Name: 5 Investing Skills Only Millionaires Know
Uploaded: 2021-04-12T18:00:18.000Z
Duration: 10 min 11 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

  Do you know what's the best financial tool

Passive income, the ability to let your money work for you!

And one of the best places to do that is the stock market.

While there are a lot of good retail investors, there is a good number of beginners who try

to predict future stock prices by looking at charts.

If this is how the chart was moving, then this is what should happen.

If it has been growing for the past few months, then it should keep growing for the next three

Whatever the argument is, we have to understand that Stocks are not lottery tickets to gamble

Behind every single stock there is a company That manufactures something, builds something,

or provides a certain service!  so you don't have to look at the stock only

but rather look at what is the business behind that stock and how well its performing.

I know that sometimes it might get a bit difficult because there could be so much news around

some stocks that you don't even care bout the business as long as the stock price seems

That's why here in this video, I want to share with you how to take your investing skills

I am not going to talk about the basics of investing because we have covered that in

I will assume that you already know what the stock market is, you have traded some stocks,

and now you are looking to improve your investing skills.

You want to be a little more professional.

So here are the 5 things that if you understand and follow, you are going to become a far

If you are ready, give this video a thumbs up, and by the way, we have a new channel

called Proactive Clips, where we are sharing short clips from the main channel, so if you

miss something important from the main channel, you might come across it on the second channel.

So if you guys love us and support us, please subscribe to that channel.

And now, let's get back to the video.  

Timing the market is impossible, and whoever tried has failed miserably—That's why long-term

investors have always emerged victories and made most of the money.

However, the market doesn't just move up and down randomly. 

The stock market dates back to the beginning of the 17th century when in 1611, the Dutch

East India Company decided to sell its stocks to the public, and since then, the market

So the market follows certain patterns and rules.

If this is what the government does, that's how the market reacts.

So if you understand these patterns, you might be able to predict the market to a certain

When the economy slows, consumers buy less, which means corporate profits fall, and stock

That's when investors prefer the regular interest payments guaranteed by bonds.

Understanding the relationship between bonds and the stock market will help you to understand

the direction that the market is headed to.

But that's just one out of many factors that influences the market.

Take, for example, fiscal policy when the government regulates the spending and tax

policies to influence the economy, especially macroeconomic conditions, such as aggregate

demand, employment, inflation, and economic growth, which will end up influencing the

Lowering taxes will make corporations more profitable, for example, since now they can

keep a bigger chunk of their profits; therefore, their stock prices will rise.

However, the government doesn't randomly raise or lower taxes but instead follows policies

There is also a monetary policy where the fed controls the supply of money in the market

by either adjusting interest rates or printing money.

And each of these policies influences the market in different ways.

So if you want to become a slightly more professional investor, understand these concepts!

Find out to what extent they influence the market!

You won't be looking at stocks as some numbers on the screen of your smartphone but you will

have a broader idea of how the market is actually performing and not what random Youtubers say

on YouTube like my self that's why they will always tell you that this is not financial

advice, and everything that's said in this video is for educational purposes.

learn how to read financial statements  

I am really grateful that apps like or Robinhood or Webull have democratized investing.

Anyone can now invest in almost any company from the comfort of his couch as long as you

have a smartphone, even if it is a 100 dollar smartphone.

No offense but most of these retail investors don't look at a stock as a company but as

a name that triggers the news, which makes their financial decisions quite irrational.

Remember, the purpose of any company is to make money.

That's the most important thing that matters! 

So if you want to know if a certain company is a good investment or not, you have to read

If you are investing in a certain company without analyzing its financial statements,

I know that I might get criticized for saying this, but that's the truth!

A certain company might hit the headlines for developing a technology that will make

us immortal, for example, but after looking at their financial statements, you may find

that this company has a lot of debt, it doesn't have enough cash to survive till the end of

the year, and its sources of cash flow are drying.

The stock price might seem promising-looking just at the chart, but looking beyond that

chart, you start seeing the real value of that company

However, looking at the financial statement isn't enough, if you want to take your investing

learn how to do a fundamental analysis  

When you go through financial statements, you will realize they have current assets,

non-current assets, liabilities, long-term debt, short-term debt, equity.

The company might not have any debt, which might look like a good sign but it's not.

If the company is not borrowing enough against its equity, then it might not be taking the

Something might be wrong with this company.

So we have metrics such as debt to equity ratio, where you divide a company's total

The ratio is used to evaluate a company's financial leverage.

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5 Investing Skills Only Millionaires Know

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