#Market watch investing game how to
#Market watch investing game professional
#Market watch investing game tv

They’re trying to serve an ace but hitting the ball into the bleachers!īefore we get to those four rules to win the stock market game, understand that a big part of it is NOT LOSING MONEY! Anyone can make money when stocks are rising. Why? Because they are making big bets and losing big when those bets don’t pay off. If the average fund return was 15% and nearly 40% of managers beat their index, there’s a good chance that a lot of ‘professionals’ lagged the rest of the market by a wide margin.

#Market watch investing game professional

Professional Investors Can't Even Beat the Market Data from 2012 mutual fund performance shows that just 39% of professional fund managers beat their index while the average fund return actually trailed the stock market (S&P 500) by a percent after fees.

It turns out that even the professionals have a tough time playing their own stock market game. Since everyone is constantly trying to score a few extra percentage points to put them above the median, the professionals’ stock market game is about taking risks to beat your comparison index. Around the beginning of the year, you’ll see rankings come out placing managers among the ‘median’ return for their group. Professional money managers are measured against the rest of the managers in their investing style. First, let's look at the professionals' game at investing.

#Market watch investing game how to

I'll detail how to win the stock market game playing by playing like an amateur in a bit. It turns out, winning the stock market game is a lot like winning in tennis. She knows the key to winning this amateurs’ game is to just concentrate on getting the ball back over the net…and making the fewest mistakes. Since it’s more fun to return the ball back as hard as possible, practicing my best guttural grunt as if I were John McEnroe, I make a lot of these errors and my wife usually wins. I can try for the risky shots and get lucky on a few but, more often than not, the ball is going to go soaring over the fence and I’ll be running after it. They each know that the other will make few mistakes so the key to victory will be in taking risky shots for the ace.īy comparison, when my wife and I play tennis, the strategy is very different. Two professionals playing the game will need to do everything they can to score points. Tennis is truly a game of contrast, you are either really good or really horrible, and your skill level determines your strategy for winning the game. How the Stock Market Game is a Lot Like Tennis Reserve Your Spot on the Next Webinar Now! Step-by-step to the Goals-Based Investing Strategy I developed while working in private wealth management. Check out how investing is like playing tennis and some of the tips below but don't forget to scroll down to the bottom of the page for an easy-to-follow infographic that explains it all!įREE WEBINAR – Discover how to create a personal investing plan and beat your goals in less than an hour.

I've got one of the best analogies for investing I've ever heard to help you beat the stock market. The answer is because most investors are playing the wrong game!

So why is it so hard to win the stock market game? Why can’t investors conquer their bad habits and earn a better return on their investments? Panic sets in and the investor sells out of the stock just before it levels off or stages a rebound.

#Market watch investing game tv

Investors chase high-flying stocks they hear about on TV only to realize they must have been the last to jump on the bandwagon as the price comes crashing down. Why Do Investors Lose the Stock Market Game?