Being a millionaire in 22 years

[Tocsin_786]

what do you guys think of this concept. if this works im actually thinking of doing it. and can somone tell me where to invest since he didnt specify on whether to do it in dow j or s&p.

 

[Fred Castellum]

Welp Day Trader right here. Watching video, will comment on after I'm done. 

 

EDIT 1.0: LOL he just said were having a good year this year... please... this year has been slow as hell.... Last year was a great year... 

 

EDIT 2.0: Ok first off this relys on your gains to be consistent, investing is no step 1 step 2 step 3 game where you just magically make money, research is required and even with research you may still fail. This plan doesn't adjust for inflation too, I'd like to note there is no such thing as a perfect investing plan, because the market changes and with change you need to adapt. 

 

EDIT 3.0: The examples of the people he was talking about was back in the 90s.... one dollar back then... compared to one dollar now.....  

 

EDIT 4.0: S&P 500... https://www.google.com/finance?q=INDEXSP%3A.INX&ei=_cSlU4CIJ8TuqwHDpoHQAw 

[KamiKatze]

I smell snakeoil!

 

Where your you supposed to invest to? I also don't quite get where the Interest is coming from. If you find a save investion like, for the sake of argument, goverment loans, they throw off maybe 2-3% interest, which is about the inflation. So if i stick 12k/year into goverment loans i will end up with 12K * year money + interest, but that can't buy me shit because the inflation makes its value the same as before? Or are we talking of interest of interest already....? i am not good at this...

 

Also when he is talking about buying 20 share for $50 a share and 5 shares for $200 a share in good and in bad months, averaging out above 10 sahres/month for a year, is that even possible? You'd have to find something very speculative that goes up and down in value all the time, which is dangerous and probably not of long last.

 

Please educate me, i am interested.

[Owen]

@MyInnerFred @

 

I don't think you guys completed get what he's saying, you're bring up inflation as an argument against him but he clearly takes it into account and it's actually part of his 'strategy', in the beginning of the video he shows the averages (i.e. gain 100% first year,  lose 50% second year = 25% profit average). He also talked about buying while low and selling while high (i.e. buying 2x the amount of shares when the price dropped, 2x less when it increased, etc.). So actually, I think this basic investing plan (which banks have little pamphlets on their desks talking about it btw) accounts for inflation and changes in the market really well. 

 

Edit: When I said accounts for inflation, I know there's no way to say what 1$ today is worth in 20 years, but I don't think it would be that hard to adjust to it. If the dollar goes down a lot, start investing more per month. If it goes up over time, do the opposite. The math is still solid imo

[Fred Castellum]

I smell snakeoil!

 

Where your you supposed to invest to? I also don't quite get where the Interest is coming from. If you find a save investion like, for the sake of argument, goverment loans, they throw off maybe 2-3% interest, which is about the inflation. So if i stick 12k/year into goverment loans i will end up with 12K * year money + interest, but that can't buy me shit because the inflation makes its value the same as before? Or are we talking of interest of interest already....? i am not good at this...

 

Also when he is talking about buying 20 share for $50 a share and 5 shares for $200 a share in good and in bad months, averaging out above 10 sahres/month for a year, is that even possible? You'd have to find something very speculative that goes up and down in value all the time, which is dangerous and probably not of long last.

 

Please educate me, i am interested.

It's not a good idea to focus your investing into just one company, on top of that share prices go up if the company is going up in value so you won't be able to buy 5 shares at $200 per month if the company is truly growing.... There are alot of volatile stocks that sometimes don't go anywhere look at BAC(Bank of America for example) It's basically used as a quick flip by high capital traders.... 

 

And yes his plan doesn't adjust for inflation and as stated by a previous post I made he doesn't account for inflation so the proposed 1 million dollars could be a fraction of one million by the time 22 years have passed. 

[KamiKatze]

@MyInnerFred @

 

I don't think you guys completed get what he's saying, you're bring up inflation as an argument against him but he clearly takes it into account and it's actually part of his 'strategy', in the beginning of the video he shows the averages (i.e. gain 100% first year,  lose 50% second year = 25% profit average). He also talked about buying while low and selling while high (i.e. buying 2x the amount of shares when the price dropped, 2x less when it increased, etc.). So actually, I think this basic investing plan (which banks have little pamphlets on their desks talking about it btw) accounts for inflation and changes in the market really well. 

 

I still don't get it. I see why 100% gain 1st year and 50% loss 2nd year is a total gain of 0" as opposed to 25% average gain, but how does that apply to the shares? We buy 20 in a good month and 5 in a bad month averaging out at 12.5 shares a month, yay we made some money if we sell at $100/share, is that how it works?

