(01-28-2021, 07:12 PM)Jags Wrote:

(01-28-2021, 06:40 PM)EricC85 Wrote: I said it [BLEEP] it last night made a Robinhood account and put $30 in Nok before they cut off trading and like $10 in some cryptocurrency called dogecoin. If it all tanks no loss but if it raises a little it’s like winning a scratch off lol.

I created an account as well.  Fell short of linking one of my accounts. So I didn’t buy anything. Add in RH and others doing what they’re doing, I’m going to hold off.  Wife and I both have an IRA.  Full disclosure, I’m not into “stocks”. I equate those to a savings account with better interest.   I could be so far off base. Someone that knows better please do inform me.  I started a 401 because I was told to for retirement reasons from my parents.  Wife works at a real company that matches and stuff.  That I understand.  My money plus your money plus the market.  It’ll grow. Mine, is just my money and maybe 10% a year.  Perhaps that good.  But just doesn’t seem like a lot. But if RH allows the trading after lawsuits and Reddit people keep doing this, I may chime in.  I’ve got a decent amount I’m ok losing if it happens to go that way.  If this becomes a trend I’m in and if RH will allow it.  Am I wrong here?  I know JIB is calling it “gambling”.  IMO, I can make more at the poker than my 401k.  Some advice please.

This is exactly why this stuff is so dangerous.  Far too many people see other people's claims of "I made 350% in 3 days" and see it as a quick way to make money.  It doesn't work that way.  Somebody may throw in $100 on a penny stock and see a huge run-up like this and suddenly the stock is worth $350 and they think "wow, what if I put in $1000 or $5000" and so on.  They do so because somebody on the internet claims that they did it and "made 350% profit".  It's pretty much the same as a gambling addiction.  The problem is that when the stock drops... and in the case of Gamestop, American Airlines and the others being bought like crazy is it's going to happen.  Those people are going to lose a lot of money.

It gets worse when people are "successful" at first then start getting greedy.  They might take out a loan or "invest" (bet) borrowed money or money that they actually need to survive.

If you want my advice, and I am by no means a professional, I would tell you to open an account at a regular reputable broker.  Depending on your age I would make it either a traditional IRA or a ROTH IRA account and actually do some research and invest for the future.  I would stay away from investing in single stocks and look towards baskets of stocks, either an ETF (which I invest in a lot) or a mutual fund.  Individual stocks are extremely risky.

To compound the problem even more, there are perhaps millions of people just like you that are "opening an account and doing what others are doing", even if it is small amounts.

People that gain significant wealth in the stock market don't do so in days, weeks or even months.  Anyone with that goal is not investing, they are gambling.

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