Investing For Beginners - How I Make $17K per Week from Stocks

Summary

The video script narrates the story of Mervin Tilbury, who, despite hard work, never achieved financial freedom due to poor financial choices. The speaker contrasts this with their own successful investment journey, emphasizing the importance of investing to beat inflation. They explain the basics of stock market investing, the power of compound interest, and the benefits of index funds. The script offers practical advice on when and how to start investing, the importance of diversification, and the minimal risk associated with a long-term, well-thought-out investment strategy.

Takeaways

• 💼 The speaker's father, Mervin Tilbury, worked hard in a factory and had side jobs to provide for his family, but his money-saving method in a shoebox led to a loss of value due to inflation.
• 📈 The fear of money losing value to inflation motivated the speaker to invest throughout life, resulting in significant growth, with investments growing by around $17,000 a week.
• 💰 To make money, one must first beat inflation, which averages a 3.8% annual rate over the last 60 years. Without growth beyond this rate, one is effectively getting poorer.
• 🏦 Savings accounts typically do not offer returns high enough to beat inflation, so investing in the stock market is suggested as a way to achieve higher returns.
• 🔑 Stocks can offer two forms of returns: capital gains when the stock price increases and dividends, which are regular payments to shareholders.
• 🌱 The power of compound interest can turn a modest investment into a significant sum over time, especially when invested in stocks that grow at an average rate of 10% per year.
• 🕒 The importance of starting to invest as early as possible is emphasized, as it gives investments more time to grow and compound.
• 💳 Before investing, it's crucial to pay off high-interest debt and build an emergency fund to avoid having to sell stocks during emergencies.
• 📊 The speaker suggests a 70/20/10 rule for financial allocation: 70% for living expenses, 20% for investments, and 10% for enjoyment and fun activities.
• 📱 Investing apps can facilitate the purchase of stocks and fractional shares, allowing for smaller initial investments and broader market exposure.
• 📊 Two main methods for predicting stock market movements are technical and fundamental analysis, with the speaker favoring the latter for long-term investment decisions.
• 🌐 Index funds are recommended as a low-effort way to invest in a broad market, with the potential for higher returns than actively managed funds and lower fees due to passive management.

Q & A

What was Mervin Tilbury's occupation and how did he support his family?

Mervin Tilbury worked in a factory job making cable ties and had a side hustle cutting grass to provide for his family, which included his wife and three daughters.

Why did Mervin consider his son's uncle's investment in the stock market as a risky move?

Mervin viewed the stock market as an extremely risky investment because he was unaware of the risk he was taking by not investing his money wisely and letting it lose value due to inflation.

How did the narrator's father's approach to saving money affect his financial situation over time?

The father's approach to saving money by stashing it in a shoebox and not investing it led to a decrease in the money's value due to inflation, which prevented him from being able to quit his job at the factory.

What is the average rate of inflation over the last 60 years mentioned in the script?

The average rate of inflation over the last 60 years is stated to be 3.8% per year.

What is the concept of compound interest as described in the script?

Compound interest is the process where the interest earned on an investment is reinvested, thus earning interest on the initial investment as well as the accumulated interest. This leads to exponential growth over time.

How much money would one have after investing $250 per month for 42 years at an 8% annual return, according to the script?

According to the script, investing $250 per month for 42 years at an 8% annual return would result in becoming a millionaire.

What is the recommended approach to managing high-interest debt and building an emergency fund before starting to invest?

The recommended approach is to first pay off all high-interest debt, such as credit card debt, and then build an emergency fund that covers three to six months of living expenses to avoid having to sell stocks during emergencies.

What is the 70/20/10 rule mentioned in the script and how does it apply to personal finance?

The 70/20/10 rule suggests allocating 70% of one's income for living expenses, 20% for investments, and 10% for fun or discretionary spending. This rule helps balance life's necessities, wealth growth, and enjoyment.

What are the two main ways to attempt to predict the stock market as mentioned in the script?

The two main ways to attempt to predict the stock market are technical analysis, which focuses on charts and patterns, and fundamental analysis, which looks at a company's financials, leadership, and brand recognition.

What is an index fund and how does it work?

An index fund is a type of investment that tracks a specific market index, such as the S&P 500. It allows investors to invest in a broad market or a segment of it with a single purchase, providing diversification and reducing the risk of investing in individual stocks.

How does the script suggest dealing with the risk associated with investing in the stock market?

