The Predatory Gamification of Investing

Поделиться
HTML-код
  • Опубликовано: 21 ноя 2024

Комментарии • 676

  • @HowMoneyWorks
    @HowMoneyWorks  Год назад +77

    The first 100 people to use code MONEY with the link below will get 20% off of Incogni: incogni.com/MONEY

    • @novadestroyerthesundestroy890
      @novadestroyerthesundestroy890 Год назад +3

      Okay, as a WSB member, when I trade options, I'm not looking for good investments. I am looking for my fix

    • @tjakkobosma5872
      @tjakkobosma5872 Год назад +3

      Are you talking so fast for retention purposes because it is really really fast and kinda annoying

    • @dps8629
      @dps8629 Год назад +5

      Your advert seems suspect af.

    • @smeggeruk
      @smeggeruk Год назад +2

      @@tjakkobosma5872 Click the gear icon and set playback speed to 0.75%...it sounds a little drawn out but it'll be a bit slower (and probably more annoying) for you 🙂

    • @smeggeruk
      @smeggeruk Год назад

      @@stillpaints someone hasn't watched the video!
      There is no such thing as commission free...when you pay nothing for a product, you ARE the product being profited from

  • @zakkabuuz
    @zakkabuuz Год назад +1153

    I agree with everything said here except that I absolutely did fix a sink after watching a plumber explain how to do so on RUclips.

    • @devinkipp4344
      @devinkipp4344 Год назад +131

      Yeah some people are weird. A lot of things are really easy to do and could save you hundreds in labor.

    • @Re_Doubt
      @Re_Doubt Год назад +93

      Agree, thought that was a bizarre comment in the video.
      People attempting to save money hiring specialists and learning to do things themselves is one of the few economic counter-pressures to increasing labor rates for those disciplines.
      It can be miserable and you can make big mistakes, but encouraging individual initiative in things like plumbing, electrical work and carpentry is important.

    • @rewindoflow
      @rewindoflow Год назад +30

      Yeah, I think the point was more about trying out every new trick in the book. A better analogy here might be more like installing a wet-room with some fancy new piece of hardware technology and re-plumbing your bathroom all by yourself because your bathroom sink broke.
      Of course, for some pople, that's absolutely an option (pun not intended), but for most it's not really a good idea.

    • @stephenchurch1784
      @stephenchurch1784 Год назад +31

      Fixing a sink does not make you a plumber though. His point was that you can learn the basics with RUclips tutorials but you need a better education or a professional for dealing with more complex things. Setting up a retirement account, budgeting, and investing into that retirement account is pretty straightforward while learning to use options in a way that doesn't open you up to crippling financial loss is not something that RUclips videos are well suited to

    • @badrequest5596
      @badrequest5596 Год назад +17

      Well that depends. I think he was refering to more complex plumbing improvements. Fixing a sink is one thing. Fixing a blocked pipe, for example, can be different sometimes. A few years ago we had one of the main pipes blocked, we tried clearing it with no success. I said lets get a plumber but my room mate was stubborn and got a contraption to reach into the pipe and try to break up the blockage. Problem was it too got stuck at a 90° turn and now we had 2 problems. The second one being far worse since it was so deep into the pipe, if it didnt get unstuck the only way to get it out would be to break open half the kitchen floor to get to it, which would cost thousands. After that she relented and we called a plumber and he did manage to get it out, although not without a lot of effort. Sometimes its best to leave some things to professionals.

  • @IronicCliche
    @IronicCliche Год назад +483

    "Options are a risk management tool". Thank you. This is something I wish every investor, wither high risk or low risk would understand.

    • @joefer5360
      @joefer5360 Год назад +43

      The only people making any money with options are those who own the underlying blue chip stock AND a CASH STACK, for the purpose of selling covered calls, puts and then buying them back from the gambling degen Americans when they are down fifty percent on their position.
      The house always wins.

    • @IronicCliche
      @IronicCliche Год назад +16

      @@joefer5360 That is correct, a regular investor makes money off the underlining long or short position. The option is so you don't go broke if your position goes too far out of the money.

    • @KennyZ1615
      @KennyZ1615 Год назад

      ​@@joefer5360nailed it!

    • @James-ch8qm
      @James-ch8qm Год назад

      I sell options contracts coz I wanna get rid of share and am greedy

    • @VideoGameStarChannelSupreme
      @VideoGameStarChannelSupreme Год назад +1

      This is something I realized as well, that options are a tool more made to protect people with huge amounts of capital already in place (hence why they buy or sell 100 shares).
      Let's take an example and let's say you invested in AAPL (Apple) back in 2003 when it was in rock bottom. Since Apple has done stock splits, let's multiply the shown price by 4 and say you got an average price of $1 and held 500 shares. As it went up and you realized that the market was starting to enter the bubble phase of investing, you start to sell some shares (about 10 or 20) periodically and have an average exit price of $24, but you don't want to abandon Apple completely because you believe in the company and/or want to own the company. Options here can help you lower some of the risk, especially if you're writing the options, since theoretically you get the premium and keep you position the same if it expires out of the money.
      Since the market is in an uptrend but the bubble might burst, you can take a risk and sell a few calls dated a month in advance with a strike price of $30. Since Apple never reached that price by the time it was going to expire, you pocket the entire premium, but if Apple ever were to close at $30 or above, the option is exercised and you exit the position with a win anyways, since you were holding those shares since they were worth $1.
      As for puts, I find them more useful for when stocks are trading flatly or in an uptrend. After the crash, you buy some shares but keep some cash just in case. Additionally, you can use a put to guarantee a purchase price for yourself that is suitable or pocket the premium if it expires worthless. You can improve your returns especially in momentary downturns and you still get shares to keep infinitely if you end up assigned and purchasing shares.
      Meanwhile, I realized that while buying and selling calls that were already written and on market do have a lower cost to entry, you oftentimes keep nothing if it expires worthless. You lose the premium and valuable cash.
      Granted, all of these strategies might not provide the best returns you can have, but like the OP said, they are meant to help you manage risk, especially if you have a lot of money on the market. Some people get lucky, but I'm not sure if it's just better to buy a lottery ticket instead of the farfetched promise of an option going up 1000% because RUclipsrs keep saying "the end is coming, buy puts now".

