Playing the lottery has a high level of risk because the odds of you winning are very low. If you manage to beat the odds and win, you will receive a high return. However most people don’t become winners and lose money playing the lottery. The same concept can be applied to picking a unicorn company (this is a real term by the way). This is like buying a bunch of horses with a disease that turns 1% of them into unicorns the other 99% die. The odds aren’t great and you’ll probably end up with a bunch of dead horses. So how to do increase your odds of winning?
To get the highest possible return on your investments, you need to invest at the lowest price, and sell at the highest price. Trying to predict future prices to perfectly time your buy or sale is called timing the market. Sounds simple enough, right? We'll discuss if you should you use this investing approach, or snooze on timing the market?
You’ve probably heard that you should BUY! BUY! BUY! (*NSYNC voice) your stocks right now since the market is down. On the surface, this doesn’t seem to make any sense. Investors are losing money, so why should you put your money into something that is decimating others’ fortunes? I’m here to give you the DL.