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Houston we have a problem in the stock market may i call it a big problemo and i wanted to tell you guys about this huge problem we have going on in the stock market right now so hopefully it saves you some money because it could end up costing you a lot of money ok i’m in this very privileged position to have two very large youtube channels ok obviously the main
Channel and the second channel i have a big instagram page and mainly have this private stock group which we talk about stocks like the market in general all the time in there in the discord chat and we’re always chatting about different things and so i’m in this very very privileged position where i get to see mass amounts of retail investors that are interested
In stock market investing are already stock market investing some of these individuals have been investing for less than a year some of them have been investing for several years and some of these people have been investing for decades now so i’m gonna see this wide group of individuals in the stock market so i’m constantly able to get like a gauge of the stock
Market in general from a retail perspective on investing in the stock market so it’s a very privileged position and i absolutely love it ok now let me show you a few things here ok the s&p 500 and 2019 just came off its best year tab since 2013 ok the s&p 500 2019 was up twenty eight point eight eight percent unbelievable unbelievable performance for the
Sp500 2019 like i said the next closest year was 2013 that’s when the market was up twenty nine point six percent okay and there’s been really no year that’s been even close to that type of performance we had an s&p 500 keep in mind sp 500 on average you can usually expect like a seven to eight percent return a twenty eight point eight eight percent return
We’re talking like a forex of what you would usually expect so that’s unbelievable performance and here we are we’re going into 2020 now we’re only about two three weeks into the year and the market is already up over three percent in 2020 okay it’s not just a zippy 500 the nasdaq is even a bigger performer okay you look at the nasdaq here you see the nasdaq in
2019 was up thirty five point two three percent ridiculous ridiculous performance once again the best here the nasdaq has had since 2013 where the nasdaq was up thirty eight point three two percent and here we are two or three weeks into 2020 and then nasdaq is already up over four-and-a-half percent okay over four and a half percent the markets are absolutely on
Fire they’re doing amazing okay twenty nineteen amazing and so far to start out twenty twenty been amazing but it’s not just the markets okay you look at some of the most popular stocks out there and you see some unbelievable performance cake you look at apples historical annual stock praise data okay and here we are apple in 2019 its stock price was up eighty six
Point one six percent ridiculous stock performance for apple stock needless to say cake the last year that apple stock was up more than that was 2009 okay a little shortly after the iphone came out and whatnot okay in that year apple stock was up one hundred and forty six percent okay so needless to say in eighty six percent return for apple stock is incredible and
Once again we’re like two or three weeks into 2020 in apple stock is already up eight and a half percent here in twenty twenty unbelievable performance for you know the biggest company in the world means to say hey so good another insanely big company the second biggest market cap company in the world it’s company name is microsoft okay twenty nineteen microsoft
Stock was up fifty five point two six percent we’re not talking about some really small company that just hit their numbers out of the ballpark assume we’re talking about microsoft kay a massive company with over a trillion dollar market up over fifty-five percent once again it’s best performance since 2009 okay when microsoft stock was a fifty six point seven
Nine percent you were look at all those past year for microsoft stock and the performance was nothing compared to twenty nineteen just absolutely an incredible performance and once again here we are just a couple weeks into 2020 and microsoft stock is already up nearly six percent here in 2020 now there’s a stock i talk about more than any and there are my youtube
Channels okay this is tesla stock this is the most popular stock this is a stock that people love to chat about whether you’re bullish on this stock bearish on the stock anything across the board it’s by far and away the most popular stock i ever talk about on the channel okay and here we are with tesla stock just in the past three months the stock has gone from
In the two hundred to over five hundred dollars a share in a three month span and people that are investing in tesla are seeing this okay people who are not even in tesla stock or seeing this type of performance and they’re just wowed then you look at a shock like amd okay amd is certainly not as popular as tesla but it’s one of the most popular stocks out there
From retail investors and if you just pull up a one-year chart for amd stock the stocks gone from like twenty dollars a share to about fifty which is once again ridiculous performance i came now what happens when everyone sees this okay what happens when everybody is seeing this type of performance or being part of this they’re seeing if stock markets have an
Incredible year in 2019 in literally holding that momentum into 2020 they’re seeing incredibly popular stocks like the apples the microsoft’s the tesla’s the amd’s these type of stocks just go up and up and up everybody’s seeing that’s everybody’s partaking in this okay and it leads to an issue and let me tell you about an issue that happened with me a while back
Because this issues happening to some people now i see okay so 2012 2013 2014 we’re very very good years in the stock market all years of double-digit returns okay 2012 was like almost a 16 percent return in the nasdaq 2013 was over a thirty eight percent return in the nasdaq and 2014 was over a 13 percent return in the nasdaq and so i had some incredible gains
