00:00over the last few years we've seen tesla
00:02go up a thousand percent gamestop go up
00:04ten thousand percent and dogecoin create
00:07billionaires wow so in today's video i'm
00:10going to be making an allegedly
00:11indisputable tier list of the best and
00:14the worst financial investments and in
00:16this piece of financial advice that is
00:18not financial advice i'm going to be
00:19ranking the best and the worst
00:21investments from s tier which is the
00:23best to f tier which is the worst so
00:26let's get started so the way i'm
00:28thinking about this is what are the best
00:30investments for the average person so
00:32imagine we took a thousand people and we
00:34trained them for a month on how to do
00:35these different types of investment
00:37styles and then we came back 10 years
00:39later and we saw one how many people
00:41were successful and actually made money
00:43and two out of the ones who were
00:44successful how much money did they make
00:46and then three out of the ones that
00:48weren't successful how much money did
00:49they lose so keep that in mind as we go
00:52through this video first one we're going
00:54to be talking about is day trading
00:56stocks now youtube is littered full of
00:59friendly day traders sitting in front of
01:01their computer smiling that are really
01:03eager for some reason to teach you their
01:09so day trading is basically where you
01:10start the day off with a cash account
01:12you trade during the day you're going in
01:14and out of positions and then at the end
01:16of the day when the market closes you
01:17take all of your stocks out and you go
01:19back to cash now these trades could last
01:22anywhere between like a second or a few
01:24moments all the way up to a few hours
01:26now the thing about day trading is it's
01:28essentially a zero sum game and that
01:30means for one person to win another
01:32person has to lose so there's not really
01:35any value being created here
01:37if you think of it like a slice of pie
01:39in order to get more of the pie you have
01:41to take somebody else's slice whereas
01:43other things like starting a business
01:45and creating value actually grows the
01:47pie itself so because of this fact day
01:49trading is incredibly competitive and
01:52there's this old saying give me the
01:53incentive and i can predict the outcome
01:56and so if you're a day trader who's
01:58going up against a bunch of other really
01:59good day traders it's incredibly hard
02:01for you to make money so what would you
02:03want to do in this situation you would
02:05probably want to bring in a bunch of
02:06brand new people who don't know what
02:08they're doing because they would put
02:10money into the equation and then you
02:11would just take their money right it's
02:13like taking somebody else's slice of pie
02:15now with that being said i do want to
02:16say here i don't think all day traders
02:18on youtube are scams or anything like
02:20that i know there's some channels out
02:22there that think everything's a scam i
02:24do think there are some people out there
02:26who are truly really good at day trading
02:29and they can consistently make money but
02:31with that being said it is a very very
02:34low percentage of people um
02:36statistically speaking somewhere between
02:3795 and 99 of people who day trade lose
02:41money it's not that they break even it's
02:43not that they come in a little bit under
02:45the s p 500 when it comes to their
02:47returns they literally lose money okay
02:50so for that reason this one is going
02:52into d tier next one on the list is
02:55going to be swing trading and this is
02:56where you get gains from short to medium
02:59term plays so you might buy a stock and
03:01then you sell it four days later for
03:03instance now the definition of the time
03:05frame is going to be different depending
03:06on the source that you look at but it's
03:08definitely going to be less than a month
03:10and typically it's one to four days for
03:12a trade so they're looking for stocks
03:14that have a high level of short-term
03:16momentum behind them and they're likely
03:19going to go up and then they're going to
03:20buy into them wait a few days and then
03:22sell them now both swing traders and day
03:24traders use a lot of what's known as
03:26technical analysis which is basically
03:28where you try to predict what something
03:30is going to do based on its past
03:32behavior overall i have seen people be
03:34successful with swing trading again very
03:38rare and it's really hard to do well i
03:40don't know the exact percentages on this
03:42one but i would estimate that probably
03:44over 80 to 90 percent of people would
03:46end up losing money but i also think
03:48that it's more flexible and better than
03:50day trading and i also have dabbled a