The script suggests that the risk associated with investing can be managed by having a diversified portfolio of index funds, investing gradually over time, and being prepared for market crashes by possibly including bonds in the portfolio mix.

What are the three good reasons to sell investments according to the script for someone in their twenties to thirties?

The three good reasons to sell investments for someone in their twenties to thirties are: needing money for an emergency, recognizing a bad investment that is consistently underperforming, and achieving a specific financial goal that requires liquidation of the investment.

Outlines

00:00

💼 The Struggle and Wisdom of Mervin Tilbury

This paragraph introduces Mervin Tilbury, the narrator's father, as an incredibly hardworking man who juggled a factory job with a side hustle of cutting grass to support his family. Despite his efforts, Mervin's strategy of saving in a shoebox and a low-interest bank account led to the gradual devaluation of his savings due to inflation, preventing him from achieving his dream of quitting his factory job. This experience instilled in the narrator a fear of inflation and motivated him to invest throughout his life. The narrator's investments have grown significantly, to the point where they now generate $17,000 a week, illustrating the power of investing over time. The paragraph emphasizes the importance of beating inflation, which averages 3.8% per year, and the potential of the stock market to provide returns that surpass this rate.

05:03

💹 The Path to Wealth Through Stock Market Investments

The narrator delves into the concept of investing in stocks, explaining that stocks represent ownership in a company and can generate income through capital gains (selling at a higher price) and dividends (regular payments to shareholders). The power of compound interest is highlighted, demonstrating how consistent investments can lead to significant wealth accumulation over time. An example is given of how investing $250 per month at an 8% annual return can result in a millionaire status in 42 years, and over $2 million in 52 years. The narrator advises starting to invest as early as possible to maximize the benefits of compounding and suggests a strategy of paying off high-interest debt and building an emergency fund before beginning to invest. The importance of time in investment growth is underscored, along with the suggestion to consider a custodial account for minors.

10:04

🏦 Navigating the World of Stock Investments and Index Funds

The paragraph discusses the process of buying stocks and the importance of opening the right type of account, such as a ROTH IRA in the USA or a stocks and shares ISA in the UK, to avoid taxes on investments. The narrator introduces Trading 212, an investing platform that offers fractional shares and a practice mode with fake money, as a useful tool for beginners. The concept of 'Pies' on the platform is explained, which allows investors to mimic the allocations of other investors. The narrator also explores the methods of technical and fundamental analysis for predicting stock market movements, favoring the latter for long-term investment strategies. The benefits of investing in index funds, which track a broad market index like the S&P 500, are highlighted, emphasizing their low fees and historical performance. Different types of index funds, including those that track the S&P 500, total stock market, and emerging markets, are discussed, along with their respective ETFs.

15:05

🌐 Diversification and the Risks of Investing

The final paragraph addresses the risks associated with investing, contrasting the potential losses from market crashes with the risk of not investing at all. The narrator suggests that a diversified portfolio of index funds, combined with a gradual investment approach, can help withstand market downturns. The inclusion of bonds in a portfolio is recommended as a more stable investment option, particularly as one approaches retirement. The narrator outlines three scenarios in which selling investments might be necessary: for emergencies (if not covered by an emergency fund), to cut losses on underperforming investments, or to achieve specific financial goals. The importance of holding onto stocks for as long as possible to allow for growth is emphasized, advising against panic selling and suggesting a 'buy and forget' strategy for long-term gains.

Keywords

💡Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the video, it is mentioned as a key factor that eroded the value of the father's money saved in a shoebox, making it a poor long-term savings strategy compared to investing in assets that can appreciate over time.

💡Stock Market

The stock market is a platform where shares of publicly traded companies are issued, bought, and sold. The video emphasizes the importance of investing in the stock market to achieve returns that can outpace inflation, highlighting it as a vehicle for wealth creation through stock price appreciation and dividends.

💡Shareholder

A shareholder is an individual or institution that legally owns one or more shares in a corporation, thereby having a claim on part of the company's assets and earnings. The video explains that by purchasing a stock, an individual becomes a shareholder and can potentially profit from capital gains or dividends.

💡Dividends

Dividends are payments made by a corporation to its shareholders, usually as a distribution of profits. In the context of the video, dividends are highlighted as a way for shareholders to earn regular income from their investments without having to sell their stocks.

