The exception to this rule is if you are offered a 401-k from your employer or can start a Roth IRA you have to be crazy not to take advantage of this. That’s because 10% of your contribution is tax deferred. So in a worst case scenario (like now) your not going to have much when you retire but you didn’t have to pay tax on 10% of your income. Some employers will contribute to your 401-k and that’s better still.
Otherwise, this is a game for fools! Companies issue millions of shares, and you have no control over when and if they do this. Anytime they want to raise money, bingo, they can dilute the outstanding share amounts. Where does that leave you? Nowhere!
All companies go through good times and bad times. When Trump was in office the crude oil price was in the gutter and these companies were getting crushed. Now their making a fortune. If you don’t have time to do constant research, or have a good tarot card reader, you’re and underdog.
What about day trading? When you buy a stock, you buy at the offer price. When you sell it’s at the bid price. Already you’ve lost money! The offer price is always higher than the bid price. If a hedge fund can return 7% annually that’s great! And they spend all day glued to the computer looking at charts. Trying to figure out levels of resistance, levels of support, 50- and 200-day moving averages etc. Does this sound like you?