03:52little bit in swing trading myself and
03:54i've had some success with it and i do
03:55think swing trading is better than day
03:58trading overall but with that being said
04:00it's still not the best investment it's
04:01still speculation it's still trading and
04:04so therefore i'm going to go ahead and
04:07next one on the list is going to be long
04:10term stock picking now stock picking is
04:13basically where you invest into like one
04:15stock that you think is really good
04:17you're just super excited about this one
04:19stock so think all the people who put
04:21all of their money into like game stop
04:22or tesla for instance and long-term
04:24investing in general is when you buy the
04:26stock and keep it for at least one year
04:29but a lot of the time people buy stocks
04:30and keep them for 10 years 20 years
04:33sometimes even their entire lifetime now
04:35it's really risky to put all of your
04:36money into one stock that's pretty much
04:38like putting all of your eggs into one
04:40basket and if something happens to that
04:42basket you're out of all of your money
04:44so overall again i have seen people who
04:46are really good at stock picking
04:48long-term stock picking also offers a
04:50lot of tax advantages so i'm going to
04:52give this one a b-tier rating next one
04:56on the list is going to be long-term
04:58investing and specifically long-term
05:01investing using tried-and-true methods
05:03that have mathematically been proven to
05:05be the best way for you to invest things
05:07like holding your stocks for at least a
05:09year diversification dollar cost
05:12averaging and always doing your due
05:14diligence on any investment that you
05:16make so i have seen many many different
05:18people be successful with a long-term
05:20investing strategy as long as they stick
05:24this one is going to go into ester now a
05:27really easy way to do all of these
05:30things without having to do any work or
05:32without having to research so much and
05:34still get really good returns is going
05:36to be index fund investing so basically
05:39what you would do here this is probably
05:40the easiest way to do it is you would
05:42automatically set it up to where you
05:44spend a certain amount of money every
05:46single month on some index funds and
05:48what the index funds do is they are
05:50going to automatically diversify your
05:52investment for you so for instance
05:54warren buffett recommends the s p 500
05:57index funds that's the 500 biggest
05:59companies here in the us and you can
06:01just automate this so you'd have the
06:02dollar cost averaging down the index
06:04fund being diversified means that you
06:06don't have to do any research on
06:07companies so this is literally so easy a
06:10caveman could do it and you're going to
06:12beat at least 85 percent of hedge fund
06:14managers yes it is statistically proven
06:17that index funds beat 85 percent of
06:18hedge fund managers when it comes to
06:20their investments and also index fund
06:22investing is passively managed so the
06:25fees tend to be extremely low sometimes
06:27even zero percent so this investing
06:29method is super good it's really solid
06:31especially if you have like a very long
06:34time horizon for when you want to retire
06:36it's also really boring whenever i talk
06:38about it on this channel it seems like
06:45people think index fund investing is
06:47boring but it's really really good and
06:50that's why i'm going to go ahead and put
06:51it into ester all right next one on the
06:54list is going to be crypto short term
06:56investing so this is something like
06:58trying to day trade cryptocurrency but
07:00i'm actually just gonna lump this
07:01together with swing trading as well now
07:03this is something that i have done
07:05before and i've had a good amount of
07:06success with it and i've also done this
07:08before and lost money as well but i have
07:10seen people be consistently successful
07:13uh doing cryptocurrency day trading and
07:16swing trading so in my opinion the stock
07:18market is pretty much figured out at
07:20this point they have some of the
07:21smartest people in the world
07:23working in the stock market they've got
07:24the best technology in the world they
07:26have the best resources in the world
07:29it's really difficult for somebody in
07:31their mom's basement that's got a couple
07:33computer screens to beat the stock
07:35market when it comes to day trading
07:37cryptocurrency is a whole different
07:38beast though because it's so new now
07:40cryptocurrency still requires a high
07:42level of skill a high level of knowledge
07:45and experience i've also seen people
07:47have success with yield farming which is
07:48kind of another form of short-term
07:50trading they basically find farms that
07:52are profitable that need them to provide
