Your Finance Journey Begins Here

Updated: Jun 16, 2021

Monday, May 24, 2021

By now you’ve heard about GameStop, Bitcoin, Tesla, Doge, Amazon and many others. You’ve probably heard “yeah my friend got into that when it was only $20, he made a fortune”. The envy kicks in and you think, damn, I wish I had done that.

Next thing you know your friends are saying GameStop to $1000, it can’t stop, it won’t stop, it's going to the moon, get in. You buy at $250 and it comes crashing down. You lose 80% of your money. Unfortunately, this is the sad reality for many. For every big winner there are 50 more losers. We’re not here to teach you or sell you on how to get rich quick - we are not stock or financial guru’s - we are are just guys who have studied the market, learned, and wants to help bring you up to speed.

This intro to finance course is going to help you achieve the knowledge of financial freedom. Again, this isn’t the scheme to get you rich. This is so while you are working and get denied a week off, for example, you can still take that vacation and not worry about pay day.

Now let's go over the basics, whether you use Robinhood, webull, TD, Schwab, Fidelity or another platform the basics are going to remain the same. There are four basic investment strategies. Individual stocks, ETFS (my recommendation for starting), mutual funds, and bonds.

Let's break those down:

Stocks – This allows you to buy into the business of one specific company. In short if they do well, you do well, they do poorly, you do poorly

ETF'S – These are a group of stocks made up into one “stock aka ticker”. There are hundreds of options. If you are debating, "do I want to own Pepsi or Coke", why not just buy a beverage ETF? The pro is you have exposure to a bunch of companies in a certain industry and if one company does bad, the others can hold the price up (kind of like a group project). The down side is, if one does amazing, you might have something else that is limiting those gains. See below for an example of an ETF performance with 5 stocks:

APPLE up +30% = +$5.00

MSFT down (30%) = ($3.00)

AMZN up +20% = +$50.00

Google up +10% = +$15.00

TSLA down (10%) = ($30.00)


Total upside of = +$9.10

Mutual Fund – A mutual fund, in simplicity, is a bunch of people giving money to a fund manager. This manager then picks stocks, ETF's and bonds and tries to out perform the market. These were extremely popular 10-20 years ago and are not as popular today, as they have a higher expense ratio than ETF’S

Bonds – These are fixed income instruments that are usually less volatile than stocks. Bonds are usually issued by companies or governments and in return pay you back a dividend yield

Other popular terms that we'll delve into later in the course, but are good to have on your radar for now are:

Dividend Yield – This is the percent the company returns to you over the year. If a stock is $300 and its dividend yield is 3%, that would return $9 over the year

P/E Ratio The relationship between a company's share price and earnings per share

Market Cap This is what the company is currently “worth”. This is calculated by multiply the stock price by the total number of shares available

Expense Ratio Essentially the opposite of a dividend yield. This Is how much you will be paying to be invested in this ETF or mutual fund

Bear Market The market is going higher. Also relates to stocks. If I am bullish on a stock, I think it is going to go up

Bull Market The market is going lower. Also relates to stocks. If I am bearish on a stock, I think it is going to go down

Volatility – High volatility means the price will have big swings up and down. Low volatility price will stay flat or not make big jumps around

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