00:00the reason you click this video is
00:02because you wanted a full guide on the
00:04stock market for beginners in 2022 and
00:07that's exactly what you're gonna get now
00:09what i'm gonna do here is i'm gonna
00:10break this down into different parts and
00:12it's gonna be separated by time stamps
00:14which you can see down in the
00:15description below and so if you want to
00:17you can skip around but i highly
00:19recommend watching all of it because
00:20this is basically going to be a mini
00:22course and whether you are an advanced
00:24investor that just wants to brush up on
00:26the basics or you are a complete
00:28beginner that has never invested before
00:30you are going to get a lot out of this
00:31course but if for whatever reason you're
00:33really busy there's always those time
00:35stamps down below and you can jump
00:36around and not only am i going to teach
00:38you the basics of investing but i'm also
00:40going to sprinkle in some wisdom and
00:42some knowledge and i'm going to talk
00:43about things that i think are the most
00:45important concepts for you to know as an
00:47investor and by the end of this video
00:49i'm hoping that i can surgically take my
00:51brain out and physically put it inside
00:53of your head that's impossible i can't
00:55really do that sorry my disappointment
01:00and my day is ruined
01:02but a plus side is you will know more
01:04than any of your friends about the stock
01:06market now the first part of this video
01:07is going to be more informational but
01:09later on in the video i am going to do a
01:11step-by-step tutorial where i spend ten
01:13thousand dollars of my own money on
01:15stocks and on top of that i have three
01:17different gifts throughout this video
01:18and these are gifts that took me a very
01:20long time to make these are going to be
01:22incredibly useful to you so uh two of
01:25them are going to be kind of towards the
01:26middle of the video and then the last
01:28one is going to be at the end all right
01:30so welcome everyone this is going to be
01:32the stock market for beginners course my
01:34name is shane hummeson i go by shane
01:36hummus online that's kind of like my
01:38brand thing just because nobody can
01:40pronounce my last name correctly so i
01:42got tired of that and so i just call
01:44myself hummus because everyone
01:45recognizes that and i secretly just want
01:47to make everyone hungry so why should
01:49you be interested in the stock market in
01:51the first place why should you care
01:53about investing and answer this i
01:55actually have a quick question for you
01:57if you invested one dollar at the
01:59beginning of your career after 40 years
02:02of working let's just assume you work 40
02:03years and then you get to retire and
02:05assuming that that one dollar grows at
02:08return per year how much would you have
02:11at the end of 40 years now don't go
02:13online to look up a calculator or
02:15anything like that i want you to just
02:16try to think in your head how much it
02:18would be do you think it would double
02:20would it turn into two dollars do you
02:21think it would maybe triple three
02:23dollars quadruple maybe you think it
02:25would go up 10 times well the answer is
02:28actually 45 dollars and 26 cents so it
02:31would actually go up 45.2 x and this is
02:34assuming that you get 10 average returns
02:36per year which we have consistently
02:39basically almost for the last 100 years
02:41and this is also assuming it's seven to
02:43eight percent adjusted for inflation
02:45because we usually have about two to
02:46three percent in inflation now you're
02:48probably pretty shocked that it went up
02:5145.2 times and the reason for this is
02:54because a phenomenon known as compound
02:57interest and einstein said that compound
02:59interest was the eighth wonder of the
03:01world here's a quote on the top right it
03:03says compound interest is the eighth
03:05wonder of the world he who understands
03:07it earns it he who doesn't pays it and
03:10it's because of this compound interest
03:12that the earlier you start investing the
03:14better even if you don't have very much
03:16money to invest because the power of
03:18compound interest can turn what is you
03:21know not that much money into enough
03:23that you could potentially retire so
03:24this is why in my opinion investing is
03:27so incredibly important because
03:29sometimes it's not all that much about
03:31how much you make it's how much you can
03:33save and then invest so now we know why
03:36you should invest you understand the
03:37magical power of compound interest but
03:40why should you listen to me for
03:42investing advice well i'm glad you asked
03:44and let me introduce myself so like i
03:46said before my name is shane hummison i
03:48go by shane hummus on youtube this is a
03:51picture of me in the top right that was
03:52taken in seattle i live in the pacific
03:55northwest in washington just north of
03:57seattle i'm a pharmacist and that means
03:58that i got a doctorate of pharmacy and
04:00i've made a lot of videos on giving
04:02different college advice because let's
04:04be honest college is incredibly
04:05expensive these days and you have to
04:07make sure that you're getting a degree
04:08that's actually worth it and you're not
04:10getting scammed by universities and
04:12people listen to me because i've been
04:13through the whole college system from
04:15the bottom all the way to the top
04:17getting a doctorate and so i kind of
04:18have a very good understanding of how it
04:20works i've also been a youtuber since
04:232008 that's right i uploaded my first
04:25youtube video all the way back in 2008
04:28and it was a video of me doing what's
04:30known as pking on runescape which is
04:33basically this video game uh that was
04:35kind of set in the the middle ages i
04:37guess but there's dragons and there's
04:39magic and wizards and all kinds of stuff
04:41like that and at the time i didn't even
04:42have a computer so i would go to the
04:45local library i would download a screen
04:49i would record my screen at the local
04:52library and then post that on youtube so
04:54i actually started youtube without even
04:56having a phone or a computer and since
04:58then i tried starting several different
05:00types of channels one of them was about
05:01pharmacy for instance i started another
05:04one about productivity but this channel
05:06shane hummus was the one that really
05:07took off i'm also a lifelong learner and
05:10i have a huge passion for teaching so
05:12over the years of uploading youtube
05:14videos i figured out how to have a
05:15really good balance of being a good
05:17teacher but also being entertaining and
05:20i figured out a way to eli 5 explain
05:24you know break things down into a way
05:26that anybody can understand them now i'm
05:28a big time personal finance nerd i'm
05:30constantly studying it reading news
05:32about it watching videos on it listening
05:34to podcasts about it i would also
05:36consider myself a balanced investor so
05:39i'm not one of those people who's just
05:40like oh my god you have to yolo your
05:43entire life savings into this one meme
05:45coin right now and i'm also not one of
05:48those people that's like you know the
05:49only thing you can invest in is gold
05:51gold is the only thing that has value
05:53everything else is worthless and it's
05:55eventually going to go to zero you only
05:57can invest in gold and maybe silver and
05:59these two types of investors are almost
06:01like memes at this point and and i
06:04consider myself to be a balanced
06:05investor i kind of embrace both sides
06:08and i like to find the investments that
06:09have the highest upside with the least
06:12amount of risk and also i consider
06:14myself to be a normal guy so i came from
06:17a poor background i was actually
06:18homeless at one point when i was younger
06:20and i was in a situation where not only
06:22were other people not taking care of me
06:24but i had to take care of other people
06:26so when i started investing i had to do
06:27it with my hard-earned cash that i made
06:29i'm not one of those channels who makes
06:31money by talking about investing and
06:33then make more money by reinvesting the
06:34money that i made talking about the
06:36investing with like an infinite
06:37monetization loop i started investing
06:40with money i made from the real world
06:42i'm a normal guy i've got a normal job
06:44and i think most importantly my
06:46experience the fact i've been investing
06:48for a while the fact that i have done
06:49this on my own it started with my
06:52hard-earned cash and the fact that i
06:54have a portfolio in the multiple six
06:55figures that i built up on my own and
06:58most importantly the fact that over the
06:59past year i'm up over 100 on my
07:01investments all of this is something
07:03that i wish that i knew when i was
07:05younger so that's what i'm kind of going
07:07to be going over in this video i'm going
07:09to be talking about things that i wish i
07:11knew when i was younger because maybe i
07:13would be doing even better now but with
07:15that being said i do have to say that
07:16this is not financial advice and it is
07:18for educational and entertainment
07:19purposes only so always do your own
07:21research when it comes to investing now
07:23let's go ahead and go over what you're
07:25going to learn from this video so we're
07:27going to start off you know with the
07:28basics what is a stock we're going to
07:30talk about the stock market basics as
07:32well some of the most important
07:33fundamental things you should understand
07:35we're going to go over the different
07:36types of stocks the different types of
07:38investing investing strategies what is a
07:40financial ratio and why it's so
07:42important then we're gonna go over
07:44buying your first stock and i'm gonna do
07:46this with a live demonstration where i
07:48buy ten thousand dollars worth of stock
07:50then i'm gonna talk about strategies for
07:52being a successful investor we're gonna
07:54go over short-term capital gains tax as
07:56well as long-term capital gains tax then
07:58the conclusion and then throughout the
08:00video i'm going to give you a free gift
08:02and they're actually going to be several
08:04free gifts throughout the video you
08:05don't need to enter your email in it's
08:07nothing like that it's legitimately just
08:09a free gift from me to you and these are
08:11going to be resources that again i wish
08:13i had when i first started investing and
08:15they are going to help you out
08:16tremendously so what exactly is a stock
08:19a stock is basically a small share or
08:21piece of ownership in a company that can
08:23be traded or exchanged for money now
08:25stock in a company can be private or it
08:28also can be public private stock can
08:30only be bought with the invite from the
08:32company themselves and also private
08:34stock is much less liquid aka it's a lot
08:36harder to sell public stock on the other
08:38hand can be bought by anybody it's
08:40available on the free market and it is
08:43issued after an ipo happens an ipo is an
08:46initial public offering and in order to
08:48do this companies have to basically meet
08:50certain requirements from the government
08:52they basically have to be very open and
08:54disclose certain financial details to
08:56everyone and this is a common way for
08:58companies to raise money so another way
09:00of looking at this is common stock
09:02versus preferred stock common stock is
09:04what the public can buy sold at fair
09:06market value and that means it's bought
09:08and sold based off of the principles of
09:10supply and demand and common stock is
09:13easier to buy and sell however if the
09:15company goes under or gets liquidated
09:17this type of stock has very low priority
09:19now with common stock you do have voting
09:21rights in the company this means that
09:23you do have some say in the direction of
09:25the company and if you have enough of
09:26the shares you can even be on the board
09:28of the company sometimes these types of
09:30stocks pay dividends which is basically
09:32where you get paid out to hold the stock
09:35and we're going to get into what a
09:36dividend is later on now common stock
09:38actually does have higher upside when it
09:41comes to the potential gains however
09:43it's also more risky so it has good
09:45upside but bad downside and common stock