💡Compound Interest

Compound interest is the process by which an investment's earnings are reinvested to generate returns on previous earnings, leading to exponential growth over time. The video uses the concept of compound interest to illustrate how consistent investing in stocks can lead to significant wealth accumulation.

💡Investment

An investment is an asset or item acquired with the goal of generating income or appreciation. The video's theme revolves around the concept of investing in the stock market as a means to beat inflation and grow wealth, with the speaker sharing personal experiences and strategies.

💡Risk

Risk, in the context of investing, refers to the potential for loss or variability of returns. The video discusses the father's aversion to stock market risk and the unintended risk of inflation eroding savings, as well as the speaker's approach to managing investment risk through diversification and long-term strategies.

💡Index Funds

Index funds are a type of mutual fund with a portfolio constructed to match or track the components of a financial market index, like the S&P 500. The video promotes index funds as a low-effort, diversified investment strategy that historically has outperformed actively managed funds.

💡ETFs (Exchange-Traded Funds)

ETFs are investment funds that are traded on stock exchanges much like individual stocks. They typically track an index, sector, commodity, or other assets. The video mentions ETFs as a convenient way to invest in a diversified portfolio similar to index funds but with the flexibility to buy and sell throughout the trading day.

💡Dollar-Cost Averaging

Dollar-cost averaging is an investment strategy of investing a fixed amount of money into a particular investment at regular intervals, regardless of the price. The video suggests setting up a direct debit to automatically invest a set amount each month, which can reduce the impact of market volatility.

💡Portfolio

A portfolio refers to a collection of financial assets such as stocks, bonds, and cash equivalents held by an investor. The video emphasizes the importance of a diversified portfolio to spread risk and mentions the inclusion of bonds as a stabilizing element, especially as one approaches retirement.

Highlights

Mervin Tilbury's dedication to hard work, including a factory job and side hustle, to support his family.

Mervin's cautious approach to money, stashing it in a shoebox and viewing stock market investment as risky.

The unintended risk of money losing value due to inflation, impacting Mervin's financial goals.

The importance of investing to combat the eroding effects of inflation over time.

Achieving significant wealth through stock market investments, growing by $17,000 a week.

The necessity to beat an average inflation rate of 3.8% per year to avoid financial decline.

The concept of stocks and how they can provide returns through price increase and dividends.

The power of compound interest in growing investments over time.

Investing $250 per month can lead to millionaire status through compound interest at an 8% annual return.

The advantage of starting investments early to maximize growth and compounding.

Paying off high-interest debt and building an emergency fund before investing.

The 70/20/10 rule for allocating finances between living expenses, investments, and leisure.

How to buy stocks using investment apps and the benefits of fractional shares.

The advantages of investing platforms like Trading 212, including free stock offers and practice features.

Differentiating between technical and fundamental analysis for stock market predictions.

The simplicity and effectiveness of investing in index funds for long-term growth.

The historical performance of the S&P 500 index fund and its role in wealth generation.

The benefits of diversification through total stock market index funds.

The potential of emerging markets index funds for long-term investment growth.

Risk assessment in investing, emphasizing the risk of not investing due to inflation.

Guidance on when to sell stocks, focusing on long-term holding for growth.

Transcripts

This is my father, Mervin Tilbury.

He's one of the hardest working people I know,

and as a kid,

I remember him working in a factory job making cable ties

and a side hustle cutting grass,

so he could provide for me and my mom and my three sisters.

He'd stash away any extra money he made in a shoebox as well

as a bank account that paid little to no interest,

hoping that one day he could quit his job

working in the factory.

When my uncle invested some

of his money in the stock market,

my dad said it was an extremely risky move.

Unfortunately, what my dad didn't realize

is that he was also playing a risky game.

Can you see where this story's going?

Every year, my father's money

was losing value due to inflation.

This is just what happens over time.

As more money is printed,

the money in circulation becomes less valuable.

This meant he was never able to quit his job in the factory.

The thought of my money being eaten

away by inflation scared me so much

that I've made sure to invest throughout my life.

As a result, not only have I beaten inflation,

but my investments actually now grow

by around $17,000 a week on their own,

which over my lifetime has made me millions.

I'm no financial advisor,

but I am someone that's been there and done it.

That's why I'm making this video.

It's exactly what I wish I had when I was younger.

How can I make money investing in stocks?

To make money,

we first need to beat the inflation issue.

In the last 60 years,

this average is out to a rate of 3.8% per year.

So if your money isn't growing by more than this on its own,

then you're getting poorer by the second.

