Stocks Vs. Real Estate: How To Decide Where To Invest

Becoming financially free is one of the top goals of many people. To achieve this, many have resorted to having multiple sources of income and trying to save up as much as possible. While this is good, I believe the best way to go about becoming financially free is by investing. And not just investing but doing so in the right place.

When investment is being talked about, the two options that offer good returns that come to mind are stocks and real estate. However, not everyone has the luxury of investing in both. So, the dilemma is now about making the choice of which to go for. 

If you are in this situation, you need not worry again. In this post, I examined both options with the hope that they will help you decide where to invest your money.

Should you invest your money in stock or real estate?

Real estate and stocks are great investment choices, as I pointed out above. However, there are some preliminary things for you to understand before you make a choice. Your choice depends on how much you have at hand, your risk tolerance level, your investment style, and the goal you wish to attain. 

Investing In real estate

To invest in real estate, you must have saved a lot of money, as it requires huge capital to start. 

The benefits of investing in real estate are passive income from rent and a hedge against inflation. This is possible since you will be acquiring a tangible property. You will also be able to leverage your property as securities for a loan, and sometimes, you might get some tax advantages.

The disadvantages, however, are that investing requires high transaction costs. Before you can invest, you must have saved up a lot of money, and as we all know, money’s value can depreciate. Also, it is illiquid and requires more work, especially for maintenance. Lastly, you might not get to experience as much appreciation for your property as you had expected. 

Investing in Stocks

Investing in a complicated market like stocks is unlike real estate, which requires a substantial sum. And this is one of the reasons people feel comfortable choosing stocks.

The benefits of investing in stocks are that it is highly liquid, and you can easily diversify. Also, it requires low transaction fees, and it is easy to add the returns to tax-advantaged retirement accounts. 

The disadvantages, however, are that stocks are very volatile, and selling them can trigger huge taxes. Also, some stocks may not appreciate, as they may move downwards. Furthermore, investors may succumb to being emotionally driven when investing in them due to their volatility. 

Final note

The decision to invest in either of the two options discussed above depends on your financial capacity and personal desire. My advice is to carefully examine the benefits and disadvantages and determine which best suits you. Knowing what works for you will help you make the right decision in diversifying your investment portfolio.

Conversely, if you have enough money, you can try out both or as many other investments as possible. This will help you spread your risks and guard against losing all your money should a particular investment option fail. 

Diversification 101: How To Diversify Your Portfolio

Everyone has heard the term portfolio diversification when it comes to investing in stocks. The reason it is recommended to diversify your portfolio is that it ensures your financial safety in the future. 

If you go all-in with any stock, industry, or investment, you’ll be out of luck if something unforeseen were to happen. History has proven many times that you can never be too safe, and no matter how well a certain industry is doing, it could crash the next day. 

If you’re completely invested in something that crashes, all of your time and effort will have been for nothing. I’m going to give a quick rundown in this article about how to effectively and safely diversify your portfolio. 

ETFs and Stocks

Many investors believe that you should diversify your portfolio with a mixture of stocks and ETFs. In summary, ETFs are not going to yield as large of a return as individual stocks, but they will also not result in as hard of a loss. 

A healthy portfolio could even have ETFs solely in them if you’re a less risk-prone investor. However, there are many very safe stocks that can be bought. 

Some investors are even interested in a little bit of risk because they are looking for a large reward. There’s always a balance with things like this, and I recommend finding a balance that works for your personal risk tolerance. 

Multiple Baskets

Whether you’re investing in solely ETFs, solely stocks, or a mix of both, you should never put all of your eggs in one basket. ETFs are safe and diverse by nature, but they are not bulletproof, so you won’t find anyone recommending that you put your entire portfolio in one ETF, no matter how safe you believe it to be. 

This warning should be applied tenfold to stocks since they are much riskier than ETFs. Stocks are one company, and if something were to happen to that company, then your entire portfolio could sink if that’s all you’re invested in. 

Diversify your Sectors

Many investors do not realize that you shouldn’t just diversify the stocks you’re invested in but diversify your sectors. Technology has been extremely hot for the last few years, but rumors are floating around that it may be a tad overinflated. 