09:48is as the name suggests the more common
09:50type of stock when people talk about
09:52stocks they are generally referring to
09:54common stock preferred stock on the
09:56other hand is usually sold at a higher
09:58amount if the company goes under this
10:00one has a high priority when it comes to
10:02liquidation so you're more likely to get
10:04your money back and you technically
10:06don't have voting rights with preferred
10:08stock however you may receive special
10:10voting privileges which would be even
10:11better than the normal type of voting
10:13rights that you have with shares the
10:15dividends tend to be fixed with
10:17preferred stock however there is limited
10:19upside when it comes to the returns a
10:21way to think about preferred stock is
10:23almost like it's a bond if you're
10:25familiar with that preferred stock is
10:27pretty much an instrument of debt where
10:29you're pretty much going to get paid a
10:30fixed amount almost no matter what even
10:33if the company goes under so it does
10:34have limited upside when it comes to the
10:36returns but it also has limited downside
10:38as well now let's go over different
10:40stock categories we're going to go over
10:42large cap mid cap small cap and micro
10:45cap stocks so some people will argue
10:47about the exact numbers here but these
10:49are just approximate so anything that is
10:5210 billion dollars in market cap and
10:54above would be considered a large cap
10:57stock these types of companies are
10:59considered to be stable established
11:01companies and they also tend to be less
11:03volatile so a few examples of this would
11:06be you know amazon apple microsoft
11:09mid-cap stocks tend to be around 2
11:11billion and 10 billion dollars in market
11:14cap and these are up and comers so these
11:16are companies that are probably headed
11:18towards being large cap but they're not
11:20there yet so a few examples of these
11:22would be dunkin donuts american eagle
11:24outfitters and grubhub then you've got
11:27what are known as small cap stocks now
11:30these are going to be between 300
11:31million and two billion dollar companies
11:33they're more affordable but there can be
11:35greater volatility now that can be a
11:38good thing or a bad thing you could
11:40invest in a small cap stock and it could
11:42go up significantly an example of a
11:44small cap stock would be bed bath and
11:46beyond office depot or amc now
11:49interestingly enough you can travel from
11:51a small cap to a large cap stock and
11:53that's exactly what the company gamestop
11:55did over the last year they started it
11:57off as a small cap stock and they ended
12:00the year as a large cap stock and then
12:02you've got what are known as micro cap
12:04stocks and these are less than 300
12:07million dollar companies and these are
12:09incredibly risky um a lot of the times
12:12these would be what you would refer to
12:13as penny stocks if you're familiar with
12:15the movie the wolf of wall street these
12:17are the types of companies that jordan
12:19belfort used to scam people they
12:21basically manipulated the price of these
12:23companies in order to make a ridiculous
12:24amount of money from their investors so
12:27because of the fact that these companies
12:28are so small there's three different
12:30things you have to watch out for first
12:31of all they can be incredibly volatile
12:34the prices of these stocks could double
12:35in a day or they could go all the way
12:37down to 50 40 30 within a day as well
12:41because of the fact that the companies
12:42aren't worth as much it's also easier to
12:44manipulate their prices either via the
12:46news or money if you have enough of it
12:48now that is technically illegal to
12:50manipulate the prices but it still
12:52happens quite a bit and people are
12:54constantly skirting that gray line of it
12:56being legal versus illegal and then the
12:58third thing is there's low levels of
13:00liquidity which basically means that
13:03even if you do have the stock and even
13:04if it did go up in price it may be
13:07difficult for you to sell it so with a
13:09lot of the large cap stocks if you go to
13:11sell it you can pretty much sell it
13:12immediately because it has a lot of
13:14liquidity with small and micro cap
13:16stocks sometimes it might not sell
13:18immediately it could be more difficult
13:20and in that time that it takes to sell
13:21it maybe the price goes back down so
13:23there are many different reasons that
13:25these types of stocks are risky and you
13:26have to be incredibly careful if you
13:28decide to invest in them and i'm not
13:30even going to give you any examples of
13:31these because they would be companies
13:33that you've never heard of but just know
13:34that be very careful with this they're
13:36extremely susceptible to pump and dump
13:38schemes and all kinds of shenanigans all
13:41right moving along there are other ways
13:43of categorizing stocks and this is
13:45another way that you can do it which is
13:47value stock growth stock as well as
13:49defensive so value stocks tend to come
13:51from established companies with great
13:53fundamentals these types of stocks tend
13:55to be less volatile there tends to be
13:57pretty steady sales and profits and the
13:59potential for your return on investment
14:01is probably going to be lower so this is
14:03not the type of stock that is going to
14:05like you know double in three months or
14:06anything like that usually the p e ratio
14:09is going to be less than one and we'll
14:11go over in a little bit what that means
14:13a lot of the time value stocks actually
14:15give dividends and basically what you're
14:18looking for with this type of investing
14:20is you're looking for companies where
14:22the perceived value aka what the stock
14:25is currently is lower than what the
14:28actual value of the company is so for
14:30instance maybe a company had some type
14:31of scandal but you believe that the
14:33company is going to fully recover from
14:35that scandal but because of the negative
14:38news the company's stock price went down
14:40a little bit however you believe that
14:42the company is going to fully recover
14:43and it's going to get back on track
14:45pretty soon so you decide to invest in
14:47it that would be an example of value
14:49investing now interestingly enough
14:51especially through the pandemic value
14:52stocks and value investing have really
14:55changed quite a bit because of the fact
14:56that they relied on foot traffic ended
14:59up losing a lot of their value but with
15:01that being said one example of a value
15:03stock in my opinion would be sofi some
15:06more traditional examples of value
15:07stocks might include costco or walmart
15:10now investing in growth stocks for
15:12instance also known as growth investing
15:14on the other hand is where you try to
15:16find companies that have tremendous
15:19upside now these companies do tend to be
15:21more volatile and these types of
15:23companies are usually scalable so you
15:26see a lot of growth stocks in the
15:28technology industry for instance because
15:30technology related companies tend to be
15:32scalable there also usually is a high p
15:34to e ratio and that's price to earnings
15:37we're going to go over that here in a
15:38bit and they rarely pay dividends a very
15:41obvious example of this one would be
15:43tesla tesla went up about 10 x or 1 000
15:47in a one year period and so that is an
15:49example in recent history of something
15:52that would be considered a growth stock
15:54another example of a type of investing
15:56is defensive investing or defensive
15:58stocks and these are stocks that are
16:00very stable and they're usually not
16:02cyclical now again this one kind of got
16:04turned on its head a little bit during
16:06the pandemic there were many examples of
16:08defensive stocks that are usually
16:09considered to be consumer staples that
16:11suffered a lot during the pandemic but
16:13with that being said these tend to be
16:14very slow and steady they tend to have
16:17high paying dividends there's lower
16:19profit potential but there's also lower
16:20risk and they tend to be consumer
16:23staples as well although in many cases
16:25defensive stocks can also be value
16:27stocks so one example of that would be
16:30walmart now keep in mind guys these are
16:32not necessarily mutually exclusive you
16:34could have a stock that's potentially
16:36all three of these things at once you
16:38also could have a stock that starts off
16:40as a growth stock and then later on
16:42maybe five years later it turns into a
16:44value stock now if you do buy stock you
16:46would be known as a share holder and
16:48because of this you would get to have
16:49some voting rights in a company and have
16:51a limited control of the direction that
16:53that company goes the more stock you own
16:55the more control you have if you own
16:57enough stock you can even get on the
16:58board of the company now i do want to
17:00tell the difference between stakeholders
17:02and shareholders shareholders are
17:04interested in the return on investment
17:07of a stock and usually this is in the
17:09short term so if somebody invests in a
17:11company you know they invested in the
17:13stock they want to see that stock go up
17:15whereas stakeholders tend to be more
17:17invested in the long-term success of a
17:19company now we've seen this strategy
17:20that's been especially popular in the
17:22last few decades where companies will
17:24actually go billions of dollars in debt
17:26in some cases in order to take a certain
17:29amount of the market share of whatever
17:31market they're trying to break into this
17:32was a strategy that amazon used for many
17:35years they weren't making money it's a
17:36strategy that you see uber using right
17:38now and sometimes this can be a good
17:41strategy sometimes if you take enough of
17:43the market share this can pay off in the
17:45long run however in the short term it
17:46might make your stock not as valuable
17:48now sometimes those who are shareholders
17:51might make decisions that is good for
17:53the company in the short term you know
17:55for instance they might lay a bunch of
17:57people off or they might start using
17:59cheap components instead of expensive
18:01ones and that can end up making the
18:02company more money in the short term but
18:04then they probably just end up selling
18:06their stock so that was a good short
18:07term move but it wasn't good for the
18:09long term now in order to sell your
18:11stock as a company you have to do
18:13something known as an ipo this is an
18:15initial public offering and this is
18:17basically when a company decides to
18:19start selling shares of their stock in
18:21order to raise money but it doesn't just
18:23raise money it also increases awareness
18:26of the company itself so oftentimes
18:29companies will actually hire third-party
18:31firms to figure out how to conduct their
18:34ipo in the best possible way to get the
18:36most amount of press and also make sure
18:38that their stock does hit the market at
18:40a high enough price so an ipo can also
18:43increase awareness gain credibility and
18:46increase the liquidity of investments an
18:48ipo is also called going public and
18:50there are certain financial requirements
18:52that have to be met in order to do this
18:54so for instance you have to release a
18:56lot of sensitive financial information
18:58in the form of financial statements and
19:00this is information that your
19:01competitors really want to know probably
19:03so there are a lot of pros and cons to
19:05going public and many companies opt to
19:07stay private and they believe for the
19:09long-term success of the company it's
19:11better to just stay private and not have
19:13shareholders now there are a ton of
19:15different financial statements that you
19:16see companies release but i'm going to
19:18go ahead and go over some of the most
19:20important ones and by the way you can
19:21usually find these on the company
19:23website in the investor relations tab so
19:26you can just control f and search
19:27investor relations but the balance sheet
19:30is one example and a balance sheet
19:32basically shows how much the company
19:34owns and how much shareholders have
19:36invested so it's going to show the
19:38assets of the company in terms of how
19:40much cash they have how much property
