The stock market keeps falling. I keep buying the dip in stocks & losing.
So every once in a while i get ready to make a youtube video and uh sometimes i’m more excited than other videos and this is one of those rare videos i create that i’m actually uh very very excited to share with you um i’ve got some stuff i want to show you in this video that i think is very important that’s going to make you think from a different angle um than
Than maybe traditionally thought and the premise of this video is um i buy the dip and i keep losing right which is uh definitely a situation i’ve been in for many many months now and i think a lot of other investors are as well well where you continue to buy the dip in different stocks or the market in general but usually individual stocks right and the stock
Price just goes lower and it’s like every single share i buy the stock i just lose money in and so right off the bat i want to give you an example of paypal okay by the way thank you ftx for sponsoring today’s video as always being our crypto partner check out first link in the description description down there if you want to sign up for ftx and get some free
Crypto pretty awesome also use referral code holy smokers paypal this is a stock that’s down 72 percent since august highs 7 22 percent okay now i started buying this stock a few months ago when it had its kind of uh let’s call it last big crash and these are all the shares i’ve acquired we’re all in these this price range essentially right every single share of
Paypal stock i have bought i am down on those shares every single one and that’s despite already feeling like this stock was of tremendous value when i was buying it and uh you know a great company cash flow company low metrics all those sorts of things and yet every single share i bought of this stock i am down on and some of those shares down quite substantially
Too like 20 30 plus percent so it’s not like it’s a small amount right and uh for for a great company look at something like shopify this is not a stock i personally own right now but you know this is a stock that’s down 73 percent since november right so about six months the stock’s down 73 so it doesn’t matter what price you bought shopify at at any point in the
Past six months you were down on those shares and you’re likely down massively not only that if you bought shopify at any point in the last couple years you are down massively and so shopify is a great company that has a great future in front of it but it doesn’t matter what you’re buying the stock at you are losing money on this and it’s painful right because you
Could look at shopify’s you know let’s say 650 and you’re like this is a great deal like i think shopify is going to be 3 000 in the future because of blah blah blah and you know the net income and where you think the revenue is going right and then that stock drops you know 40 plus percent from where you start buying it’s like seriously like really this this is
Going on right now and this is what we see transpiring in the market you look at a stock like google mcdougall i think this is very very important for everybody to see this google is in jeopardy of going down on a one-year basis now if this goes down on one year basis then this would mean essentially that google a great company i mean it does it get better than
Google like come on this is a potential here where it doesn’t matter what you bought google at in the past year you were down on your shares right and there’s not some speculative stock and some meme stock or some wow i can’t believe how high its valuation is it’s not one of those sorts of stocks at all but this stock’s in real jeopardy like it has one more or
Two more rough days you know will be in the negative on a one-year basis which means every single share you’ve bought in this stock in the past year you were down on right and that’s from you know like like what you would consider one of the safest business models this is uh goes all the way back to august of 2020 amazon stock if you bought amazon stock basically
At any point in the last 20 months roughly you were down on your shares of a great like it doesn’t get better than amazon when you talk about the e-commerce business aws everything they have going on the advertising business and here you’re in a situation that every share you’ve bought of this stock you were down on and it’s just like can we get a break right and
So this is what you see consistently in the market going on right now uh tattoo chef if we want to go into a few smaller caps you know i’ve been killed my tattoo chef i would be a liar if i said i haven’t right um this is a stock that almost all the shares i bought in the stock are between anywhere from the 18 range to 10 range right i think i bought some yesterday
For like 9 something and even those shares are lower every single share i’ve ever bought a tattoo chef i am down on every single one it’s not like i can look at some shares and be like well you know those ones i’m doing really good on nothing every single one you know why because the stock’s at an all-time low and it breaks new all-time low after new all-time low
Right and in this sort of market the long-term whatever you got going on right the market doesn’t care about that right now the long the market doesn’t care about where tattoo shops going over the next three years or five years those market cares about where it’s going over the next three to six months okay and so every single share i buy on this oatley i love this
