Stock market investing strategy: Using indexes to diversify

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Our columnist Ryan Paisey takes questions from retail investors on how to thrive at a time when they have never been more powerful in markets. Whether you've just downloaded Robinhood or have been trading for a few years, Ryan gives straightforward tips, drawn from his two decades of experience. He won't tell you what to trade, but how to trade to give yourself the edge.

We will be focusing on"investing" rather than"trading." You've said yourself that you are looking for ways to"invest in the stock market long term", so there is absolutely no point in us talking about day trading. This is excellent given that, in my opinion, churning the day trades when you first start out, is a road to ruin.

Many hedge funds will use the S&P500 performance as their benchmark when it comes to concluding if they've"outperformed the market" or not. Simply put, if you aren't matching the returns of the SPX, you are underperforming, and you'd be better off just sticking all your capital in a passive SPX tracker such as the SPDR S&P 500 ETF Trust .

It's not glamorous, and it won't make you those gains à la Dogecoin or some other random sh*tcoin but, more important than anything else at this stage, it gives you skin in the game. Nothing focuses the mind like your own cash at risk.

 

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Great to have the opportunity to ask the experts, sure that will be a valuable Q&A🙌

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