The Predatory Gamification of Investing
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- เผยแพร่เมื่อ 27 ก.ย. 2024
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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 that’s 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 don’t 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 it’s 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 that’s 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 it’s 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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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 TH-cam.
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 TH-cam 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 TH-cam 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.
There is so much bot spam in this comment section. TH-cam 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 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.
Investing is one thing, trading is another different thing. My investment strategy is buy and forget.
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.
"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 TH-camrs keep saying "the end is coming, buy puts now".
“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."
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
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.
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 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
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”
That Patrick Boyle cameo is amazing 😂😂
"The boomers with real money" killed me xD
hilarious 😂
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.
u should make one about the whole sports betting plague they are manufacturing, as a college student I see it first hand
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.
"$0 commission investing" was a brilliant idea to bring untold millions of clueless retail investors to the slaughterhouse. I'm just shocked.
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 love that you included patrick boyle. I love his channel.
SO happy to see this video made
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'm so glad to see this is now being discussed. Awesome work
11:11 haha i love the patrick boyle reference
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
Associates in Game Design, Bachelor's in Finance. I was made to love this video! 😂
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
As much as Robinhood is good for its zero commission, my bank didnt stop me from buying/selling gamestop stock
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 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.
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.
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 actually enjoy dollar cost averaging and checking my portfolio every quarter 🤷♂️
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.
You make the best videos on finances.
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.
Fortnite skins are basically NFTs but y’all still ain’t ready to have that convo
Set your 401k and roth ira to track the S&P 500 and make sure you have weekly or bi-weekly contributions. That's it.
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
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 TH-cam 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.
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.
yo I REALLY like this channel. it’s really hard to weed through the bullshit of financial advice. it feels so nice to find a channel that isn’t bullshitting me. I also like how it breaks down complicated information into an easy to understand format. great for me because I’m not that smart or skilled at financial things. you rock
lol! I love the dig at Patrick Boyle, calling him a boomer. 😂
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.
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.
Note that there is an investment option that can consistently make 50% or 100% in the first year - getting your company's 401k match. (Depending on if you have to wait for it to vest, of course.) But yes, as a general guide for investing, a good first few steps are:
1. make sure you can pay your deductables, then
2. Have a 3-6 month emergency fund, then
3. get your company's 401k match (if available), then
4. pay off your high-interest debt (anything over 6%, adjusted down 1% per decade over 20. ie, the older you are, the lower your tolerance for debt should be.)
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.
Is it ironic that TH-cam decided to play a Webull during this video?
Boomer broker and you show Patrick "new ballance shoes" Boyle 🤣
Great video on the realities of investing. Financially retired Gen X guy here
Ironically the ads on this video were trading 212 and a shitty mobile game
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.
Now I KNOW Mr How Money Works passed his SIE on his first try. Great video
I always try to keep apart the "serious investings" and "gambling investings". Like, there's the real investment of some stable companies and such, and then some money I couldn't care about losing so I bought Shiba because cute dog. I think it's fine as long as you know what you're doing and how each instrument works. Problem is, many people don't.
Exactly, I do "dumb trades" with money that I refer to as my "entertainment budget". It basically consists of money I would've spent anyway on movies, games etc. If there's no decent movies I wanna catch in theaters, then I'll go buy a random stock with it.
Good strategy. My retirement accounts, HSA, and government treasury account is what I call my "serious investing." I have a separate brokerage account where I "roll the dice," but do hope to make a profit on my chosen stocks/REITs with reinvesting dividends and holding for years. I also use some "stupid money" to buy precious metals bullion, which I consider a small dose of "investment insurance."
That's what I've been saying. I always laugh at these saps losing their life savings on some meme coin. Like read a book guys, it's obvious that most of your wealth should be in gold stocks.
I’ve told people of how I used to invest and how much research and time I put in everyday and it’s just something they didn’t want to do. They ended up just jumping in on what everyone else is doing lose a bunch then quit.
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.
Uh oh, I just bought some stock in Honda this morning. Maybe you're on to something.....
Great video! 💯
just wait untill Defi gaming becomes mainstream investing and games will become the same thing.
In order for there to be winners there has to be losers.
Paying depreciating debt with depreciating dollars is quite possibly the worst financial advice one person could ever hear.
The irony of having Robinhood as my pre-video advert🤣
Sometimes those gates need to be kept. Unpopular opinion, I know.
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! 😱
The Patrick Boyle cameo is hilarious in this
Selling gamblers otm options it's a very profitable business for big institutions
Mom and pop investors are going to lose their shirts when the cooks turn up the heat and pull it all.
love the videos now i have no ambitions in becoming rich.
At my last job my boss signed us up for a 401k. I ended up losing more money every year to fee then I ever gained.
Your boss is buddies with the provider.
That's your fault. You should choose options that have low expense ratio
@@krzzzy19 Who the hell makes options plays with their 401k?
@@peeonthe3rdrail414 I assume they meant different options as in different Mutual funds or something like that
@@ChrisakaPES Yea I figured, I just wanted to "match their energy"
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.
A Dark Pool sounds a lot like insider trading.
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.
Don't mind me, just DCAing into SCHD, O, and JEPI
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 want to see what happens if he hadn't corrected the car!
Thanks again
If you are long on a stock, and don’t plan on selling for awhile, DRS your shares in your own name. Actually own the shares you buy. Don’t keep them in street name.
It's just a casino, that's it. ROI at just less than 1, gambling tools, the fake promise of getting rich.... It's just a casino and should be regulated accordingly
I think the availability for these options to be open to young people is important. I decided to invest very heavily the past few years while studying myself instead of going right to college. Joined a blue collar job and saved up an eleven fund, then went in to invest very heavily. It’s been a life changing experience. Without easy investing I wouldn’t have started
Got a Webull ad on this which is hilarious
There are people paying 25% interest on credit card debt but use extra cash to invest for 8% returns
And here I was expecting discussion of turnips.
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 it’s 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 lost like 350 on options, learned my lesson and I will never do it again 😁
Indeed good 4 u
My ex-boyfriend’s brother is “teaching” classes on investing to low income black/brown people .
This reminds me of the tobacco and vape industry marketing to kids with cartoon mascots and candy flavors.
Commission free trading was around with other brokersges too. Schwab, Vanguard, Fidelity haven't charged fees in a number of years other than stocks out of the US and options, etc. i personally hate Robinhood.
Gamestop is indeed is not investment for profit.
It is to destroy.
"instead of having 200 dolar back after investing 100 dolar, i prefer that i lost all those 100 dolar to cost a company that i hate/target to lose billion "
almost like a war. your main objective is to do most damage with the least amount cost.
@13:34 Welcome to the nation of Casino Capitalism!
“Get rich or ’die’ trying…”
Investing is only a problem when you're losing money.
I re-found a t-shirt I bought 19 years ago, I've worn it hundreds of times, cost me very little, and it's still in better condition than a new boohoo t-shirt I have washed and worn a single time.
There are so many bots in this comment section, and they keep having conversations with each other. Fucking weird
you need to make a video to break down all this from scratch tbh
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%
You make me feel good because I have a Charles Schwab account
Costly brokerage fees ? Yea 10 bucks to trade 100000 dollars is a lot.
goddamn who here is not a bot