How You Can “Win” at Investing in the Stock Market?

Back some time ago, I read a plethora of books about investment strategies and how to “beat the market”… over the past several months I have been growing said portfolio with the knowledge that I had acquired. Then in came the pesky “make it faster” proven strategies of others.

I took these notions to heed and started slowly buying into a few select tech-stocks with promising 5-year forecasts.

Next thing I know what looked like a Bull Market, began to slide and has hit a drastic Bear Market over the last several weeks.

As an amateur stock investor I watched my assets and units cave to the volatility of the markets; NASDAQ, TSX, NYSE, and others. The candlesticks rose and plummeted within minutes of each other like a rogue wave in a monsoon. With each minute the profits were lost and the losses continued to grow.

Candlesticks and Bollinger Lines

I felt the suffering and panic attacks coming on.

One savvy longterm investor I know said, “sometimes you just have to know when to cut your losses and restructure your portfolio.” The grim truth starring back into my face.

Do I suffer the losses of hundreds or thousands of dollars?

Do I stick it out to see if it will climb out of the current slump and rise again?

Is there a strategy that I am missing when it comes to watching short-listed stock investors screw up the rest of the market because they are angry at a new startup company?

And why is it that the little guy, the small fish in this big old pond has to be the one suffering the most at the whims of these heavy investors?

That’s when I spotted the Little Book of Common Sense Investing, by John C. Bogle sitting on my bookshelf. AH-HA! This was the book I really needed to get my hands back on. I needed a refresh into the reasons WHY you bet on the most “sure thing” out there… a little known trade secret called: ETF or Exchange Trade Fund.

Exchange Trade Funds are, a composite of many stocks all wrapped up in a single ticker. Like VCN.TO or XEC.TO or QETH.TO there are thousands of these ETFs to choose from. But why? Why are they important?

Per John C. Bogle, on page 82 of his book…

The winning formula for success in investing is owning the entire stock market through an index fund and then doing NOTHING! Just stay the course.