19:42value they have even the worth of the
19:44inventory of whatever the company is
19:46selling it also shows the company's
19:48liabilities as well so these could be
19:50things like rent or a mortgage payment
19:53how much the utilities cost or loans
19:55that the company has taken out and then
19:57it also includes the shareholders equity
19:59now an income statement on the other
20:01hand shows how much revenue a company
20:03has earned and this is basically an
20:05indicator of the company's financial
20:07performance over a fixed period of time
20:09a cash flow statement on the other hand
20:11shows how well a company manages its
20:14assets so it basically keeps track of
20:16the amount of cash that entered the
20:17company as well as the amount that
20:19exited so essentially what a cash flow
20:21statement is is it's a way of saying if
20:23i put one dollar into this company how
20:27much profit am i going to get from that
20:29one dollar am i going to get like two
20:30dollars am i going to get a dollar and
20:32one cent and so it's a way of evaluating
20:35how efficiently a company uses its cash
20:37next let's talk about what a stock
20:39portfolio is and this is basically a
20:41collection of diversified assets such as
20:44stocks bonds cash uh real estate etc
20:47generally speaking when you're referring
20:49to a stock portfolio these are
20:51investments that you plan to make for
20:53the long term which is at least one year
20:55and it's usually suggested to have a
20:57stock portfolio rather than just putting
20:59all of your money into one stock and the
21:01reason for that is because you get
21:03what's known as diversification because
21:05if you put all of your money into one
21:07stock and then for whatever reason that
21:09company goes under you likely just lost
21:11all of it however if you put one percent
21:13of your money into a hundred different
21:15stocks and then one of them goes down
21:17you don't really feel the impact of that
21:18loss and generally speaking long-term
21:21investing where you diversify your
21:23portfolio will almost always beat
21:26short-term investments where you don't
21:28so now we're going to go over some stock
21:30market basics and these are things that
21:32in my opinion are incredibly important
21:34for you to understand so we're going to
21:36be talking about risk versus reward
21:38quarterly earnings reports economics
21:40supply and demand inflation industries
21:43and sectors as well as dividends so one
21:45thing i want you to understand when it
21:47comes to risk versus reward is investing
21:50always comes with risk there is not a
21:53single type of investment out there that
21:55has no risk you know a lot of people
21:56consider bonds for instance to be the
21:58least risky types of investments and so
22:01let's just say you take out a two or
22:02three percent bond from the us
22:04government well historically speaking
22:07almost every single empire that has ever
22:09existed eventually ends and so if the us
22:12government issues a bond and then you
22:14take out that bond and then it ends like
22:16five years later something happens in
22:18the world and the u.s government no
22:19longer exists then your bond is probably
22:22going to be worthless so even the
22:24investment that most people say is the
22:26least risky still has some risk however
22:29with that being said higher risk can
22:31mean higher return and lower risk
22:34usually means lower return potential so
22:36what you really want as an investor is
22:39the types of investments that have the
22:40least amount of risk and the highest
22:43upside and generally speaking it's
22:45better to take more risk as an investor
22:47when you are young the reason for this
22:49is because of the fact that when you are
22:51getting close to retirement age when
22:52you're getting older if your portfolio
22:54takes a huge hit you may not have enough
22:57time to recover from that before you
22:59retire because when you retire you will
23:01of course be withdrawing money from your
23:03investment portfolio in order to pay for
23:05your daily expenses so generally
23:07speaking you're supposed to take more
23:08risk while you're young and then take
23:11less and less risk as you get older now
23:13when it comes to evaluating how a
23:15company is doing one of the biggest and
23:18most important things that you want to
23:19look at is what's known as the quarterly
23:21earnings report this is a report that is
23:24submitted four times a year in what's
23:26known as q1 q2 q3 and q4 and this would
23:29approximately be the first three months
23:31being q1 and then the last three months
23:33being q4 and on this report you have
23:35some very important numbers so you've
23:38got your net sales which is the gross
23:39sales minus the returns allowances and
23:42discounts and then you've got your net
23:44income which is the gross income minus
23:46the expenses so just a very simple
23:48example of net income let's say the
23:50gross income is a hundred million
23:52dollars but the expenses were 10 million
23:54dollars the net income would be 90
23:57million and then you've got your
23:58earnings per share which is a company's
24:00net profit divided by the number of
24:02common shares and this is basically an
24:04indicator of how profitable the company
24:06is so quarterly earnings reports can be
24:09very good to look at they're also
24:10extremely easy to understand whereas
24:12some of the other stuff we go into a
24:14little bit later on is a little bit more
24:16difficult now i'm going to briefly touch
24:18on economics because i think it's
24:19incredibly important to understand and
24:22economics very simply is the study of
24:24how society uses its limited resources
24:26and in financial terms it is the science
24:29that studies the production consumption
24:30and distribution of goods and services
24:32throughout society now there is a really
24:34big distinction here between
24:36microeconomics and macroeconomics
24:38microeconomics focuses on the
24:40interactions between individual entities
24:43so for instance the interactions between
24:45consumers and a business macroeconomics
24:48has more of a big picture focus and it
24:50looks at broad issues such as inflation
24:52unemployment gross domestic product
24:55government spending government deficits
24:57etc so microeconomics is kind of a
24:59bottom-up sort of approach whereas
25:01macroeconomics is more of a top-down
25:04microeconomics focuses on the trees
25:06whereas macroeconomics focuses on the
25:08forest now i think both of these are
25:10incredibly important and i think in
25:12order to have a well-rounded perspective
25:14you should be able to look at things
25:16from both different ways however with
25:18that being said the most important
25:20concept to understand in economics is
25:23supply and demand supply and demand is
25:25to economics what gravity is to physics
25:29and basically supply is the amount of
25:31services available on the market
25:33versus demand being the amount of goods
25:36and services that people actually want
25:38and supply and demand is incredibly
25:40important in economics and also just
25:42making decisions in your life in general
25:44i see this a lot with people when i'm
25:46trying to give advice on college degrees
25:48there are certain college degrees that
25:50for whatever reason everybody goes for
25:53everybody wants to get into certain
25:54types of college degrees even though the
25:56demand is not there and so they get the
25:58degree and they find out that they're
26:00not able to get a job and anything
26:02related to that degree and then there's
26:03other majors out there that nobody's
26:05going for and there's tons of demand
26:07right there's tons of jobs and this is
26:09the same for different types of products
26:10that companies look to sell and where
26:12these two curves meet the supply and
26:14demand curve is basically the market
26:17clearing price and if you try to go
26:19against this overwhelming force it's
26:21almost like trying to go against gravity
26:24right you're tr you try to jump up and
26:26go against gravity eventually it's
26:28always going to drag you back down so if
26:29you try to create a business where
26:31you're selling a product that has almost
26:33no demand it's going to be incredibly
26:36difficult another way of looking at this
26:38is if you go into a market that's
26:40already saturated a market where there
26:42is already a ton of other businesses
26:44selling that same exact product and you
26:46don't make your product special in some
26:48way to where it's different then you're
26:50also going to be suffering there as well
26:52because there's a ton of supply and it's
26:55already met the needs of the demand it's
26:57met the wants and the needs of the
26:58people within that market so can't
27:00emphasize how important supply and
27:02demand is it's basically one of the
27:03things that makes the world go round
27:05inflation is another thing you hear
27:07about all the time especially lately and
27:09this is basically the decrease in the
27:10purchasing power of money over time or
27:13inversely the increase in the price of
27:16goods and services over time so an
27:18example of inflation is you know in the
27:201970s cup of coffee was about 25 cents
27:23now it's a dollar fifty nine and let's
27:25be honest if you go to starbucks it's
27:27more like five bucks but yeah i think
27:28you get the point this is where your
27:31fiat currency like the us dollar becomes
27:33less and less valuable over time and
27:36generally speaking inflation happens at
27:39around one to three percent per year
27:42many think that this is a healthy amount
27:43of inflation to keep it at around one to
27:45three percent however when it gets
27:47higher than this bad things can happen
27:49and we've seen inflation get totally out
27:51of control like for instance with the
27:53zimbabwe dollar where you could barely
27:55buy like a loaf of bread with a trillion
27:58zimbabwe dollars and it's even starting
28:00to get a little bit out of control in
28:02the united states right now and so i
28:03think everyone can agree that too much
28:05inflation is a bad thing now let's go
28:08over the difference between industries
28:10sectors and markets because these are
28:12three terms that you are going to hear
28:13thrown around a lot so an industry is a
28:16group of businesses producing related
28:18products and services so an example of
28:20this you would hear this said on tv for
28:22instance would be the automobile
28:23industry or the mining industry or the
28:25clothing industry a sector on the other
28:27hand is a broad group of industries so
28:30for instance you might have the health
28:32sector or the energy sector or the
28:33consumer staples sector so you might
28:35have the clothing industry that is
28:37within certain stores so for instance
28:39you know target sells lots of clothes
28:41however in that example of target the
28:43sector would be consumer staples because
28:45they also sell lots of different types
28:47of things that people need like food and
28:49then a market is a group of customers
28:52that are interested in a specific
28:53product or service so this is a
28:55different way of looking at it because
28:56you're coming at it from the customer's
28:58perspective instead of coming at it from
29:00the businesses perspective where you're
29:02selling certain products or services
29:03you're coming at it from the customer or
29:05consumers perspective where you're
29:07buying certain types of products or
29:09services and i really like this quote
29:10from eugene shorts who is an incredibly
29:13talented copywriter and it's the power
29:15the force the overwhelming urge that
29:17makes advertising work comes from the
29:20market itself so this is basically just
29:22a way of saying that when a company is
29:24trying to sell a product it's much
29:27better to listen to the consumers and
29:29ask them what do you actually want
29:31rather than trying to sell a product and
29:34convince the consumers that that product
29:36is what they want so it's much better to
29:38listen to the market rather than trying
29:40to shape the market now dividends these
29:43are things that we've talked about
29:44several times in this video and you
29:45probably already have an idea of what
29:47this is and this is basically where when
29:49you own a share in a company they
