Watch This Before You Invest In The Stock Market in 2021 - YouTube

Channel: Proactive Thinker

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