New Investors： Avoid THESE Mistakes and get MASSIVE RETURNS

Are you interested in investing into the

stock markets and creating a portfolio of

diverse stocks and ETFs, but you're too

scared that you're going to lose a lot of

money? Well, I have made a video just for

you to help guide you on your beginning

steps to investing into the stock market.

Now, when it comes to investing into the

stock market and the trading game or the

investing game, a lot of it is all about

risk management. You can't just suddenly

put all your money into penny stocks or

meme stocks or just one stock because

that's too dangerous. Okay, you might be

lucky and you might get it right, and then

you put all your money into one stock and

it goes up like 80% and then now you're

rich or you've nearly doubled your money.

But then the opposite can happen. You

could be unlucky and then lose 80% or even

the entire initial investment. So what you

really want to do is have a diverse

portfolio. And as you can see here, I've

made a very nice looking pie chart and

I've shown you allocations of how much of

your money you should allocate towards

different things to have a diverse stock

portfolio. Okay, so to make a diverse,

safe portfolio, I recommend putting 30% of

your money or your capital into ETFs. Now

ETF stands for exchange-traded funds, and

basically it's just like a big collection

of multiple companies. There's loads of

different ETFs, like the NASDAQ is an ETF,

the SPY is an ETF, the S&P 500 is just

500 of the biggest US companies all into—

rolled all into one share or one thing

that you can buy and sell. And it gives

you safety because instead of just putting

all your eggs into one stock or one

company, you're spreading it out across

500 companies. And there's loads of

different ETFs. Like you can get an ETF

for gold, an ETF for crypto, an ETF for

wood or lumber or coal or anything really,

anything you can think of. Solar,

medical, cars, anything really.

There's probably an ETF for it that

exists. So it's pretty safe to choose a

big, broad and wide ETF like the S&P 500

or just like Nasdaq tech stocks. Or you

can just get like an all-world ETF which

tracks basically the entire world stock

markets. So if you're feeling like you're

very optimistic about the world and you

think we're not going to turn into like an

apocalyptic dystopian nuclear wasteland,

then I don't really see how you can go

wrong with investing in an all-world ETF.

Because I mean, if the world does just go

down the toilet and turns into like a

fiery hellhole, yeah, your stocks are

going to go down. But then I think stocks

are going to be the least of your worries.

So all-world performance ETF could also be

a good idea. So for ETFs, yeah, I

definitely think you want to have a large

chunk of your capital invested into ETFs.

So next, I would recommend 30% into blue

chips. Now, a blue chip company is

something like Apple, Microsoft, Nike,

you know, those really big companies that

everyone knows about and they seem really

safe. Amazon, Microsoft, those really big,

huge companies that you probably know of,

they are known as blue chip stocks and

they're usually very safe. They've got

good growth, they've got good business

models, and they've got great products.

And it's very unlikely that those

companies are going to do badly unless

there's like a recession or like they've

done really badly. They've created like a

new product that was really bad, and they

had some really unfortunate news that kind

of just tanked their stock. But I feel

like in general, those things are kind of

rare events to happen. And if you go for

something like McDonald's, Burger King,

Microsoft, Apple, then they are very safe

stocks to put large amounts of money in,

and they usually pay some dividends.

Although companies like Microsoft and

Apple, they're still considered to be a

growth stock, so they don't really have

great dividends. If you want a dividend

portfolio, then this is not really going

to be focusing on dividends. We're going

to have some dividends in the defensive

part of this pie. Next in the pie, I'd

recommend you get some defensive stocks.

So I'd say maybe 20% allocated towards

defensive stocks. Now, what is a defensive

stock? Basically, when there are tough

times and it's like recession, the

market's all red and everything's going

down, everything's crashing. Usually the

things that crash the least, or maybe they

won't even crash and they actually go up

instead of crashing like everything else.