Stock for the long term i mean i absolutely love it i think this is going to be a massive money maker for me every single share i bought of oatley which i’ve been buying this stock a lot of shares so far this year right every single share i bought of oakley is down and i bought this stock at six dollars and five dollars and i was like i don’t think this can really
Go lower right and i bought at four dollars and now it’s at three dollars right right and so every single share i bought it you know incredible growth company one of the strongest growth companies you’ll find in the food and drink space even faster growth in tattoo chef which is an incredible to think about and it doesn’t matter it doesn’t matter every single share
I’ve bought of this talk is down honestly so flipping flapjack and diapers like are you kidding me in makeup um and they’ve been executing the business model very very well you know over the past year but it you know uh yeah it doesn’t matter you know i love the stock under ten dollars i bought these shares at nine i bought them at eight i bought them at seven
Bottom at six bottom at five now i’m batman f4 every single share i’ve ever bought of honest is down every single one right now every single one right isn’t that incredible you look at a stock like alibaba not a stock i personally own but if you bought alibaba at any point in the past five years you’re down and down a lot at any point in the past five years if you
Bought alibaba stock you were down in the stock right and um you know obviously alibaba is a great company but it’s a chinese company and no one wants to own that sort of stock and so you know that that’s painful that’s probably the most extreme example of all these examples i’ve given you here today but you know that that’s vicious man you know over a five-year
Basis every single share you’ve ever bought you’re down on that that’s just incredible right so first off here nasdaq’s in bear market or right around bear market once again right now in a bear market cycle and let me show you the russell too russell’s also uh in bear market once again now now i think it’s important to understand when you are going through a bear
Market it doesn’t really matter what you’re buying for the most part you’re going to likely go down on those shares sometimes there might be a few places to hide out where maybe they hold up better you know like for instance if you’re in a bull cycle for oil and gas or something like hiding out in oil and gas stocks but for investors which i think the majority of
People that watch my channel you’re investors right so you’re not trying to time these things out because you’re not trying to plow your money let’s say out of growth stocks and like i got to get into oil and gas stocks now because that’s the play right because you know that’s that’s dangerous game because oil and gas stocks call some flipping the next thing you
Know those babies are down 30 40 50 so for us that are investors it doesn’t make sense for us to try to like ah let me get out here and let me let me get into this sector we’re going to rotate money over here like that’s just not a game we play okay but that is a game wall street plays and sometimes there’s there’s spaces that hold up better in the market than
Others now uh in a bear market when you’re going through a bear market right you can buy almost anything and you’re likely going to go down on shares you know down on value on the shares you buy right and so you put it you put a thousand dollars in a stock and you you lose money on that and you put a thousand dollars in this stock and you lose money and it’s a
Very helpless feeling when you’re in a bear market and you’re consistently losing money right and you’re like dude i’m buying the dip and it’s not working and i bought the dip again and it’s not working and the thing with the bear market is it can go on for some time like sometimes bear markets can last many many months sometimes they can even last couple years
And here you are in a situation where you’re taking your hard-earned money you’re plowing into stocks and they’re going down in value and you’re like dude my thousand dollars is now worth 900 dollars and eight hundred dollars and seven hundred dollars and six hundred dollars and it’s like when does a pain ever end and you’re looking at the stocks down sixty percent
Seventy percent eighty percent and you’re like how can it go down anymore like this is absolutely insane and this is a type of thought process that starts you know you start having obviously in a bear market right now what i’m showing you here essentially this is the nasdaq during 2007 through 2009 crash and the peak here was in the summer of 07 and the trough was
In uh right around february or march of 2009 right and in that all the indexes ended up falling over 50 by when it was all said and done the dow s p 500 the russell the nasdaq they all ended up falling 50 peaked trough okay now in this cycle you could have obviously been buying it and i can guarantee you if i was in the market back then i would have been buying
This whole way down and the whole way up right and that’s just my strategy at the end table right but if you were buying during this time period you lost and lost and lost and everything you bought just ended up going lower and lower and lower right now at the end of the day you ended up buying some great shares and i’m making a ton of money in the end right but