  • @maxxon99
    @maxxon99 Год назад +278

    The banks were pushing this $50/month investment plan really aggressively some years ago.
    I quickly calculated the best investment I could make was using the money to pay off my debts instead.

    • @shawniscoolerthanyou
      @shawniscoolerthanyou Год назад +72

      For sure. If you have a loan at 6%, you get a guaranteed 6% return by paying it off.

    • @smithydll
      @smithydll Год назад +38

      There is no capital gains tax on paying off debt.

    • @chaoscapricorn13
      @chaoscapricorn13 Год назад

      That is me currently, crazy how that 50 extra bucks do to someone's debt

    • @sergiowinter5383
      @sergiowinter5383 9 месяцев назад

      But after paying all your debt you don't have 50 bucks left? Review your expenses

  • @m136dalie
    @m136dalie Год назад +313

    There is so much bot spam in this comment section. RUclips really needs to do something about this.

    • @MrMarinus18
      @MrMarinus18 Год назад +21

      I don't know, giving youtube more tools of social control is not something I like. I actually like the idea of a lot of social media becoming dysfunctional as it means people will do more face to face interaction.

    • @millerrepin4452
      @millerrepin4452 Год назад +18

      why hello I am here to talk to you about extending your cars warrantee

    • @theorangecandle
      @theorangecandle Год назад +11

      Why hello, I was struggling to make ends meet financially but now I make $10,000 every month thanks to simple investing advice. Make money work for you. I couldn't have done it without help from Mr Brown.

    • @MrMarinus18
      @MrMarinus18 Год назад +5

      @@theorangecandle That's the thing though. Investment like that is very risky so you mostly got lucky. Most people lose more money than they gain via unwise investing so it's much better to just not try. If you are going to invest you have to really commit to it and put in a lot of time and energy and the gamefication makes it far too casual.
      Human beings are notoriously bad at risk assessment and so for every one person that makes it doing high risk investments there are 3 that don't.
      Not only that but a lot of casual investors are the cause of all the dumb money flowing around. They invest their money into shiny vaporware that leads to nothing or companies that actively make the world worse for everyone but themselves.

    • @yagomizuma2275
      @yagomizuma2275 Год назад +11

      @@MrMarinus18 satire

  • @ChrisDeJack
    @ChrisDeJack Год назад +147

    Note that Robinhood can charge 0$ fee, not only because of automation but by selling their user data too.

    • @nicolala7132
      @nicolala7132 Год назад +6

      Seeing Robinhood reminded me or r/WallStreetBets

  • @ThioJoe
    @ThioJoe Год назад +1052

    Have your investments set on auto withdrawal and never look at the market. Has been my winning strategy so far 😂

    • @ThePowerRanger
      @ThePowerRanger Год назад +49

      Didn't expect to see you here.

    • @renaissauceman
      @renaissauceman Год назад +94

      Unless ur a quant or have 12 hours a day to dedicate to markets and twitter alpha, fr, just do dis

    • @armour2king
      @armour2king Год назад +3

      How did you set when to withdraw? How big of a win?

    • @renaissauceman
      @renaissauceman Год назад

      @@armour2king it’s called a take profit and you should do it any time you feel like a money making genius because youre running out of other “money making geniuses” to dump on. There is no specific number or % you do this at. I like looking at where price has LOCALLY topped out in the past and I set it a few percent under there. If you’re in price exploration, you’re gambling but there’s usually great gains there. Unless it’s a fake out. Have fun!

    • @rumplstiltztinkerstein
      @rumplstiltztinkerstein Год назад +93

      @@armour2king He clearly does the winners technique, withdraw only when there is 1000% gains or 100% loss

  • @anro_gaming
    @anro_gaming Год назад +37

    Investing is one thing, trading is another different thing. My investment strategy is buy and forget.

  • @FinancialShinanigan
    @FinancialShinanigan Год назад +389

    Investing is super fun!
    Explaining to my wife where our daughter's college fund went...not so much

    • @Lonovavir
      @Lonovavir Год назад +35

      🤣😂🤣😅. May the odds be in your favor.

    • @thomasa5619
      @thomasa5619 Год назад +8

      Does the wife understand zero day to expiry OTM options yet?

    • @CountingStars333
      @CountingStars333 Год назад +5

      *wife's sons college fund.

    • @PoochieCollins
      @PoochieCollins Год назад

      Hopefully your wife's boyfriend will be able to help build it back.

  • @8G00SE8
    @8G00SE8 Год назад +383

    10:42 is a massive point, you need excess cash to invest, not cash in general. You shouldn't really be investing without thousands or even tens of thousands of cash ready to cover any liabilities in your life, and you certainly shouldn't have debt.

    • @8G00SE8
      @8G00SE8 Год назад +24

      @@garethbaus5471 I don't believe debt includes mortgages, that's why we call them mortgages instead of loans or debt. If you have 6%+ interest on credit cards or car loans and you don't have a solid 10-20k in cash to cover all liabilities known or unknown, you shouldn't be thinking the shares you are buying will still be there in a few years.

    • @8G00SE8
      @8G00SE8 Год назад +10

      @@garethbaus5471 It's not that you don't have debt, it's what most people are talking about when on the subject of bad debt or good debt, as in I don't believe someone is dangerously in debt if they have 300k mortage with a solid job, but they are dangerously in debt with any form of loan other than that. The key reason you avoid a 3.5% car loan isn't the 3.5% interest rate, it's the catastrophic loss of value in purchasing a new car. The 3.5% you paid per year is probably insignificant compared to the amount you will lose when you sell it. Unless you paid for a beater car on finance which is still an odd choice. A mortgage is not usually included by most people as you would be paying rent without it and the house can possibly grow in value over time, unlike a car.

