Do Not Get Greedy In BlackJack(Stocks)!

Key Points

• Investing should not be the same as gambling as much as some online effectively do gamble.
• It is important that investors take a long term approach and don’t try to “win” all of their money at once (like the guy who rolls up to the roulette table throws 500 on black and ends his night right there).
• It is also important to diversify your holdings so you are not putting all your eggs in one basket- rather place smaller bets across the board. 
• Know when to hold ‘em and know when to fold ‘em- it is typically not wise to hold onto a winner for too long or to sell a loser too soon.

How To Compare The Market to BlackJack the Right Way

Although there is always an inherent risk when it comes to investing in the market whether it be through a Passive vs. Active approach, it should never truly be seen as identical to entering a casino. 

Let us bend that statement a bit actually!  There are some takeaways you can apply from those times you had fun at the casino which is most likely when you came out on top. 

Some of the common themes shared throughout posts at Genvest include long-term growth, equity, compounded return and express how increasing your personal wealth requires patience. Those who try to get rich in the market by day trading at some point are usually defeated by the market itself.

Whether you choose to invest in the Mighty S&P or take an active approach by selecting a few ETFs or Common Stocks across a few sectors, chances are you have done some research and feel confident about your investments. 

The S&P can be a rollercoaster of a ride and some of the ETFs/ Stocks you selected will lose you money as well, but over the long-term quite a few will reward you greatly for being patient.

GenVest QuickTake

Now here is the thing, the wise investor knows at a certain point all good things come to an end and never to get too greedy. The truth is you as an investor will most likely never purchase a stock at its lowest point or sell it at its highest point. 

If you hold on hoping your picks keep running; well there just might come a point at which you end up earning less because not all companies will just keep running up and they could become overvalued despite having a great business. The best stock is a stock you could possibly hold forever but that does not mean there are no moments to consider selling.  

This is not to say an investor should forget the importance of holding stocks over the long-term which is a proven method for creating wealth. It also does not mean that a stock could not keep appreciating in value after conducting thorough research on it again but you also do not want your portfolio to be overweight in a few names. This ties into Why Portfolio Diversification Is Important For Investors. 
Best to consider selling a piece of your holdings and look to Be In The Right Sector when you reallocate those earnings. Remember when you were up in BlackJack that one time and you decided to keep playing instead of cashing those chips in?