In a perfect world, you would have a savings

account that provides an average return

of eight to 10% every year,

so that you can both beat inflation and earn some profit.

Unfortunately, such savings accounts don't exist.

However, you can achieve returns

like this by investing in the stock market.

A stock is a small part of a company and when you buy it

you become a shareholder, and when you're a shareholder,

there are two ways you can make money.

Firstly, if the price

of the stock goes up during the time you own it,

you can sell it for more than you paid.

Secondly, you can receive dividends.

Dividends are regular payments to shareholders.

Not all stocks pay dividends, but if they do,

this means that you can receive money

without ever selling your stock.

The magic really starts to happen when you own a bunch

of stocks that grow at an average of 10% per year,

because the interest applied becomes larger and larger.

This is called compound interest, and I have to admit,

a guilty pleasure of mine is messing

around with online compound interest calculators.

Let's do one now.

If you were able to invest $250 per month,

at an 8% annual return,

in 42 years, you'd be a millionaire

and if you continue to do this for another 10 years,

you would actually have over 2 million in your account.

Of course, if you wanted to invest even more

then that would just speed up the process.

This is all based

on historical average data and it isn't guaranteed,

but it's certainly been my experience.

So as you can see, the real secret ingredient

to this millionaire formula is time,

which brings me onto when should I start investing.

The short answer to this is as soon as possible.

The younger you start, the better.

As you're giving your investments more time

to grow and compound.

This also means you can take more risk,

as your investments have time to recover

if a stock market crash happens

and it will happen, it always happens,

but life isn't as easy as this, as there are often things

in the way preventing you from investing.

So here's how I would structure things.

First, you need to make sure you've paid

off all high interest debt like credit cards.

Just think about it.

There's no point trying to make 10% in the stock market,

if you are paying 15% to a credit card company.

Secondly, build up an emergency fund.

This should be enough to cover three to six months

of your living expenses.

This way, you are not forced to sell your stocks

in the event of an emergency

which can really ruin your progress.

Once you've done both of these things,

you are ready to start investing.

If you are younger than 18,

then it would be a great idea to ask a parent to open

up a custodial account, which allows them to invest for you.

This will give you such an advantage in the future.

Your next question is probably something

along the lines of how much should I invest?

When you ask an investor,

they'll probably say as much as possible.

However, I have a different opinion.

I made most of my money

through starting different businesses

and only use the stock market to grow my wealth over time.

I've also had a pretty fun life

from flying full-size airplanes and racing cars

to competing for my country and traveling the world.

If I'd invested all of that money into the stock market,.

then I'd have missed out on so much.

So my answer would be to invest whatever you

feel comfortable with, but if you want a more solid answer

then a 70/20/10 rule is a pretty good guide.

It states that you should split your money

by these percentages, 70% on living expenses,

20% on investments, and 10% on the fun stuff.

Research shows that people who invest

at this level are much better equipped to ride the ups

and downs of life and also get ahead of everyone else.

That's all well and good, but how do I buy a stock?

There are various different apps out there

that allow you to invest in stocks.

I'll leave some links below.

The key is to open the correct type of account.

You'll often hear people throwing around the terms,

ROTH IRA, in the USA and stocks and shares ISA

in the UK, TFSA in Canada and supers in Australia.

If you don't have one of these accounts

then you're missing out

as they allow you to avoid paying taxes on your investments,

but they do have limits because they're so powerful.

A great thing about these investing apps is they

actually give you the ability to buy fractional shares.

So rather than buying a share of Apple for $190,

you can invest as little as $1.

I wish I had this option when I was younger,

as it would've allowed me

to get some early investing experience

without having to take any big risks.

One of my favorite investing platforms is Trading 212,

as they do both of these things.

Since I was planning to talk about their app anyway,

I reached out to see if they'd be interested

in sponsoring this portion of the video.

They agreed and are also offering a free stock worth up

to £100 to anyone that uses the code

Tilbury when they create an account.

One of the really cool things

about Trading 212 is they let you practice investing

with fake money so you can get familiar

with real data from the markets without risking any money.

So if you're a little uncomfortable with investing,

or just want to try some strategies

before putting your own money on the line,

this is a great way to get started.

Another great feature is called Pies,

where you can see how other investors

have allocated their money into different stocks.

If you wanted to invest 100$ into that pie,

then it would just be split amongst the various

allocations that that pie creator has chosen.

