Excellent Video! Sorry for the intrusion, I would love your opinion. Have you thought about - Chiveard Treasure Mine Framework (search on google)? It is an awesome one off product for learning how to identify the right trading trend minus the headache. Ive heard some interesting things about it and my friend got astronomical success with it.
My number one tip about stocks would be to always remember two things: 1) that until you sell it all you have is paper, not profit, and 2) stock prices always fluctuate up and down over time. Because of this it's better to buy and sell from time to time as the price changes and turn those smaller margins into buying a little more stock each time. As long as you do a halfway decent job of picking highs to sell on and lows to buy on this will in the long run strongly outperform a buy-and-hold strategy. A corollary tip would be to always have your sell points - both high and low - in mind when you buy the stock. When it reaches the selected high point sell it and go buy a different stock; you can come back to this one later after the price has stabilized. If it reaches the low point sell it and go buy a different stock; this one is not doing very well right now and your money would do more somewhere else. By having these price points in mind up front and sticking to them this can help avoid the danger of holding a stock too long and either 1) letting it lose too much value if it was going down in the vain hope that it will turn back up again any moment or 2) failing to take a profit if it went up and you didn't sell it before it came back down again. And don't day trade. Leave that to the professionals that get paid per transaction so they can't lose by it. Most investors shouldn't be checking those stock prices more than once ever week or two.
Really wish there had been more of a dive into diversification (and index funds!). Please don't invest blindly - create an emergency fund; read a short book or two. THEN become a bazillionaire :)
Cheers, Kevin Well, we're going to make more videos on investing. :] This is just a primer. Perhaps you would be interested in hosting one sometime? :D - Mike
How to Adult *phew* glad to hear there'll be more. Just nervous some impressionable new adults might come away with the "10% vs 0.06%" part, and throw all their money in the market right away. And sure, I'd be happy to host one :)
You should focus more on marketing your time machine. I didn't even know this was possible until this vid. I really feel the profits you will see from selling this technology versus the stock market will be more. I'm suprised you guys haven't been approached by government leaders with this breakthrough. Kudos
As a young adult interested in the stock market I would like to know if there are any fees for having a stock, or for trading a stock. what are the fee prices typically? and if I have 50 dollars is that enough for me to buy a decent stock like Coca Cola and wait on that dividend. What are good beginner companies to trade with?
+CM_Von i can't answer alot of your questions except one: 50 dollars won't get you far, and you certainly won't be able to buy a stock from coca-cola (or any other famous brands; i.e: apple, samsung, microsoft etc)
Coke is currently trading around $45/share. After fees, you won't be able to. Buy it. You'll want to probably have at least $500 to start. And you'll want to know simple things like how to look up stock prices.
Wait okay I am a dumb child and I have two questions. 1) What are ask prices and bid prices? 2) So your stock grows in value over the years (hopefully). Then you have to sell it in order to get that money, right? How does that work?
Fourteen Lines 1) ask price is what someone who owns the stock is asking for it and bid price is the price someone who wants it will pay, these are listed separately by investors and when they line up a sale happens 2) Maybe, with some stocks (like many utilities) you could have gotten dividends over all that time with the actual price mattering very little, but most companies these days don't pay dividends so the only way to make money is to sell it. This is why the money made from buy-and-hold over those years can be rapidly eclipsed by buying and selling at highs and lows and plowing those smaller profits over time into buying more of the stock each time. But the smaller the time frame between each buy and sell the harder this is to do well and the more you pay in transaction fees.
TPRJones Thanks! So if there's a time when you should sell a stock, does that mean you have to count on other people making the bad decision of buying it...? Because if you are selling the stock at that time, buying the stock would have to be a bad decision, wouldn't it? Otherwise you would keep it. (I hope this question makes sense. It might not.)
