Why I Stopped Picking Stocks and Switched to Index Funds

Why I Stopped Picking Stocks and Switched to Index Funds

Why I Stopped Picking Stocks and Switched to Index Funds

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When I first started investing, I thought stock picking was how the “smart people” built wealth. It seemed like everyone on YouTube or Reddit had that one winning stock that changed their life. Naturally, I wanted that too. So I dove in headfirst—reading earnings reports, watching CNBC, and buying shares of companies I barely understood. It didn’t take long for me to realize I was more stressed than successful.

The First Loss That Made Me Pause

I still remember the day I lost 30% of my investment in a “can’t-miss” electric vehicle stock. It wasn’t just about the money—it was the mental drain. I had checked that stock price ten times a day. My mood depended on whether it was green or red.

Chasing the Market Took Over My Life

Every night, I’d scroll through Reddit's r/stocks and binge-watch earnings breakdowns. I thought I was being diligent, but in reality, I was trapped in a cycle of anxiety. The more information I consumed, the less confident I felt. And ironically, the more trades I made, the worse my returns became.

Discovering Index Funds

One day, I stumbled on a post by someone who said they stopped stock picking and just bought VTI. They claimed their mental health improved and their returns were more consistent. I was skeptical at first, but decided to test it out with a small portion of my portfolio.

Over the next year, while my hand-picked stocks bounced all over the place, my index fund investments quietly grew. I didn’t need to babysit them. I didn’t panic every time the Fed made a speech. And that, to me, was revolutionary.

Here’s What I Invest In Now

  • VTI: Total US Stock Market (60%)
  • VXUS: International Stock Exposure (20%)
  • BND: US Bond Market (20%)

I set automatic monthly contributions and check the performance once a quarter. It’s boring. And that’s exactly why it works.

What Changed After the Switch

  • I stopped obsessing over financial news.
  • I stopped trying to “beat the market.”
  • I started sleeping better and focusing on real life.

Did I Miss Out on Big Winners?

Sure. I didn’t buy Nvidia in 2023, and I wasn’t in on Tesla in 2020. But I also didn’t buy Peloton at the top. Or hold crypto until it crashed. Index funds helped me avoid the extremes—both good and bad—and instead ride the average, which historically, is enough to build wealth.

Friends Still Ask Me, “Aren’t Index Funds Too Safe?”

I get this a lot. People assume safety means lower returns. But when you look at the long-term growth of the S&P 500 or total market index funds, you realize that the “slow” approach often wins the race—especially when it’s automated and consistent.

The Real Win: Peace of Mind

I don’t worry about missing the next hot stock anymore. I don’t track charts or earnings calendars. I spend that time with family, reading, or even just relaxing. Ironically, by investing less emotionally, I’ve grown more financially.

Final Thoughts

If you’re overwhelmed by investing and feel like you're constantly behind, take a breath. Consider index funds. You don’t have to outsmart the market to build wealth. Sometimes, simplicity is the smartest move of all.

Label: index investing, stock picking fatigue, ETF strategy
Permalink: https://www.1-enter.com/2025/04/why-i-stopped-picking-stocks.html
Meta Description: From stress and inconsistency to peace and performance—how I learned that index funds are the best way for most people to invest long term.

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