⛷ Ski Lift to Success: Unveiling the Secrets of Smart Investing!
👋 Hello finance enthusiasts and savvy investors!
Last week, I was skiing—well, to be honest, I tried snowboarding for the first time.
In the snowboarding course, most participants were younger than me. So, I found myself sitting next to a 14-year-old on the ski lift.
He asked about my job and soon after he started asking about earning money and investing. I was surprised that someone as young as 14 was already thinking about it - that's very impressive, but definitely not the norm.
Curious about his questions? Well, they're not much different from those of a 30-year-old!
When to buy, when to sell?
He suggested as soon as he has a portfolio, he would simply buy when prices moved up slightly and sell when they started to dip. Spoiler alert: this doesn't work 😄
I challenged him to open up a chart, zoom in randomly, and try to predict the next few days. You'll see, it's pure luck and not a strategy.
But here I answer the question in more detail:
Is now a good time to buy Nvidia?
For those who missed it, Nvidia's stock rose by 63% since the beginning of the year! But what is the real value of Nvidia? Without taking the time to understand the company's numbers, it doesn’t make sense to speculate. Generally, it’s not a good idea to buy something everyone is talking about; it’s better to invest when no one is interested.
This principle applies to all investing.
What is an ETF?
ETFs, or Exchange-Traded Funds, are like a collection of stocks or bonds in a package. You invest in these funds, and they mirror the performance of a specific index, such as the DAX in Germany or the S&P 500 in the US. There are also ETFs that invest in certain sectors like digitalization or technology.
Here's a more detailed explanation & how you can get started:
How to start:
As with everything in life, you just do it. Even a marathon starts with the first step, no matter how small. Here's an article I wrote a few weeks ago:
But don’t you need a lot of money to get rich from investing?
Absolutely. Let’s say you're such a good investor that you manage to increase your money 40x in the next 10 years (45% per year on average). That's an incredible rate, yet if you only invested $10,000, it won't change your life (keep in mind, the 40x won’t feel like 40x after accounting for inflation). So yes, you need to continue investing. I've been investing for over 8 years, and the main reason my portfolio is where it is today is because I always continued to invest more. The earlier you start, the sooner you'll reap the rewards.
Takeaway: We don't learn all this in school, yet it's so important for our financial future. So, I encourage you to educate yourself. Read my newsletter, watch investing YouTube videos, and become an IX-Pro member.
Let's be real—money definitely impacts your future!
Cheers,
Stefan
Co-Founder of CryptoExplorer & InvestmentExplorer (coming soon)