    • @joefer5360
      @joefer5360 Год назад +4

      I disagree. Principles are what are needed. EVERYONE can afford to lose a portion of their incomes. It's understanding what that number is to you. The effects of compounding interest are a tool that can take a small wage laborer out of poverty if they understand risk.
      I tell my relatives who do not want risk and have preconceived notions of what I call, "fear the 80s stockbroker bro" syndrome; to simply open these new fangled broker apps and cut out the middleman (commercial banks). Buy into $100 fractional share of US BOND ETF and it's just a glorified savings account. This is also why our currency supply should be based on the backing of commodities and not the promise of a federal government that issues a national bank charter for those who do not wish to trust the federal government with their commodity money.

    • @8G00SE8
      @8G00SE8 Год назад +9

      @@joefer5360 I'm from the firm belief that everyone needs an emergency fund and to get rid of debt that has a higher interest rate taking from them than anything they could hope to earn in a mutual fund prior to investing. But you are right that small amounts add up.

    • @joefer5360
      @joefer5360 Год назад

      @@8G00SE8 Agreed. High interest debt tied into no appreciating assets, nor having an emergency fund relative to your lifestyle is too high risk and not worth the possible reward to risk.
      Once that debt goes to a smaller amount more near to zero - it's the moment to start utilizing at the minimum a 50/50 US BOND ETF/HIGH YIELD SAVINGS. No Margin.
      Especially in today's markets with the yields now being at near four to six percent.

  • @Isabella_jovita
    @Isabella_jovita Год назад +706

    I'm not in any way joking when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it, Investing is a long-term game, so I try to focus on the long term.

    • @josephhughes9583
      @josephhughes9583 Год назад +3

      I cannot focus on the long run when I ought to be retiring in 4years, you see l've got good companies in my portfolio and a good amount invested, but my profit has been stalling, does it mean this recession/ unstable market doesn't provide any calculated risk opportunities to make profit?

    • @rebeccamoore8366
      @rebeccamoore8366 Год назад +1

      There are a lot of strategies to make tongue wetting profit especially in a down market, but such sophisticated trades can only be carried out by proper market experts

    • @donalddavis4387
      @donalddavis4387 Год назад

      I completely agree, I have been consistent with my profit regardless of the market conditions, I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2020 this time with guidance from an investment adviser that was recommended by a popular economist on a popular forum, long story short, its been years now and I've gained over $850k following guidance from my investment adviser.

    • @donalddavis4387
      @donalddavis4387 Год назад

      If that is the case, it would be an innovative suggestion to look out for Financial Advisors like Olivia Maria Lucas who can help shape up your portfolio. Trying times are ahead, and good personal financial management will be vital to weather the storm.

    • @Marisol_Ximena
      @Marisol_Ximena Год назад

      Thank you for this tip. it was easy to find your coach. and I conducted thorough research on her credentials before scheduling a call with her.Based on her résumé, Olivia appears to possess a high level of proficiency, and I am grateful for the opportunity to speak with her

  • @andrews6882
    @andrews6882 Год назад +109

    “Time in the market beats timing the market”

    • @joefer5360
      @joefer5360 Год назад +3

      Time in the market with blue chips and leveraging to the tits into US BOND ETFs.

    • @chadthundercock646
      @chadthundercock646 Год назад +2

      Not if the timing is good. "Timing is everything."

  • @jacobleukus6930
    @jacobleukus6930 Год назад +22

    10:01 when I joined the Army it wasn't as big as when I got out. By the time I got out it felt like everyone had Robin Hood and would talk about day trading constantly. I used to say exactly what you said. People were either investing way too much with minimal knowledge or like $100 with minimal knowledge. Of course nobody likes to hear the truth when they’re having “fun”

  • @myhops
    @myhops Год назад +8

    It's actually wild that people jump into options without basic knowledge of them. Options are extremely risky and you will 100% lose money if you don't know what you're doing.

  • @michaelw6277
    @michaelw6277 11 месяцев назад +4

    I have it both ways. 99% of my investments are in boring index funds and equity in my home with less than 1% in my “couch cushion” gambling fund. The key is to not get a big head when your gambling fund is flying high and thinking that it’s a good idea to raid your index funds seeking bigger gains.

  • @skateata1
    @skateata1 8 месяцев назад +3

    I love that you included patrick boyle. I love his channel.

  • @bobbymainz1160
    @bobbymainz1160 Год назад +288

    Dividends are a great thing, but they’re only really effective for passive income when you either have somewheres over 20 to 25 thousand shares of a high yielding stock. Meaning you likely need to have a few hundred thousand if not more invested in it. Re-investing dividends back into the same stock certainly does snowball with compound interest, but you only really start seeing it after 20 years of never stopping and likely needing to add additional money of your own with it….so it’ll be time consuming and costly. The way I see it if you have a million dollars at some point, that’d be enough to create a portfolio that would pay you between 50 to 70 thousand in dividend income

    • @oneiljerry9460
      @oneiljerry9460 Год назад +16

      Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. There’s only one reason, and it is a place to park your capital to pay you a small return with large established businesses because you aren’t trying to grow your portfolio anymore, but to live off of it. It’s not much different from bond investing.

    • @johnlennon232
      @johnlennon232 Год назад +2

      @Zahair O'Brian The market's uncertainty is one of the reasons I have my daily investment decisions guided by an investment advisor, as their skill set is built around going long and also shorting the market to maximize returns, both employing profit-oriented strategy and laying off risk as a hedge against inevitable downtrends, and when combined with exclusive analysis, it's nearly impossible not to outperform. Since the 2020 pandemic, I've made more than $1.5 million after subsequent investments thus far.

    • @kimyoung8414
      @kimyoung8414 Год назад +2

      @@johnlennon232 Admittedly we are only one information away from amassing wealth, I know many people who made their fortunes from the Dotcom crash as well as the 08' crash and have researched similar opportunities in this current market, could this person who guides you help?

