Retail Trader Speculation Explained in One Minute - Meme Stocks, Meme Cryptocurrencies, etc.
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- Опубліковано 25 січ 2023
- This much is certain: after 2020, retail trader speculation became a massive phenomenon. From meme stocks to meme cryptocurrencies, more and more "average Joe" citizens started embracing speculation... oftentimes involving assets that are questionable at best, leverage or both.
But why is retail trader speculation running rampant?
Why is this phenomenon gaining traction at this point in time as opposed to let's say the fifties or sixties?
The answers to these two questions and many more should become obvious once we rid ourselves of "it's just plain old greed" stereotypes. Not necessarily because greed isn't a dominant variable but rather because the underlying causes of said greed makes today's situation quite nuanced.
Is retail trader speculation a good or bad thing?
Long-term speaking, in light of the fact that the average retail trader loses money, most likely the latter.
But this conclusion is of little use in the absence of the meaningful understanding of perhaps the elephant in the room in terms of causes: despair :(
It's been waaaay too long since my last video, promised myself I'll figure out a way to publish a lot more this year... let's just say making money on the education front without essentially scamming your audience (over--hyped courses, "mastermind" products, trading "secrets" and what not) is easier said than done. If you would be interested in sponsoring upcoming videos with a message at the beginning or end (commercial in nature if your product/service is a good fit, perhaps promoting your worldview/philosophy, etc.), shoot me a message at andrei@oneminuteeconomics.com. Don't have a "set in stone" plan, open to suggestions, all I know is that there has to be a way to make publishing more frequently financially sustainable
Welcome back
:)
Many of those speculators need a better real estate education! Almost no one pays cash for a home, they only need roughly 5% down payment (sometimes less) plus a good monthly income that is 3 times the monthly mortgage payment. So based on your numbers, $27,000 for average down payment and $2500mo mortgage, requires a household income of $7500/mo. 2 workers making $21 an hour each would meet the income requirement, and saving 417 mo would take 5 years to save that down payment, or ask relatives for a loan, or find specials where the owner will loan you the down payment, housing prices could go up or down during the savings period, so finding multiple people to invest would help
But what about:
1) Potential job loss scenarios?
2) Major health problems and their financial implications?
3) Other aspects associated with personal lives, for example having children and the various costs on that front?
The list could go on and on. Not saying you aren't right with respect to let's say the idea that financial discipline can make the goal of owning a home achievable. What I am saying is that your scenario is too linear, whereas life... well, isn't :)
NAILED IT DUDE!!!!!
Thanks a lot for the support and good vibes! :)