It’s not for me to say, in this article, whether that is true or not. However, I will say that no matter how good a sector is doing, it’s important to consider other sectors as well. 

This is why investors need to continuously improve their financial literacy in order to make sound decisions when it comes to investing.

Keep Investing

Not only can we diversify what we invest in, but we can diversify how much we invest in each stock and our average price. There’s a specific strategy called dollar-cost averaging, where investors will invest money periodically into a setlist of stocks. 

The number of stocks they purchase will depend on their price when it comes time to buy. Now some investors love this strategy, while other investors prefer just buying a set number of stocks whenever the time comes. 

Read: 3 Hot Breakout Stocks Ready to Jump for Big Gains

How Confidence Plays A Role In A Successful Trading Career

Confidence is one of the most crucial attributes in any career, and trading is no different. If you’re not a confident trader, you’re not likely to find success, not long-term at least. 

When I trade, I’m confident that my decisions are backed by my own due diligence and therefore are good decisions that will most likely work out in my favor. Without that confidence, I’d be worried the entire time I hold a stock, worried it will fall due to some unknown factor. 

My confidence also allows me to accept losses and move on without a second thought because I know there will be more wins in the future. In this article, I will go over every reason that confidence is crucial for trading. 

Roger scott shares when to buy and sell stocks.

Helps make Decisions

As I mentioned in the introduction, every trade you make should be made after doing your own due diligence. If you’re not confident in your ability to do said diligence and perform proper research, then you won’t be confident in your buy. 

I probably don’t need to go over every reason you need to be confident in your trades, but you do. Without the confidence, you shouldn’t be trading, period. Because you will lose money, and most of the time, you will lose it in a situation where you could’ve made a profit. 

Roger Scott shares when to hold on your stocks.

Confident in your Holds

I can’t count the number of times someone has told me they saw red and sold too early, only for the price of a stock to skyrocket the next hour while they were on the way to work. I’ve even made this mistake early in my career, although my missed opportunity wasn’t as prominent as some.

Having confidence in your buys allows you to hold through the red and come out on top. Without that confidence, or proper due diligence, you may sell too early, or worse, you won’t realize when you should sell. There’s a difference between confidence and cockiness.  

Avoids FOMO

FOMO or fear of missing out plagues the trading industry and has caused more losses than anything else. When everyone is buying a stock and making money, naturally, you’ll want a piece of the pie. 

Roger Scott advices to avoid FOMO at all costs when it comes to investing.

Confidence allows you to look at a stock, do your research, and ignore all of the hype and what everyone else is saying so that you can make your own decision. Avoiding FOMO at all costs is one of the best ways to improve your financial literacy.

Lets you Make your Own Decisions

Speaking of making your own decisions, that’s one of the best side effects of being a confident trader. You can ignore the hype and avoid FOMO. It also allows you to use stock screeners and scanners to their full potential. 

Without confidence and skill, a rookie may use these tools and still end up making incorrect trades, while someone with confidence can use the tools as they were meant to be used; as an assistant, not a stock picker.

Avoids Tilt on Losses

Every trader will experience losses; that’s part of the game. You just have to prepare for uncertain market conditions.

Many will even experience more losses than wins and still end up being some of the most profitable traders in the business. The trick is to make more money on successes than losing on losses. 

Confidence allows you to look at losses analytically and not emotionally. It will enable you to stick to your trading plan and not turn bad days into career enders. 

The Best Ways To Improve Your Financial Literacy

Being financially literate is crucial for a healthy, happy life. Having financial literacy means that you’re able to confidently manage your own money and make financial decisions that will set you up for a comfortable life in the future. 

Financial literacy is the answer whether you’re wondering how to plan for retirement, manage your 401(k), climb out of debt, protect your money from inflation, etc. But how can you build your financial literacy? 

Knowledge is power, and in this article, I’m going to explain the best ways to improve your financial literacy and become the master of your own money, comfort, and future. 

Write Down Your Budget

One of the easiest ways to get ahold of your finances is to create a detailed budget using google spreadsheets, excel, or any other app or software that you’d like. Write down your monthly income, and subtract from it your monthly expenses. 

Anytime you purchase something that isn’t a consistent purchase, such as a new shirt or fast food stop, write that down in your budget as well. At the end of the month, you can see whether you’re in the hole or how much money you have in savings. 