    • @johnlennon232
      @johnlennon232 Год назад +2

      @@kimyoung8414 Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. "HEATHER ANN CHRISTENSEN" is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.

    • @kimyoung8414
      @kimyoung8414 Год назад +1

      @@johnlennon232 This is useful information; I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.

  • @shirleneunglesbee1423
    @shirleneunglesbee1423 Год назад +335

    I have more money in NVIDIA, Alphabet, Amazon and Microsoft than any other single invstment in my entire life. Translation: I’m not leaving.$120k in profit made in Q2 2023 thus far.

    • @glenbert1396
      @glenbert1396 Год назад +4

      Just bought more of those few days back!!

    • @blaquopaque
      @blaquopaque Год назад +4

      @@glenbert1396 Good to remind people now; You buy out of fear and sell out of greed, or just see it through for the long haul. It's simple, but many people forget. Time in the market beats market timing. Some people think they can view investiing as a get-rich-quick scheme, but it doesn't quite work that way.

    • @gagnepaingilly
      @gagnepaingilly Год назад +6

      I agree. Based on a first-hand encounter with a CFP 'JILL MARIE CARROLL' I have $385,000 in a well-diversified portfolio that has grown 3x compounded. Taking risks does not necessarily equate to money, but you also have to be informed, be patient and come back with good hands

    • @gagnepaingilly
      @gagnepaingilly Год назад +3

      You can louok her fuull name up and coneect with her on her web paige

    • @turtleanton6539
      @turtleanton6539 11 месяцев назад +2

      Bots

  • @Unmentioned77
    @Unmentioned77 Год назад +27

    I made 20% on Robinhood in 2021, decided to pull out in dec 2021 completely to make my taxes simpler in 2022. So glad i did. Bought my first house in 2022 as well. Now I have debt related to improving the house and definitely not getting back into the market until I get everything but the mortgage paid off. Why did I buy a house in 2022? Because my mortgage is cheaper than my rent was and I quadrupled my floor space.

  • @TheThend1234
    @TheThend1234 Год назад +13

    u should make one about the whole sports betting plague they are manufacturing, as a college student I see it first hand

  • @bmz7900
    @bmz7900 Год назад +5

    I JUST subscribed as a result of this video! I uttered "YES" and "THANK YOU" out-loud numerous times in response to comments. Excellent synopsis.

  • @ultimaIXultima
    @ultimaIXultima Год назад +29

    "You know, the ones that the boomers with real money use"
    *insert Patrick Boyle pic*
    hahaha

    • @skateata1
      @skateata1 8 месяцев назад +2

      I love Patrick's Boyles channel. He has such good dry humor and good quality.

  • @kitkat3501
    @kitkat3501 Год назад +4

    I'm so glad to see this is now being discussed. Awesome work

  • @rcrazy21
    @rcrazy21 Год назад +40

    I like your option explanation. The only time I recommend options to anyone is if they are able to sell covered calls DEEP OTM. This way there's little chance of them hitting the strike while also gaining a little money off the stock that they wouldn't receive otherwise.

    • @waterbird2686
      @waterbird2686 Год назад +5

      Theta gang wins again

    • @ryugurena3327
      @ryugurena3327 Год назад +3

      Pennies in front of a steamroller...

    • @cristianandrei5462
      @cristianandrei5462 Год назад +2

      You can go OTM closer to the underling, 0.3, 0.4 Delta nothing wrong with that. What is the basis of this strategy is that you should do it when you believe that possible gains lost when the stock probably of going over the option strike are lower than the option premium, of course over a large number of trades. It doesn't matter where the strike price of the option is compared to the underling, what it matters is that you have a statistical avantage in trading this way.

    • @KennyZ1615
      @KennyZ1615 Год назад +1

      Deep OTM covered calls on $SPY. You nailed it.

  • @sedatmehmed4371
    @sedatmehmed4371 Год назад +27

    I swear this is one of the best financial youtube channels, giving realistic picture of everything. Investing especially in large index funds is basically an advanced form of saving money. And if you have credit card debt, car loan, late bills etc it doesn't really make sense to put the cash away in a savings account instead of paying off your debt, does it? The same with investing. Pay off your bad debt, fill your emergency fund (this can be parallelized with small investing contributions but your priority is the emergency fund) and then start investing. Of course it is okay to pay mortgage for your house, especially if it is on low interest rate instead of paying it off fully and then investing. But investing is really something you do after you have financial stability. Investing is not something that will make you rich overnight. It is a way of leveraging the growth of the economy to enhance your savings over long period of time

    • @pmc_
      @pmc_ Год назад +2

      It does make sense to put the cash into a savings account until you have a sufficient emergency fund

    • @armanimartinez8105
      @armanimartinez8105 10 месяцев назад

      @@pmc_hahahah nooooooooo
      In this economy
      Nooooooooooooo
      Get a book and you’ll see
      Banks are your enemy.

    • @armanimartinez8105
      @armanimartinez8105 10 месяцев назад

      Yeah if you are a SUCKER

  • @watchaporia
    @watchaporia Год назад +58

    That Patrick Boyle cameo is amazing 😂😂

  • @elton8135
    @elton8135 Год назад +7

    god i've never been this early
    *say something nice*
    you look good mr works
    *nailed it*

  • @esther.74
    @esther.74 Год назад +1239

    I've been purchasing stocks since the beginning of the year, but nothing has changed. However, I've been reading articles about people who are still in the same market who have made over $350,000 in just a few months. What am I doing incorrectly?

    • @Adukwulukman859
      @Adukwulukman859 Год назад +5

      The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.

    • @talented009
      @talented009 Год назад

      @@ThomasHeintz wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.

