How to lose in a rising market. The individual stock-picking experience

Since hitting bottom in March 2020, the US market has had the best return in over 70 years! It is up over 70% in a little over one year!

Compounding at that rate of growth, money doubles in less than two years!  $10,000 grows to over $2 million in one decade!

It has never been easier to make money in the stock market. To do so, investors simply needed to hold the entire US market by owning an exchange-traded fund (ETF) that tracks it and avoid the temptation to pick individual stocks.


About 1/2 of all stocks are down by more than 10% and about 10% of stocks are down over 50%! Read that again – there are no misprints in the previous sentence.

The Monday Morning method strongly recommends against picking individual stocks. A high school student could develop the six habits which we encourage.

The number of investors who can beat the market over the course of a market cycle (peak to trough to peak) is much closer to 0% than it is to 5%. Read that again – there are no misprints in the previous sentence.

The most reliable way to “beat” the market, the most commonly used way, is to celebrate wins and forget losses. Great cocktail party bragging rights! Been there, done that. Most of us have.

Don’t do it. Practice the Monday Morning habits. There are only six. Concise, evidence-based, safe and effective.


Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me