From there, you can decide on investing or saving the cash. 

Books! 

Books are a fantastic way to learn and one of my favorite. There are so many self-help and financial literacy books to check out that I couldn’t even begin to list them all. 

Go to your local bookstore or library and look for their personal finance books to get started. Choose one at random, do a little research on the internet to check out what others are thinking, and then just start reading and learning! 

Podcasts

Podcasts are a fun alternative to books. You can listen to them on the go, at the gym, etc., so there’s always a chance to learn. 

I like to read books and use podcasts as a supplementary learning source, but everyone is different. Whether you’re a book person or a podcast person, both sources are bound to teach you what you need to know in order to gain financial literacy in your life. 

Social Media

Social media is a more passive way to learn financial literacy. You won’t really spend a lot of time researching through social media to learn. 

However, if you follow many financial experts across Twitter, TikTok, and LinkedIn, you’re bound to learn some valuable tips and garner a lot of advice. Some Twitter accounts, for example, are dedicated to dishing out financial tips every single day. 

I also enjoy browsing personal finance tips on forum sites like Reddit, where users share their own recommendations for financial literacy. Remember, sites like Reddit have users from all walks of life, so you’ll likely find someone that has been in a similar situation as yours and know how to improve. 

How to improve your financial literacy

Talk to a Professional

Listening to others in similar situations as your own is great, but nothing beats talking to an expert. Professionals have gone to college and spent many years studying and learning about everything financial. Getting the help of a professional will help you navigate through uncertain market conditions.

Chances are, they’ve already talked to someone in your exact spot and have helped them reach financial literacy and financial independence. Even if you’re already financially sound, a professional can help you accomplish any financial goal that you may have, and they are well worth their consultation price. 

For more valuable financial tips and investing insights, check out my content at https://wealthpress.com/author/roger-scott/.

How To Prepare For Uncertain Market Conditions

The market has been highly volatile and has felt almost random lately. Many people see red, and speculation of a bear market has penetrated nearly every investment and trading community. 

So what should you invest in during these uncertain times? And how should you prepare for the future to remain safe? 

In this article, I’m going to tell you what history has taught us the best course of action to take. I’ll give you some items you should look at when investing, as well as what to do to keep your cash safe. 

I Bonds

I Bonds are a safe investment for everyone and far superior to cash. I bonds rise with inflation, so every $1 you invest will retain its value in 30 years. 

I bonds do not necessarily earn you a lot of money, but they ensure that your cash is protected against inflation. The government backs them, so you know you will get your money. 

The downside is that you have to wait five years before cashing them in if you want the total payout of interest. When the market is uncertain, and inflation rises yearly, I bonds are a lifesaver and one of the most secure ways to protect your money. 

Now, if you’re worried thinking you’re too late to enter the stock market, I’ll tell you otherwise. But keep in mind that you should be in it for the long term.

Consumer Staples

Staple stocks are always going to be necessary, no matter what is happening with the country or the economy. During the 2020 financial crash, the consumer staples category was down 3% less than the S&P 500. 

Again, it may not earn you much money, but it is a safe bet if things keep going downward. Small-cap stocks usually do very well after recessions, but they will be struck during them. This is why I highly recommend sticking with staples and safe stocks.

Healthcare

Healthcare is another sector that is necessary at all times, which is why it does not fall nearly as hard as others. Consumer Staples fell 3% less than the S&P 500, while Healthcare fell 9% less. 

At WealthPress, we recommend diversifying your investments as always. I personally recommend investing in I bonds to have cash available in the future, as long as you won’t need that cash in the next five years. Then mix between consumer staples and healthcare to keep your money diverse and safe. 

Crypto

During recent recessions, Cryptocurrency has not experienced much of a hit. Cryptocurrency is diverse already. Even Bitcoin itself is dependent on so many factors across the globe that it won’t be affected simply by one country’s recession. 

The only issue is the speculative nature of crypto. Everyone needs to do their due diligence on the subject and determine whether they think the risk is worth the reward. If crypto investors are right, though, then crypto is a great way to protect your money with an alternative investment. 

