I’m constantly losing money on stock and cryptocurrency investments. And I paid for the advice that has given me the information that I’ve used to do this. For example, I was told to buy a specific stock and lost money the whole time when I invested in it. What can I do?
I can hear your frustration oozing through this question. And I get it. After all, what’s the point of paying for financial advice if you’re not going to make money on the guidance you receive?
But before you fire your financial advisor (and you may want to after reading this), it’s important to review reasonable expectations about what a financial advisor can guarantee, how to avoid scams and bad actors and what to expect when it comes to market losses and gains.
A financial advisor may help you understand the pros and cons of certain investment decisions.
What Professional Financial Advice Can Do for You
It’s important to note that no financial advisor can predict the markets. Sure, advisors can use charts and historical models to make educated guesses. But you should view most claims of guaranteed investment returns with a healthy dose of skepticism. Individual stocks and cryptocurrencies both come with a great deal of risk, no matter who’s telling you to buy them.
Instead, what an excellent holistic advisor can do is help you formulate a financial plan that weathers market downturns and tamps down on exposure to risky or speculative financial products.
That financial plan may include stocks that do, at times, lose money. It could even include cryptocurrency investments that only comprise a reasonable part of your portfolio (read: money you’re willing to lose). But your funds should be diversified and placed into