@@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 🙂
@@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
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.
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.
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
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.
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.
It’s good for students like me though who have no debt since often times state schools will full ride competitive applicants. I’ve been yeeting small portions of my scholarship funds into the market and ignoring it and it’s been pretty good overall.
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.
@@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.
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".
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.
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.
@@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.
@@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!
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.
@@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.
@@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.
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.
@@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.
@@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.
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.
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”
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.
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.
@@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.
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 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.
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
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?
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.
@@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.
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
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.
@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.
@@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?
@@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.
@@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.
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.
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.
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.
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
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.
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.
@@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
@@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 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
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.
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
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 ($22.40 avg) and although still walking they're missing a lot of toes.
I remember a question posted on an investing forum stating they were getting ripped off , however they didn't understand the spread. I am wondering if these trading platforms are inundated with complaints /questions from people that have no idea how the market works. Like walking into a room blindfolded with a money cannon.
It happened to me, but, luckily I'd no money beyond 100 bucks, so it did cost me those 100$ 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.
A coworker of mine approached me yesterday. She wants to daytrade to earn some more income (on minimal knowledge I might add) and I tried pulling her teeth on how trading options and calls is a really bad way to make money consistently (as said in the video, it‘s for factored risk management, not flat out return). I tried my best, explained to her that on average it‘s a zero sum game at best, showed her the statistics, tried explaining to her what she‘s actually doing versus what she thinks she‘s doing. Nuh uh she‘s adamant that she knows better than me. She‘s got no emergency fund and knows basically nothing about finance. I warned her. Am now counting the months where it all comes crashing down preparing some popcorn.
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
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 🤗
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.
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.
One flaw with this idea… incentive, and urgency. Why do you think carvana stinks…because there is no URGENCY to buy. You can trade and do whatever online but there is no urgency to do so. Urgency and the lack of it are integral to sales.
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
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.
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.
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
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.
8:27 The problem with this model is that it is no longer a feasible long-term plan for anyone below the age of about 40 anymore. Most young people can see the writing on the wall and understand that even if they contribute to a 401K, 50 years from now by the time they're supposed to retire that money will most likely be essentially worthless. Therefore, many younger people are willing to take on risk to their "investing" so they can actually try and achieve their monetary goals in life they otherwise think they would not be able to achieve. I'm not saying they're right, I'm just saying I understand why they're doing it.
None of the issues you're describing are new. People have been complaining about all this for decades. Don't get me wrong, the criticisms are valid, but everyone enters the workforce expecting a lifestyle equivalent to their parents'. They assume everything's broken because that isn't possible. Then, as they settle into their career and begin affording things previously out of reach their perspective changes. They also become slaves to consumerism but justify themselves by blaming those who came before. At the end of the day, people want to fix a system right up to the moment they start profiting from it themselves.
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.
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.
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
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.
@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.
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! 😱
Correct me if I'm wrong but I used limit buys/sells to get around this but only have a few investments that I'm in for long term. I was sucked into the mania for a little bit, never works
You'd still be susceptible to bid-ask spreads even with limit orders, the brokerage gets a better price by few cents and profits. You'd be correct it doesn't matter long term. Spreads on the most popular stocks tend to be few cents during regular trading and even in the short-term (a day), spreads don't matter unless your scalping (trading method of buying-selling a security or 0dte options for a few cents gain amped by leverage and/or volume of trades).
"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."
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...
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.
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.
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.
@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?
@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.
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.
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.
Businesses are created for the purpose of making a profit for their owners (shareholders). Whether by the dividends that are paid out to shareholders, or by increase in the value of the company (which comes largely from the size of dividends paid out). Businesses make money for their owners by creating value of some sort - manufacturing a product or providing a service. Owning businesses (shares) is therefore a sensible way of making money. Derivatives however do not exist for the purpose of making money. Derivatives are useful to businesses as they let them manage risk and facilitate trade, but they don't create value as such. Derivatives do have value though, and it fluctuates, meaning that it is possible to make money by trading them, at least in theory, if you can somehow predict their future value better than anyone else, but this doesn't really happen in practice. If someone makes money from a derivative trade, it's simply money that someone else lost, not value created by the derivative. Imagine you go to the supermarket to buy a bag of flour for baking, someone else is also there buying a bag of flour because they think it might be worth twice as much tomorrow. Maybe that other guy will get lucky and be able to sell that flour for twice what he paid, but most people just buy flour for baking.
Damn, I thought your original post was from someone genuinely curious. I now regret wasting my time answering your question. The answer is already there if you can actually be bothered to see it.