Precious Metals (and Other Goods)

We have seen that goods like silver, wood, crops, and the like have reacted inversely to the general market. This means that while typical business stocks head down, the price of silver and crops are going up. 

So precious metals may be a great form of alternative investment that you can use to protect your money. Again, I recommend diversity and research to determine your best path and protect your money in these uncertain times. 

Overcome Obstacles With These Mindset Practices

Life is a never-ending ebb and flow of success and difficulties; if you’re alive, you’ll face adversity at some point. And if you don’t know how to deal with life’s inevitable disappointments, you’re doomed to fall short of your ambitions.

While challenges might become major roadblocks for some, others can thrive in the face of adversity. I decided to share some mindset practices that are very practical and can help you overcome obstacles.

Evaluate The Obstacle

It’s critical to assess the problem before attempting to overcome it. Understanding the challenges you face will enable you to conquer them more swiftly and effectively!

Maintain Your Commitment by Choosing Goals That Matter to You

Only when we stop trying do we actually fail, and if we keep moving forward, we will (eventually) succeed. As a result, it’s critical to set goals that are important to you and to stay focused on overcoming obstacles.

The Growth Mindset

The key to conquering any challenge is to have a growth attitude. This simply indicates that you have control over your lives and that no matter what happens to you, there will always be something wonderful waiting for you.

Only by viewing hurdles as challenges that teach you something new about yourself or scenarios that will better prepare you for future obstacles will you be able to overcome them and achieve your desired outcome.

When one has a growth mindset, one believes that with work and practice, one can change and progress through time. Thus, you’ll also believe that setbacks, rather than being failures, are temporary or simply part of the learning process.

Think of failure as a learning opportunity

Failure can be a good learning experience. If you consistently succeed, it could be an indication that you aren’t pushing yourself hard enough.

Develop a mindset that sees failure as a learning opportunity. You’ll find it simpler to take risks if you reframe failure.

Adopting this perspective will make you less anxious, which is essential for developing a winning attitude.

Put yourself in challenging new situations

You build confidence by overcoming problems, but you won’t be able to progress if you don’t put yourself in new tough situations because you think the conclusion won’t be positive. Create a list of intriguing tasks you’d like to overcome instead.

Gain Perspective

You gain confidence by overcoming challenges, but you won’t be able to advance if you don’t put yourself in new difficult situations because you believe the outcome will be negative. Instead, make a list of interesting chores you’d like to complete.

Perspective does not entail dissociation from the obstacle. It entails looking at it from a variety of angles while also evaluating other options.

Obstacles are what gives life its significance. You will continue to face challenges as long as you live on this planet.

It’s up to you to shift your viewpoints and approach challenges with the proper mindset. They either become stepping stones or stumbling blocks for you.


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How You Can Overcome Obstacles As A New Trader

Making trading mistakes makes it more difficult to succeed as a trader. Usually, in their early trading careers, new traders frequently confront issues and difficulties, and they can quickly become disappointed if things don’t go according to plan. 

You would have heard my name, Roger Scott, countless times in the trading circle. I also faced challenges in my beginning days but was able to scale through.

I have amassed a lot of experiences over the years and currently, I am the head trader at Wealthpress, a team of experts that provide educational trading services.

In this post, I will discuss five prevalent trading issues, as well as what new traders can do to overcome them.

1. Investing based on feelings 

The fate of your trading career will be determined by your trading psychology and ability to handle emotions. Some traders, no matter how intelligent, are unable to cope with the stress of day trading (the most typical manner that beginning traders approach trading) and fall prey to emotional decision-making.

Making rash judgments based on fear, disappointment, rage, extreme optimism, or greed is the most destructive thing you can do to your bottom line. 

Following your trading plan is the greatest method to keep your mentality under control. A trading strategy will assist you in remaining cool and staying within the parameters of your initial rationale.

2.  Excessive trading 

Overtrading is without a doubt one of the most typical trading blunders made by inexperienced traders. Some traders monitor 20 charts and 10 different currency pairs, and execute 100 trades each day.

They place a premium on number over quality, when it should be the other way around. Chill out a bit! 

Trading more than the market allows is not a good idea. Never chase trading possibilities in the market, and don’t be upset if you miss a five-star trade.

I can guarantee you that there would always be many of them.