29:51actually pay you out cash payments now
29:53most of the times dividends are paid
29:55quarterly and they tend to be between
29:58zero and ten percent so for instance at
30:00t has a nine point eleven percent
30:03dividend yield so that means they pay
30:05nine point eleven percent per year on
30:07their dividends and so an example here
30:09would be let's say a company says that
30:11they're going to pay you one dollar per
30:13stock that you own in that company and
30:15this stock is going to be paid out
30:17quarterly so that means if you own one
30:19stock you would get paid around four
30:21dollars annually one dollar each quarter
30:23if you had 10 stocks you'd get paid 40
30:26annually and if you had 100 stocks you'd
30:28get paid 400 annually now if you own
30:30stocks in an individual company usually
30:32this would get paid into your investment
30:34account and you can either leave the
30:35money in your investment account or you
30:37can have it automatically reinvested
30:39that's probably the best way to do it is
30:41to just have it automatically reinvested
30:43and if you own dividend stocks in an
30:44index fund for instance all of that is
30:46just automatically done for you whether
30:48you want it or not all right so in this
30:50next part we are going to go over the
30:52different types of stocks and while we
30:54go over the different types of stocks
30:56we're also going to be talking about the
30:57different investment philosophies that
30:59go behind these so first of all we have
31:01individual stocks and this is where you
31:03bought a share in a single company so
31:05maybe you invested in tesla or gamestop
31:08or amazon or apple when you invest in a
31:11single company this is called stock
31:13picking now this can turn out really
31:15well for you in the example of investing
31:17in amazon google tesla or facebook these
31:20are all examples of companies whose
31:22stock prices went up tremendously
31:24however this can also turn out like an
31:26enron worldcom or dot-com bubble and
31:29these are all examples where a company
31:31stock price crashed and so this type of
31:33investing is very risky because you are
31:35not diversifying your portfolio so due
31:37diligence is a must here and you have to
31:39be very careful now another type of
31:41investing that actually automatically
31:43diversifies for you is what's known as
31:46mutual funds and this is basically where
31:48a company takes a bunch of different
31:50individual investors takes their money
31:53pulls it all together and invests in a
31:55variety of different stocks and bonds
31:57now they do most of the work for you you
31:59don't have to invest yourself they do it
32:01for you however they are going to charge
32:04you a fee for doing that work this is
32:06what's known as active management now
32:08generally speaking investing in mutual
32:10funds does tend to be safer than
32:12investing in individual stocks because
32:14you are diversifying your money but with
32:16that being said some mutual funds charge
32:18you quite a bit to actively manage your
32:20money and most of the time it's not
32:22going to be as good as the next option
32:24and that is index funds and this is
32:26where your money gets diversified
32:28throughout a specific list of securities
32:30and index funds tend to generally follow
32:32the stock market as a whole so for
32:34instance there's the s p 500 index fund
32:36and that's basically where they invest
32:38in the 500 biggest companies this is
32:40what's known as passive management which
32:42means there's not that much trading and
32:44there's also very little in the way of
32:46fees and depending on the study you look
32:48at or the person you talk to index funds
32:50beat out mutual funds on average
32:52somewhere between 85 and 97 percent of
32:56the time so there are mutual funds that
32:58are really good and they beat index
33:00funds but they're pretty rare and the
33:02great thing about index funds is they
33:03are incredibly passive and they don't
33:05take very much work or expertise you
33:07don't have to spend thousands or tens of
33:09thousands of hours becoming a super
33:11intelligent investor in order to make
33:13money with index funds you basically
33:15just throw your money in there and that
33:16you know generally speaking if the
33:18market as a whole keeps going up you are
33:20gonna keep making money and the market
33:22has gone up on average like i said
33:24before about ten percent per year seven
33:26to eight percent if you ingest for
33:28inflation so index funds are a great
33:31option period but they're especially
33:32good if you're somebody who doesn't want
33:34to study much when it comes to finance
33:36etfs or exchange traded funds are very
33:40similar to index funds in fact there's
33:42just a few little differences first of
33:44all etfs you can trade in real time
33:47whereas index funds you can only trade
33:49once a day with an etf you have to buy
33:51the entire share whereas with an index
33:53fund you can put any random amount of
33:55money into it with etfs you can track
33:58your return daily whereas with index
34:00funds you can only track it monthly and
34:02with etfs the management fees are
34:04slightly lower than index funds although
34:07the difference is pretty much negligible
34:09because the management fees are really
34:10low with both of them etfs are also
34:12slightly less automated and an example
34:15of an index fund and an etf that invest
34:17in the exact same companies would be vt
34:20sax versus vti and just generally
34:23speaking etfs are a little bit more
34:25accessible than index funds so you could
34:28open your phone right now get on weeble
34:30or robinhood and buy an etf another type
34:32of investment that isn't technically a
34:34stock but it's very similar is a reit a
34:37reit is also known as a real estate
34:39investment trust and this is basically a
34:41company that makes investments in all
34:43different types of income producing real
34:45estate and usually if you want to invest
34:47in real estate it's very difficult you
34:50have to have a lot of money to put down
34:51so for instance you might have to have
34:53like 20 30 000 in spare cash it's also a
34:56lot of work you have to pay the real
34:58estate agent quite a bit and on top of
35:01that it's not very liquid so if you want
35:03to sell your investment it might take
35:05you six months or a year to do it so
35:06there's a lot of downsides to owning
35:08real estate and there's a high barrier
35:10to entry but when it comes to reits it's
35:12very easy for you to own real estate and
35:14it's also really easy for you to
35:16diversify your investment so for
35:18instance with a reit they might own a
35:19thousand different buildings and it's a
35:21good combination of commercial
35:23properties hospitals apartment buildings
35:25etc so if one of those different types
35:27of things goes down let's say for
35:29whatever reason the u.s medical system
35:31gets totally overhauled and the
35:33hospitals aren't worth as much all the
35:35other ones will still retain their value
35:37and then on top of that if you just
35:38owned real estate there's always the
35:40risk that you know the house burns down
35:42or something along those lines something
35:43could absolutely happen to it whereas if
35:45you are invested in a reit and one
35:47building burns down out of a thousand
35:49buildings that you own it's not nearly
35:51as big of a deal so basically you get a
35:53share of the rent and it's a steady
35:56source of dividend income these are
35:58pretty easy to invest in however there
36:00usually is more fluctuation than you see
36:02in index funds or etfs now
36:05cryptocurrency is another example of an
36:07investment that isn't technically a
36:09stock and the definition of
36:10cryptocurrency according to oxford
36:12languages is a digital currency in which
36:14transactions are verified and records
36:16maintained by a decentralized system
36:18using cryptography rather than by a
36:21centralized authority and basically in
36:23very simple terms cryptocurrency is
36:26digital money with much more
36:28functionality now one of the big
36:29problems with government money also
36:31known as fiat is it tends to be
36:33inflationary which means it tends to
36:35lose its value over time and there are
36:38several different reasons for that one
36:40people can counterfeit it so people can
36:42get really good at making fake money and
36:43in that case the real money loses its
36:45value because of the principles of
36:47supply and demand and then the second
36:49reason is very common which is the
36:50government decides to print too much
36:52money cryptocurrency on the other hand
36:54tends to be deflationary because there's
36:56a set amount that's created and there
36:58will never be any more than that amount
37:00so bitcoin for instance there are 21
37:02million bitcoins that will ever exist in
37:04the world and there will never be more
37:06than 21 million and many of them have
37:09already been lost so in reality it might
37:11be more like 15 million at this point
37:13and so over time more and more bitcoin
37:15will likely get lost you know it might
37:17get burned up in fires or you know they
37:19might accidentally drop it in a river or
37:21something along those lines and because
37:23of that bitcoin will pretty much always
37:25be deflationary it will always gain
37:27value over time at least in theory and
37:30also cryptocurrency tends to be
37:31decentralized and it's not controlled by
37:34some central authority so in some ways
37:36it's much more difficult to manipulate
37:37the price of cryptocurrency especially
37:39the established ones than it is to
37:41manipulate the price of fiat currency
37:43and so many would argue the value of
37:45cryptocurrency is determined by supply
37:47and demand rather than regulation and
37:49one thing about cryptocurrency is it has
37:50had incredible returns over the last 10
37:54by far the biggest returns out of any
37:57normal type of investment now i want to
37:59really quickly touch again on the
38:00importance of diversification and this
38:03is basically where you invest in a bunch
38:05of different types of stocks or really
38:07just asset classes in general so you
38:09might not be a big fan of cryptocurrency
38:12for instance you might think that
38:13cryptocurrency is just a big scam
38:16you know it's just fake magic internet
38:18money and so you don't want to diversify
38:20in it but even a lot of cryptocurrency
38:22skeptics like to put a certain amount of
38:24their money into it and the reason for
38:26that is because the global financial
38:28system could potentially crash there is
38:30a chance that that could happen and if
38:31that does happen there's a very good
38:33chance that cryptocurrency would replace
38:36fiat money and this is why many people
38:38recommend diversifying your money not
38:40just in stocks not just in real estate
38:42not just in bonds but also in things
38:44like cryptocurrency as well now you
38:46probably don't want to yolo all of your
38:48money into one type of crypto but
38:49diversification reduces your risk
38:51without affecting your likely returns
38:54and this is why it's a good idea to have
38:55your hand in almost every different type
38:57of investment all right so now we're
38:59going to get into the different types of
39:01investing and we're going to be talking
39:02about things like day trading swing
39:04trading long-term investing etc all
39:08right so day trading this is another one
39:10that you see a lot very very popular you
39:13got these red and green graphs and lines
39:15right behind them and they're smiling
39:17telling you how much they made that day
39:19and a lot of day traders have lots of
39:20computer screens like you see in the top
39:22right and day trading is technically
39:24where you buy and sell a stock within a
39:27single day so an example of this is you
39:29might start your account out with 10 000
39:32at the beginning of the day and you have
39:34zero dollars in stocks throughout the
39:36day you might put all 10 000 of those
39:39dollars into a particular stock but by
39:42you sell all of that stock and whatever
39:45you have left is whatever you ended up
39:47making so if you had eleven thousand
39:49dollars at the end of the day then you
39:51would be up ten percent you made a
39:53thousand dollars however if you have