If you live in the UK or Europe,

it's worth trying out Trading 212 because signing

up is completely free and there are no commissions.

Of course, don't forget to use the code Tilbury

and you'll receive a free share worth

up to a hundred pounds.

Or alternatively, click the link in a description

to sign up and see exactly how to access the free share.

Now, the obvious next question

is how do I pick the best stocks?

There are two main ways to attempt

to predict the stock market.

These are called technical and fundamental analysis.

A good way to think about this is like a scale.

Usually short-term day traders are purely focused

on the technical aspects.

This includes looking at charts and patterns.

They believe they can predict how the stock will change

in price by judging the highs and the lows on the graphs.

As a long-term investor,

my strategy is about keeping it simple.

Lots of people talk about using margin and options,

but that's really not something I worry about.

I'm a lot more focused on the fundamentals of a company.

This includes the financials, the leadership,

and the brand recognition,

as I believe this is where the true information

lies to indicate the long-term success of a stock.

When I invest in a stock, I don't have an intention

of selling it for at least two to five years.

However, like I mentioned, it's a scale,

so I do look at the occasional chart

in order to find the best time to buy.

This approach has helped me find some really

good investments over the years rather than just dipping

in and out, trying to make a profit every day.

But with the majority of my investments

I don't actually do any of this.

That's because I allocate most of my money to index funds.

This is definitely the best strategy for most people.

So what's an index fund?

It's a way for the average person to make more money

than the professionals with very little effort.

I'm a big football fan

and if you've ever followed any sports,

you'll be familiar with a lead table like this.

The better your team performs,

the higher up they'll be on the list.

On the other hand, if they do really badly,

they might be removed from the league entirely.

This is almost exactly the same as an index.

All you have to do is switch out the teams for companies.

Let's take the S&P 500 for example.

This is a list of around 500 of the largest public companies

in the USA, the big dogs being Amazon, Google,

Apple and Tesla.

Just like the league table,

if a company does poorly,

then they run the risk of being removed

from the list.

With this league table or index of companies.

You could go and buy stocks in some of them individually.

However, if something bad happens

to those companies that you've picked,

then you can wave goodbye to your money.

The idea of an index fund is to be a little bit sneaky

as it allows you to invest

in every single company on the list with just one click.

Even if a few companies do terribly, then it's balanced

out by all the companies doing extremely well.

The average annual return of the S&P 500

over the last 10 years has been 13.6%.

Although this is slightly higher than the average over time

no one has ever lost any money if they've bought

and held an S&P 500 index fund for more than 20 years.

The truth is

that the average actively managed fund return 2% less

per year than the market in general.

This means that the professionals on average are doing worse

than index funds, and even if they end up losing you money,

they still charge you high fees no matter what.

The reason that index funds can charge really low fees

is because they're passively managed,

which means they look after themselves

and don't need an expert to keep adjusting them.

Meaning the fees can be as low as 0.02% per year.

When I tell people about index funds,

it often blows their minds.

However, when they go onto an investing app,

they get confused at the different options and ask

what's the best index fund to invest in?

Well, as I said, I'm not a financial advisor,

but I have had a lot

of success with three different types of index funds.

Number one tracks the S&P 500 index.

This is the one we briefly mentioned before.

The historical return

of eight to 10% has allowed me to generate a fortune

over the years.

This is due to the power of compound interest.

The S&P 500 tracks 11 different industries/sectors

and no sector is more than 30% of the index.

However, it is worth pointing out

that it's a bit tech heavy these days,

with five tech stocks dominating 23% of the entire fund.

It's up to you if you see this as a positive or a negative.

I personally don't mind

as I believe in the future of technology.

There are so many different index funds that track

the S&P 500, so here are some of my favorites.

The best I found in the USA

is the V-FIAX Index Fund or the VOO ETF.

The best in the UK would probably be the VUSA ETF.

The only real difference between an index fund

and an ETF is that the ETF can be purchased

or sold at any time throughout the day.

Just like a stock,

index funds can only be purchased in full.

So for example,

if the price is $500, you must pay $500.

An ETF on the other hand,

can be purchased in fractional shares,

which means you don't have to buy a full share

and instead you can invest whatever amount you like.

This is great if you just starting

out or want to dollar cost average in.

Personally, I've set up a direct debit every month

so the money leaves my bank account

without me even noticing.

Really and truly, there isn't a huge difference

between an index fund and an ETF.

