What is the optimal time to hold a share or fund? Is it 2 days, 2 months or 2 years?
If you had to choose one, there’s a 95% chance that you’d pick 2 years. Because only 5% of winning investors know what we’re about to share with you.
2 years is wrong.
The correct answer is actually 2 months and with our Stock Market Success videos, you will see, over and over again, that most of our trades fall into this category. Sometimes it can be shorter and sometimes longer, but the sweet spot for our best trades is always around the 2-3 month mark.
So in this video we deep-dive into ‘The Why’ – Why is 2 months so important?
And why have you been programmed into thinking that 2 months is too short? Because we’ve all been through the programming.
That’s clever and persistent brain washing from mainstream media, and from the marketing budgets of billion dollar wealth management firms, all looking to make money in the LONG term. Imagine if investors changed their investment time-frame from 2 years to 2 months?
What would happen to the industry? It would self-implode.
Big investment banks, wealth management firms, even your IFAs, they want you to play the long game because they get PAID on the long game. Their fee is based on a % of your Funds x NUMBER OF YEARS.
So, of course, if they can convince you to invest with them for 5 years, they’re going to make a lot more money.
But if you knew the truth about investing, which is that most shares peak from their trough within a couple of months, well, that turns their whole world upside down. For a start, you are going to expect results sooner and you’re going to be paying more attention to your portfolio.
Right now, you’re doing neither. You’re sitting back waiting for your next valuation which will be posted out to you in about 4 months’ time or whatever the date is. That’s just completely crazy because you’re missing opportunities everyday and most people don’t even care.
You should be expecting MORE because here’s the truth.
There are plenty of stocks and funds that go up in 2 months and if you don’t have them in your portfolio, then it probably means that you are in the wrong investments.
Sure, over time your portfolio will go up but so does everything. That’s not trading, it’s not investing, that’s just an excuse for your advisor to sit on his behind and not caring. And if you allow it, then you’re part of the problem, you’re encouraging that behaviour.
So don’t complain when your portfolio does ‘kind of okay, could be better’ for the fifth year on the trot. You have to change it and if you allow ‘okay’ then that’s what you get.
If you demand ‘good’ or even ‘great’, then at least you have a chance of making that happen.
Take action, watch this video and as soon as you hit that 2 to 3 month mark and if the stock is not performing, then accept that it wasn’t a great purchase price. You may not want to get rid of the stock immediately but accept that it was a bad choice, and it’s probably a good time to move on.
It’s time to look for better opportunities, because they’re out there and somebody’s making money on them, even if that’s not you.
MP3 Version: SMS 45