    • @DarleneMurphy774
      @DarleneMurphy774 Год назад

      @@ThomasHeintz Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

    • @kuromu8467
      @kuromu8467 Год назад +65

      Bots

    • @jupitired777
      @jupitired777 Год назад

      ​@@kuromu8467🤣🤣🤣 they've gotten good LMFAO

  • @saxassoon
    @saxassoon Год назад +113

    I've definitely been in the camp of "I've watched a lot of content about this so I should try it" when it comes to things like options and Forex. Thankfully, between this channel, Plain Bagel, and the copious amount of retirement planning content I consume, my time horizon is long enough that I've kept myself from blowing -15,000% returns

  • @carlospulpo4205
    @carlospulpo4205 Год назад +11

    I remember a question posted on an investing forum stating they were getting ripped off , however they didn't understand the spread. I am wondering if these trading platforms are inundated with complaints /questions from people that have no idea how the market works. Like walking into a room blindfolded with a money cannon.

    • @2fiafisdoafw34
      @2fiafisdoafw34 8 дней назад

      It happened to me, but, luckily I'd no money beyond 100 bucks, so it did cost me those 100$ for understand the markets, while I've seen other guys with huge amounts of money losing everything and no understanding markets at all. Also, I tried to be more prudent so always I had fear to bet "all in", while those guys just went all in with their huge life savings and losing them in one all in x125 leverage in futures contracts of some altcoin, lol.

  • @gregoryking4796
    @gregoryking4796 Год назад +3

    I actually enjoy dollar cost averaging and checking my portfolio every quarter 🤷‍♂️

  • @J4yeo
    @J4yeo Год назад +13

    11:11 haha i love the patrick boyle reference

  • @Anon_Spartan
    @Anon_Spartan Год назад +6

    "$0 commission investing" was a brilliant idea to bring untold millions of clueless retail investors to the slaughterhouse. I'm just shocked.

  • @edgregory1
    @edgregory1 Год назад +126

    1. Start young
    2. S&P index fund
    3. Dollar cost average
    4. Never sell
    5. Reinvest dividends.
    You're welcome.

    • @fraliv5526
      @fraliv5526 Год назад +24

      I bet you don't follow this, but thank you.

    • @senseisteve3011
      @senseisteve3011 Год назад

      Well I'm fucked at step 1, thanks a fucking lot life

    • @swaggery
      @swaggery Год назад +4

      You don't need to reinvest all your dividends. There's other costs in life people face than just investing. Sometimes you need to spend more on the other things.

    • @rivoncz
      @rivoncz Год назад +18

      The step 5 is stupid. Just buy an accumulating ETF which does this for you automatically and will save you paying extra taxes.

    • @rivoncz
      @rivoncz Год назад

      @@brentmorrison3392 market crashes don't matter since the markets always recover. You just keep investing periodically, and you make even more money when buying low.

  • @TomMcMorrow
    @TomMcMorrow Год назад +31

    Associates in Game Design, Bachelor's in Finance. I was made to love this video! 😂

  • @Achievius
    @Achievius Год назад +8

    SO happy to see this video made

  • @yeahthebois3617
    @yeahthebois3617 Год назад +3

    As much as Robinhood is good for its zero commission, my bank didnt stop me from buying/selling gamestop stock

  • @danielhale1
    @danielhale1 Год назад +4

    Yea, I learned to avoid the "fun" options in house investing too. When someone's pushing really hard to get you excited about the investment or market and it feels like a pep rally, you need to leave. The purpose of investments is to be successful long-term, not to be exciting in the moment. If someone is selling you on fun, that probably means there's serious problems with their product that they don't want you knowing. Or rather, you're not their target audience if you know to ask such questions. They want easy prey.

  • @jorgecevallos3225
    @jorgecevallos3225 Год назад +1

    You make the best videos on finances.

  • @IRdatank
    @IRdatank Год назад +6

    I have fun dollar-cost-averaging into the S&P 500 through my Fidelity Roth IRA and you can't take that away from me.

    • @phazon100
      @phazon100 Год назад

      The gov can seize your assets

    • @tymondabrowski12
      @tymondabrowski12 Год назад

      @@phazon100 they kind of always can :/ That'swhy you gotta vote (and hope)

  • @Trevor-Watlington
    @Trevor-Watlington Год назад +5

    I don't see the problem with investing a little bit. For me it was a good way to learn with no money, so when I actually made money I'll be in a good spot

  • @ChineseKiwi
    @ChineseKiwi Год назад +2

    I have got the ‘exciting’ stocks like the FANG / MAANA in an ETF, but this is balanced by ‘boring’ ‘defensive’ stocks that pay decent dividends but also are undervalued thus there’s growth there as well. They are:
    * A farmland real estate company
    * A farm equipment company
    * A utility / energy generation company
    * A novated leasing / corporate packaging company
    Perfectly awesomely boring 🤗

  • @jerrykreutzer4326
    @jerrykreutzer4326 Год назад +3

    10:42 you mean that people YOLOing their stimmy checks into meme stonk options was a bad thing?!?

  • @caroamira
    @caroamira Год назад +397

    I sold a couple of homes in the Tampa area for pretty good cash and I'm thinking to just leave it in stocks while waiting for a house crash to happen and as well avoid inflation, but is this really a good time to buy stocks? I hear it's a madhouse right now and I still hear folks are raking in huge 6figure profits by the weeks and I'd love to know how.

    • @EvanQuiel4
      @EvanQuiel4 Год назад +4

      look at it this way, while some folks are waiting to make minimal profits when stocks recover, some others folks already know where to look and what to do to make hefty gains in these times, so yea, it all boils down to knowledge to risk mltigation.