@@thatpvpguy90 if you actually care (and it's not clear that you do), then simply watch some videos about derivatives and what they are (Khan academy has done good videos). Once you actually understand what they are and how they're used, you won't feel at all like you're missing out, you'll wonder instead why so many fools are "investing" in them. At the end of the day though, you are free to meddle with derivatives of you wish, just don't come here complaining about losing money on something you didn't understand.
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.
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Okay, as a WSB member, when I trade options, I'm not looking for good investments. I am looking for my fix
Are you talking so fast for retention purposes because it is really really fast and kinda annoying
Your advert seems suspect af.
@@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 🙂
@@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
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.
Yeah some people are weird. A lot of things are really easy to do and could save you hundreds in labor.
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.
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.
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
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.
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.
For sure. If you have a loan at 6%, you get a guaranteed 6% return by paying it off.
There is no capital gains tax on paying off debt.
That is me currently, crazy how that 50 extra bucks do to someone's debt
But after paying all your debt you don't have 50 bucks left? Review your expenses
It’s good for students like me though who have no debt since often times state schools will full ride competitive applicants. I’ve been yeeting small portions of my scholarship funds into the market and ignoring it and it’s been pretty good overall.
"Options are a risk management tool". Thank you. This is something I wish every investor, wither high risk or low risk would understand.
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.
@@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.
@@joefer5360nailed it!
I sell options contracts coz I wanna get rid of share and am greedy
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".
There is so much bot spam in this comment section. RUclips really needs to do something about this.
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.
why hello I am here to talk to you about extending your cars warrantee
Why hello, I was struggling to make ends meet financially but now I make $10,000 every month thanks to simple investing advice. Make money work for you. I couldn't have done it without help from Mr Brown.
@@theorangecandle That's the thing though. Investment like that is very risky so you mostly got lucky. Most people lose more money than they gain via unwise investing so it's much better to just not try. If you are going to invest you have to really commit to it and put in a lot of time and energy and the gamefication makes it far too casual.
Human beings are notoriously bad at risk assessment and so for every one person that makes it doing high risk investments there are 3 that don't.
Not only that but a lot of casual investors are the cause of all the dumb money flowing around. They invest their money into shiny vaporware that leads to nothing or companies that actively make the world worse for everyone but themselves.
@@MrMarinus18 satire
Note that Robinhood can charge 0$ fee, not only because of automation but by selling their user data too.
Seeing Robinhood reminded me or r/WallStreetBets
Have your investments set on auto withdrawal and never look at the market. Has been my winning strategy so far 😂
Didn't expect to see you here.
Unless ur a quant or have 12 hours a day to dedicate to markets and twitter alpha, fr, just do dis
How did you set when to withdraw? How big of a win?
@@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!
@@armour2king He clearly does the winners technique, withdraw only when there is 1000% gains or 100% loss
Investing is one thing, trading is another different thing. My investment strategy is buy and forget.
Mine is invest as much as I can and sell it when i need it. Money resting in the bank is not useful.
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.
@@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.
@@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.
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.
@@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.
@@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.
Investing is super fun!
Explaining to my wife where our daughter's college fund went...not so much
🤣😂🤣😅. May the odds be in your favor.
Does the wife understand zero day to expiry OTM options yet?
*wife's sons college fund.
Hopefully your wife's boyfriend will be able to help build it back.
Genuinely, your explanation of dark pools, spread, etc were easier to understand than any of the study materials I had when I took the SIE
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.
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”
I love that you included patrick boyle. I love his channel.
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.
1. Start young
2. S&P index fund
3. Dollar cost average
4. Never sell
5. Reinvest dividends.
You're welcome.
I bet you don't follow this, but thank you.
Well I'm fucked at step 1, thanks a fucking lot life
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.
The step 5 is stupid. Just buy an accumulating ETF which does this for you automatically and will save you paying extra taxes.
@@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.
“Time in the market beats timing the market”
Time in the market with blue chips and leveraging to the tits into US BOND ETFs.
Not if the timing is good. "Timing is everything."
"You know, the ones that the boomers with real money use"
*insert Patrick Boyle pic*
hahaha
I love Patrick's Boyles channel. He has such good dry humor and good quality.
"$0 commission investing" was a brilliant idea to bring untold millions of clueless retail investors to the slaughterhouse. I'm just shocked.
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.
Just bought more of those few days back!!
@@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.
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
You can louok her fuull name up and coneect with her on her web paige
Bots
u should make one about the whole sports betting plague they are manufacturing, as a college student I see it first hand
I'm so glad to see this is now being discussed. Awesome work
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.