Those things would usually be defensive

stocks. Now, defensive stocks are usually

things like healthcare, military

contractors like Lockheed Martin or

Raytheon, also known as defensive stocks,

commodity stocks, gold mining stocks, any

kind of stock or company that mines metals

or materials or commodities out of the

ground. They're usually known as defensive

stocks or defensive plays. And it's a good

idea to have some of these in your

portfolio so that when the stock market

does crash because it's like in a bubble

and tech has just run up too much and,

you know, things looking bad, then usually

having some defensive stocks or dividend

stocks can be a good idea to help hedge

your portfolio against a potential market

crash. I remember last year when all the

tech stocks like Apple, Microsoft, Tesla,

they were all crashing down really hard.

But then the only stocks that were going

up were weird things like fertilizer and

manure companies and commodities and gold

mining stocks and healthcare stocks like

J&J, Johnson Johnson, Procter Gamble. You

know, these big stocks that don't really

make massive upward moves, but they

usually have nice dividends. And when

there are tough times, they are usually

very resilient and very strong stocks,

and they don't tend to crash massively

like other volatile stocks can do. And

then finally, I recommend 10% in

speculative stocks. Now, these speculative

stocks can have volatile, explosive growth

to the upside, but also have destructive

and terrible downside losses if you pick

the wrong one. So these can be penny

stocks, meme stocks, or just kind of like

trending stocks. They're usually new

companies, new startups that have like a

great idea and a great concept, but they

probably don't make any money. They're

probably actually losing money. And if

they seem like they're gonna make money or

they show signs they're gonna make money,

the stock can go up huge, like 40%, 50% in

a week or two. So it is very addictive to

get into these stocks because they move up

and down so much. And it's very dangerous

because you can get kind of hooked and

addicted on this. Maybe ETFs and blue

chips and defensives, not really much

action, not very exciting because they're

not going to make massive 40% upwards and

downwards moves, whereas the speculative

stocks can. They can go up like— I've seen

some speculative stocks go up like 100%

within a week. But yeah, very dangerous.

If you feel confident and you don't really

care about losing the money, then put like

a bunch of money into a speculative stock

and like watch the chart go up and down by

massive swings of like 60% and have a

heart attack. Maybe other speculative

stocks could be things like cryptocurrency

or new tech or maybe AI stuff. It doesn't

hurt to have a tiny bit into speculation,

but I wouldn't put too much in because it

can be very risky. Yeah, it can make you

very rich if you're like a genius or

you're extremely lucky. But it can also

cause you to lose almost all your money.

Now, there's also other types of trading

like options, calls and puts, and CFDs

and leveraged trading. Now, I wouldn't

really recommend these unless you really

know what you're doing. The leveraged

funds are very dangerous. I remember I was

trading CFDs back in the year of 2021,

and I put like £1,000 on some kind of— I

think it was like 10x leverage short of

the S&P 500. And yeah, that didn't do too

well. And I wiped out my entire day

trading account because I was trading

these CFDs with like 3x leverage,

10x leverage, 5x leverage. And it was very

scary. The money, the amounts of money in

my accounts would just fluctuate up and

down so massively until, well, one time I

just lost everything and I got margin

called and I didn't really want to put

more money into the account. So I was just

going to lose it. So I just let it close

on its own. And I never put any more money

into my day trading account ever again

because it's stupid and I hate leverage

trading. Okay, so now I'll show you and

tell you when you should buy a stock and

when you should not buy a stock.

Definitely don't buy a stock when you see

these peaks, like mountain peaks,

mountaintops. Now that is peak euphoria,

and it's a thing called FOMO, fear of

missing out. And a lot of people get

trapped into buying around here or around

here because they see the stock shooting

up and they think, oh my God, look at

this, it's just spiking up, it's going to

go up forever, I need to jump on now,

quick, quick, quick. And sure, you might

get like a 5% gain or maybe a 6% gain,

but it's probably going to come crashing

down very soon. If it's already gone up so

much, then you're kind of too late to jump

in at this point. So what you want to do

is you want to get these horizontal lines

and you want to create zones. You want to

create support lines and lines of

resistance. So we can kind of see there's

a support line here by lining up these

other bottoms. Like, you see these bottom

dips where they all kind of line up

nicely? It's kind of funny how they all

line up magically on the same line, but I

guess it is what it is. And then you want

to draw these horizontal lines like this,

and then you can see, uh, yeah, I can see

another line here. This can be like a

resistance. So if the stock's here, then

obviously that's a support and it's got a

high chance of bouncing off it like it

did. And then this is the resistance. So

to get higher, it has to break through

this resistance. And once it does break

through the resistance, then this line

becomes a new support line that it could

potentially bounce off of in the future.