    • @logisticsdelivery
      @logisticsdelivery Год назад +2

      @@EvanQuiel4 True, I was in dilemma myself due to this chaotic mrkt, wasn't sure if to sell or just wait a little longer, 75% of my portfolo was tanking and in the red and the economy isn’t looking promising, but I began gaiinng clarity and have more confidence in my invt through an lnvt-advlser, I know most DlY-lnvestor like me would say advlsors aren't essential, but come to think of it, they're better trained and equipped at this and if I have to give just a little amt in fees for me to be able to net $650K in less than 8months like I did this year, I truly don't mind

    • @victorcardi2019
      @victorcardi2019 Год назад +3

      @@logisticsdelivery Omg 650K this year? that’s neat, I was actually reading an articles this morning on Bloomberg about technquees to gain in this dip, but I’m just a noob so i don't understand most of it, who is this advlser that guides you, I’m having serious troubles with my portfolio

    • @logisticsdelivery
      @logisticsdelivery Год назад +3

      @@victorcardi2019 The coach that guides me is actually Susan Lorraine Curry ,an FA i met on Grahams chanell

    • @caroamira
      @caroamira Год назад +1

      @@logisticsdelivery I did check her out, I see why you said she's probably booked up, her creds/resumé is topnotch. I booked a consultation with her regardless

  • @4891Cody
    @4891Cody Год назад +14

    Schwab doesn’t charge fees for making trades anymore. It’s been a few years since they did charge fees for investing. I do agree with you about Schwab being the grownup brokerage compared to Robinhood.

    • @SatoshiS
      @SatoshiS Год назад +2

      Not only do they not charge fees anymore, but Charles Schwab also does PFOF so really the only things that are grownup about investing on Schwab vs Robinhood is probably their financial backing and their grownup (aka old) UI.

  • @JoeMeng
    @JoeMeng Год назад +67

    As a Gen Z that uses Schwab to invest my savings and having a good credit score for my age bracket, I absolutely felt called out at 11:10.

  • @msmaria5039
    @msmaria5039 Год назад +10

    I just automatically invest money in Index funds. I did cut back to beef up my emergency fund. But, my portfolio is boring. Except for a couple of 'fun' stocks.
    Great video.

    • @gatergates8813
      @gatergates8813 Год назад

      Buying index funds gives you no true ownership of anything though- it doesn't give any obligation to the broker to locate shares, meaning your money has no effect on true price discovery.
      Basically, you aren't contributing the the buy side of the market in any way, and with enough people investing the way you do, there's no cause for share value to increase organically

    • @adriennethiery5432
      @adriennethiery5432 Год назад

      Same. Did the same with my 401k, passive index funds which is up 70% since 2018 with good old boring vanguard index funds.

  • @apolodelsol
    @apolodelsol Год назад +1

    Thanks, this was much needed.

  • @justinfowler2857
    @justinfowler2857 Год назад +10

    Investing and saving have become the epitome of, "Damned if you do. Damned if you do." It's a lose lose world.

  • @jahimuddin2306
    @jahimuddin2306 Год назад +1

    I am glad that I have a boring mindset with investing. I did have some fun when GameStop happened, but I see that for what it was: A meme that will not be the norm.

  • @ShamileII
    @ShamileII Год назад

    Great video on the realities of investing. Financially retired Gen X guy here

  • @MannoMax
    @MannoMax Год назад +11

    This is a big problem imo. A colleague of mine is really into stocks, and he has like 10k in his stocks, and so far he made a couple hundred bucks in growth.
    I spend 3k on a welder and a lathe (which i as a tool maker know how to use), and ive made over 1k just for little odd jobs for people, without ever advertising my services much.

  • @rockfire1669
    @rockfire1669 Год назад +9

    I wouldn’t say gamification. I would say gambling became more accessible.

    • @senseisteve3011
      @senseisteve3011 Год назад +2

      Would you bet on it?

    • @rockfire1669
      @rockfire1669 Год назад

      @@senseisteve3011 I have been and have made a return so yes

    • @rockfire1669
      @rockfire1669 Год назад +1

      @@senseisteve3011 like no joke, if you think you can’t go into the stock market because you need a thousand to start. You were played.

  • @ReservedInvestments
    @ReservedInvestments Год назад

    Great video! 💯

  • @farfa2937
    @farfa2937 Год назад +48

    I always try to keep apart the "serious investings" and "gambling investings". Like, there's the real investment of some stable companies and such, and then some money I couldn't care about losing so I bought Shiba because cute dog. I think it's fine as long as you know what you're doing and how each instrument works. Problem is, many people don't.

    • @devilex121
      @devilex121 Год назад +3

      Exactly, I do "dumb trades" with money that I refer to as my "entertainment budget". It basically consists of money I would've spent anyway on movies, games etc. If there's no decent movies I wanna catch in theaters, then I'll go buy a random stock with it.

    • @Interestingenough4
      @Interestingenough4 Год назад +1

      Good strategy. My retirement accounts, HSA, and government treasury account is what I call my "serious investing." I have a separate brokerage account where I "roll the dice," but do hope to make a profit on my chosen stocks/REITs with reinvesting dividends and holding for years. I also use some "stupid money" to buy precious metals bullion, which I consider a small dose of "investment insurance."

    • @shane3744
      @shane3744 Год назад

      That's what I've been saying. I always laugh at these saps losing their life savings on some meme coin. Like read a book guys, it's obvious that most of your wealth should be in gold stocks.

  • @raymondcaylor6292
    @raymondcaylor6292 Год назад +1

    It is fun.60% invested in Berkshire Hathaway stock. 10% in aggressive growth International funds. 10% in low cost S&P 500 index funds and the other 20% swinging for the fences. Myself, my wife, my kids, and their kids can live off the 80% invested but I want to find the next Apple, Alphabet, Amazon, or Berkshire. Those are already trophies on the mantle and head's on the wall. I was hoping one was going to be Intel ($22.40 avg) and although still walking they're missing a lot of toes.

  • @nicholasgreenwood8281
    @nicholasgreenwood8281 Год назад +1

    Now I KNOW Mr How Money Works passed his SIE on his first try. Great video

  • @DoubleOddJosh
    @DoubleOddJosh Год назад +4

    Uh oh, I just bought some stock in Honda this morning. Maybe you're on to something.....

  • @dangremaus1164
    @dangremaus1164 8 месяцев назад

    lol! I love the dig at Patrick Boyle, calling him a boomer. 😂

  • @bankruptWoodenSandals
    @bankruptWoodenSandals Год назад +2

    moral of the story, dont go for 3rd party FO cheap stocks and don't play investments like a short term attention things like tiktok shorts.