Fourteen Lines Well, that's complicated. Yes if you are going to sell a stock someone else has to buy it at your asking price for that to happen. But that doesn't automatically mean one of you is making a mistake. I mean every time you go to the store the same thing is happening; you are buying a thing for an asked-for price and the store will now have less of those things while you now have one that you didn't before but both of you can still profit from the transaction. That's the nature of all trading. For stocks the buyer may be covering a short sale or may believe the stock is worth more than the current price, and the seller may have made a profit already and not think the price is likely to rise further for awhile and want to put their money somewhere else for a time. Once some time has passed and more is known then maybe we'll find the seller missed out on a little more profit here but they could still be happy with the results if they needed cash or if they made more money investing elsewhere. Each trader has their own needs and expectations and time is also a factor, so not every trade has a clearly definable winner and loser even after enough time has passed to see what happened to the price afterwords.
Those are some hard core graphics ;) This video reminded me of a paper I wrote in high school about short selling, but that's unethical, don't short sale stock, kids-er-adults! Hoping to see more on the stock market, thanks for the videos :D
PimpManFan Short selling, as with any form of speculation, is simply making use of the fact that people have different expectations about the future (which is natural given that there is no sure-fire way of predicting the future). As long as you don't have insider information, you're not swindling anybody. I don't see how it is unethical.
Am4d3usM0z4rt It's with the hope that the stock will decrease in price, the people doing it want the company to fail so they can make money. In doing it, they're contributing to it's further decline. I'm not sure how you find that not unethical?
PimpManFan Sure, they're hoping that the price will decrease, but that doesn't mean they want the company to fail. Stock prices fluctuate up and down all the time. Yes, short selling can exacerbate downward pressure on the price, but only if there aren't enough buyers willing to accept the price. Even then, how is it different from just regular selling? Not just short selling, but "normal" buying and selling activities can drive prices excessively upwards (bubbles) or excessively downwards (crises), yet I don't see anyone except ardent anti-capitalists bewailing those as "unethical".
While overall and over the long term stocks outperform savings accounts, there was not enough about the downsides (apart from a quick mention of bad years and the assumption that a portfolio would be diversified). I know the time is limited, so you should make another video about the risks when you are forced to sell (when you need the money) when the markets are low, and many other caveats. Also about the role of mutual funds, pros and cons, compared to investing in individual companies.
pieter zeeuwen You're totally right about the importance of that information! So we absolutely plan to expand on investing content. The goal with this episode was to give a primer and "fundamentals" understanding (in around 5 minutes) so that future videos won't be so overwhelming that people feel helpless or too lost. Hopefully it accomplishes this and gives people a solid base of understanding for the future installments. :] Thanks for watching and commenting! - Mike
A bit unfair to compare the interest rate from 2015 vs the stock market CAGR as if the interest rate isn't incredibly low right now compared to normal and then apply that rate across 50 years. However in general I agree with a lot of this video.
***** Well, TBH, we demoed it (at a location I can't disclose). During that demo, we traveled back to the day *before* Steve Jobs returned to Apple, bought up tons of stock, and bada-bing bada-boom, we are zillionaires. Booyah, baby. Booyah. - Mike
My opinion based on my experience is... get a broker. I had an investment guy... he did good things for me. When the company I was working for went public, I told him to put $1000 into the company. He said "I don't really like to get into tech IPO's", I said "No, no I totally believe in the company. We are going to be rich". Long story short the stock opened at $18 per share, he bought at $16... it dropped to $3... then to $1.... now I tell him "Do what you think is best". I don't tell my plumber how to ... plumb? ... so why would I tell my broker how to broker. It's in both our best interests to see it go up.
You guys are OK. I like your video. Speaking as a seasoned veteran of stock trading. Stock trading vs Investing are 2 different worlds. Stock trading involves spotting near term movers UP or DOWN and acting on it. Also, emotions will destroy you. If you are not smart enough to buy a stock, when it's down in the dumps BEFORE it gets pumped back up, you will NEVER make money (Long) trading stocks or options. Even if you get lucky here and there and score buying whatever is pumped up on the tape on a given morning. You eventually will end up a wiped out loser. Options are worse. This is a LOGIC business and not for the weak minded! I was fortunate. I survived the mistakes and learned quickly. How upgrades and pump articles are setups to get burned long. How quiet stocks become winners. How to identify an overpriced turd and Short it. How to analyze charts and daily trades on a given stock. Looking for bulk buying or shorting and how to spot the difference. This is a cut throat business. Best bet, go work for a living and don't gamble on stocks. Investing is simple. Find a company that will grow for the next 10-20 years (like Apple did) and buy in near the ground floor and hold it. Enjoy the gains, splits, dividends and eventually cash out rich. Good luck!
