Reducing Risk In The Stock Market - Common Beginner Investor Mistakes

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Reducing risk in the stock market is essential to establishing a profitable, long term investing strategy. If you want to know how to invest in the stock market, this is a great primer for beginners. If you are investing in the stock market for the first time, consider some of the low risk strategies we discuss here.

In this Livestream, we go into more depth on our lesson on Buying Individual Stocks by discussing the danger of individual stocks and how to reduce your risk through a broad, diverse portfolio of uncorrelated assets.

Below are a few of the topics we cover:

  • Our favorite bloggers in the financial independence space
  • Liquid vs illiquid assets
  • The danger of individual stocks
  • Understanding the balance of risk vs reward
  • Bitcoin as an example of the dangers of individual stocks
  • Diversification through uncorrelated assets
  • Why people don't go for the safe option (but should)
  • What is “the market” and what does it mean to “beat the market”
  • What are index funds and how can we invest in them
  • Don't try to beat the market, just strive to match it

And if you're looking to get started in the stock market, I'd recommend Wealthfront and Betterment.

I’ve invested my own money with both for years and can say they are equally excellent. You can’t go wrong with either. If you’re like me, go with both. We both get referral bonuses when you sign up, which helps support the work we do here at Stake Your Wealth.