Don’t believe investment hype! In a conversation with NBC12, Michael Joyce says that young investors risk losing a lot of money if they don’t understand the fundamentals behind an investment. The GameStop phenomenon is one such example.
The Stock Market is Not a Game
If you are new to investing and watching the stock market or your kids are, Michael says there’s one big thing to remember — the stock market is not a game.
Understanding Investment Fundamentals
Michael says inexperienced investors can lose a lot of money getting caught up in the hype surrounding a new investment trend. He says there’s a difference between investing and speculation or gambling. Investing is not a get-rich-quick scheme.
Michael says it’s critical think about why you want to invest in a business. What are the fundamentals for investing in this company? You don’t want to invest in something because of what you read on a Reddit board.
Be Measured and Careful When Investing
Michael also reminds investors that they shouldn’t buy something just because it moved up or sell something just because it’s gone down and you think it’s going to go lower. He says you want to be measured and careful.
Hire an Investment Advisor
He also says a financial advisor or an expert can teach you the ins and outs of investing. You don’t want to just wing it.