Dear New Investors: Be Careful | Dogecoin + GME Stock

hey guys how's it going it's Andy from google 
investing happy Monday and happy February so   today is going to be the last video for a while 
hopefully where I’m talking about kind of the   state of the overall stock market because it feels 
like pretty much every YouTube channel even the   ones that aren't involved in the stock market have 
been talking about GameStop Stock (GME Stock) but   over the weekend I’ve been doing a lot of thinking 
and I’ve come to the conclusion that I am getting   more and more worried about the average new 
investor that's just gotten involved in the   stock market so in today's video I want to talk 
about something that I’ve been thinking about   when it comes to the comparisons that can be made 
between the extreme uh momentum that we've been   seeing in the stock market and something that 
probably a lot of people have had happen to them   in the past couple years I do have to say that I’m 
not a licensed financial advisor and this is not   financial advice anything here in this video is 
just me giving my own opinions on the stock market   and you need to do your own research for making 
any investment decisions so before people just go   and automatically hit the dislike button because 
I’m saying oh you know these stocks are not going   to be staying this high forever just hear me out 
I’m very happy that people are making a lot of   money and they're kind of quote unquote sticking 
it to the man I think it's fantastic the whole   point of me making this channel was to try to get 
people my age to get excited about investing in   the stock market because for people that have been 
doing their research the longer you invest in the   stock market the more successful you're going to 
be because compounded interest and time will be   on your side and so I’m so excited when I go on to 
the app store and I see that robinhood app is the   top free app on the app store right now it's so 
exciting the problem is what I’ve been seeing is   people have been treating the GameStop Stock (GME 
Stock) AMC Stock (AMC Stock) blackberry situation   more like a pyramid scheme in a multi-level 
marketing scheme that maybe some girl that you   went to high school with would dm you instead of 
treating like actual investments and that's kind   of got me worried and so the idea of these 
pyramids games or the multi-level marketing   schemes is that you're not buying into the actual 
company you're buying in you're buying your own   products that you're going to be selling to 
other people so that's how they get you to buy in   but when you look at these products they're pretty 
much useless you have stuff like essential oils   I’ve been seeing some like protein powder and 
caffeine stuff but the whole idea is that it   doesn't feel like you're buying into the scheme 
you're buying a product so that you can be your   own boss that's kind of the idea of it and 
when I look at these stocks that are being   used for the momentum plays it's all companies 
that are relatively worthless when it comes to   comparing them to other major stocks in the 
stock market they're pretty much useless when   the price of the stock actually goes down 
so I’ve made multiple videos talking about   GameStop Stock (GME Stock) and just kind of the 
problems that have been facing the company for the   past year and a half because the stock has been 
falling for two plus years uh until this situation   has happened and the fair value that I’ve been 
seeing for GameStop Stock (GME Stock) has been   sitting around 18 to 20 dollars and considering 
we're sitting up at $200 still there's a long way   to go until we get to that point and talking about 
the fair value of the company is important when we   talk about the potential floor of the situation 
coming up after you buy into these products   the way that people make money is by getting 
other people involved into this scheme because   they have to be buying products from you or the 
company and they get a cut of whatever they bought   and that's kind of what we've been seeing recently 
you have the early on people that got in before   the short squeeze happen that's when I made 
that video back in December talking about why   I thought GameStop Stock (GME Stock) was primed 
for a short squeeze those are the people that   have gotten in very early and that was when 
the company was sitting around 15 to 20 bucks   and so people that got in really early are 
going to be making a lot of money because   now the actual short squeezes happen it's all 
momentum-based trading and what that means is   people are going online and they're talking to 
other people about you know this is a situation   that is foolproof you're sticking it to the man 
they throw up buzzwords like short squeeze gamma   stuff that they really don't understand but 
they understand that people are making money and   the psychology of investing has really taken over 
and I’ve talked about this this past summer when I   was in grad school I was taking a psychology class 
and I talked a lot about it on this channel and   it's going to be very interesting to look back on 
this in a couple weeks or in a couple months and   kind of see some of the telltale signs that people 
were trading based off of emotions and the first   one that I see has to do with the FOMO the fear 
of missing out because people are posting online   about how much money that they're making and they 
keep saying oh you know as I said this can't go   tits up meaning that there's no way that this 