3.  Learn how to deal with risk. 

When trading the global financial markets, risk management is one of the most important concepts to grasp. Unfortunately, new traders often overlook risk management fundamentals at first, until they learn the necessity of risk management the hard way – by blowing their accounts. 

For trading to be successful, risk management is essential. Any trading strategy should include it as a vital and well-thought-out component.

4. Fundamentals are vital

Fundamentals are tremendously essential in market movements, despite what technical pundits suggest. When fundamentals shift, important support and resistance levels are frequently broken, and trends can reverse when macroeconomic figures turn 180 degrees. To better understand price changes, learn the basics of the financial instruments you typically trade.

New traders should conduct study and learn the fundamentals. There are a plethora of books and online resources for new investors and traders.

5.  Uncertainty About What to Trade 

There’s a big disparity between what we study and what we really need to know as traders. For some, the challenge is becoming overwhelmed by the amount of knowledge available on Forex, trading tactics, psychology, risk management, and so on.

As a result, I feel that you should become an “expert in your own style”. There is no one trading style that is superior to the others. The person behind it is what makes the difference.

Five Financial Podcasts I’m Listening To Right Now (That Provide Real Value)

Achieving financial security and wellness is top on my list, if it is not on yours, then it may be because you are doing something wrong or you are not sure of what you are supposed to be doing. I have carefully crafted this post to enlighten my readers about financial podcasts and how they can be very beneficial to your financial security journey.

Personal finance can be a difficult and perplexing issue to grasp, especially if you’re still learning the ropes of money management. Making your first budget, constructing a debt-reduction strategy, saving for retirement, or buying a home can all be made easier with the help of an expert.

After listening to and dissecting podcasts about the budding NFT and blockchain movements, I thought now would be a good time to share some of the ones I’m currently listening to.

In recent times, the world has gone NFT crazy and some who are interested in learning or understanding better how the NFT space works may feel overwhelmed without the right guidance. One of the best moves I took to boost my knowledge on NFTs was to begin learning through financial podcasts.

From the comfort of your own home, car, or even the treadmill at the gym, finance podcasts may help you clarify your financial goals and establish a plan to achieve them. Consider adding finance podcasts to your collection if you’re searching for something new to listen to.

You might be asking, with hundreds of thousands of podcasts to pick from, which ones are the finest. Here are five finance podcasts I’m listening to now that will help your NFT journey.

The Edge of NFT Podcast

The Edge of NFT Podcast provides you not only the top 1% of what’s going on with NFTs right now but also what will last. They look at the nuts and bolts, as well as the commercial side, of how NFTs are transforming the way we connect with the things we care about. 

Bankless Podcast 

Hosted by Ryan and David, this podcast isn’t only about the ups and downs of crypto markets; it also covers other topics in the NFT and blockchain spaces that could lead to substantial changes in the Web’s architecture. 

Unchained Podcast

This podcast, hosted by Laura Shin, cuts through the hype to get to the heart of what’s going on in the crypto and blockchain industries. 

Zima Red Podcast 

In this intriguing podcast, venture capitalist Andrew Steinwold takes listeners on a tour of tomorrow, exploring virtual worlds, the metaverse, and everything NFTs.  

The Blockchain Show on Apple Podcast 

With its weekly entries that seek to demystify cryptocurrencies and distributed ledger technologies, the Blockchains Show is hosted by Ethan Kinderknecht.

The 5 financial podcasts I have listed above are just a few out of the vast amount of financial podcasts out there, it’s just about ensuring that you pick the right and relevant one.

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Perfect Timing: Is It Too Late To Enter The Stock Market? 

Among the many inquiries I get about personal finances, “Am I too old to start investing?” seems to be the most frequent. Regardless of your age, note that it is never too late to start investing. You might be able to put away extra funds that can be invested over the following several years (not months) and yield a profit. 

In addition, it is important to remember that investing is a personal journey. Do not invest because everyone is doing it. Furthermore, it is not a must that you invest in the same things people you know are investing in. 

If you’re willing to make money and take risks, investing in a complicated market is for you. Using a buy-and-hold approach, this risk may be considerably reduced. For example, after investing in the S&P 500 index for 15 years, the likelihood of losing money is 4.73 percent; this probability drops to 0 percent after 25 years.