07:54liquidity they do it for a very short
07:56period of time and then they basically
07:57try to time their exit so i actually
07:59have seen a good amount of short-term
08:01opportunity in cryptocurrency but this
08:04does require a high amount of skill and
08:06if you taught this to a thousand people
08:08i think many of them would end up losing
08:10money but with that being said if you're
08:12somebody who's really competitive and
08:13you're obsessive and you really want to
08:15get into something that is kind of more
08:18short term i would say this is probably
08:20one of the better options so i'm going
08:21to go ahead and put crypto short term
08:23into b-tier next one on the list is
08:26going to be cryptocurrency invested long
08:28term now i used to be a cryptocurrency
08:32hater i remember back in 2012 i was
08:34living in a scholarship hall with like
08:3550 dudes and i remember there were some
08:37people that were across the hallway from
08:39us and they were mining bitcoin and i
08:42thought it was like the dumbest thing
08:43ever i thought they were just totally
08:45wasting their money wasting their time
08:47because they were buying it and mining
08:48it then the price of bitcoin spiked and
08:50it went up like 100x i think it went
08:52from one dollar to a hundred dollars or
08:54something along those lines and of
08:56course i thought dang it i'm stupid i
08:58missed out on it and i didn't buy in
09:00then either well now it's gone all the
09:02way up to like 60 something thousand and
09:04i think it crashed back down to 30 000
09:06but i think you get the point it's still
09:08gone up a lot so being a more cautious
09:11investor you know i'm a big fan of index
09:13funds for instance i was a
09:15cryptocurrency hater for the longest
09:17time but the numbers don't lie
09:19cryptocurrency was without a doubt the
09:22best investment over the last 10 years
09:24and it's honestly not even close and
09:26after educating myself i am a believer
09:29in cryptocurrency technology i don't
09:31think you should have your entire
09:32portfolio in it i think you should have
09:34a you know diversified portfolio where
09:36you have other assets as well so things
09:38like stocks or real estate is something
09:40else that should be in your portfolio
09:42long term and you also need to be really
09:44careful here because cryptocurrency is
09:46largely unregulated there's a lot of
09:49really scammy stuff going on like rug
09:51polls you can get your wallet hacked so
09:53it's very important for you to know what
09:55you're getting yourself into and be very
09:56careful but i have personally seen
09:59friends of mine who invested in
10:01cryptocurrency who can now retire right
10:03so these are people who are just normal
10:05everyday joes they invest in
10:07cryptocurrency and now they can retire
10:09they don't have to work anymore and
10:10these are just the people that i met
10:12before becoming a youtuber now that i'm
10:14a youtuber i've done some networking
10:16i've met tons of people who have made
10:18money from cryptocurrency to the point
10:19where they can you know borderline
10:21retire so crypto investing long term
10:24again using these same fundamentals that
10:26work in stocks and that is diversifying
10:29your investments dollar cost averaging
10:32making sure you do your own due
10:34diligence and do your own research and
10:36long-term investing crypto long-term
10:39definitely s tier all right so next one
10:42on the list is going to be options
10:44trading now this is a really interesting
10:47one so in my opinion options trading is
10:49really misunderstood in my video the
10:51ultimate guide to the stock market i
10:53probably spend a good five to ten
10:54minutes talking about exactly what
10:56options trading is and i'll just put the
10:59definition on the screen for you so you
11:01know if you want to pause and look at
11:02the definition you can but with that
11:04being said options trading basically
11:06just gives you more options when it
11:08comes to what you can do when you're
11:10buying or selling a stock and you have
11:12the right but not the obligation to
11:14exercise that option now one reason that
11:17options trading gets a really bad
11:19reputation is because if you look at
11:21wall street bets for instance most of
11:23the people who lost a ridiculous amount
11:25of money did it because of options
11:28trading so some of the option plays i've
11:30seen on wall street bets are so stupid
11:32that you would probably be more likely
11:34to make money by taking all of your
11:36money out of your bank account pouring
11:38gasoline all over it and then setting it
11:41on fire that's essentially what they're
11:43doing with some of these option plays
11:44that i've seen it it's unbelievably
11:46stupid however if you use options the