QUESTION. Do big time companies like Nike, Apple etc sell stocks? And if they dont for example can i just buy stocks / invest my 100 bucks separately to the top 2 companies so if top 1 dont perform well, top 2 is probably gonna do well so its a win-win.. Lol?
I think you should have mentioned common vs preferred stocks. Basically, preferred stock does not have voting rights, but is less risky than common stock because they get dividends regularly and before anyone else.
IMHO this would've been a good time to bring up the rule of 72. It's a great approximation for earnings from compound interest that is super easy yet relatively unknown in my experience. It's not really accurate for interest rates outside of the 2 to 12 percent range, but it gets you in the ballpark. The rule: How long will it take my money to double at R% annual interest? About 72 / R years. Easy-sauce. Like I said, it's a rough but useful approximation most of the time.
I am a rising Junior and will be moving out soon and I am terrified, so naturally, i turned to RU-vid for help. This channel has really taught me some things that are going to be really useful soon. i still have a bunch of questions and unknown topics about Adult Life in general. Could you do some videos on -Insurance- like, what is that? -Doctors -How to buy a car -Companies, like cable companies, electric companies, telephone companies. and how to pay them. -Applying for college/ scholarships- or is that too... not adult? lol. -Loans... all kinds of loans... why loans? what are loan? That's an adulty thing right? -LinkdIn, I know it's for jobs but how do you use it? -Vacationing -Websites we will definitely need as an adult -Moving into a totally new city or country and what do you do then? -Social security and identity theft? -How to prepare for college
sinecurve9999 Thank you! :D We're definitely going for a 1990s PBS kids' show vibe lately. Emma said the last couple videos feel like GHOSTWRITER, which makes me extremely happy! - Mike
Great video, guys! But next time, please talk about what really matters: HOW DO YOU TIME TRAVEL? I'm trying to learn it for the past 21 years. Nothing yet. :(
Downcom1 Thank you! :D I've seen him live 4 times: 2 times with Elton John, 1 time in a solo stadium show, and 1 time in a high school auditorium on Long Island. That auditorium show was one of the coolest experience of my life. It was just him and a piano up on stage, and he took requests and played "All for Leyna" (a little-known but AWESOME album cut) for me! I *so* wish I could find a recording of that evening. - Mike
This video misrepresents the concepts of ask price and bid price. Ask price and bid price do not 'meet' to create a sale. They will not be the same thing. The difference between the ask and the bid is called the spread and helps cover the costs of underwriting the issue.
This is a very good video and you guys are pleasant to look at, but you really need to slow it down a little bit. You emit a stressful aura by talking so fast. But the learning process requires tranquility. Other than that, it is very good, thank you.
I would like to see an episode on stock options. In my line of work it is possible I will be offered options as a form of pay, and I know nothing about them.
the product that a company sells has nothing to do with stock price,up or down. most stock investors dont even know what the company sells EG mutual funds.
I don't get it, there's not such thing as putting $100 "in the stock market", you have to buy specific stocks, some of them will increase value, some will disappear. Even if you "diversify", you certainly can't just leave it unattended for 50 years.
He started at $100 and it increased 10% every year. At the end of every year you would have 110% the amount of money you had compared to when the year started. So 110% is equal to 1.1. All you have to do is multiply the money you have at the start of the year by 1.1 to find out how much you have at the end of the year. Year 1: begin with $100 x 1.1 = $110 Year 2: $110 x 1.1 = $121 Year 3: $121 x 1.1 = $133 So on and so forth. As you get higher the yearly increase will get much larger and you'll find yourself with 11k
I have some stock in the company for which I work thanks to an employee stock plan. Every year I get a statement, and the statement hurts my head. I don't understand what any of it means. For right now, I am fine with that, because I have no plans to do anything with it.
Just to clarify, if you own 1 of 100 shares you don't necessarily own 1% of the company, just 1% of the shares issued and 1% of the voting rights. Most publicly traded companies are owned about 50% by debt, so you would need 2% of shares outstanding to own 1% of the company. Also 0.06% interest for a savings account is very unrealistic.
