The Predatory Gamification of Investing
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- Äas pĆidĂĄn 9. 02. 2023
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The growth in popularity of zero commission brokerages has allowed many first time investors to enter the market without having to pay costly brokerage fees that would have made their investments pointless in the first place. Before platforms like robin hood the industry standard for stockbrokers was to charge a fixed percentage of every trade made on both the buy and the sell side normally 1-2% for orders over $5,000.
This business model usually included minimum brokerage fees that could be as high as $50 per trade so someone who only wanted to invest $100 a month would instantly be 50% down on their position the instant they entered the market, they would also lose another 50% of their initial investment when they exited the market because broker fees were charged on both the buy and sell side. Stock brokers got a bad reputation for encouraging their clients to trade as much as possible often based of dubious stock tips all in order to get as many trades through their desk as possible, because more trades meant more fees and more commissions for the individual brokers on the other end of the telephone.
This is what was depicted in one of the early scenes in the world of wall street when Jordan Belfort was a rookie on a trading floor. His job was to try and connect licensed financial brokers like Matthew McConaughey with high net worth investors so that the brokers could talk them into making a trade and collecting their fee along the way. When Belfort went to his job interview at investor centre and talked about making 1% commission at LF Rothschild thatâs what he was referring to.
The fees that stock brokers charged were high, but at the time they were not entirely unreasonable. In the days before automated trading settlements. Back then the clients buy or sell instructions had to be given to individual traders on the actual stock floors of exchanges around the country, so it made sense that clients covered these costs with some margin so that the brokers could still turn a profit by providing this service. But then along came automated settlements which meant that now most buy and sell orders donât interact with any humans at all apart from the people on either end of the trade. Cutting out all the people in the process reduced the expense of facilitating stock trades which allowed brokers like robin hood to come along and offer trades completely for free.
For most traders commission free brokerages are a much better alternative to the more traditional brokerages that for some reason still think itâs fair to charge normal retail traders fees of up to 2%, but they are also not charities, the major commission free trading platforms are multi billion dollars companies, which means they have found other sneakier ways to extract money from their clients. There are several hidden costs to using these platforms which means that just like the Jordan Belfort style stockbrokers of yesteryear, they are making money off novice investors every time they trade, and the more trades they get people to do the more money they make. The only thing that has really changed between then and now is how they make their money and the strategies they are implementing to get people to trade as much as possible, and thatâs by turning the whole process of investing into a giant game where instead of making diligent and consistent contributions to a well thought out portfolio, investors will instead play for high scores complete with confetti animation while using financial instruments that they should not reasonably have access to.
So itâs time to learn How Money Works to find out how the gamification of investing is costing average people billions of dollars every year and why people keep falling for these tricks.
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#finance #investing
Edited By: Andrew Gonzales
Music Courtesy of: Epidemic Sound
Select Footage Courtesy of: Getty Images
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All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.
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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 đ
@@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 CZcams.
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 CZcams 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 CZcams 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.
"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.
â@@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 CZcamsrs keep saying "the end is coming, buy puts now".
There is so much bot spam in this comment section. CZcams 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
The banks were pushing this $50/month investment plan really aggressively some years ago.
I quickly calculated the best investment I could make was using the money to pay off my debts instead.
For sure. If you have a loan at 6%, you get a guaranteed 6% return by paying it off.
There is no capital gains tax on paying off debt.
That is me currently, crazy how that 50 extra bucks do to someone's debt
But after paying all your debt you don't have 50 bucks left? Review your expenses
Have your investments set on auto withdrawal and never look at the market. Has been my winning strategy so far đ
Didn't expect to see you here.
Unless ur a quant or have 12 hours a day to dedicate to markets and twitter alpha, fr, just do dis
How did you set when to withdraw? How big of a win?
@@armour2king itâs called a take profit and you should do it any time you feel like a money making genius because youre running out of other âmoney making geniusesâ to dump on. There is no specific number or % you do this at. I like looking at where price has LOCALLY topped out in the past and I set it a few percent under there. If youâre in price exploration, youâre gambling but thereâs usually great gains there. Unless itâs a fake out. Have fun!
@@armour2king He clearly does the winners technique, withdraw only when there is 1000% gains or 100% loss
Note that Robinhood can charge 0$ fee, not only because of automation but by selling their user data too.
Seeing Robinhood reminded me or r/WallStreetBets
Investing is super fun!
Explaining to my wife where our daughter's college fund went...not so much
đ€Łđđ€Łđ . 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.
Investing is one thing, trading is another different thing. My investment strategy is buy and forget.
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 ,thatâs 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
â@@kuromu8467đ€Łđ€Łđ€Ł they've gotten good LMFAO
Warren Buffett started out with a paper route at 15 years old that netted him the equivalent of $2800 a month today accounting for inflation. A part time paper route
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 more money in NVIDIA, Alphabet, Amazon and Microsoft than any other single invstment in my entire life. Translation: Iâm 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
âTime in the market beats timing the marketâ
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."
yo I REALLY like this channel. itâs really hard to weed through the bullshit of financial advice. it feels so nice to find a channel that isnât bullshitting me. I also like how it breaks down complicated information into an easy to understand format. great for me because Iâm not that smart or skilled at financial things. you rock
I'm so glad to see this is now being discussed. Awesome work
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 theyâre having âfunâ
Thanks, this was much needed.
"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.
That Patrick Boyle cameo is amazing đđ
"The boomers with real money" killed me xD
hilarious đ
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.
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?
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
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.
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.
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
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.