That Patrick Boyle cameo is amazing 😂😂
"The boomers with real money" killed me xD
hilarious 😂
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?
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.
@@ThomasHeintz wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
@@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.
Bots
@@kuromu8467🤣🤣🤣 they've gotten good LMFAO
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
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.
@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.
@@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?
@@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.
@@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.
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.
11:11 haha i love the patrick boyle reference
god i've never been this early
*say something nice*
you look good mr works
*nailed it*
You make the best videos on finances.
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.
Theta gang wins again
Pennies in front of a steamroller...
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.
Deep OTM covered calls on $SPY. You nailed it.
SO happy to see this video made
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
It does make sense to put the cash into a savings account until you have a sufficient emergency fund
@@pmc_hahahah nooooooooo
In this economy
Nooooooooooooo
Get a book and you’ll see
Banks are your enemy.
Yeah if you are a SUCKER
Fortnite skins are basically NFTs but y’all still ain’t ready to have that convo
Associates in Game Design, Bachelor's in Finance. I was made to love this video! 😂
I actually enjoy dollar cost averaging and checking my portfolio every quarter 🤷♂️
As much as Robinhood is good for its zero commission, my bank didnt stop me from buying/selling gamestop stock
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.
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.
@@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
@@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
@@victorcardi2019 The coach that guides me is actually Susan Lorraine Curry ,an FA i met on Grahams chanell
@@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
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.
The gov can seize your assets
@@phazon100 they kind of always can :/ That'swhy you gotta vote (and hope)
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.
Thanks, this was much needed.
Investing and saving have become the epitome of, "Damned if you do. Damned if you do." It's a lose lose world.
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
I wouldn’t say gamification. I would say gambling became more accessible.
Would you bet on it?
@@senseisteve3011 I have been and have made a return so yes
@@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.
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 ($22.40 avg) and although still walking they're missing a lot of toes.
I remember a question posted on an investing forum stating they were getting ripped off , however they didn't understand the spread. I am wondering if these trading platforms are inundated with complaints /questions from people that have no idea how the market works. Like walking into a room blindfolded with a money cannon.
It happened to me, but, luckily I'd no money beyond 100 bucks, so it did cost me those 100$ 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.
A coworker of mine approached me yesterday. She wants to daytrade to earn some more income (on minimal knowledge I might add) and I tried pulling her teeth on how trading options and calls is a really bad way to make money consistently (as said in the video, it‘s for factored risk management, not flat out return). I tried my best, explained to her that on average it‘s a zero sum game at best, showed her the statistics, tried explaining to her what she‘s actually doing versus what she thinks she‘s doing. Nuh uh she‘s adamant that she knows better than me. She‘s got no emergency fund and knows basically nothing about finance. I warned her. Am now counting the months where it all comes crashing down preparing some popcorn.
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
My man literally explained that they shouldn't be investing that money if they have high debt. Listen before getting upset.
10:42 you mean that people YOLOing their stimmy checks into meme stonk options was a bad thing?!?
Great video on the realities of investing. Financially retired Gen X guy here
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.
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 🤗
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.
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.
One flaw with this idea… incentive, and urgency.
Why do you think carvana stinks…because there is no URGENCY to buy. You can trade and do whatever online but there is no urgency to do so.
Urgency and the lack of it are integral to sales.
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
lol! I love the dig at Patrick Boyle, calling him a boomer. 😂
When someone speaks this fast on a RUclips video, you know they don't want you to keep up with what they're saying.
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.
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.
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
Same. Did the same with my 401k, passive index funds which is up 70% since 2018 with good old boring vanguard index funds.
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.
8:27 The problem with this model is that it is no longer a feasible long-term plan for anyone below the age of about 40 anymore. Most young people can see the writing on the wall and understand that even if they contribute to a 401K, 50 years from now by the time they're supposed to retire that money will most likely be essentially worthless. Therefore, many younger people are willing to take on risk to their "investing" so they can actually try and achieve their monetary goals in life they otherwise think they would not be able to achieve. I'm not saying they're right, I'm just saying I understand why they're doing it.
None of the issues you're describing are new. People have been complaining about all this for decades. Don't get me wrong, the criticisms are valid, but everyone enters the workforce expecting a lifestyle equivalent to their parents'. They assume everything's broken because that isn't possible. Then, as they settle into their career and begin affording things previously out of reach their perspective changes. They also become slaves to consumerism but justify themselves by blaming those who came before.