You can’t deny the fact that for a year and a half roughly you every share you’ve likely bought you lost money on right now some people say well you know why didn’t you just buy right here there’s a perfect price come on man like come on no one buys at the bottom like that that’s not really how it works and the thing is you know when you’re in one of those sorts of
Let’s call bear markets crashes whatever you want to call you know what that was right you’re going to get some even false breakouts where you know the market looks like oh it’s starting to come back things are starting to get better and you can say well maybe we bought them here right and so then you start buying here right it’s like oh you know we hit a bottom
Okay we’re starting to uptrend again now bye bye bye bye and then you really get ready for the real crash right that that ended up happening so that’s not really something that that works out and then if you’re getting that trader mentality then you’re likely to also trade around and like oh we got double dip recession fears i got to get back out of the market we’re
Gonna fall back down to there and um that’s just not obviously a winning game so at the end of the day you look back at a time period like this right and the ones that ultimately they they looked like idiots in the short term right these everybody and there weren’t that many people buying but there were somebody always buying the shares that somebody’s selling
Right if you’re in the market in those years in 09 you know eight and 09 and you were buying stocks and buying stocks you looked like an absolute idiot in the short term because every single stock you bought you were losing money on and somebody could easily look at you and be like dude what are you doing you’re losing money every time you buy your stock you’re
Losing money and there’s nothing you could do to to save that situation right that’s just the way it is but at the end of the day you know let’s say you’re buying i don’t know whatever whatever you know where where the biggest nasdaq stocks at that time or whatever the most exciting growth stocks which obviously like apple was a gross stock back then um nowadays
Apple’s a value stock you’re buying let’s say amazon uh you’re buying google and some of those stocks you know because those were like the big growth stocks back then in those days right now they’re seen as more value stocks even though they still have growth but it’s not like it was back then right and so you’re you’re buying all those stocks losing your face every
Single share you buy and you look like an absolute dork in the short term like an idiom like like what are you doing but ultimately it ended up being the massively right decision right and so you had this tremendous opportunity for one to two years where you got to just buy shares and buy shares and on the down slope and on the upslope right and get a lot of stocks
At prices that you could never even conceive of these prices being hit right which definitely reminds me of a market we’re going through right now where a lot of these stocks are hitting prices that they haven’t been at in years like a lot of these stocks are at either all-time low closed captioning not available in my investing career that you you know you could
Have been the situation as well august 2014 to february 2016. there’s a high probability that every stock you bought during that time period you know in february 2016 you were likely down on those shares it was a it was a very very tough market from the end of summer 04 of 14 to basically uh winter of 2016 very very tough market and so you know you could have been
Buying stocks all in here and buying stocks and buying stocks and by that time february 2016 rolled around you probably were down on shares right and so it was very very painful to go through that when you’re buying for that extended that’s a that’s a year and a half you were buying stocks for a year and a half and where’d you get with it right where did you get
With it you were nowhere at the end of the day you were nowhere um you had a bunch of shares but you were likely down on all those shares that you were buying and buying and buying and buying and during that time period a lot of the the best big tech companies went through a lot of troubles and there were a lot of stocks that back then i remember like i think square
Stock for instance if i recall back then was under ten dollars a share and you know yeah square was under 10 and i mean that stocks dropped off a cliff that stocks crashed and it’s still like a 10x from where it was at back then and you look at countless stocks during that time period man you know versus where those stocks are even valued now even after this market
Hit and you’re like jeez man what a what a massive difference here right and so you look at uh october 2017 through january 2019. basically it’s just about every single stock you could have bought in the market by the time january 2019 rolled around you were likely down on them your shares right and so there you were in a moment where you’re like uh everything i
Buy i lose money on right and i went through this market and this was a market i went through publicly right uh obviously because i already had the youtube channels i created youtube channels in in 2016. and they really started to take off in 2017. so this was a market i had to go through where dude just everything i bought just went down uh in the short term right