11:49right way you can actually reduce your
11:51risk not increase your risk but reduce
11:53it now getting really good at options
11:55trading is pretty complicated it's
11:57probably a lot more complicated than day
11:59trading for instance and that's why i
12:01don't think it's nearly as popular but
12:03with that being said i have met people
12:04who are consistently making money
12:06options trading however using my
12:09scenario if you put a thousand people
12:11through this i think many of them would
12:13end up losing money and they would
12:15probably end up losing a lot of money
12:17however i do think there would be a
12:18small amount of people who would end up
12:20making a ton of money as well so i'm
12:22really torn on this one um like the
12:24typical option trading on robinhood for
12:26instance you're almost guaranteed you're
12:29going to lose money unless you really
12:30know what you're doing but if you're a
12:32really good option trader i think
12:33there's a good chance that you can make
12:35money so i'm going to go ahead and put
12:36this one into c tier next on the list is
12:39going to be forex and this is basically
12:41where you are trading different
12:42countries currencies so this one's
12:44pretty similar to day trading um again
12:47i'm sure there are people out there that
12:49are really good at reading the market
12:50and understanding you know the
12:52geopolitical environment and how that's
12:54going to affect forex and affect
12:56different currencies in different
12:57countries and i'm sure there are people
12:59that are able to do that consistently
13:01but again with a thousand people the
13:02vast majority of them would not end up
13:04making money so i'm going to go ahead
13:06and put this one into d tier
13:13i'm just going to come right out with it
13:14and say this is probably the worst one
13:17on the entire list penny stocks are what
13:20the wolf of wall street used to scam
13:22people yeah they're penny stocks you
13:24know companies that can't get listed on
13:25nasdaq they don't have enough capital
13:27their shares trade here penny stocks
13:29they are highly volatile
13:31highly speculative and incredibly easily
13:34manipulated because of the fact that the
13:36market caps for penny stocks are so low
13:39a single negative or positive story
13:41coming out from an outlet might actually
13:44affect the stock price significantly
13:46we're talking it might double or triple
13:48the stock price or it might completely
13:50crash it and so penny stocks are just
13:53crammed full of rug polls and scams and
13:56almost no one has consistent success
13:59buying and selling penny stocks except
14:01people who make courses on how to buy
14:04and sell penny stocks this one goes in f
14:07tier horrible do not do it next on the
14:10list is going to be real estate and this
14:13is one of the absolute best ways for you
14:15to build your wealth i think if you
14:16taught a thousand people how to do real
14:18estate something like 80 to 90 percent
14:20of them would end up making money now a
14:22lot of the time there is a learning
14:23curve so a lot of people will end up
14:25making a big mistake and losing a lot of
14:27money at least temporarily on their
14:29first house and this is great for people
14:31who want to just do it as a side hustle
14:33it's also great if you want to get into
14:35the real estate industry and do it as a
14:37full-time job okay so i don't want to
14:38like oversell this i'm trying to give
14:40you guys the most fair assessment of all
14:42these i don't want to make it sound too
14:44something like two-thirds of millennials
14:46actually regret buying a house but in
14:49this particular case i'm talking about
14:50real estate investment i'm not talking
14:52about buying a house just because you
14:54know it's the american dream or
14:56something like that this is real estate
14:58investment where you're trying to make a
14:59profit from your property so i would say
15:02this one is a little bit riskier than
15:04index fund investing but there's also a
15:06little bit more upside it's also not
15:08nearly as passive as index fund
15:10investing so there is going to be some
15:12actual work that goes into this and it
15:14also requires a lot more skill than
15:16index fund investing as well now i
15:18personally have not gotten into real
15:20estate investing because it does not fit
15:22my personal plan and the goals that i
15:24have as well as the lifestyle that i
15:26want to live right now but later on in
15:28my life i will definitely get into real
15:30estate investing so a lot of this really
15:32just comes down to your personal
15:34preference the situation you're in and
15:36what your goals are but with that being
15:37said real estate investing is absolutely
15:40without a doubt s tier next one on the
