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Ramit Sethi: Stop 'Gambling' on Stocks -How To Invest Instead


Published on 2025-03-12 23:02:20 - GOBankingRates
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  • Everyday, headlines in the financial space are dominated by stock market news, with certain individual stocks stealing the spotlight. Take Nvidia, for example. One day you might hear about how it's skyrocketing beyond expectation,

Ramit Sethi, a personal finance expert, advises against gambling on individual stocks and instead promotes a strategy of broad diversification for long-term investment success. In his discussion, Sethi criticizes the common practice of picking stocks based on tips or trends, which he likens to gambling due to its high risk and unpredictability. He recommends investing in low-cost index funds that track the overall market, like the S&P 500, to spread out risk and benefit from the market's general upward trend over time. Sethi emphasizes the importance of understanding one's risk tolerance, setting clear financial goals, and automating investments to avoid emotional decision-making. He also highlights the psychological aspect of investing, urging investors to focus on long-term gains rather than short-term market fluctuations, and to avoid the pitfalls of trying to time the market or chasing after the latest investment fads.

Read the Full GOBankingRates Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/ramit-sethi-stop-gambling-on-stocks-how-to-invest-instead/ar-AA1ALlz1 ]