From 2010 to 2014 especially 2012 2013 and the first half of 2014 and i was getting such insane returns that i started having ideas of maybe starting to start a margin account and starting to invest money that wasn’t even mine just for the mere fact that the stock market was going up so fast and there was so much money to be made so much money i was making that i
Started to give me a false interpretation of how the stock market work and i started to get like the fear of missing out i’m like men there was this stock i just bought recently it’s already shot up 20% i wish i had bought heavier i wish i had even margined out money in this stock so the gains could have been 2x from what i got what if instead of putting 50000 in
That stock i put a hundred thousand in that stock that stock just shot up 20 percent like nothing i just missed out on thousands more dollars of gains or tens of thousands what am i thinking and this is a way you start to think when you see that type of performance okay and so i start margin now and going into 2015 guess what happens all that types of unbelievable
Performance ends and so no being in the position that i am in i am seeing a lot of this crazy like chaotic activity this like you know like you ever been out shopping on black friday like go to walmart and it’s just craziness madness people fighting over everything people like i gotta buy this i gotta buy this item this is the best deal the pressure is only gonna
Go up i gotta get in i gotta get in i’m seeing a lot of this activity now because the market has been doing so amazing some stocks out there you know especially a lot of the most popular ones have been doing so amazing that i’m seeing this free-for-all of evil thing and they have to get their hands on stocks any way possible because they’re just missing out on so
Much money if they don’t get in and one thing i can tell you about the stock market i’ve been in this game for over a decade now is a great market doesn’t keep going forever it’s just when you think it’s up up up up a way to the moon although certain things take a big step back okay and seeing thing happens on the downside people think oh my gosh this is the end of
The stock market the whole thing is gonna crash it’s gonna go down 30% 40% 50% and then things flip back the other way and they start going up and this is what happens in the stock market and people end up getting trapped either way they get trapped by the fomo and they there the fear of missing out they’re like i got to get my hands on as many shares as possible
Any stock possible because gosh these stocks i just go to the moon or they end up getting caught into that trap of oh my gosh the stock market’s going down oh my gosh it keeps going down oh my i gotta sell all my stock and these are the two things that traps so managed stock market investors it traps stock market investors over and over and over again it has been
Happening since the beginning of time and it’s gonna keep happening over over okay people i think in my goodness i’ve you know seen a lot of people commenting things like they want to start a margin account because they have twenty thousand dollars invested right now but they want another twenty thousand that they can invest on margin and they only have to pay uh
Such-and-such rate and they got uh such-and-such rate last year they got a twenty five percent return the market last year in the interest rate they only have to pay on margin is only like five and a half percent of six percent and they’re like oh my gosh i could just way out through the markets and this leads to a huge trap situation for a lot of retail investors
Okay so i want to give you guys this warning here today do not get caught up into the fomo do not get caught up into the thinking of oh my gosh i have to invest every dollar i have into the market today because tomorrow the markets just going to be up massively more that’s not how you want to think about this always always always think in a disciplined approach
When you are stock market investing and that comes for if you are buying shares or selling shares or partaking in the market in general think in a disciplined approach okay okay i want to start buying stock xyz because this talks a pretty decent value here so you start an initial position and then if that stock goes down a bit and you still love that stock just as
Much you can buy more this is one of the things that’s made me more money than i can ever dream about and this is the same thing that’s made guys like warren buffett more money than they ever dreamed about starting a position in a stock and that stock goes down 5% 10% 20% whatever in the short-term but yet the stock is a pretty good value and still has an amazing
Long-term opportunity in front of it that’s how real money is made in the stock market not by chasing after stocks that might be up hundreds of percent and not going super undisciplined and starting to margin out all your money because you have a fear of missing out that’s what ends up catching a lot of retail investors and a lot of retail investors it says is
There are two biggest mistakes retail investors making the market what i’m talking about in this video fear of missing out in selling after the market has already fallen a bunch in thinking they can time the market to get in and out those are two biggest mistakes retail investors make consistently in the market and if you want to look at the players that make a
Lot of money in this game over the long term and the people that don’t make a lot of money the people that lose a lot of money there’s always the people that end up having the fear of missing out or the people who sell out of stocks at really bad times guys and don’t let those situations end up taking you down guys so this is just a public service announcement here
Today guys i hope you really enjoyed this video smash thumbs up button share this video out with somebody that you might think is potentially in this type of situation or there have a fear of missing out and maybe they got some good things so they’re thinking about they need margin money and things like that guys so anyways hope you enjoyed this as always thank
You for watching and have a great day
Transcribed from video
Big Problem I Found in the Stock Market. Let me explain… By Financial Education