39:54nine thousand dollars at the end of the
39:56day that means that you lost money and
39:57some of these trades don't last long at
39:59all you might buy and sell within a few
40:01seconds other trades might last for
40:03hours now there's a ton of different
40:05types of day trading you've got like
40:06penny stocks you've got forex and news
40:10makes trading fluctuate quite a bit so
40:12one single news article from a certain
40:14outlet could make a stock go up a lot or
40:17down a lot now this is very very risky
40:19day trading is super risky and i want
40:21you to know this is just a straight up
40:23fact i'm not hating on like day trading
40:25channels but most day traders lose money
40:27it's not that they break even it's not
40:29that they make less money than you would
40:32if you did long term investing they
40:34straight up lose money and that is just
40:36a fact so this is something that i have
40:38no doubt if you get incredibly good at
40:40it you can make money consistently from
40:42however most people are not good at it
40:43in order to become good at it you'll
40:45probably have to lose a lot of money
40:46because it takes a lot of time and
40:48experience in order to get good at it
40:50swing trading is similar to day trading
40:52but instead of buying and selling within
40:54a single day in swing trading it could
40:56be a few days or a few weeks maybe even
40:59up to a month so you are buying a stock
41:01with intentions of selling it soon but
41:03you might wait a few days or a few weeks
41:06so for instance you might have an
41:07inclination that a company did really
41:09well and they're about to come out with
41:10their q1 or q2 earnings or maybe they
41:13have a huge announcement that they're
41:15about to make that is going to send the
41:16stock price soaring you don't know
41:18exactly when that announcement is going
41:20to be though so what you would do is you
41:22would maybe buy some of the stock and
41:23then wait for the announcement to happen
41:25once that announcement happens the stock
41:27does end up going up maybe five or ten
41:29percent something like that that is when
41:31you would sell the stock now one big
41:33problem you have here is overnight risk
41:35so you might go to sleep and the price
41:37of a stock is let's just say 100
41:40and when you wake up the next morning
41:41it's only 90. that's not something you'd
41:43have to worry about with day trading
41:44because you always close your position
41:46at the end of the day now swing trading
41:48is not as influenced by the news but it
41:50still can be and in order to be
41:52profitable it does require larger price
41:54movements than something like day
41:55trading now it's probably not as risky
41:58as day trading but it's still pretty
42:00risky long-term investing this is my
42:03favorite personal type of investing for
42:05many different reasons and long-term
42:07investing is exactly what it sounds like
42:09you are making an investment with the
42:11intention of holding that investment for
42:13a very long time now generally speaking
42:15long-term investing you're going to be
42:17investing in intervals over a period of
42:19time so for instance you might decide to
42:21invest 500 a month every single month
42:24long-term investing is not nearly as
42:26risky because as we've talked about
42:28before the market does go up and down
42:30but generally speaking over the long
42:32term it goes up it's also relatively
42:34hands-off because you're not constantly
42:36having to check the stock price it's
42:38pretty easy to automate pretty much any
42:40investment brokerage has the option for
42:42you to long-term invest so for instance
42:44like i said before you can set it to
42:47every single month out of your bank
42:49account and automatically invest it into
42:51whatever stock you want and on average
42:53long-term investing gets better returns
42:56than both short-term investing or
42:58trading there also tends to be a lot
43:00less in fees because of the fact that
43:01you're not constantly buying and selling
43:03and moving your money around and if that
43:05wasn't enough there are lots of tax
43:08benefits to investing for the long term
43:10so we're going to go over this later but
43:11basically you pay a lot less in taxes if
43:14you invest for more than a year than if
43:16you invest for less than a year this is
43:18called long-term capital gains tax
43:20versus short-term capital gains another
43:23really great type of investment that
43:25everybody should take advantage of if
43:27they can however it is somewhat limited
43:29would be retirement accounts or tax
43:32advantage accounts so some examples here
43:34would be the roth ira this is the
43:36individual retirement account now these
43:39accounts are all of course based in the
43:41u.s other countries will have similar
43:43versions but the roth ira for instance
43:45you can invest about six thousand
43:47dollars a year and it has some
43:48incredible tax benefits the money that
43:51you put into your roth ira gets to
43:53compound completely tax-free that means
43:56you don't have to pay money on the
43:58compounded interest within the roth ira
44:00so you get the magic of compound
44:02interest without even having to pay
44:03taxes on it now there's a lot more to
44:05these i'm going over them super fast but
44:07the 401k is really great as well because
44:10a lot of the time your company will
44:12match the amount of money you put into
44:13your 401k so many companies for instance
44:16if you do 5 of your paycheck into your
44:18401k they will match it so just as an
44:21example let's say you're putting a
44:22thousand dollars a month into your 401k
44:25the company will match that thousand
44:27dollars and so the total amount that
44:29goes in there is 2 000. and then the
44:30401k also has some tax benefits as well
44:33another example is a health savings
44:35account that one can be really good too
44:37it's not as common as the other two and
44:39that one of course is meant to help with
44:40health care costs but there's other ways
44:42you can save money with it as well and
44:44more there's a lot more options out
44:45there than just that those are just some
44:47common ones and these tax incentives and
44:50tax advantages are just absolutely
44:52ridiculous and you'd be crazy not to
44:54take advantage of them however there's
44:56usually early withdrawal penalties right
44:59so this means that the investments are
45:00less liquid so these are designed to be
45:03accounts where you don't withdraw it
45:04until it's time for you to retire but if
45:06you do decide to withdraw early there
45:08are some really nasty benefits and that
45:10would kind of defeat the entire purpose
45:12of having all of these tax benefits so
45:14you definitely want to take advantage of
45:15your retirement accounts if you can
45:17another type of trading is leveraged
45:19trading and this is basically where you
45:21take borrowed money usually from
45:22whatever exchange you're using and that
45:25increases the potential gain of a stock
45:27but it also increases the potential loss
45:30so let me give you an example of this
45:32let's say that you have a hundred
45:33dollars and there is a 100 stock that
45:36you believe is going to be going to 200
45:39really quick like maybe tomorrow and you
45:41have very strong conviction in this
45:43belief what you can do is you can trade
45:45on margin and borrow 200 so your total
45:50then the next day the stock goes up to
45:53200 per share hopefully and you sell it
45:57then you pay back the 200 and you pocket
46:00the 300 in profit so this is a very
46:02simplified example of course but
46:05leverage trading is something you can do
46:06as well of course it's very risky
46:09because if the stock price goes down you
46:11still have to pay that back now let's go
46:13ahead and talk about some really common
46:15investing strategies and a lot of these
46:17strategies are how people evaluate
46:20stocks now when it comes to investing
46:22strategies you have technical stock
46:24analysis and fundamental stock analysis
46:26and the first one we're going to talk
46:28about is technical a technical stock
46:30analysis focuses on charts and past
46:32price movements as well as market
46:34behavior and this is basically where you
46:36see all those charts that have the red
46:38and the green and the graphs and traders
46:40try to predict future price movements by
46:43using past price behavior now there's
46:45many different indicators and tools that
46:47are used in technical analysis the four
46:50most common ones are trend indicators
46:52momentum indicators volatility
46:54indicators and volume indicators now
46:57generally speaking it's better to focus
46:59on a few indicators that you personally
47:01believe are important with whatever type
47:04of stocks you are evaluating and master
47:06them and one thing i will say about
47:08indicators is many of them can actually
47:11be automated by software so obviously a
47:14robot would be able to do these types of
47:16jobs better than you so many of these
47:17can be automated however they cannot
47:19necessarily be interpreted by a robot so
47:22if you want to get good at technical
47:24stock analysis you have to figure out
47:25what types of indicators can't be
47:27automated so trend indicators basically
47:30measure the direction and strength of a
47:32stock price by comparing prices to an
47:34established baseline so an example of
47:37this one would be the moving average
47:39indicator very common one that you'll
47:40see and this is used to set up support
47:42and resistance levels as well as
47:44identifying trends that might be
47:46happening in the stock so the example
47:48that i have there is a 100-day moving
47:50average a 50-day moving average and a
47:52200-day moving average momentum
47:55indicators tend to focus less on the
47:57direction and rather on the speed of the
48:00price movement and usually it does this
48:02by comparing current closing prices to
48:04previous closing prices so a very common
48:07example of this one would be the rsi or
48:09relative strength index it measures the
48:12velocity of the change in trend recent
48:14trading strength and the magnitude of
48:16the change and there's an example here
48:17in the bottom left i'm not going to go
48:19too deep into these because the video
48:20would just go too long but you see the
48:22rsi down there on the bottom you know
48:24it's oversold on the left and then it's
48:26over bought on the right and again this
48:28is an indicator it's not always perfect
48:30and if you look at the stock price and
48:32when it was oversold you can kind of see
48:34that it actually spiked in price around
48:36the time that it was oversold and you
48:38can also see that when it was overbought
48:40that's the time when it started lowering
48:42in price as well and then there are
48:44volatility indicators and this focuses
48:46on the measurement of the rate of price
48:48movement so it doesn't really care all
48:49that much about the direction of price
48:51movement it cares a lot more about the
48:53rate so how volatile is the stock and an
48:56example of this is bollinger bands and
48:58you can kind of see on the screen it
48:59measures the ceiling and the floor of a
49:01price relative to previous trades and
49:03you can kind of see that when it goes
49:05outside of the bollinger bands that's an
49:06indicator of what the stock price is
49:08about to do then we've got volume
49:11indicators and these measure the impact
49:13of the trend based on the volume of
49:15stocks traded so when you see the volume
49:17go up a lot that means that either a lot
49:19of people are buying it or a lot of
49:21people are selling it or maybe both and
49:23an example of this is the volume rate of
49:25change and this highlights the increase
49:27in volume at key points in the stock
49:29cycle usually at the bottom top or
49:31breakout points of a stock's life cycle
49:34so you kind of see on the screen here
49:35that this stock has kind of been going
49:36up down up down and it's and it's had
49:39this trend where it kind of goes up down
49:41slightly in a downtrend and then all of
49:43a sudden at the bottom you see this
49:45volume indicator spike and that's when
49:48the stock just keeps going instead of
49:50continuing this downtrend it keeps going
49:52up now we're going to talk about
49:54fundamental stock analysis now a lot of