  • @MortalRoomba
    @MortalRoomba Год назад +1

    How money works referencing Patrick. Plain Bagle referencing Cofeezzila😂 this is a universe of Wholesome fintube

  • @velayuthman
    @velayuthman Год назад +108

    Yes, the stock market is currently rather unstable, but if you perform the proper calculations, you should be alright. I believe there are many wealth transfers taking place during this downturn if you know where to look because Bloomberg and other finance media have been documenting stories of people making over $250k in a matter of weeks or couple months.

    • @Curbalnk
      @Curbalnk Год назад

      Particularly in this weak market, there are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.

    • @dennischen5367
      @dennischen5367 Год назад +18

      The bad thing about RUclips comment sections today is that I cannot tell if long, grammatically correct comments like this one (esp one with lots of likes) is a genuine comment, or another link to scammy "business advisors". lol

    • @CBRN-115
      @CBRN-115 Год назад +2

      Someone may earn a lot of profit. You will not be one of them

    • @rockfire1669
      @rockfire1669 Год назад

      Buddy I am one of the ones in between being above market return rate but not being above 50% return rate. It is a f**king gambling house you copium snorter.

    • @rockfire1669
      @rockfire1669 Год назад

      @colleen.odegaard 3 years. Okay yeah I have to admit that given a good income monthly and good trades. Slightly likely, more believable if you say 4.5. Not that it isn’t possible for 3. But in order to do so, you’d have to already have a million to start.

  • @kevinschultz6091
    @kevinschultz6091 Год назад +34

    Note that there is an investment option that can consistently make 50% or 100% in the first year - getting your company's 401k match. (Depending on if you have to wait for it to vest, of course.) But yes, as a general guide for investing, a good first few steps are:
    1. make sure you can pay your deductables, then
    2. Have a 3-6 month emergency fund, then
    3. get your company's 401k match (if available), then
    4. pay off your high-interest debt (anything over 6%, adjusted down 1% per decade over 20. ie, the older you are, the lower your tolerance for debt should be.)

    • @ILoveTinfoilHats
      @ILoveTinfoilHats Месяц назад

      There's another one.
      Go to casino, put it all on red.

  • @me0101001000
    @me0101001000 Год назад +1

    Don't mind me, just DCAing into SCHD, O, and JEPI

  • @Magic_beans_
    @Magic_beans_ 7 месяцев назад

    13:34 I’m glad you mention this, but I’d take it a step further. What I see in finance social media is kind of a self-fulfilling version of the vanishing middle class. According to these gurus it’s not good enough to save up and build a comfortable life over 30 years. The goal is to get rich quick. Like absurdly rich, casually buying another sports car rich.

  • @philiplanz7123
    @philiplanz7123 Год назад +11

    The Patrick Boyle cameo is hilarious in this

  • @josephmassaro
    @josephmassaro Год назад

    This reminds me of the tobacco and vape industry marketing to kids with cartoon mascots and candy flavors.

  • @ShepardCZ
    @ShepardCZ Год назад

    Dividends give a nice dopamin jolt, that is true :D But they come mostly once per month, so you don't build up tolerance, which is also nice

  • @tomlxyz
    @tomlxyz Год назад +1

    I just got on the channel to see if there was something new - now this video was posted only 10 minutes ago

  • @chadjones1266
    @chadjones1266 Год назад

    Thanks again

  • @spikeygoc
    @spikeygoc Год назад +1

    Boomer broker and you show Patrick "new ballance shoes" Boyle 🤣

  • @kylekyle6940
    @kylekyle6940 Год назад +21

    I think the availability for these options to be open to young people is important. I decided to invest very heavily the past few years while studying myself instead of going right to college. Joined a blue collar job and saved up an eleven fund, then went in to invest very heavily. It’s been a life changing experience. Without easy investing I wouldn’t have started

  • @kortyEdna825
    @kortyEdna825 Год назад +7

    This is quite educational. It's crucial for newcomers to keep in mind that the financial markets are highly irrational in the short run. You should constantly be ready for the unexpected. That is how chance operates. Because of the inherent risks in the market, I always favor long-term investments.

    • @Justinmeyer1000
      @Justinmeyer1000 Год назад

      @Brilliantrans Not bad at all. I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market. Could this coach that guides you help?

    • @Justinmeyer1000
      @Justinmeyer1000 Год назад

      @Brilliantrans Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

  • @FergVision
    @FergVision Год назад

    The clip of the dude showing how easy it is to trade while wearing an N64 shirt with questionable lighting is just perfect

  • @daviemanuel688
    @daviemanuel688 Год назад +102

    I wasn't financially free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!Very inspiring! I love this

    • @MajorCockbern
      @MajorCockbern Год назад

      I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do for me now because I have no idea of how and where to invest in.I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.

    • @daviemanuel688
      @daviemanuel688 Год назад

      @@MajorCockbern Her name is Christy Vallen D'souza. Look her up online, she is quite popular in the united states and she is a certified financial adviser in order to put you through the procedures of achieving your dream portfolio.

    • @MajorCockbern
      @MajorCockbern Год назад

      @@daviemanuel688 That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

    • @MajorCockbern
      @MajorCockbern Год назад

      @@daviemanuel688 Thank you, i just found her website.

    • @daviemanuel688
      @daviemanuel688 Год назад

      @@MajorCockbern I do the same thing, I do not have big money on bank account. With the right property in market and sales advisor, we will be on right track. Right now 3 estate done with loans which I turn to plantation and earn money from it, 2 more to go.

  • @itchylol742
    @itchylol742 Год назад +5

    I invest every paycheck into global index funds and it's fun :)

  • @linuxnoob8065
    @linuxnoob8065 Год назад +1

    love the videos now i have no ambitions in becoming rich.