However, I think that if you invest correctly, you will be able to both lower the risk and profit.

With minimal fees and partial shares, there has never been a better opportunity to get started in the stock market. If you haven’t started investing by the time you reach your 40s, 50s, or 60s, you should begin it immediately to increase the amount of money you will have when you retire.

The stock market is a no-no if you need the money in three years or less. If you can invest the money for as long as five or ten years, it’s okay, but you must control the risk. With a target-date retirement fund, you will only need money for the next 20 or 30 years, so it’s an excellent option. 

If are retiring in the next couple of years, you should consider mutual funds.

There are also fewer dangers as you become older, so you aren’t in an awful situation if the market falls shortly before you retire. This is a better option than attempting to choose a few equities on your own for the majority of investors.

Diversify your portfolio. Usually, a diversified retirement portfolio is the best option. Diversification ensures that you aren’t taking on too much risk in one spot at a given time. Hedge funds, real estate, equities, bonds, and annuities, as well as cryptocurrencies and NFTs, should all be part of a well-balanced portfolio.

“At what age should I stop investing in stocks?” is another question people ask me.

Investing in the stock market does not require you to stop at any certain age. Even though it is good to diversify your assets to less volatile asset classes like bonds or real estate as you get older, many people will continue to retain stock investments into their retirement and frequently keep such investments in place.

Career Tips: The 5 Decisions I’ve made To Trade Stocks with Confidence

Losing money when trading can be hard to watch. Believe me, I have been there. But the thing that usually takes the biggest hit when you lose your money is your confidence.

Unfortunately, there is no way to make the perfect trade every time. Some losses are unavoidable, and you should try to ensure it doesn’t hurt your confidence.

In fact, to help you improve your confidence, here are five decisions that I made to trade more confidently. 

Start Learning

One of the best decisions that I made to improve my confidence was that I started learning. I took on various courses about the market and how it works. I also educated myself on various companies and how well they are doing.

Only when you learn more about the market can you start making more confident decisions. Simply choosing the stocks that you like are not enough.

You have to understand the inherent intricacies of the market and see how you will be able to trade properly. While it does take some time to start trading with confidence, this is where you take that first step. 

I Didn’t Let False Confidence Fool Me

One of the most important decisions that I made to improve my confidence was to understand when I was getting full of myself. A series of good trades can really make you feel unstoppable. However, this unstoppable feeling can do much more harm than good in the long run. 

Think about it. Those series of incredible trades that you just made were pure luck and not a series of informed, skilled decisions. So what is real confidence?

Real confidence comes from good trading habits and discipline. These habits will allow you to better understand the market for what it is without getting too excited. 

Keeping my emotions in control

When talking about keeping my emotions in control, I’m not just talking about controlling the sadness I feel when losing. Rather, I’m also referring to the excitement that you feel when you start making a profit.

While good in moderation, that burst of excitement can usually stop you from seeing objective reality. And in your manic high, you might make a decision that could do some serious damage. 

There were plenty of times when the excitement of trade would blind me from the mistakes I’m making. So as long as you are keeping your emotions in check, you will be able to become a more confident trader. 

Started Following the Rules

In my earlier days of trading, there were times when I would start doing things “the Roger Scott way.” Unfortunately, one of the fastest ways to lose money in the market is by not following a set of rules.

Connect With Roger Scott on CrunchBase

Either you can craft your own trading plan over experience, or you can follow someone else’s. Regardless, you should have one when going in. 

Having faith in a system can also give you a lot of confidence when trading. And remember, the rules don’t have to stay the same. You can update how you trade or follow new guidelines when you think things are not working out.

Just remember, there is no “perfect” trading system. You will just have to find what is right for you. 

Started to diversify 

Finally, the biggest decision that I made was to start diversifying my portfolio. There are plenty more investing opportunities out there, so I started looking into options like Cryptocurrencies and even forex trading.

NFTs are a new market that you should look into if you want an asset that is with the times. 

Final Thoughts 

Trading is not easy, and no matter how long you spend in the market, it doesn’t get any easier. But you can become more confident as you trade and learn to make better trades. And here at Wealthpress, we lookout for the best stock options and trading tactics around. 

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