49:56people think you know one is better than
49:58the other technical and fundamental
50:00again i try to be as balanced as
50:02possible i think both of them are very
50:04valuable however with that being said
50:07i'm more of a long-term investor and
50:10fundamental stock analysis does go a
50:12little bit better more hand-in-hand with
50:14long-term investing but i'm not a
50:16technical stock analysis hater by any
50:18means i think there's a lot of value in
50:20understanding technical stock analysis
50:22but i do prefer fundamental stock
50:24analysis so this looks at the economic
50:27financial and social aspects that
50:29influence the price of a stock and the
50:31value or perceived value of a business
50:34and it involves the analysis of a
50:35company the market that the company
50:37sells for the industry economic
50:40conditions as well as social conditions
50:42and warren buffett is a big fan of
50:44fundamental stock analysis and one thing
50:46that he says is he likes businesses
50:48where the products cost a penny to make
50:50you can sell them for a dollar you have
50:52some sort of competitive advantage like
50:55you're the only one that can make a
50:56product just like that and that it's
50:59addictive so people just keep coming
51:00back more and more for the product they
51:02love it so when he is looking at
51:04companies and evaluating whether he
51:05wants to invest in them those are things
51:08that he really looks at and that is his
51:10fundamental stock analysis strategy so
51:12you can see that those things don't just
51:14involve looking at the numbers of a
51:16company although looking at the numbers
51:17is important it's also having the soft
51:19skills to understand the nuances and the
51:21social side of the company as well and
51:23then another type of investing is what i
51:26like to call following hype and uh you
51:28know this would be something like
51:30dogecoin goes up when elon musk tweets
51:33about it you know this has nothing to do
51:35with the value that dogecoin gives it
51:37has nothing to do with underlying value
51:40that the company is giving to the world
51:42it's just noticing that you know oh hey
51:44there's a lot of hype on this stock or
51:46this cryptocurrency and it goes up
51:48whenever elon musk tweets about it so
51:50i'm gonna be monitoring elon musk's
51:52tweets and then buy dogecoin whenever he
51:54tweets about it you know something along
51:56those lines and basically this is kind
51:58of just like following other people so
52:00oh i see a bunch of other people are
52:02investing in this stock maybe i should
52:03too you know i do make fun of this type
52:05of stock analysis and a lot of other
52:07youtubers do as well but all joking
52:09aside um social signals can be really
52:13effective and really important and we
52:15all saw this happen in early 2021 when
52:18wall street bets all started investing
52:20their money in gamestop and the price of
52:22gamestop went up over 100 x so in that
52:25particular case if you were following
52:27hype if you were listening to social
52:29signals and you were part of the
52:31subreddit it probably turned out really
52:33well for you but this is very risky
52:35because there are ways of manipulating
52:37subreddits for instance you can make a
52:38bunch of bots and have them upvote
52:41certain posts or pay a bunch of people
52:43to upvote certain posts you know there's
52:44so many different ways that you can
52:46manipulate the price there's a lot of
52:47pump and dump sorts of things that
52:49happen and for every one gamestop
52:51situation that happens there's probably
52:53dozens of others where it never pans out
52:56so you definitely have to be very
52:57careful when it comes to following hype
52:58but with that being said you want to be
53:00a balanced investor somebody who
53:02considers all different possibilities
53:04and social signals are incredibly
53:06powerful and incredibly important and to
53:08me this is actually a small part of
53:11fundamental investing which is
53:12monitoring what happens in the media
53:15monitoring the news figuring out like
53:17different trends that are happening
53:19understanding why so many people are so
53:21passionate about investing in a certain
53:22stock this is all a part of fundamental
53:25investing in my opinion another part of
53:27fundamental investing is understanding
53:29financial ratios now there are a bunch
53:31of different financial ratios we are not
53:33going to focus on all of them i'm only
53:35going to tell you the ones that i think
53:37you really need to know now the five
53:39types of financial ratios are price
53:41ratios profitability liquidity debt and
53:45efficiency ratios we're going to start
53:46off with price ratios so they are best
53:49used to compare the relative value of a
53:51stock and best for comparing stocks
53:54within the same sector so basically this
53:56is an apples to apples comparison so you
53:59really wouldn't want to compare the
54:00price ratio of a stock that is in the
54:02consumer goods sector to a stock that is
54:05like tesla or apple or something along
54:07those lines something that's like
54:09software or hardware that's just really
54:11not an apples to apples comparison and
54:13it would basically be worthless now a
54:15few examples of price ratios are the p e
54:18ratio which is price to earnings there's
54:20the peg ratio there's the price to sales
54:23ratio there's the price to book ratio
54:25and like i said i'm gonna go over the
54:27ones that i think are the most important
54:29for you to know here in a minute
54:30profitability ratios are an indicator
54:32that a company is good at making profit
54:35so basically exactly what it sounds like
54:37a few examples of profitability ratios
54:39are return on assets return on equity
54:42and profit margin now notice i said an
54:45indicator here indicator means that it
54:48probably means that a company is good at
54:50making profit but it doesn't mean that
54:52for sure it's just a sign however if you
54:55look at a bunch of different ratios and
54:56they tell you good things you know it's
54:58one of those situations where if it
55:00looks like it it smells like it it
55:02sounds like it it probably is it
55:05liquidity ratios are an indicator of a
55:07business's short-term health and that
55:08basically means can the business meet
55:10their short-term obligations so a couple
55:13examples of this would be the current
55:14ratio and the quick ratio current ratio
55:17is current assets over current
55:18liabilities debt ratios on the other
55:20hand are an indicator of a company's
55:23long-term health and there's a focus
55:25here on a company's finances and how
55:27efficiently a company uses its capital
55:29and debt so a few examples of this would
55:32be the debt-to-equity ratio as well as
55:33the interest coverage ratio and then the
55:36last one is going to be efficiency
55:37ratios and this is a measure of how a
55:39company is using fixed assets such as
55:42real estate and equipment so a few
55:44examples of this one would be the asset
55:45turnover ratio as well as the inventory
55:48turnover ratio and now i'm going to go
55:50over what in my opinion are the 10 most
55:53important financial ratios that you
55:54definitely need to know first of all the
55:57p e ratio this is probably the one that
55:59you hear about the most and this means
56:01the price to earnings ratio and this
56:03basically compares a company's share
56:05price to its earnings per share so you
56:07can see the actual ratio on the bottom
56:09left p e equals stock price divided by
56:12earnings per share and a high p e ratio
56:14indicates that a company is very
56:18it could also indicate that a stock
56:20price is overvalued right because you
56:22have the stock price on top and the
56:24earnings is on bottom so it could be one
56:27or the other on the flip side a low p e
56:29ratio indicates that a company isn't
56:32very profitable but it could also
56:34indicate that the stock is undervalued
56:36so the number does tell you something
56:38but it doesn't tell you everything you
56:40have to use your knowledge your wisdom
56:42and your experience to tell whether you
56:44know a low p e ratio means that the
56:46company either isn't very profitable or
56:48it's undervalued the price to book ratio
56:50is the amount that you have to pay to
56:52own one dollar in equity and you can see
56:54it it's the price per share divided by
56:56the book value per share now this is
56:58another one of those ratios that you
56:59only want to compare within the same
57:01sector or the same industry and
57:03historically speaking price to book
57:04ratio has been one of the best
57:06indicators of a company's value however
57:08especially with tech companies over the
57:11last 10 to 20 years that has been
57:13flipped on its head and the reason for
57:14this is because tech companies tend to
57:16have very high pb ratios because of
57:19intangible assets so you really only
57:21want to use this as an indicator when
57:23you're comparing apples to apples aka
57:26similar companies profit margin is a
57:28very simple ratio it measures the sales
57:31that flow through a company's bottom
57:33line and of course shareholders love
57:35profit margin that's what they want to
57:37see they want to see the company making
57:38lots of money and profit margin is
57:40basically the net income divided by the
57:42net sales so they want to make the most
57:44amount of money with the least amount of
57:46cost definitely a very good short-term
57:49indicator of a company's profitability
57:51but with that being said cutting costs
57:54is not always a great thing sometimes
57:56you cut costs too much and that hurts a
57:58company long term current ratio is a
58:00company's ability to pay its short-term
58:02liability using its short-term assets so
58:05greater than one means a company has
58:07more short-term assets than it does
58:09liabilities and that tends to be a good
58:11thing less than one means a company has
58:13more short-term liabilities than assets
58:16now this is another one where when it
58:18comes to certain types of companies this
58:20one is just totally turned on its head
58:22and the reason for that is because many
58:24tech companies because they have such
58:26high upside will actually go deep in
58:28debt for sometimes up to a decade and
58:31people will still remain invested in
58:33them because of the fact that they know
58:34that company is taking a significant
58:36amount of the market share and once they
58:38secure that amount of the market share
58:40and they've established themselves
58:42they're gonna start making money hand
58:43over fist at least theoretically that's
58:45what they think quick ratio is very
58:48similar to current ratio the only
58:49difference is it doesn't include the
58:51inventory and inventory is definitely
58:54less liquid than cash so there are some
58:56companies that might take them a long
58:57time to sell their inventory whereas
58:59there's other companies where things are
59:01flying off of the shelves so depending
59:03on the type of company you are
59:04evaluating a current ratio might be
59:06better than a quick ratio or vice versa
59:08next we're going to talk about asset
59:10turnover ratio and this is basically an
59:12indicator that shows how effective
59:14management is at running the company and
59:16this basically divides the revenue or
59:19sales of a company by the average total
59:21assets so asset turnover ratio is
59:24revenue divided by assets now this is
59:26important because sometimes the profit
59:28margin really isn't the only thing you
59:29should look at just because certain
59:31products have a high profit margin if
59:33they don't turn over very fast then
59:35they're just going to sit there for a
59:36long period of time and so this is
59:38basically a way of making sure that
59:39products aren't you know sitting on the
59:41shelves collecting dust for too long
59:43before they get turned over and it also
59:45shows how well the company is being
59:47managed another very similar one is the
59:49inventory turnover ratio it's an
59:51indicator of how quickly a company is
59:53able to sell its inventory and the
59:55inventory turnover ratio is the cost of
59:57goods sold divided by the average
59:59inventory now this is one of those
01:00:01things where sometimes profit margin
01:00:03doesn't matter as much as volume so if a
