A daily stock analysis based on stock market today
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up
  • Boot Camp

Five principles for engineering your investment success

6/24/2018

 
On Wednesday, we celebrated the 8th week of launching our Stock Card Premium features. In the past eight weeks, together with our premium members we discovered, validated and invested in 11 new companies. Our average return in the past 8 weeks is 9.95%, outperforming the S&P 500 by an average of 8.48%. Outperformance is not about luck; we engineer success. ​

​How do we engineer success and outperform the market average? No secret, no magic!

​Here are the five principles of engineering your investment success:
Picture
How do we engineer success and outperform the market average? No secret, no magic! Here are the five principles of engineering your investment success:
​

1) Master the formula of investing: 

Understand that investing is one side of the financial wealth formula:
Investing money = Income - Expenses. 

Regardless of how much income you earn, you must manage your expenses such that you can afford to invest. This means you do not invest the money you need to live your daily life, and if you need to invest more, look for ways to manage your expenses first.


2) Focus on what’s under your control: 

No one and no mathematical model can yet predict the market fluctuations. If there was a prediction model that worked, there wouldn't be any stock market. Instead of trying to predict the market, focus on managing the aspects of investing that are under your control (e.g. how to evaluate a company based on facts) and never duel over variables that are out of your control (e.g. forecasting and timing the market). 

3) Use technology to minimize decision making biases and fallacies: 

Even the savviest investors are prone to decision making fallacies. Making decisions based on a hunch, or deciding first and collecting data to confirm it later are some examples of mind fallacies. Use software and algorithms to collect and synthesize the data and adhere to this process to gain an upper hand in investing. 


4) Hold until facts change:

Everyone defines buy and hold investing differently. The most practical example we have found is that market fluctuations - especially price fluctuations - do not matter. Have 2-3 reasons for each investment you make. Periodically validate them and hold until those reasons are valid. 

5) Live as an investor: 

Investing is a lifestyle. Just like being a foodie, a globetrotter, a runner or a movie-buff is a lifestyle choice, so is being an investor. Dare to call yourself an investor, and invest in companies and products you relate to, and leaders whom you admire. Investing is the language of life, and you can make your portfolio represent your choices and your beliefs. It's a lot more real and way more fun!

As we said, there is not secret or magic behind investment success. It is engineered!
Join Stock Card Premium

Comments are closed.

    RSS Feed


    Archives

    December 2022
    September 2022
    July 2022
    February 2022
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    January 2020
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All
    Battle
    Education
    ETF Investing
    How To Invest
    New Podcast Episode
    New Portfolio
    Portfolio Update
    Starter 2020
    Stock Card VIP Pick
    Stock Lists
    The Daily Hype
    Update
    Watchlist Worthy
    Winners And Losers

© 2023 StockCard.io. All Rights Reserved.
​​
Disclaimer: StockCard.io is not, neither operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on StockCard.io and Stock Card Weekly represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The Stock Card team may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall StockCard.io be liable to any subscriber, visitor, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on StockCard.io, or relating to the use of, or inability to use, StockCard.io or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up
  • Boot Camp