15:42list is going to be crypto meme coin
15:45investing now there are stories out
15:47there of people making a ridiculous
15:49amount of money from dogecoin or shiba
15:52inu and it's true there were people who
15:54became millionaires from dogecoin as
15:56well as sheba there's even one person
15:57who became a billionaire apparently but
15:59the problem with meme coin investing and
16:01this is what happens every time i've
16:03seen this cycle happen over and over
16:05again is the best time to invest in it
16:08is when nobody's talking about it and
16:11when nobody's talking about it you're
16:13not very likely to even know that it
16:15exists and by the time that you know
16:17that it exists that's probably because a
16:19lot of people have invested in it the
16:20market cap has gone up the price has
16:22gone up news outlets are covering it
16:25youtube channels are talking about it
16:26etc etc and that's not the time you want
16:29to invest in it that's probably one of
16:31the worst times you know they say that
16:33when you hear your taxicab driver
16:35talking about an investment that's when
16:36you know you need to exit so i have
16:39personally seen like this has happened
16:41over and over again people get into
16:42dogecoin or shiba inu at the wrong time
16:45and they end up losing like 90 of their
16:48money and these meme coins do not have
16:49any inherent value what do they do to
16:52society how are they adding value to
16:54society they aren't and so meme coin
16:56investing is gonna go into f tier all
16:59right so precious metals investing is
17:02going to be next on the list
17:04and specifically the one you hear about
17:06the most is investing in gold now
17:10have been saying that we should invest
17:12in gold for like the last 30 years and
17:14yes in the 70s when the us experienced a
17:17high inflation environment investing in
17:19gold actually was the best move but
17:22since then it's actually been one of the
17:24worst performing assets it actually
17:26performed worse than your average bond
17:28and just because gold performed well
17:30last time when inflation hit doesn't
17:32necessarily mean it's going to be the
17:34same thing this time those two things
17:36could have been correlation and not
17:38causation so i am not a big fan of gold
17:41i mean if you want to keep it as a small
17:42percentage of your portfolio
17:45and actually probably just buy the gold
17:48like don't just have somebody else buy
17:49it for you actually have it with you
17:52i guess that can be kind of a hedge
17:54against a you know hits the fan
17:56kind of scenario but honestly in a
17:58scenario like that i would say there's
18:00gonna be a lot of other things that are
18:02a lot more valuable like food supplies
18:05etc but i just i don't see any reason to
18:08buy gold i'm not a big fan of it and so
18:09for that reason i'm gonna go ahead i
18:11feel bad for putting it in d tier
18:13because i wouldn't say it's like a scam
18:15necessarily it's just it just hasn't
18:17performed well and i don't really see it
18:19performing that well i guess i'll go
18:21ahead and put this one into c tier just
18:25next one on the list is going to be
18:27bonds so i'll put the definition on the
18:30screen you can pause if you don't know
18:31what bonds are but basically this is a
18:34device that kind of gets you maybe like
18:36a three or four percent return but
18:39it's pretty much guaranteed so if you're
18:41somebody who's really close to
18:42retirement for instance what financial
18:44advisors generally will say is you want
18:46to have more and more of your portfolio
18:49in bonds and the reason for this is
18:50because you don't want your retirement
18:52to get delayed in the case of a market
18:54crash you kind of want to lock your
18:56earnings in by investing in bonds but
18:58other than that bonds especially in this
19:00environment don't even keep up with
19:02inflation so i can see certain scenarios
19:05where investing in bonds is a good idea
19:07like if you're really close to
19:08retirement for instance i totally get it
19:10but for the average investor for someone
19:12who's really young not really a need to
19:14invest in bonds in my opinion i'm going
19:16to go ahead and put this one into c tier
19:19next one on the list is going to be
19:20actively managed mutual funds now this
19:23is very similar to an index fund in fact
19:26an index fund is a type of mutual fund
19:28but in this particular case i'm
19:29referring to the actively managed
19:31variety so this is an actively managed
19:33type of investment so it means that the
19:35fees are going to be a little bit higher
19:37now the investment is going to be
19:38diversified usually this is a long-term
19:41investing instrument and like i said
19:43before index funds are going to be hedge
19:45fund managers like 85 of the time but