01:00:06company has a product that has a really
01:00:07high profit margin but it just sits on
01:00:09the shelf for a long time that isn't
01:00:11necessarily going to be as profitable as
01:00:13a product that has a low profit margin
01:00:15but it has high turnover so it gets sold
01:00:18really quickly now more turnover is a
01:00:20good thing because it shows the company
01:00:21isn't wasting money storing stuff now
01:00:24the debt equity ratio compares the
01:00:25borrowed capital to capital contributed
01:00:27by the shareholders now a higher ratio
01:00:30tends to be a bad thing because that
01:00:32means a company is likely not able to
01:00:34meet its debt obligations that means a
01:00:37company is borrowing a lot of money
01:00:38compared to how much it's worth return
01:00:40on assets is an indicator of how
01:00:42efficiently a company is using its
01:00:44assets to achieve profitability so a
01:00:47really good example of this one that
01:00:49would improve your return on asset score
01:00:51is for some companies it's better for
01:00:54you to actually just buy a building
01:00:56rather than leasing or renting a
01:00:58building but for some companies it's the
01:01:00other way around it's better for you to
01:01:01lease or rent the building rather than
01:01:03buying it so an example of this is let's
01:01:06say you live in an area that you
01:01:08personally believe the property prices
01:01:10are going to be going up a lot soon
01:01:13something like a silicon valley type of
01:01:15area it would probably be better for you
01:01:17to just simply buy the building that
01:01:19you're in rather than renting it or
01:01:21leasing it because that is going to help
01:01:22you with your long-term profitability
01:01:24and this can actually be done very
01:01:26strategically to increase the value of a
01:01:28company you do see different companies
01:01:30using different strategies along this
01:01:32line so for instance costco often owns
01:01:34the buildings that they use and they
01:01:36actually own over 12 million square feet
01:01:38of real estate and they are aggressively
01:01:41buying more every year all right so here
01:01:44is the first free gift and surprise
01:01:46these are all free resources that i
01:01:48personally use to do my due diligence on
01:01:52different stock investments so i will
01:01:54let you check these out but um you know
01:01:56there's simply wall there's wall street
01:01:58zen finance dot yahoo i think everyone
01:02:01knows about that one they have a lot of
01:02:02really good information like p e ratio
01:02:04etc uh google.com finance they're
01:02:07actually pretty good as well
01:02:08morningstar.com for evaluating stocks
01:02:11and doco.com so i will let you check
01:02:13these out on your own not going to spend
01:02:15a lot of time on this slide
01:02:17but these are very good free tools that
01:02:20you can use to evaluate all those
01:02:22different ratios i talked about as well
01:02:24as much more and i don't usually reveal
01:02:26these things because um you know there's
01:02:28a lot of time that i've wasted looking
01:02:30at stuff that's not that good but these
01:02:32ones are all excellent alright so next
01:02:34what exactly is a stock brokerage stock
01:02:37brokers work at stock brokerages and
01:02:40it's basically a financial institution
01:02:41that can buy and sell securities on
01:02:44behalf of their clients some examples of
01:02:46stock brokerages would be fidelity
01:02:49vanguard as well as charles schwab
01:02:51you've probably heard of all of these
01:02:53some of the new players on the scene are
01:02:55robin hood weeble and moomoo so we're
01:02:58going to go over some of these common
01:02:59ones and we're going to start off with
01:03:01the more advanced stock brokerages first
01:03:04so vanguard is the company that
01:03:06basically started index fund investing
01:03:09and it was basically started by the
01:03:11legendary investor john bogle and in a
01:03:14time where there was a whole lot of
01:03:15sketchiness going on in the investing
01:03:18john bogle created index funds which
01:03:20were one of the safest but also most
01:03:22profitable investments that you could
01:03:23make and he changed the investing game
01:03:25forever so vanguard is a very trusted
01:03:29company now they don't have any trading
01:03:31platform they're all about investing not
01:03:33trading they have no physical branches
01:03:35they don't really sell credit cards they
01:03:37don't do checking accounts some of the
01:03:39stuff that a lot of the other investing
01:03:40firms are getting into now they're kind
01:03:42of expanding their financial services so
01:03:44the website itself is relatively simple
01:03:47and i'm also going to say it's kind of
01:03:49outdated as well but with that being
01:03:50said i would say if you had to pick one
01:03:52that is the most trustworthy vanguard is
01:03:55it they have the longest track record
01:03:57they are incredibly trustworthy fidelity
01:03:59uh very similar to charles schwab
01:04:02they're definitely a little bit more
01:04:03modernized than vanguard in my opinion
01:04:06they also have tried to expand out to
01:04:08other parts of finance besides just
01:04:10investing and trading one thing i will
01:04:12say about them is they are incredibly
01:04:14user friendly they have a amazing
01:04:16website and application they have some
01:04:17of the lower interest rates on margin
01:04:19loans if you're into that type of
01:04:21investing and they are focused on
01:04:22integrating many different types of
01:04:24finance features seamlessly um they also
01:04:26do have the option for international
01:04:28trading which is great and they do offer
01:04:30fractional shares which is where you can
01:04:32buy a part of a share instead of having
01:04:34to buy at least one charles schwab is
01:04:37more user friendly than vanguard there's
01:04:39more features than vanguard they have
01:04:41lots of different options like credit
01:04:42cards checking accounts trading platform
01:04:44they have a really amazing international
01:04:47bank account where if you ever get
01:04:48charged fees for using an atm when
01:04:50you're withdrawing fees internationally
01:04:52they will actually cover those fees for
01:04:54you so many people who do a lot of
01:04:56traveling love to use the charles schwab
01:04:58international account they do have some
01:05:00physical branches which is important for
01:05:02people sometimes td ameritrade think or
01:05:05swim is their trading platform so td
01:05:07ameritrade is for investing in
01:05:09thinkorswim is for trading they are
01:05:11available in the usa as well as canada
01:05:13and they do offer some cryptocurrency
01:05:15trading so for instance bitcoin futures
01:05:17trading there are no fractional shares
01:05:19so td ameritrade is definitely up there
01:05:20they're one of the biggest players next
01:05:22we're going to go over some beginner
01:05:24friendly investing applications so those
01:05:26last ones are more advanced uh they do
01:05:28take some time to learn how to use these
01:05:30ones are going to be much more beginner
01:05:32friendly you can basically learn how to
01:05:33use all of these within just like a few
01:05:36robinhood this was basically the first
01:05:39app to make it easy to invest for common
01:05:42people so because of robinhood almost
01:05:45all companies now have dropped their
01:05:47trading and investing fees incredibly
01:05:50low and robinhood was the first company
01:05:52to do that they started it all now robin
01:05:55hood is ridiculously easy to use i mean
01:05:58it's honestly maybe too easy because you
01:06:00really don't have some of the options
01:06:02that you want to have because they just
01:06:03don't include those options because that
01:06:05would complicate things they also have
01:06:07incredible sign up bonus incentives so i
01:06:09don't know exactly what the signup bonus
01:06:11they're doing right now is but a lot of
01:06:12the time they'll offer one or two free
01:06:14stocks just for making an account and i
01:06:16will have the bonus down in the
01:06:18description below if you want to check
01:06:19it and it is designed to be used on your
01:06:22phone so the web app is extremely basic
01:06:24and simple i wouldn't really recommend
01:06:26using it weeble very similar to robin
01:06:29hood i would say weeble is robin hood's
01:06:31biggest competitor weibull is great for
01:06:34both beginner investors as well as
01:06:36people who are intermediate and even
01:06:38people who want to move into advanced
01:06:40weibull has access to active trading as
01:06:43well as long-term investing as well the
01:06:45weeble app on the phone is fantastic
01:06:47super easy to use however they also have
01:06:50a web application that is really good as
01:06:52well you also have the option to buy and
01:06:53sell cryptocurrency on weibull pretty
01:06:55good customer service for an app and
01:06:57they have absolutely amazing
01:07:00sign up bonus incentives so sometimes
01:07:02weeble does these promotions where they
01:07:04offer up to like five free stocks worth
01:07:06up to like eight thousand dollars and
01:07:08all you have to do is just sign up for
01:07:09an account and fund it again you can see
01:07:11that down in the description below if
01:07:13you want to check it out it's pretty
01:07:14much just free money so you might as
01:07:16well do it you can fund your account and
01:07:18then take it out right afterwards and
01:07:19keep the free stocks m1 finance is a
01:07:22robo advisor and it's extremely
01:07:24automated and hands-off i currently have
01:07:28with m1 finance now there is a 100
01:07:31account minimum for them and they don't
01:07:32really care about why you're investing
01:07:34they just help you do it better so m1
01:07:36finance is all about profit public is
01:07:39another cool account you get to publicly
01:07:41show your investments so it's almost
01:07:42like a social media platform mixed with
01:07:45an investing platform and they do focus
01:07:47on long-term investing betterment is
01:07:49another robo-advisor kind of like m1
01:07:51finance however i would say it's even
01:07:53more automated and hands-off if that's
01:07:55possible however they don't offer nearly
01:07:57as much advice as something like
01:07:59wealthfront does and then moomoo is kind
01:08:01of the new kid on the block they just
01:08:03came out very similar to weeble and
01:08:05robin hood they offer incredible signup
01:08:07bonuses as well so definitely check them
01:08:09out i should have them down in the
01:08:10description as well might as well get
01:08:12your free stocks all right so another
01:08:14free gift and surprise
01:08:16what i did is i uh went through
01:08:19and i made a list of all of the best
01:08:22sign up bonuses that are available in
01:08:24the personal finance space and i'm going
01:08:26to keep on adding to this list as i find
01:08:28new ones now some of these are my
01:08:31affiliate links just like they would be
01:08:32down in the description below some of
01:08:34them are not some of them are just you
01:08:36know links to promotions but these are
01:08:38ones that in terms of your return on
01:08:40investment with the time that it takes
01:08:42you to sign up for it with what you
01:08:43could potentially get in return are
01:08:45definitely worth it it's essentially
01:08:47just like getting free money so these
01:08:49are ones that i recommend looking into
01:08:51and i made an entire list for you and
01:08:53you can check that out down in the
01:08:54description below it's the list of sign
01:08:56up bonuses so just for watching this
01:08:58video today you might end up getting
01:09:00paid like a hundred to two hundred
01:09:01dollars in free stocks all right so now
01:09:04we are going to jump in and go ahead and
01:09:06buy your first stock and i am going to
01:09:09be using weeble so what you would want
01:09:11to do is either use my link down in the
01:09:13description below if you want your free
01:09:15stocks or you can just type in weibold
01:09:17you know.com on google or whatever you
01:09:19want to do in order to get to weeble and
01:09:21you are going to start by creating your
01:09:23account now in order to create your
01:09:24account it's very easy doesn't take very
01:09:27long however you do have to give them
01:09:29certain information for them to be able
01:09:31to do it and this is something that they