Now we can easily see some other lines,

like here is a clear line of support and

resistance. And also finally, we've got

the upper bands up here, which would be

like maybe around there. So we can

currently see that this is the Tesla

stock, and it's at the moment it's done

like a massive V-shaped recovery here,

and now it's kind of like bouncing in

between this corridor. Now 2 things could

happen. It could keep going up and then

reject off of this resistance line and

then come back down. I'll just draw a line

for you. So it could hit this line and

then come back down like that, and then

bounce off this line and then have like

a, a relief rally and then bounce back up.

Now if it bounces back up, there's a

potential it could break through this

previous line of resistance, and it could

break through and then enter into the next

level, which is like this upper level.

And then it will enter into this new level

and create new resistance and support

lines and follow within those lines. So

let's say you really love Tesla and you

want to invest in it. Now, when do you

want to invest in this stock? Obviously,

you don't want to invest at this point or

this point or this point. You want to

invest either like this point Well,

definitely at this point was a great point

to invest into Tesla. You had a great

opportunity here because look, it's just

gone up and up and up. So here, here, and

here are great points to start investing.

Also, I wouldn't put all your money— let's

say you want to say you want to have

$5,000 in Tesla. Don't put all the— don't

put all of the $5,000 into Tesla all at

once. No, because that would be like

saying, uh, yeah, I'm gonna put all my

money into Tesla here and it's definitely

going to go up, because you might be wrong

and it might go down, and then your entire

position is just going to be dragged down

by like 20% if it ever does come crashing

down. So what you want to do is you want

to invest into it bit by bit. It's called

the drip investment strategy. So you want

to drip in your money every month, maybe.

Let's say, depends how much time you've

got. You've got 2 years, maybe you can put

in like $200 every month on an automatic

recurring order into Tesla, and then it'll

just automatically buy $200 of Tesla for

you each month. And that way you spread

out your risk. So let's say you started

investing in Tesla here and you put all

your $5,000 in. Well, you would now have

lost nearly half of that because look how

much has gone down. But if you put the

$5,000 into Tesla bit by bit, like $200

here, $200 here, $200 here, $200 here,

$200 here, your average cost basis would

be much lower and you wouldn't have such a

massive loss. You have like a tiny loss

because if you started around here and now

Tesla's down there, then yeah, you're

still gonna have a loss, but it's not

going to be as catastrophic or massive as

it would have been if you put the entire

$5,000 right here at the top. You really

need to avoid buying stuff when it's right

at the top, and oppositely, inversely,

you need to avoid selling when things are

down there. So when you buy a stock, you

might be scared and you might think, oh my

God, the stock's crashing, I'm gonna lose

all my money, I need to sell now. And

you're likely to sell right at the bottom

right here. And by the time you've sold,

that's probably the time it's bottomed

because everyone else is selling as well

because we're thinking the same as you.

And that's when the stock is going to

bounce back. And then imagine you just

sold all your stock and you've got like a

massive 40% loss, and then just after you

sold, it started bouncing back up and now

you would have lost even more money if you

jumped back in right now. I mean, you

wouldn't have lost so much money if you

didn't sell here and you just kept on

holding it. So the trick is you want to

buy low and sell high, not buy high and

sell low. Really try to avoid those

emotional feelings of wanting to buy when

it's at the top and wanting to sell when

it's at the bottom. If you can find a way

to flip that round and kind of like

emotionally trick your brain into wanting

to buy when this, this is like really

looking bad. The phrase is when there's

blood in the streets, there's greed in the

sheets, or something like that. So if you

flip it around and buy when it's down

there when everyone's scared, then you'll

do well. And maybe sell when it's up here,

and then you'll do well as well. So

definitely don't buy here and sell there

because then you'll just lose all your