goes poorly and then people ended up buying it   and so we get these people that are going on you 
know discord reddit twitter saying that this is a   foolproof plan that's kind of similar to what we 
have with the girl from high school that messages   you on the DM’s and says oh you know you want to 
be your own boss here's how I made all this money   it's a great thing the problem is it's all fun 
and games until the first domino falls and that's   when the whales end up leaving and so I used the 
term whale because the first example that we've   seen so far of a momentum play that's kind of 
backfired a little bit has to do with dogecoin.   Dogecoin is a joke cryptocurrency that is trading 
for very cheap but it has had explosive growth in   the past couple weeks with the momentum plays 
from the online community the crypto increased   in price rapidly and then sold off and a lot of 
people got burned because of that and while this   is not you know a doomsday scenario it has bounced 
back a little bit there's definitely some people   involved that bought at the top thinking that this 
is a foolproof play and it didn't work out for him   and this is the first place that we've seen 
this kind of bubble bursting yes it didn't   burst fully but eventually the party is 
going to end with these companies because   while it seems like you know 
these normal people are in control   the psychology and emotions of trading are 
definitely going to take over at some point   for people that have made money there's going to 
be the idea that either people are going to be   really greedy and hold on for too long or they're 
going to sell and try to lock in profits and   selling pressure is going to push the stock down 
and since we have the limits on the amount of   shares that these people are able to buy on 
platforms like robinhood app it's going to   make it really tough for the price to stay this 
high for a while and so you have the psychology   of people that are very new to the stock market 
not understanding the psychological toll of you   know having a big loss can have on you so that's 
why I’m really worried for people going forward   because that's the whole reason I do research 
on these companies all day to try to make people   think differently about the stock market instead 
of just going on to some video where some guy is   pumping up a penny stock that really has 
no reason being this high at that point   and so eventually we're going to have a bubble 
popping and it's going to be brutal and a lot   of people are going to lose money and that's why 
I’m really worried for these new investors because   it's all fun and games until people start losing 
money and I’m worried that if people lose money   in a catastrophic way maybe they get in 
close to the top they lose 60 70 80 percent   it's not going to make them want to invest 
in the stock market in the future because   people have gotten this idea in their head 
that the oh they can stick it to the man   they can have these incredible returns when 
in reality this is a I’m not going to say   once in a lifetime because once in a lifetime 
happens way more than you actually think but   people think that this is an opportunity that you 
can't miss and the whole point of this channel is   I’ve been day trading I have lost a lot of 
money and it really hurt the first time you   lose a lot of money but I think losing is 
important but I think losing in a correct way is   a good way to learn your lesson I lost 
from day trading I thought that I was   smarter than the overall stock market and I’m 
sure there's people out there right now that   think they're smarter than these major hedge 
funds I was reading this book by Jim Cramer and   it talked about how these hedge funds when they 
smell blood in the water they will take out their   own kind and so there's all this discussion online 
that the reason that these hedge funds are doing   so poorly has to do with the everyday people like 
you and me in reality there's probably some hedge   funds in there that have heard that you know 
citron or citadel are shorting game stop at an   incredible rate and they're trying to make them go 
bankrupt that's just kind of the way the business   is set up anytime they smell blood on the 
water they will go after them and once these   major shareholders or whales which are called in 
the cryptocurrency world move out of the market   it's going to push the stock or crypto down 
significantly so at this point right now check to   see what GameStop Stock (GME Stock)'s looking at 
right now I saw it down a little bit this morning   it's down 25% today so for any stock besides a 
momentum based stock like a game stop this would   be a huge move but for GameStop Stock (GME Stock) 
this is just kind of par for the course and so   eventually this is going to pop and I’m going to 
be making a video on my second channel talking   about how I would get started in the stock market 
for people that do have robinhood downloaded   and kind of want to hear my thought process 
of how I pick stocks because for people that   haven't picked stocks before there's so many 
options and there's a lot of chatter online about   you know this is the best stock to buy right now I 
think it's important to look at your own life and   figure out which stocks you want to buy and that's 
how I learned to invest and I think it's the   probably the most effective and 
safest way to do it so let me   know what you thought about this whole 
GameStop Stock (GME Stock) situation   and I will see you in the next video so 
thanks for watching and I will see you then

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