01:09:33have to do by law this is kyc laws which
01:09:37means know your customer and this is
01:09:39basically where companies have to
01:09:40collect certain information from their
01:09:42customers in order to allow their
01:09:44customers to invest so unfortunately
01:09:46this is something you have to do you
01:09:47have to tell them you know your phone
01:09:49number um they're going to ask what your
01:09:51address is like certain things in order
01:09:53to create the account but once you've
01:09:54done that it shouldn't take long before
01:09:56your account gets approved and then you
01:09:58are going to move on to the point where
01:09:59you actually fund your weeble account
01:10:01now this is something that i did several
01:10:03days ago because there is a little bit
01:10:05of a wait period after you fund your
01:10:07weeble account before you can use the
01:10:09funds and so that's something i had to
01:10:10do several days ago in preparation to
01:10:12make this video so at this point we are
01:10:14actually going to jump back to that time
01:10:17where the weibull account was funded so
01:10:19in the next little bit you are going to
01:10:20see past shane funding the weeble
01:10:23account and then buying the first stock
01:10:25so now we're going to jump to shane from
01:10:27a few days ago funding the weeble
01:10:29account all right guys so this is shane
01:10:31from the past i'm gonna be funding my
01:10:34weeble account with ten thousand dollars
01:10:37and so basically you know you create
01:10:38your weeble account not very difficult
01:10:40at all right now they're offering a
01:10:42really awesome promotion invite one
01:10:44friend get through six free stocks a lot
01:10:47of the time they'll give you like eight
01:10:48up to eighteen hundred dollars worth of
01:10:50free stocks or even more than that i've
01:10:52seen some ridiculous promotions but it
01:10:53does change so i don't wanna give you an
01:10:55exact number um but uh yeah you know
01:10:58this part right here watch list this is
01:11:01my test account so i don't really have
01:11:02many on the watch list here um i use
01:11:05this account to do all kinds of weird
01:11:07youtube videos and stuff
01:11:09markets can look at all kinds of
01:11:11different information here it's really
01:11:13nice uh the one and then there's
01:11:14community and there's messages now the
01:11:16one you want to go to in order to fund
01:11:18the account is the middle one usually
01:11:20you'll have to put in a password in
01:11:22order to access this one but what you
01:11:24want to do here is uh look at the you
01:11:26know the total account value click on
01:11:28details and then you go down
01:11:31just a little bit to buying power click
01:11:33deposit and then what you want to do
01:11:36that was the last deposit i made what
01:11:38you want to do here is uh link your bank
01:11:40account up at the very top um now of
01:11:43course i've already linked my bank
01:11:45account uh the most common way to do it
01:11:47is the ach transfer that's the easiest
01:11:49and most common way to do it it does
01:11:51take a few days for the actual funds to
01:11:55to the exchange however they will
01:11:57usually pretty much right away within a
01:12:00few hours and honestly usually within a
01:12:02few minutes they will give you access to
01:12:04a significant amount of your funds it's
01:12:06kind of like the honor system they'll
01:12:08give you that money expecting that the
01:12:10money is gonna actually come through
01:12:12via your bank okay so
01:12:14let's go ahead type ten thousand dollars
01:12:19transfer to weibull
01:12:20confirm and that's that boom done easy
01:12:24as that all right future shane here
01:12:26again so basically i'm looking on my
01:12:29phone right now and the funds are
01:12:31available when you're on this middle tab
01:12:34you see there's there's watch list
01:12:36markets you got the middle tab community
01:12:38and messages you want to be on the
01:12:39middle tab here and you see that the
01:12:41cash balance is 20
01:12:43476. so i have other cash balance on
01:12:46there besides this one i'm doing another
01:12:48video as well but that means i do have a
01:12:50lot of cash that's available to be used
01:12:52right now so the account is funded so
01:12:55what i'm going to do here is i'm going
01:12:56to go over to the second tab markets at
01:12:59the top you have some options you can go
01:13:01to explore united states crypto global
01:13:05so there's a bunch of different options
01:13:06to look into different stocks that you
01:13:08might want to buy explore is always cool
01:13:10just to get news about stuff um but we
01:13:13are probably going to stick with united
01:13:15states for the most part and you know
01:13:17they'll give you some different options
01:13:19you can use to buy
01:13:21stocks that are the top gainers in the
01:13:23last day these are always good ones to
01:13:25look into top losers look at stocks that
01:13:28have a lot of volume most popular etfs
01:13:31so they have a lot of good suggestions
01:13:32there you can also do crypto you can buy
01:13:34crypto you can look at global stocks so
01:13:36lots of good options but what we're
01:13:38going to do is we're going to go to the
01:13:40and we are going to look for
01:13:43some tesla all right so tesla looks like
01:13:47it's actually pretty high right now um
01:13:49you can see that in the last five years
01:13:51uh tesla went up about 27 x so 2 700
01:13:56return in the last five years um in the
01:13:58last one year it still went up about 84
01:14:01percent so really good returns even in
01:14:04the last year so what we are going to do
01:14:06here is we are going to buy some tesla
01:14:08this might not be very smart because it
01:14:11almost at an all-time high but just for
01:14:13the purposes of this video i'm going to
01:14:15buy some tesla i'm sure my accountant is
01:14:17going to hate me i'm going to go to
01:14:18trade and i am going to do
01:14:22nine so the estimated amount to buy nine
01:14:25shares of tesla is uh
01:14:27eight hundred and thirty two dollars
01:14:28there are many different types of orders
01:14:30you can do here you've got a market
01:14:32order stop order uh limit order
01:14:34most uh people who are newbies should
01:14:36probably stick with either the limit or
01:14:38the market order so i'm gonna go ahead
01:14:40and just stick with the limit order
01:14:41right now hopefully it completes the
01:14:43whole whole order and you want to make
01:14:45sure everything's good make sure you're
01:14:46buying it for the right price and then
01:14:48you click buy and you click confirm and
01:14:50just like that my order was immediately
01:14:52filled so we're good to go there now one
01:14:54more thing i'm quickly going to show you
01:14:56how to do uh before we move on in the
01:14:57video is i want to show you how to use
01:14:59the charts on the mobile version of
01:15:02weeble so again you would want to go
01:15:04back to markets go to search and in this
01:15:07case we're going to go to gamestop
01:15:09gamestop earlier this year went up a
01:15:10ridiculous amount so you know in the
01:15:12last year it's gone up
01:15:13about one thousand six hundred and three
01:15:15percent at its height so just an
01:15:17absolutely ridiculous return the chart
01:15:20itself i'm just going to use my fingers
01:15:23here and kind of show you what i'm doing
01:15:24so the chart itself you can mess with
01:15:27kind of like this right so you can
01:15:29expand the chart you can move the chart
01:15:32there's a lot of things you can do just
01:15:34by doing that alone but if you look at
01:15:36the very bottom you'll notice it says
01:15:40and histogram down there so that is
01:15:43something that is of course a technical
01:15:45indicator and we talked about technical
01:15:47indicators earlier on in the video but
01:15:49the way you can change those is you look
01:15:50at the bottom right uh just to the right
01:15:54so i clicked on max but it's just to the
01:15:56right of that you click on the little
01:15:58line there and you can change it from a
01:16:00line graph to an area graph baseline
01:16:05hollow candle uh helkin ashy bar colored
01:16:08bar and let's just go ahead and i'll
01:16:11change it to a candle stick graph so you
01:16:13can kind of see what that looks like
01:16:14this is what the baseline one looks like
01:16:16so yeah you can change all those if
01:16:18you'd like to the right of that you can
01:16:20actually change the technical indicators
01:16:22so these are different uh and frequently
01:16:25used indicators the m a stands for
01:16:27moving average the ema stands for
01:16:29exponential moving averages the b o l
01:16:32stands for bollinger bands the ic stands
01:16:35for ichimoku cloud and the v whop stands
01:16:39for volume weighted average price and
01:16:41then the subchart which is the chart on
01:16:43the bottom you've got volume of course
01:16:45that's pretty self-explanatory that's
01:16:46the volume you've got macd which is the
01:16:49moving average convergence and
01:16:50divergence you've got kdj which is the
01:16:53stochastic oscillator you've got rsi
01:16:55which is the relative strength index roc
01:16:58which is the rate of change dma which is
01:17:00the displaced moving average and then
01:17:02fsto which is the fast stochastic
01:17:05oscillator so let's go ahead and i'll
01:17:07change the bollinger so you can kind of
01:17:09see what that looks like so it's very
01:17:11similar to what i showed you before it
01:17:13puts these bands that kind of shows you
01:17:15the upper limit as well as the lower
01:17:16limit i'll also go ahead and change the
01:17:18bottom one to uh volume and you can
01:17:21actually even select multiple ones so
01:17:23there's the volume indicator right there
01:17:24so i'll take away the macd and take away
01:17:27the v-wop so you can see kind of how it
01:17:29looks a little bit cleaner now so i'm
01:17:31going to go ahead and just change it
01:17:32back to what it was originally um
01:17:34because that's a pretty good one but
01:17:36yeah it's amazing how many different
01:17:38indicators you have on a phone like it's
01:17:40incredible all the different indicators
01:17:42you can look at and it's all just at
01:17:44your fingertips on your phone is this
01:17:46perfect definitely not it's better to
01:17:48use the online like web app version but
01:17:50for a phone this is incredible and
01:17:53that's one of the reasons why i love
01:17:54weeble so much is you just have so many
01:17:56options and it's so easy to use but it's
01:17:59in a phone so it's incredibly accessible
01:18:01and you can just use it right away now
01:18:03one thing that i wanted to quickly go
01:18:05over is limit orders versus market
01:18:07orders and when you should do either one
01:18:09so let's go back to that tesla example
01:18:11earlier where we bought some tesla
01:18:14i'm going to go back to the part where
01:18:15you would set it as a limit order or a
01:18:17market order now very generally speaking
01:18:20traders like to use limit orders and the
01:18:23reason for that is because you're buying
01:18:25and selling short term so every penny
01:18:27matters investors don't really care and
01:18:30they usually just do market orders
01:18:32instead so depending on which one you're
01:18:35especially if you're a beginner you
01:18:36probably just want to stick with a limit
01:18:38order or a market order and it depends
01:18:40on whether you are investing or you are
01:18:42trading that is a very simplified
01:18:44version of which type of order to use
01:18:46because i know that's a question that
01:18:48people ask all the time on these types
01:18:49of videos so that is my answer all right
01:18:52so let's say i wanted to sell the tesla
01:18:54shares that i just bought so what i
01:18:56would do is i would go to the main page
01:18:59here and you can either just click on
01:19:01the tesla right from there or if you
01:19:03don't want to do that you can go to
01:19:04markets search search for tesla that's
01:19:08the ticker symbol or you can just type
01:19:10the whole thing out tesla if you can
01:19:12type correctly unlike me click on the
01:19:15tesla and then you go to trade and then
01:19:18you would click sell you would pick how
01:19:19many shares you want to sell and if you
01:19:21wanted to you could sell all nine shares
01:19:23and then you know you could uh if you
