36,356 1,801
education is always the best form of investment you can make ....
 

tomorton

Legendary member
7,191 945
I would always say, get some money involved in trading. But only if you can go short as well as long. Bull markets don't last forever.

More broadly, we as individuals cannot be bearish (or bullish) because we don't have enough money to move prices. The market can be bearish (or bullish) because of what the major players are doing but they don't really know whether the market will stay bullish or stay bearish. So we can either join in and do what the market tells us and make a profit or ignore what the market is doing and be gamblers.
 

new_trader

Legendary member
6,183 1,258
The reason I started investing is that at the end of '17 a friend told me about the Robinhood app and eventually i decided to hop on board at the beginning of the next year. Overall the experience has been pretty interesting in fun, but a lot of times I like to just buy stocks, watch them go up (since we are still in the middle of a bull market) and then sell them when i have marginal gains. Last year I only made $16 bucks mostly because I didn't sell netflix at the right time. I saw a bunch of articles about the stock being overpriced, if i was still hanging on to it now i would have lost less money on that trade.

The thing that has overall been the most satisfying way to invest my savings is just to buy 4 week treasury bills, re-acess my financial situation, and buy them over again. It's very consistent. Ideally I would like to get more than a compounded 2.4% return on my cash, but overall the stock market has been doing really well and I can't help but to think the prices are over-inflated. Should I invest some money in further education? Seems kinda silly with the internet having so much free info. Or, should I just wait until the next recession?

Someone once said “there is always something to do” (or words to that effect) in regard to the markets. Whether it’s going short an overpriced stock or seeking value in stocks/commodities that are counter trend. Essentially there is always both a bull and bear market in something, and therefore always an opportunity.
 

Akinozragore

Junior member
22 2
To wait until the next recession is a perfect scenario, if you are patients enough :) Jokes aside, to invest after collapse - is the most simple and easiest way, especially if you already know shares of which companies you would like to buy, if you prior evaluated their business and understand, that the price is reduced not because of the company facing some issues, but because of the whole market collapsed. In any case, there is nothing on your way to pave the way already now: look for some interesting companies, learn their business. When there is a chance, you will know for sure whether it is worth to invest in their stocks or not. Sometimes it is smart to buy stocks even on the growing market: it happens, that the companies are underestimated, even if generally they are totally fine.

Regarding the situation with Netflix - don't trust analytics that much. You best friend here - financial statements and objective news. Analytics -is just an opinion, sometimes biased. Better shape your own opinion based oт the facts, rather than listen to someone.

In regards to the education - I don't believe in all sort of courses, and actually, don't know that much about it. I prefer books about investments, written by people, who really know the topic (they usually don't waste their time on courses). And the most important - your personal experience and analysis :)