Great video! đŻ
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.
u should make one about the whole sports betting plague they are manufacturing, as a college student I see it first hand
SO happy to see this video made
11:11 haha i love the patrick boyle reference
Thanks again
Fortnite skins are basically NFTs but yâall still ainât ready to have that convo
I love that you included patrick boyle. I love his channel.
A great video with obviuos things which people dont inderstand
Iâve told people of how I used to invest and how much research and time I put in everyday and itâs just something they didnât want to do. They ended up just jumping in on what everyone else is doing lose a bunch then quit.
You make the best videos on finances.
god i've never been this early
*say something nice*
you look good mr works
*nailed it*
Associates in Game Design, Bachelor's in Finance. I was made to love this video! đ
Dividends are a great thing, but theyâre 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 itâŠ.so itâll be time consuming and costly. The way I see it if you have a million dollars at some point, thatâd 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 youâre investing into canât make good use of that capital. So if youâre trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if theyâre returning capital to you because they think you can make better use if it than they can. Thereâs only one reason, and it is a place to park your capital to pay you a small return with large established businesses because you arenât trying to grow your portfolio anymore, but to live off of it. Itâs 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.
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.
lol! I love the dig at Patrick Boyle, calling him a boomer. đ
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 âcouch cushionâ gambling fund. The key is to not get a big head when your gambling fund is flying high and thinking that itâs a good idea to raid your index funds seeking bigger gains.
I disagree that if people who can only afford to invest $100 per month they shouldnât be investing. Has it occurred to you that maybe those people already built an emergency fund and payed down debt? Iâm not super rich so I invest between like $100-200 (including IRAs) per month. But Iâm also using a savings account and have no debt so itâs 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.
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 isnât 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? thatâs neat, I was actually reading an articles this morning on Bloomberg about technquees to gain in this dip, but Iâm just a noob so i don't understand most of it, who is this advlser that guides you, Iâm 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
Good video.
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.
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)
"$0 commission investing" was a brilliant idea to bring untold millions of clueless retail investors to the slaughterhouse. I'm just shocked.
Great video on the realities of investing. Financially retired Gen X guy here
This reminds me of the tobacco and vape industry marketing to kids with cartoon mascots and candy flavors.
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 actually enjoy dollar cost averaging and checking my portfolio every quarter đ€·ââïž
I just got on the channel to see if there was something new - now this video was posted only 10 minutes ago
Boomer broker and you show Patrick "new ballance shoes" Boyle đ€Ł
Hahaha the Patrick Boyle cameo was gold!
Hey, it would be good when using movies to illustrate your point, to include the title of the movie. I'm always on the lookout for good finance related movies.
Indeedđ
love the videos now i have no ambitions in becoming rich.
to be fair I do the plumbing thing too, ill go put my clown paint on now :D
As much as Robinhood is good for its zero commission, my bank didnt stop me from buying/selling gamestop stock
Now I KNOW Mr How Money Works passed his SIE on his first try. Great video
The sound effects in this video where all I needed to know you aren't a gamer XD
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
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.
Don't mind me, just DCAing into SCHD, O, and JEPI
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).
Got a Webull ad on this which is hilarious
That 7.99 fee i used to pay my broker.. those were the shit days.
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.
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.
Wsb, baby
Loool Southpark đ
Sending this to my dad who is thinking about investing
Investing is great if you know what to ur doing. If you think making money is fast and easy makes u a idiot. Investing takes knowledge and great discipline.. and if you know what your doing and understand making wealth takes a lot of time. Consistency and repetition is key!! And investing and being self employed has a lot more tax advantages then anything. And is way better then being a mindless slave that only knows how to obey for a check even if itâs bad. That is the problem! There is no problem with people investing and people should encourage more people to invest specially the younger demographics
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 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 youâll see
Banks are your enemy.
Yeah if you are a SUCKER
The irony of having Robinhood as my pre-video advertđ€Ł
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!
Mom and pop investors are going to lose their shirts when the cooks turn up the heat and pull it all.
10:42 you mean that people YOLOing their stimmy checks into meme stonk options was a bad thing?!?
How money works referencing Patrick. Plain Bagle referencing Cofeezzilađ this is a universe of Wholesome fintube
Robinhood robbing the hood.
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.
I wouldnât 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 canât go into the stock market because you need a thousand to start. You were played.
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%
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 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
"Stop having fun!"
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 got two ads for commission free brokers during thisđȘ
anybody know what movies were presented in this video? i know wolf of wallstreet and also margin call the big short and wallstreet
Uh oh, I just bought some stock in Honda this morning. Maybe you're on to something.....
I have got the âexcitingâ stocks like the FANG / MAANA in an ETF, but this is balanced by âboringâ âdefensiveâ stocks that pay decent dividends but also are undervalued thus thereâs 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 đ€
I wasn't financially free until my 40âs and Iâm still in my 40âs, 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 doesnât matter if you donât 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
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.
@@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.
@@daviemanuel688 Thatâs 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?
@@daviemanuel688 Thank you, i just found her website.
@@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.
Schwab doesnât charge fees for making trades anymore. Itâs 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.
You either make money or inverse gains, its a win either way.
The clip of the dude showing how easy it is to trade while wearing an N64 shirt with questionable lighting is just perfect
How depression works đ. Great video
Nice use of Patrick there mate
I invest to put money aside. You cant sell index funds on a whiff. Need to wait 1-3days or more.
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.
The 8th wonder of the world is "compounding" đ°
Can you do a video talking about minority mindset videos and his methods of buy and hold using something like the 3 fund portfolio within fidelity.
11:43 That's not Bill Hwang.