At the end of the day, people want to fix a system right up to the moment they start profiting from it themselves.
Great video! 💯
love the videos now i have no ambitions in becoming rich.
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.
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.
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
Someone may earn a lot of profit. You will not be one of them
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.
@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.
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.
Thanks again
Isn't there a risk premium for options?
Now I KNOW Mr How Money Works passed his SIE on his first try. Great video
The clip of the dude showing how easy it is to trade while wearing an N64 shirt with questionable lighting is just perfect
Paying depreciating debt with depreciating dollars is quite possibly the worst financial advice one person could ever hear.
just wait untill Defi gaming becomes mainstream investing and games will become the same thing.
How money works referencing Patrick. Plain Bagle referencing Cofeezzila😂 this is a universe of Wholesome fintube
Investing should be like programming. Depressing for 90% only feeling good when your shit works for a minute. After which you screw it up again.
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! 😱
Uh oh, I just bought some stock in Honda this morning. Maybe you're on to something.....
There are people paying 25% interest on credit card debt but use extra cash to invest for 8% returns
Correct me if I'm wrong but I used limit buys/sells to get around this but only have a few investments that I'm in for long term. I was sucked into the mania for a little bit, never works
You'd still be susceptible to bid-ask spreads even with limit orders, the brokerage gets a better price by few cents and profits. You'd be correct it doesn't matter long term. Spreads on the most popular stocks tend to be few cents during regular trading and even in the short-term (a day), spreads don't matter unless your scalping (trading method of buying-selling a security or 0dte options for a few cents gain amped by leverage and/or volume of trades).
"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."
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...
Good question normally I don't question ideas but I don't know how he linked those two together "gamification" and "easy to use."
Don't mind me, just DCAing into SCHD, O, and JEPI
I just got on the channel to see if there was something new - now this video was posted only 10 minutes ago
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.
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.
This reminds me of the tobacco and vape industry marketing to kids with cartoon mascots and candy flavors.
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.
@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?
@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.
anybody know what movies were presented in this video? i know wolf of wallstreet and also margin call the big short and wallstreet
Selling gamblers otm options it's a very profitable business for big institutions
The Patrick Boyle cameo is hilarious in this
A great video with obviuos things which people dont inderstand
Finance is boring, if it's not, you're doing something very wrong.
The irony of having Robinhood as my pre-video advert🤣
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.
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.
Not just the layman but everyone.
Is it ironic that RUclips decided to play a Webull during this video?
to be fair I do the plumbing thing too, ill go put my clown paint on now :D
The sound effects in this video where all I needed to know you aren't a gamer XD
3:20 why should people not be allowed all the same tools?
Businesses are created for the purpose of making a profit for their owners (shareholders). Whether by the dividends that are paid out to shareholders, or by increase in the value of the company (which comes largely from the size of dividends paid out). Businesses make money for their owners by creating value of some sort - manufacturing a product or providing a service. Owning businesses (shares) is therefore a sensible way of making money. Derivatives however do not exist for the purpose of making money. Derivatives are useful to businesses as they let them manage risk and facilitate trade, but they don't create value as such. Derivatives do have value though, and it fluctuates, meaning that it is possible to make money by trading them, at least in theory, if you can somehow predict their future value better than anyone else, but this doesn't really happen in practice. If someone makes money from a derivative trade, it's simply money that someone else lost, not value created by the derivative. Imagine you go to the supermarket to buy a bag of flour for baking, someone else is also there buying a bag of flour because they think it might be worth twice as much tomorrow. Maybe that other guy will get lucky and be able to sell that flour for twice what he paid, but most people just buy flour for baking.
@2bfrank657 so people shouldn't have the same tools because of muh' shareholders?
Damn, I thought your original post was from someone genuinely curious. I now regret wasting my time answering your question. The answer is already there if you can actually be bothered to see it.
@2bfrank657 You make it sound as if I am wrong for not agreeing. Just because something is theorized doesn't make it reality.
@@thatpvpguy90 if you actually care (and it's not clear that you do), then simply watch some videos about derivatives and what they are (Khan academy has done good videos). Once you actually understand what they are and how they're used, you won't feel at all like you're missing out, you'll wonder instead why so many fools are "investing" in them. At the end of the day though, you are free to meddle with derivatives of you wish, just don't come here complaining about losing money on something you didn't understand.
And here I was expecting discussion of turnips.
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.
Okay, as a WSB member, when I trade options, I'm not looking for good investments. I am looking for my fiz
Get those FDs!
Hunting for FDs baby