 

because you would then have to find something to inves in, that goes up and down crazy like that.

[Guest Philosophy]

Woodysgamertag used to be freaking cool. Now he is kind of an idiot....

 

[Izaya Orihara]

That guys has apparantly never heard of inflation. This is snakeoil. 

[Fred Castellum]

@MyInnerFred @

 

I don't think you guys completed get what he's saying, you're bring up inflation as an argument against him but he clearly takes it into account and it's actually part of his 'strategy', in the beginning of the video he shows the averages (i.e. gain 100% first year,  lose 50% second year = 25% profit average). He also talked about buying while low and selling while high (i.e. buying 2x the amount of shares when the price dropped, 2x less when it increased, etc.). So actually, I think this basic investing plan (which banks have little pamphlets on their desks talking about it btw) accounts for inflation and changes in the market really well. 

That plan is way too simplified, that's taking into account you'll know how to look for stocks and know all the fundamentals and have the time to keep track of what said company does. If you don't get a good start in the first couple of years your investing strategy probably isn't going to get you anywhere but down. 

 

Sounds like the typical "here's how to invest guide" that helps a few people get started and a ton of people to crash their savings. I've seen far too many these.... If you want a successful investing plan/strategy you best do self research and take informational videos like this with a pinch of salt.

[Fred Castellum]

Edit: When I said accounts for inflation, I know there's no way to say what 1$ today is worth in 20 years, but I don't think it would be that hard to adjust to it. If the dollar goes down a lot, start investing more per month. If it goes up over time, do the opposite. The math is still solid imo

Doesn't always work that way if the amount the dollar is inflated isn't proportional to gains you make from work or from investing. In order for the method to work effectively you'll need the value to be recover over a period of time. Think about it, what happens to companies that open a IPO in a country that has a stale economy? 

[Owen]

That plan is way too simplified, that's taking into account you'll know how to look for stocks and know all the fundamentals and have the time to keep track of what said company does. If you don't get a good start in the first couple of years your investing strategy probably isn't going to get you anywhere but down. 

 

Sounds like the typical "here's how to invest guide" that helps a few people get started and a ton of people to crash their savings. I've seen far too many these.... If you want a successful investing plan/strategy you best do self research and take informational videos like this with a pinch of salt.

Buckets of salt, for sure. I totally agree, but I think he was just trying to show how the math theoretically works so that people could use the same concept in their own way, at least that's what I took from it. But yeah I can see some people dumping all their money into some random penny stock for years then realizing they've been doing it completely wrong..

[Riddler356]

so basically

Steps:

1) watch video

2) ???

3) Profit???

[Fred Castellum]

Buckets of salt, for sure. I totally agree, but I think he was just trying to show how the math theoretically works so that people could use the same concept in their own way, at least that's what I took from it. But yeah I can see some people dumping all their money into some random penny stock for years then realizing they've been doing it completely wrong..

LOL Investors don't belong in the penny stock scene in the first place, sure maybe one or two penny stocks but never with a large sum of money. It's financial suicide I tell you..... 

 

I really hope these people watching this video does self research instead of going at this right off the back with what woody is saying... or their gonna get their money siphoned outta brokerage accounts by other investors....  

 

EDIT: oh and mark my words, the S&P 500 will crash in the next decade the flat line technical's doesn't lie 2014 has been a huge peak for the S&P 500. 

[KamiKatze]

so basically

Steps:

1) watch video

2) ???

3) Profit???

 

You should rather open an account at an online roulette service and use the doubling method on black and red until you win.

[Tech_Dreamer]

[Riddler356]

You should rather open an account at an online roulette service and use the doubling method on black and red until you win.

nah, i'll just stick with working at BK

[mr moose]

With the current decline in monetary value and purchasing power, I think being a millionaire in 22years will be quite a common thing. It will not carry anywhere near the same weight as it does today.

With all that said, good luck. I wish you well in your enterprise but do not share your rosey eyed approach to wealth accumulation.

 

That's exactly on the money.  In about 15 years I will be a millionaire on paper, But it won't be anything to write home about. In fact in about 30 years most likely 1/4 of Australian families will have over a million in various capacities.

[IPCharger]

The fact that this video is from a guy which makes his living by giving Sexual advice to 10 year old doesn't give me much confidence.

On a more serious note, if you are interested in investing, you are probably way better watching videos of Warren Buffet and other professional investors, NOT a gaming commentator.

[Tocsin_786]

The fact that this video is from a guy which makes his living by giving Sexual advice to 10 year old doesn't give me much confidence.

On a more serious note, if you are interested in investing, you are probably way better watching videos of Warren Buffet and other professional investors, NOT a gaming commentator.

true true. i have my financial plan set out, but its always nice to learn something new.