Anne Dank Thanks, Anne, we'll clarify that in a future episode. As for the interest rate, I wish .06% were unrealistic. :/ The average has gone up this year to .09%, and of course some banks (especially online banks) offer better rates. But according to CNN, the savings account average interest rate in the past couple years has indeed been 0.06%. Here is an article: money.cnn.com/2013/10/01/pf/savings-account-yields/ Thanks for watching! - Mike
How to Adult Keep in mind that this number is likely to rise significantly over the next few years as the Federal Reserve starts to increase their rates. Though it's certainly possible they could continue to postpone that decision to continue encouraging consumer spending. But it does seem unlikely that we'll continue with
Love the How to Adult series but I really felt like this was somewhat...misleading at best. Savings accounts and stock are two completely different ways to save money and used for different purposes! To compare the two is like comparing a hammer to a baseball bat. Sure you could pound the nail in with a baseball bat but the hammer is a way better tool for the job. So too is it between a savings account and owning stock. If you want to invest long term then stocks (or better yet - Index funds!) are the way to go. Need to keep money stashed away for a rainy day when a $3000 bill smacks you in the face? Savings account is way better tool for that purpose. Why? Because savings accounts are more "liquid" than stocks are. Liquid is a term used to describe how free your money is should you need it. Savings accounts are liquid because you can withdraw from them without penalty. CD's on the other hand are not. If you put your money into a CD and take it out early you're going to pay a nasty fee for doing so. CD's are not liquid and neither are stocks. Bummer :(. Stocks are great when you are saving for something 30 years down the road. It could be retirement, it could be a house or even your kids inheritance. But you wouldn't really use them to save for a shiny new Playstation 4. It's just not the right tool for what you're looking to do. Also what Kevin Cheers below said is spot on. Diversification is SO important! And index funds are a WAY better thing to get into than stocks! Would you take all of your money and stuff it in your wallet? I wouldn't and I'd advise any adult not do the same. The same holds true with stocks! That time traveling company may be hot to trot now but when Time Travel Corp. unveils its new sleeker design that's also cheaper and more efficient than your behind the times company that you invested in - well there go all the profits your company made! Their stock plummets right along with all your savings! Bogus! Enter the Index Fund! :) Instead of investing in one company, why not invest in several at once? That way if one doesn't do so hot your money is still safe because the other companies in the fund are good to go! Now let's also hire someone to manage those things. Pay someone a full time gig who is an expert on these things and figure out which companies are best for this purpose and this person doesn't just take care of you - they take care of everyone else too! How awesome is that?! That's basically what an index fund is. Ever hear of the Dow Jones Industrial Average? That's an index fund that is comprised of what professional investors consider to be the 30 biggest companies in the world! The Standard and Poor's 500 (aka the S&P 500) is another index fund comprised of 500 different companies! Very cool indeed. There's all sorts of index funds out there all with a different theme or take on what they're about. Some might be into smaller companies that they think are going to hit the big time while others might invest in foreign companies that are rockin out. I would definitely suggest looking into it :). Also, a vid on the importance of a savings account, I believe, is essential when learning how to adult. As an adult, a few hundred dollars every month goes into my savings account so if I were to lose my job or got hit with some really big payment (I need to replace my roof...holy mackeral-salmon on jelly $8000?!?!!). Even putting in $20 a month will go a long way to ensure your financial stability as an adult and also help you to stay debt free. For some great info online one of the best resources I've found is www.bankrate.com . They have lots of calculators and articles on all of this stuff. They also have charts that show you the best places to start a savings account along with information on how safe the bank is and all the info you need to know about it. The same holds true with checking accounts, CD's and all sorts of different ways to invest your money. It's helped me out a ton. And speaking of articles here's one from them about growing your emergency fund :) Check it out! www.bankrate.com/finance/savings/5-ways-to-grow-an-emergency-fund-1.aspx
Goabnb94 The Federal reserve has kept interest rates artificially low by increasing the money supply. This isn't new, interest rates have been near zero for over 7 years now.
Man im a 16 year old male and im really interested In this but I don't get it !;/ literally I don't get it , am I still in a good age to be successful at this in 10 years from now?
