Why Investing Isn't Quick, Easy Money With Financial Advisor Ramit Sethi

Automatic TRANSCRIPT

Let me start off with what happened with my first investments. So here it is. It's around nine hundred ninety nine two thousand. Everybody thinks they're tech genius. You put money in any stock. It goes up twenty six percent the next day. So what do i do. I take my college scholarship money. And i put some of it in the stock market thinking. This is twenty percents guarantee and every day. It's going up and down but mostly was there massive euphoria. I wasn't focused. Yes yes everybody was. Everybody believed there are genius so in a bull market. Everybody believes their genius. And they all say the same phrase. This time it's different. It's such a funny phrase that in the investment world people make fun of it. It's a there mocked because it's never different it's actually the same thing bubbles expand But over time they mathematically cannot continue so here we have people making millions of dollars who would otherwise be working in a parking garage and they are giving stock tips out and telling everybody you gotta get into this j. d. s. You this you know all kinds of stuff. So i take my college scholarship money. Put it in the market. And i very quickly lose half the money because of the crash. Yeah or because of the crash and so what happens is i realized. Oh my god. I'm not as smart as i thought. It's not easy to become a millionaire through investing in two weeks and so here is where there was a pivotal moment one. I could have doubled down. And said i just picked the wrong stock. Let me pick another stock. This is very similar to what you here. with people. In the crypto world well my investment quote investment dropped fifty percent. But you know. I gotta do this coin or coins etc. What i chose to do is go different. Say you know what. I don't think i'm that smart about investing and i actually wanna learn how fundamental basic investing works so things like law low-cost long-term things like reading about john vogels philosophy etc. And i started to learn about it. And i realized you can spend your entire life trying to trade but traders hardly ever make money over the long term if we were gonna define trade timing the mark. Yeah it's like. I understand this stock it's undervalued. Yeah i'm gonna bikes. I know it's going. And i'm gonna do it short-term right so i'm going to create this narrative that ooh this stock look at the trading. Look at the chart and i'm going to try to make quick money in in four weeks. Everybody now know somebody who trades those people almost all lose

Coming up next