ATLANTA - After riding high and grabbing headlines, GameStop shares are tumbling. But boy did it go sky high before it dropped, and that piqued the interest of casual investors.
You heard first of all of those people who make a lot of money, quickly. But you always hear from the winners first. Now you’re going to start hearing about most everyone else - how they lost their savings.
According to market analysts, very few people can succeed financially by trying to time the market. Meaning, buy in low and quickly then cash out at just the right time. Money management is about savings and long-term investing. That works. It’s proven.
Bobbi Rebell is a financial advisor for the app Tally. Tally helps you pay off debt faster. She explains why the GameStop investment strategy is well, gambling.
"Generally when you invest on fundamentals, what the company is worth based on the company, that is considered investing," Rebell said. "If you’re just following the crowd and throwing money at the stock because everybody’s buzzing about it, I’d call that gambling."
Taking money chances like that is for Vegas. But as we close in on Valentine’s Day, let’s remember the number one thing that couples argue about is money. So, if you have a partner trying to convince you to be more adventurous with investments, consider this advice from a certified financial planner.
"First of all, I highly recommend, don’t do these things alone. Talk to your partner, anyone who is a financial stakeholder in your family, and make sure they’re included in the decision. If you want to, taking a small portion of your portfolio and saying, ‘I’m going to follow the Reddit wars and have some fun,’ well, that’s a decision you can make. But with long-term investing and the money that’s important to you, be careful with it," Rebell said.
So make sure you and your partner agree, that day trading, if you will, is not a good strategy for you as a couple.
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