In this article we'll be studying the market history and look at the average return you may expect from following indices like the S&P500 or the Nasdaq. I will also look at the size, duration, and occurrence of market corrections and crashes. We'll compare this to investing in individual stocks and expected returns.

If you have decided to invest in individual stocks, you must want to beat the market. Otherwhise, why not just invest in an index tracker? About 70% of actively managed stock funds fail to beat the market. What are your chances as an individual investor against these odds? We will look at what's needed for beating the market. Spoiler alert: it's all about having the right orientation.

Perhaps you've heard of it before: the 80/20 principle. It also goes by the name of the Pareto principle (after the Italian economist who discovered it) or the Power Law. You can find it everywhere around you. In this article we'll see how it can help us in investing in the stock market.