In this week’s episode of Financial Clarity for Doctors, Corey and Rachelle talk about the trendy topic of investing in an individual stock. Is investing in individual stock a good idea or a bad idea? What should you consider before purchasing individual stock?
We’ll walk through a couple of different thought processes to consider, like considering your resources. Think about your resources, and then think about the resources that other buyers/traders have. What others have or have access to that you may not?
· Knowledge, time, experience, tools, research, access to company management, boards, etc.
· High-frequency trading algorithms
Also, consider luck vs. skill. We often attribute positions that do well to skill and positions that do poorly to luck when we make the decision, instead of considering the skill that it may take to make the better decision.
Another thing we cover in talking about this process is your goals. What purpose are you investing for? Have you met, or are you on track to meet your other financial goals first?
There’s lots more in this episode, so you’ll want to make sure you listen to the whole thing!