Subtitles section Play video Print subtitles Investing seems like a great idea, I mean what could be better than letting your money grow without doing anything. Instead of spending endless numbers of hours in the office hustling, just let your money double or triple by itself. As great as that sounds. Investing is extremely dangerous and risky and chances that you will lose money are way higher than you will make money. Some of you might say: If I don't invest my money, inflation is going to swallow it little by little. So I gotta do something. No, you don't! That's way better than losing the money that you worked so hard to earn in a blink of an eye. Let me justify my point before you write down a comment: You have no idea about investing. Every company in the market knows that you want to invest and they will do everything possible to convince you that they deserve your money the most. Most people think that the stock market is a game of numbers but its mostly a psychological game. How do you make money in the stock market? you study and analyze companies and find out undervalued stocks. Because eventually they will rise up to their real value and you make money! However, the problem is, most people buy high and sell low! because most people invest based on the headlines that they see in the news, but its too late already. The first rule of investing is if everyone is investing, its a bad investment. Here is what happens usually! Enthusiast or professional investors start investing a certain stock or a commodity, so the demand naturally drives the price up. When It appears on the news, an average person starts realizing that price is just increasing, it seems like a good investment. first, you hesitate, there is still a shred of doubt in you, but the price is rising right in front of your eyes. So you convince yourself that you have to take the risk if you want to make money. Hence you invest. The price keeps rising, you feel happy. but after short-while, the price slightly drops. you don't pull out because you haven't lost anything, the price just dropped to the point where you invested, so not a big deal, but it plummets further, you get a bit nervous, but as an intelligent investor, you know you should be patient. Unfortunately, in the next few days or weeks, the price just keeps plummeting. At some point, you just get frustrated and you pull out before you lose even more money! Isn't that what happened with bitcoin for example. Lets take another example. In March of 2016, Tesla unveiled model 3. Finally, an affordable electric car for everyone. Over a 100K people reserved the car in the first 24 hours. It was all over the place, everyone was talking about how model 3 will take over the auto industry. People saw Tesla as the golden opportunity to invest. the stock price was at an all-time high (from 230 USD to 380 USD within a year). It looked like a perfect opportunity to invest. So, naturally, most people started investing which drove the price even further, but what is the first rule of investing ? Exactly, never invest when everyone is investing. So what happened is, the stock price crashed and now its less 200 bucks (196). The price literally fell by 50 percent. and All these people lost money. Of course, most people won't invest now because the stock price is down, but now is the right time to invest! The stock market is much harsher than you think. You are competing against people like Warren Buffet, George Soros who have hundreds if not thousands of people helping them from accountants to specialists. They spend endless numbers of hours figuring out how to take the hell out of you. I am not trying to discourage from investing. I just want you to know that you either get really serious about the stock market or for god's sake don't waste your money! My fellow friends who invest in real estate always tell me when they hear me such things, I told you, real estate is a better investment. it's definitely better in some cases, especially if you know what you are doing. but it has its flaws as well which we will discuss in a future video that's coming soon! so make sure you hit that bell button besides subscribe button because just by subscribing, YouTube isn't going to let you know. Unfortunately, that's how youtube works these days. Can't do anything about it. anyways, That's for watching and until next time!
B1 invest investing price stock stock market market Watch This Before You Invest In The Stock Market 40 3 Summer posted on 2020/08/07 More Share Save Report Video vocabulary