Just consider which one is best for you, take the plunge.

Number two is a total stock market index.

The total stock market index has returned investors

an average of 13% each year

over the last 10 years, which isn't bad at all.

It's the definition of diversification.

You can't really get any more skin

in the game for a lower cost.

If you want to invest for a long period of time

without having to even check or even think about it,

then this is most likely the fund for you.

Investing in everything means you can experience gains

across the entire market,

and unless a crazy crash happens,

you should be okay,

but even if it does crash, with time,

things tend to bounce back.

I've seen three crashes since I've been an investor,

the.com bubble, the 2008 financial crisis,

and the 2020 COVID crash.

I'm not going to pretend these crashes didn't hurt,

but long term

every market I've invested in has bounced back.

The downside to this index is it depends

on the entire market trending upwards.

This means there could be an individual stock

that you really believe in that goes to the moon,

but you might not experience those gains

because that stock doesn't play much

of a role within the index fund.

The best I found in the USA is the VTSAX Index Fund

and the VTI ETF

and the best in the UK is the VWRL ETF.

Number three is the emerging markets index.

Emerging markets are predicted by some experts

to be on the rise, and whether I agree with this or not,

I think it's important for me to have

at least a little bit of exposure to these markets.

It's all well and good buying the S&P 500,

but when China, or another emerging country

has some great gains,

you'll end up missing out.

Just as an example of this growth,

when I first traveled to China around 20 years ago,

I looked into buying an apartment in Shenzhen.

That real estate was $47,000,

and now it's worth over a million.

This just shows the potential growth in these markets.

Emerging market funds are definitely the most risky type

of index funds we've discussed.

These funds include stocks from lots

of different growing markets and could be very heavy

with Chinese companies.

Taking a look at a list of the largest economies

in the world.

A lot of them are emerging markets, so it just makes sense

to me to throw a little bit of money in for diversification.

The best I found in the U S A is the VEIEX ETF

and in the UK, the VFEM ETF, but there are also lots

of other emerging market funds available,

so it's worth having a look around.

Now, I know at some point I need to address

the biggest question around investing,

which is, of course, is investing risky?

It really depends on how you define risk.

You may be scared that you'll lose money.

However, you also face this risk

by not investing, as my father Mervin found out

if you have a diversified portfolio of index funds

and keep investing at a gradual rate each and every year,

then even if there is a stop market crash,

then historical data shows you should be able

to endure the storm.

A great way to make sure you're protected

in the event of a market crash is to mix

in a few bonds within your stock portfolio.

These are just a different type of investment

that are far more stable than stocks

and you can buy these on the same investment platforms.

In your twenties and thirties,

I wouldn't worry too much about them,

but as you move closer to retirement

it's a good idea to have more bonds and stocks.

In my opinion, in your younger years,

the biggest risk you can take is not taking enough risk.

Now, for the question on everyone's mind,

when should I sell my stocks?

It's possibly one of the most common questions

in the stock investing world.

Knowing when to sell stocks

or hold onto them mostly depends on your age.

If you're older, you've likely been investing

for a while and can live

off them during retirement by gradually selling when needed.

However, if you're younger, this usually isn't the case.

In fact, if you are in your twenties to thirties,

there are only three good reasons to sell your investments.

Number one, you need money for an emergency.

Hopefully, if you followed the video so far,

then you won't need to worry

because you've got an emergency fund to help you

out in times like this.

Number two, you made a bad investment.

If you have individual stocks that appear

to be underperforming consistently,

it may be time to cut your losses before those losses stack

up even higher.

Before panic selling,

take a good look at the wider industry.

If other goods like it are also in decline,

then you know it's the industry, not just your stock.

If everything's doing poorly,

this gives you a bit of extra context.

Number three, you've achieved a specific goal,

although I don't really recommend it.

If you are investing for short or medium term goals like,

I don't know, saving up for a dream vacation,

then it would be a great idea to set a target price.

This is a figure

at which you would feel satisfied selling the stock

and enjoying your gains.

The most important thing to remember is to not

sell your stocks for as long

as possible so they have the longest time to grow.

Just invest and forget about it,

until you want to stop investing and take your profits.

This thinking will also help you avoid panic selling.

If you wanna know exactly how I pick my individual stocks,

then you can check out this video next,

but don't click on it just yet.

Make sure to subscribe if you want to grow your wealth.

Okay, I'll see you over there.