Which Stock Market Investor Are You? (Start Here)

I've always wondered where and how does one start investing their money what's the first step that one has to take in order to understand these concepts of compound interest and time value of money and opportunity cost where does one look to begin I sought the answer to this question like the pursuit for the Holy Grail there's only one best objective way to make and invest money or so I thought I've compiled the answer here for you to decide which method is the best for you and I want to make this guide to determine which type of an investor you might be in the context of video games because YouTube and why not and if none of this makes sense to you then skip to the part where I explain it like a normal person and it'll make perfect sense but I just wish that I saw a video like this when I was younger because I was overwhelmed by the amount of options to invest your money from the stock market index funds mutual funds dividends bonds real estate cryptocurrency penny stocks which one of these is the best that's we're gonna find out today I'm sorry for the really dramatic music that makes you feel like you're in a Star Wars movie and Darth Vader's just about to pop out any second but [Music] hey my name is Andre Jake hope you're having a great week and I want you to imagine starting up a game and in front of you is a screen of all these different characters to select from from this game of life so let's see who we got yep the index fund investor completely useless until you level him up up to a certain point and then he's Opie definitely top-tier and consistently at the top of every level but historically criticized for just being too easy brainless cookie cutter and they're all very valid critiques but not if you like winning remember how sometimes you'd play a fighting game like Street Fighter or Tekken and then you just button mash just that one combo or when you get was a thing in yadda garasu you just had and then your opponent we just rage quit that's this strategy also I'm gonna go over the stats in just a moment but let's see who else we got the real estate investor I really like this character despite never having actually played this guy but they're amazing because they can achieve legendary status faster and almost more consistently than any other character in this lineup depending on the region of your game and for all my muggle friends out there several NPCs or what's called non playable characters have ranked at the top of the leaderboard of life with this one very customizable he's got multiple skins but usually they're seen wearing a decked out suit to show off their fancy ability called leverage and this ability allows their stats to grow exponentially faster than all the other characters in this lineup times 5 but there is a catch because sometimes they'll level down multiple levels instead of up it's never guaranteed but when you're playing this character protip do not ever criticize or say they're not the best because they've got a very strong community support and they won't take well to that you might just get shadow band they've got such a strong loyal following in the USA expansion pack of this game let's see what else we got hello on the Mac that was weird this is my favorite character of all time if you love role-playing games or RPGs and collecting every item in the game this character might be for you his special ability is infinite lives if you use them decently maybe not infinite but a lot of 1ups so when the game starts to get more and more difficult and all the other characters have just rage quit this one just keeps on going and the longer you play this character that easier and more fun the game gets now the goal of this character isn't to get you to the top of the leaderboard the quickest but like the turtle and the hare it's gonna get you there slowly but surely and also these guys clear the final boss level taxes really efficiently the downside though so much grinding this is my profile and stats with this character but it took me like five years to get to this point yeah this video is ridiculous it's about to get way better next up is cryptocurrency investor [Music] yeah that's awkward but you should still play this character at least 10% of your time this guy special ability is aimlessly wandering around until he just glitches and puts you at the top of the leaderboard and you basically win life a lot of people have done that but if you play this character for too long because you're having so much fun he's inevitably going to glitch back down and put you in last place so quit while you're ahead and spend no more than 10% of your life playing with this character he's fun and a well-rounded team must have won but just be careful see what else we got [Music] yeah this character is asleep and useless most of the time not gonna lie every character on this list beats this character except for when the market crashes so you play the flute wake them up like you would a Snorlax rebalance your character stats and then he becomes clutch now a lot of people will swear by this strategy especially older people I don't play this one but okay boomer let's see what else we got ah penny stock investor again super similar to cryptocurrency investor but one phrase to summarize this character button-mashing again sometimes you'll get super lucky in just 360 noscopes someone but that's so rare this characters controls are never consistent they're all over the place and in order to win with this character you either have to know the game developer use a gameshark or just straight-up jailbreak and hack the game entirely and it's a lot of fun figuring out how to do that until your IP gets banned by the sec or nintendo the same thing now those are all the major characters and if you've stuck around them thank you you are the 1% and I thank you ahead of time for smashing that like button but I have tried all of these in the stock market from growth stocks to dividend stocks bonds penny stocks cryptocurrency real estate in the form of wreaths not physical property I have a lot of friends in real estate but just remember when watching this video there is no best it's just what fits your playstyle or your lifestyle and what's most fun for you and your goals so now let me give you a normal explanation of all of these different forms of investing and which one you might actually be the easiest and simplest way to get started with investing whenever someone asks Andre I want to start investing what do I do this is your answer index fund investing and I would never say to do this unless it was something I wasn't doing myself so inside the