19:47you do have examples of mutual funds
19:49that have outperformed index funds for a
19:52very long period of time so it really
19:54depends on the mutual fund that you
19:55invest in but i still think this is a
19:57very good investment i'm going to go
19:59ahead and put it into a tier next on the
20:01list is going to be retirement plans and
20:04tax advantaged accounts so this is going
20:06to be things like the 401k roth ira hsa
20:09etc now these are all amazing
20:11investments because they have massive
20:13tax benefits and they were designed to
20:15help lower and middle class people
20:17retire so these are going to be limited
20:19in terms of how much you can invest but
20:21just very generally speaking if your job
20:23offers you a 401k and they offer like
20:25five percent matching on that 401k you
20:28should absolutely contribute up to the
20:29five percent that's essentially free
20:31money and then you should also max out
20:33your roth ira every year and inside of
20:35both of these you can invest in index
20:37funds for instance just to keep it
20:38simple so i've already made several
20:39videos on what these are so i'm not
20:41going to go over that
20:42if you want to you can definitely look
20:43those up but yeah this one is absolutely
20:46without a doubt asked here next one on
20:48the list is going to be insurance and
20:52whole life insurance and the reason i
20:54put this on the list is because a lot of
20:55insurance salesmen will position this as
20:58an investment and you would almost
21:00always be better off just putting your
21:01money into an index fund you'd get much
21:03better returns if you did that now two
21:06cents did a really good video explaining
21:08the nuances of this and insurance can be
21:10extremely important for a lot of people
21:13and there are certain situations where
21:14whole life insurance might be the best
21:16move for you there are many other
21:18situations where if you do need
21:20insurance term insurance is probably
21:22going to be better and insurance really
21:24shouldn't be viewed as an investment in
21:25my opinion i think it should be looked
21:27at as a hedge against risk so for that
21:29reason i'm going to go ahead and put
21:31insurance as a whole
21:33into c-tier next one on the list is
21:35going to be investing in a business now
21:38over the last few years we've actually
21:39had record numbers of people who started
21:41their own businesses and with a lot of
21:43the other investments on this list you
21:45might be able to make like eight percent
21:47a year or maybe ten percent a year maybe
21:49up to twenty percent per year but
21:51starting a business can make you a
21:52hundred percent return on your
21:54investment two hundred percent three
21:55hundred percent four hundred percent a
21:57thousand percent now of course this is
21:59not passive like an index fund for
22:01instance um it requires a lot of skill
22:03requires a lot of work and a lot of
22:05activity and you're also taking on a lot
22:07more risk and it's much more difficult
22:08to succeed and my philosophy when it
22:10comes to starting a business is never
22:12spend any more than a hundred dollars
22:14when you start out there are so many
22:16different businesses out there that you
22:17can start and dip your toe into with
22:19less than a hundred dollars for instance
22:21you can start making youtube videos just
22:23by whipping your smartphone out so most
22:24of the time you aren't really risking
22:26all that much money what you're really
22:28risking is your time and your effort so
22:30this choice is not for everyone totally
22:32understand people who want to just stay
22:34in the comfort of a nine-to-five job
22:36there's nothing wrong with that i
22:38totally get that but for the right
22:39person this one can absolutely be ester
22:42and the next one sounds a little bit
22:44cheesy but it's basically investing in
22:46yourself so regardless of whether you're
22:48going to start a business or not it's
22:50worth it for you to invest in your
22:52skills now this could involve investing
22:54in education or learning new skills but
22:56it's also things like investing in your
22:58own health investing in your happiness
23:01and as cheesy as it sounds this is super
23:03important just be careful and don't get
23:05scammed this one is going to go into s
23:07plus tier check out my stock broker tier
23:10list right here if you want to start
23:11investing and you want to see what in my
23:13opinion are the best stock brokerages
23:15and if you haven't done it already go
23:16ahead gently tap that like button hit
23:18the subscribe button ring the
23:19notification bell and comment down below
23:21any thoughts comments criticisms etc
23:23that you have on the video and i will
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