Today I’m going to share with you the number one stock to trade in and invest in.
Before we start understand that this concept and this video is created from my latest book called Mindsets of a Master Stock Trader.
If you haven’t had a chance to check it out, be sure to check out that book, which all talks about psychology.
Here I have a couple of DVDs to illustrate the example. By the way, those of you who are Canadian or French-Canadian may recognize that some of these are in French or the Canadian-French version.
In either case, I have three DVDs and which one is number one?
Which one is the best?
And I ask you this question because I bet you many of you will pick Matrix. I bet many of you will pick the Bourne Identity. And many of you will also pick Ghostbusters.
The thing is that there is no number one. The number one is determined based on you.
There is no number one DVD. Of course, we have Oscars and other awards. But the reality is that there is no number one to invest in for everybody.
It’s what’s best for you.
I always like to give an example of buying a car.
Let’s say I’m interested in buying a van. We have different kinds of vans.
Are you interested in purchasing this kind of van or this one?
Or are you better off with a truck?
Which one is better?
A van can hold more people if you have a huge family that’s great and fantastic.
If you want to haul lumber or jetski or a boat, a truck might be better.
For you, it’s going to be different. And that’s what people don’t realize and recognize in the stock market.
There are questions like this:
Should I get this stock?
Well, I have no idea whether you should or shouldn’t. I don’t because I don’t know you personally. I don’t know your risk tolerance. I don’t know your risk levels. I don’t know how much capital you have. I don’t know what you want to do. I don’t know how old you are. I don’t know if you have a brother, sister, cousin, uncle whatever.
The best for you is going to be different than somebody else is. You have to evaluate that decision. Because if you go and walk and approach a dealership and say which car should I buy.
Well, they’re going to ask you:
- How many people do you have?
- What are you looking for?
- What’s your budget?
There’s going to be a lot of different questions that go before they answer that question for you.
And that’s what most people don’t get. Is that the number one stock to invest in it’s not going to be written on a message board. It’s not going to be written on a forum. It’s not going to be written on a website.
It’s just that different stocks have different risk levels depending on your situation.
Looking into your trading portfolio
That’s what you need to look into yourself and see what you are looking to do with this stock.
Is this going to be part of your short-term portfolio?
Or part of my long-term portfolio?
Where does this stock fit in?
Or look at it the other way.
Here is my portfolio box. I have some room for long-term investments. I have some room for, let’s say there could be option trading. And here some room for penny stocks or speculative investments.
I have a long-term portfolio that’s a third full. Now, the question is, do you want to fill it up further?
Well, if you do by all means, then you continue to fill it up. And if you have a long-term portfolio that’s pretty much maxed out, chances are the next trade or item that you’re looking for or to invest in is probably something more like an option trade.
Or it could be a penny stock trade. If my long-term portfolio is full, this could be more part of my speculative place. Then you understand where does that single trade goes into.
That’s what you need to recognize and understand is that where does that trade fit in your bigger scheme portfolio.
The thing is if you have a portfolio that’s already maxed out, maybe you don’t need to put on any trade. If you have ten vehicles, chances are you probably don’t need another car or another vehicle.
In this case, the same thing. If you have a maxed-out long portfolio, speculative portfolio, and you have a maxed-out option portfolio, probably you’re not going to put on any trade.
You need to understand where does that trade fit in the bigger picture scheme of things.
That’s what most people don’t get and don’t understand when it comes to choosing or picking the number one stock.
Pro Tip: You have to realize where does it fit for you.
- Is it part of your day trading?
- Is it part of your swing trading?
- Is it part of your speculative plays?
- How is it going to make you money?
- How long are you going to hold it for?
Create a little trading plan or idea around it, even if it’s on a napkin. It’s better than just throwing a trade. A lot of people want to trade one or two stocks, make a boatload of money and then close out those trades and that’s it.
But they don’t have an allocation. They don’t have a place where those things fit. And I think it’s essential for you to recognize and see inside of yourself where do these trades fit in your bigger picture of investments.
I hope that makes sense and gives you a few things to think about.
Also, I want to thank you all for being so supportive and for all the great vibes, energy, and comments that you’ve been sending to me.
Thank you. They make my day they make my world. It’s always great to connect with people.