m1 finance inside my Roth IRA account I own an index in the form of an exchange-traded fund called vti it's roughly valued at around $150 but by investing in that one stock I'm spread across thousands of different companies in the stock market so whatever the stock market is doing that year I'm going to replicate the performance exactly the same way index investing is literally for everyone and you can get started right away by downloading a free app called Robinhood by signing up you get one free stock we bowl another brokerage by signing up one free stock valued at up to $500 and by funding your account any dollar amount let's say you put in $100 you can get up to $1400 that's three free stocks right there so it's free to get started today and you'll be so surprised to see how much your money will grow so fast roughly your money will double every 10 years in the stock market real estate investing is amazing especially if you prioritize cash flow and it gives you so much peace of mind for owning something that's real and physical that you can touch and control unlike stocks which seem serial and conceptual but real estate has made more millionaires than any other asset class because of that special ability leverage and that's what people will call good debt I wish my circumstances allowed me to be a real estate investor but I wasn't raised that way and I'm terrified of debt good or bad I don't want it and I don't have the time nor the interest to get my hands dirty and unfortunately that's where the best deals are something called wedge deals and suffice it to say no one says suffice it to say but the downside to real estate investing is debt and of course you need quite a bit of money to get started but two resources I really recommend and trust our Graham Stefan and meet Kevin definitely go check them out if you want to learn more about real estate dividend investing who is it for this is what I'm doing with my portfolio that's paying me roughly $7,000 per year I could be in any part of this world sleeping under a bridge with Jack Dawson and I would still get paid the same amount regardless of what the stock price is within reason and you could be a dividend investor if you prioritize something that's almost completely passive doesn't require a lot of work and if you don't like that stomach drop feeling when you see your stock price go up and down all the time because dividend stocks fall less hard during a stock market crash dividends are taxed advantageous ly though but the downside like real estate is that requires a lot of money so you're not gonna get rich quick for example for every 100 dollars that you invest into dividends you're gonna make back four to five thousand dollars per year but the goal is not to make back your initial principle of one hundred thousand dollars in 20 years that is not the goal the goal is to have that 100 grand grow in value over time as well as the passive income without lifting a finger I love dividend investing and so much of my channel is dedicated to talking about how awesome it is and showing you how powerful it is and most of the stock markets growth in the last many decades can be attributed to dividend growth stocks and if you're a contrarian which I am and you believe that someday national fiat currencies will go to zero then having exposure to things like Bitcoin Bitcoin cash can be great hedges against traditional forms of investing and I like to think of them as little lottery tickets that can grow a little bit of money into vast fortunes in a short amount of time but it's not guaranteed which is why I keep no more than ten percent of my net worth invested in this asset class but the risk versus reward ratio is very favorable where gold is a store of value for older generations I think cryptocurrency is a store of value for the digital age but only invest here if you're feeling really brave or if you're really pessimistic about the future of fiat currency when the stock market crashes bonds add a lot of value by reducing your volatility not everyone needs to have bonds and if you're young I would not recommend investing in bonds because they're a very conservative investment instead if you've already built a giant net worth and you want to protect your investments then bonds might be the way to go for you because they reduce volatility but they give you a smaller rate of return equal to about inflation at 2% per year and if you're trying to chase wealth and riches very quickly then I've got a free ebook to send you and of course to sell you just kidding I've got nothing to sell you but your best bet is day trading penny stocks and options now if you want to escape your nine-to-five job and you'll have all the time in the world from the market open to the market close to studying chart patterns to the second then you're not gonna succeed here 99% of people who try this will fail and lose money now instead of chasing profits fast let compound interest and do the work for you with less work I know it can be a lot of fun to try this and there are people who have absolutely crushed it and have made way more money than any of us will ever make with these options pun intended but I still don't recommend it of all of these investment strategies real estate dividends and index fund investing are my favorites of course there's a ton of other ones like stash acorns a wealth front wealth simple digit weeble get you to free stocks and Robinhood get your free stock but there is one universal truth here death and taxes suck the other universal truth here is that great investing is either gonna take your time or your money there's no ifs ands or buts about it oh and this whole thing right behind me this is my spreadsheet that keeps track of all of your stocks and tells you some great information keeps everything automated so if you want to feed me timing support my channel and support my work you can find that on my patreon page and which of these investment characters are you guys finding yourself wanting to play with the most that's it love you guys enjoy your week and I'll see you all lovely people on Friday [Music] [Music]

Channel: Andrei Jikh

Views: 117,523

Rating: 4.9461007 out of 5

Keywords: investing, investor, Personal finance, retire, early retirement, 401k, Roth IRA, investing for beginners, dividends, stock market, start at 20, retire by 30, how to, robinhood, robinhood app, m1 finance, andrei Jikh, how to save money, how to invest money, how to retire early, financial independence, money, which type are you, best investments, options trading, penny stocks, crypto

Id: B7qBqKNaiK0

Length: 14min 10sec (850 seconds)

Published: Mon Dec 16 2019