From basically starting about august through uh january of 2019 everything i bought just down down down down month after month after month after month and i’d come out with three stocks i’m buying or whatever in the stocks would just go down like every single time it was like oh it’s guaranteed to go down they’re going down and it didn’t really matter uh what i
Was buying i was buying like great companies like skyworks solutions and facebook and tesla which at that time wasn’t really respected as a great company it became a great company over time but it wasn’t respected as a great company back then um but i was buying you know uh i think i got an elf on the shelf probably toward the beginning of 2019 as well it’s buying
Great companies but you know these companies it didn’t matter it didn’t matter the market was going down and it sent all my stocks down and so during that time period it was just down down down you know basically day after day week after week month after month no here we are in this time period right this is uh what i pulled you up here is a chart on the nasdaq from
December of 2020 through today which now we’re in late april of 2022 right nasdaq’s down basically every single stock you’ve bought in the past year and a half you’re probably down on those shares right and there’s a few there’s a few winner winner chicken dinners every once in a while here and there right but for the most part everything you’ve bought during this
Time period you are likely down on right which is pretty darn painful um and this is a time period when a lot of investors got in the market right and i would say probably uh i don’t want to say half my audience but there’s probably 30 or 40 of my audience watching this video right now you are somebody that started in the market somewhere around this time period
You’re you that’s when you got in the market right and so for you you’ve never really seen um uh you know and you saw this kind of upcycle here but then it just turned into a down cycle so you’re you’re at a point where you’re like dude do i ever make money in the stock market like everything i’ve bought during this time period i’m down on as of today right it’s
A very very painful endeavor but you got to understand what you’re doing at the end of the day is the right decision in the long term and will end up being the right decision over over time right but you have to go through these time periods when you’re just going to get absolutely destroyed decimate it everything you buy is going to go down and it’s a very very
Helpless feeling but at the end of the day it’s a very short-term thing it does end and stocks end up long term being valued where they should be valued right and you know uh a lot of these stock prices will be massively higher five years from now than they are today and that’s whether you’re buying some of the great small caps that have tremendous growth in front
Of them that’s whether you’re buying companies like the shops and the amazons and the paypals and companies like that right um you know those stocks will be much much higher five years from now than they are today but that’s not to say they can’t be lower in a month from now than they are today and so don’t get your hopes up that magically we bought them or something
Like that because i just showed you guys several different time periods since i’ve been in the market where the nasdaq the s p the russell those went through a year a year and a half of basically just kind of going nowhere and that’s where our market’s been like i said the nasdaq since december of 2020 is down which is incredible to think about but that’s that’s
The sort of market we’re in right now and so for all everybody watching this at the end of the day you’ve got to always make the right long-term decision right in the right long-term decision is to buy great companies that you love for the next five years and call it a day and no one ever has enough money in this sort of market right including me and every single
Person watching this video we never have enough right because there’s so many deals out there right now at like literally it’s hard it’s it’s almost overwhelming how many stocks are at insane discounts right now and trading at multi-year lows and all-time lows at just like it’s hard to even fathom right it’s like where to even start with buying these stocks um
But that’s that’s a that’s what that’s also in my opinion a fun time and it sucks to not win almost anything right now but at the end of the day like you know a lot of these companies are massive winners over the long term and will 2x 3x 4x 5x and a lot more than that and um you know you just gotta you just gotta get through the pain and whether that pain lasts
Another month three months six months 12 months whatever it is we’ll deal with it and at the end of the day we’ll come out and um we’ll we’ll have made a fortune and that’s just the way it goes unless you’re you’re pessimistic on the the entire uh rest of human history when it comes to stock market and those sorts of things which i am not i i choose to always be
An optimist and um the optimists are who always end up making the most money long term that’s just the way it goes so anyways guys hope you enjoyed this as always hope you got some real good value out of this video kind of explaining this breaking this down the way i did there try to do it as simply as possible and make sure you check out ftxus first link in the
Description down there get up to 100 in free crypto use a referral code holy smokers much love and have a great day
Transcribed from video
I KEEP BUYING THE DIP & LOSING | THE STOCK MARKET COLLAPSE By Financial Education