  • @johnfijnvandraat
    @johnfijnvandraat Год назад +1

    So one of the biggest platforms for this in canada is wealthsimple and the way they make money is by skimming of the top ex. Say the stock was valued at 98$ it will say 100$ and them the moment you but it drops to 98$ yet if you pull up the stock it was always 98$. Another way they get money is miss reporting and paying dividends ex. My stocks range from 3-4% dividend yield yet they list them at 1% yield or the s&p500 last time I was on the vanguard one didn't have one yet they pay around 1.6%

  • @vladrazym9955
    @vladrazym9955 Год назад

    A great video with obviuos things which people dont inderstand

  • @IAmProcrastinating
    @IAmProcrastinating Год назад

    Got a Webull ad on this which is hilarious

  • @flobba123
    @flobba123 Год назад +1

    just wait untill Defi gaming becomes mainstream investing and games will become the same thing.

  • @davidhoward4715
    @davidhoward4715 Год назад +1

    When someone speaks this fast on a RUclips video, you know they don't want you to keep up with what they're saying.

  • @Whooshta
    @Whooshta Год назад +2

    I disagree. $100 a month with no fees makes it accessible to low income earners. There's a discipline to it, but not everyone is a gambler. I say this as someone that's gambled and invests with discipline.

  • @sarsgarrs
    @sarsgarrs Год назад

    to be fair I do the plumbing thing too, ill go put my clown paint on now :D

  • @Bomb1es
    @Bomb1es Год назад

    I invest to put money aside. You cant sell index funds on a whiff. Need to wait 1-3days or more.

  • @maryshellsmith6627
    @maryshellsmith6627 5 месяцев назад

    Totally agree I’m 55, my 28 year old som got me into Robinhood to invest for the future. Within a month or two all I did was swing trade stocks. It totally distracted me, I wasn’t getting my work done. I would tell people to come back after4pm. I won, and lost, and am somehow a little ahead yet. It’s fun though, because it takes my mind off of other things, which are unpleasant. It’s gambling, for sure. I got in during a bull market, though, I’m getting out before the presidential election, though, for sure.
    I should mention- I started doing all the exact same things I told him not to do! 😱

  • @canadadelendaest8687
    @canadadelendaest8687 Год назад +1

    Gamestop was NOT a gamble...the difference between a gamble and an investment is due diligence. Gamestop was shorted beyond total actual and authorized shares...that is due diligence.

  • @CaraMarie13
    @CaraMarie13 Год назад

    That 7.99 fee i used to pay my broker.. those were the shit days.

  • @25andinvested
    @25andinvested Год назад

    The sound effects in this video where all I needed to know you aren't a gamer XD

  • @rishavbadola7357
    @rishavbadola7357 Год назад

    There are people paying 25% interest on credit card debt but use extra cash to invest for 8% returns

  • @user-wc4fz1jr8w
    @user-wc4fz1jr8w Месяц назад

    "The practice of payment for order flow creates serious conflicts of interest and should be banned.
    Internalization without meaningful price improvement reduces competition, limits price discovery, leads to market fragmentation, and should be banned."

  • @Jeff-su8tc
    @Jeff-su8tc Год назад +1

    Everything you said about hidden fees and market manipulation makes sense. But how do you jump to gamification and criticism that the service is easy to use. Is that not a good thing??? Cause investing should be complicated and difficult...

    • @donaldlyons17
      @donaldlyons17 6 месяцев назад

      Good question normally I don't question ideas but I don't know how he linked those two together "gamification" and "easy to use."

  • @TrepidDestiny
    @TrepidDestiny Год назад +2

    I use robinhood, and probably will for some time. I don't treat it like a game though, I just treat it as an easy entry into financial markets. Load up on some REITs and growth ETF's, and just monitor.

  • @4doorsmoorhoors542
    @4doorsmoorhoors542 Год назад +1

    Mom and pop investors are going to lose their shirts when the cooks turn up the heat and pull it all.

  • @maxmassetti2392
    @maxmassetti2392 Год назад +1

    The irony of having Robinhood as my pre-video advert🤣

  • @user-nu8in3ey8c
    @user-nu8in3ey8c Год назад +9

    One finance writer said something that made a lot of sense: the best investment strategy one can have is to keep an emergency fund and to invest in a low cost global index fund, and walk away(Edit: invest consistently with as much as possible). When one is working the emergency fund can be smaller, and when one is in retirement one probably needs enough cash to cover 4 or 5 years, the average time it takes a bear market to recover. Cash should be kept in a short term bond fund or TIPS to help the cash keep pace with inflation.
    Disclaimer: This is not legal, financial, or tax advice.

  • @fixedG
    @fixedG 10 месяцев назад

    What's really interesting is that the conventional wisdom has ALWAYS been that the most successful investing strategy for the layman, as embodied by your 401k, is that it should be as automated, hands-off and boring as possible. The new gamification and democratizing of more and more sophisticated financial instruments don't fly in the face of that. They're merely shiny objects.

    • @wholeNwon
      @wholeNwon 9 месяцев назад

      Not just the layman but everyone.

  • @caleg2256
    @caleg2256 Год назад +8

    I disagree that if people who can only afford to invest $100 per month they shouldn’t be investing. Has it occurred to you that maybe those people already built an emergency fund and payed down debt? I’m not super rich so I invest between like $100-200 (including IRAs) per month. But I’m also using a savings account and have no debt so it’s just my extra money to play around with

    • @Blackmegagun
      @Blackmegagun 8 месяцев назад +1

      My man literally explained that they shouldn't be investing that money if they have high debt. Listen before getting upset.

  • @yarosperdp962
    @yarosperdp962 Год назад +2

    Selling gamblers otm options it's a very profitable business for big institutions

  • @OujiBobo
    @OujiBobo Год назад +6

    The thing with darkpools that you didn't mention is that there is no price discovery in the dark pools, and the firms that manage these can put the sales on the lit market (driving down the price), and the buys through the darkpools. Hence all the drama with "meme" stocks and shorters in the last couple years.