Financial Advisor Reacts to the Worst TikTok Investing Advice

There’s a ton of terrible financial advice online, but some of the worst has been on TikTok. And by worst, I mean some of this stuff could ruin people financially. Some of the investing and financial advice on TikTok is going to cause harm to uneducated and new investors. Here are some of the worst examples of TikTok financial advice out there right now.

There’s a ton of terrible financial advice on the internet but some of the worst has been on tick tock and by worst i mean this stuff could seriously ruin people financially cash is worthless you are never going to become wealthy just hoarding money in a savings true right there inflation inflation is just a fancy way of saying that the dollar is worth less so you

Can’t buy as much as you used to be able to win yeah cash is definitely not worthless it’s like he’s using cash to try to answer the wrong question here because he’s saying you’re not going to build wealth by sitting on cash and that is true but you’re also not going to quench your thirst by eating a piece of pizza but you got to eat to live right it’s something you

Should consider putting away into an account that you’re really not going to touch unless an absolute emergency comes up like a big medical bill or a loss of a job and in one of those very unfortunate situations having cash in an emergency fund is going to be the most valuable thing to you the fact that we were never taught about stocks in school and that everyone

Just says that stocks is all about gambling so let’s start off by no they didn’t say that it’s on google once you’re at stock charts just put in whatever stock that you want to search stock charts for beginners maya um so the first thing that i look at is the rsi basically a stock is a buy when your rsi is below this 30 right here and you don’t want to buy it when

It goes above that 70. so if we’re looking at this it was definitely a buy in october hindsight’s 20 20. 50-day moving average and the 200-day moving average which gives us a better idea of what price the stock is trading at i know he probably sort of misspoke there but the moving averages do not give you a better idea of what the stock is trading at nor do they

Tell you where the stock should be trading or anything like that the rsi and the moving averages can be relevant indicators when you’re doing short-term trading using technical analysis but to put out a tick-tock video saying that the rsi will tell you what stocks you should buy and any stocks below 30 on the rsi are going to be buys is totally negligent actually

The sec is starting to crack down on people putting out terrible financial advice on the internet like this guy is it would be funny to see the returns of a portfolio if you were to buy every stock in the s p 500 every time it drops below 30 on its rsi maybe someone has already done that before but i’m not confident that you’d be making money in that scenario well

I think people don’t spend money on stupid stuff like 18 drinks wealthy people spend their money on i think they do like staying in five star hotels overlooking san antonio’s riverwalk which is why i love stupid comments first of all what he said is just wrong a lot of wealthy people do spend money on these luxury uh immediate goods i also disagree with this very

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Common conception that it’s better to spend money on experiences rather than things i hear this all the time and i feel the exact opposite i’ve gone on some pretty cool vacations and they’re fun in the moment but for me two weeks after the vacation is over you’ve forgotten about a lot of the stuff you did sure you’re gonna have some pictures but how often are

You looking back at all those pictures you took and you’re back to your day-to-day life and it hasn’t changed much but when i’ve spent money on things i really appreciate like when i bought a sports car or a very nice computer for myself or any other things that i used and really appreciated i get to extract value from those things almost every day year after

Year after year for as long as i keep that thing so i actually value buying things far more than experiences i bet there are some people out there who will agree with me on this i just haven’t heard that perspective much three stocks to buy right now listen oh great stock number one is neo i’m seeing a clear-cut inverse head and shoulders on the floor that’s not

Even that clear of an inverse head and shoulders this could start making a move towards 45 maybe even 50 bucks per share stock number two is up work and we actually just covered this recently and i still think it’s early enough in the breakout process it’s currently up three percent on the day i think there is more upside to 55 maybe 60 per share we’ll cut that

One off there it’s another guy doing some technical analysis on a couple random stock actually the lines the technical indicators he had drawn onto that chart i feel like were potentially a little more relevant than what we saw in the last charts but it is still almost criminal to tell people these are stocks you should buy right now because you have an opinion

On a certain trading methodology that probably isn’t working all that well for this guy anyway otherwise he’d be a multi-millionaire or billionaire by now this is the type of content that can get novice investors in big trouble when they feel like they have some type of sure bet and they’re desperate to make some extra money maybe to get out of the situation that

They’re in in life so they follow a guru on tick tock and pick a stock that could potentially go in the other direction on them it just shouldn’t be allowed to be on the internet how to make 10 000 a month at 18 years old okay find junk houses like this where the grass is tall boss on the roof no don’t do that make money at do the research on the property find

Out who the owner is that sounds like the best way to lose money any thoughts on when you might consider selling that property if the owner said yes then make it my offer and put it under contract then find an investor and then she’s talking about to the investor for a fee if you’re 18 do not listen to this guy you might end up in a money pit and you’re going to

Spend the next 10 years of your life trying to get out of a terrible decision what he’s describing is called real estate wholesaling and it does work for some people certainly but typically you need to have a network built up of a lot of real estate agents and brokers that you’ll be able to buy and sell these properties to and from it’s very hard to be profitable

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Wholesaling all the time and especially if you’re 18 years old when you have like no capital to start out with it’s a terrible idea if you’re gonna buy a beat up house like he showed in the video you better be really really handy at fixing things and have a lot of money to sink into a house that could need huge improvements before anyone would buy it back from you

For 99 of the population he just gave some terrible financial advice we just found this trade today president ceo just about a 49 larger position in his own company you can trade it tomorrow alamera sciences is the company a-l-i-m is the ticker it was bought yesterday november 3rd by the president’s ceo he bought 28 executives buy shares of their own company stock

Pretty often larger position and 124 000 larger position alim is a drug manufactured clearly in a downtrend and it’s really actually basing these are the best insider buys that we find the best insider buys that you find it needs to be made illegal for people to make claims like this and put them out there on the internet where retail investors might get hyped

Up about a certain idea like this stock he’s talking about and potentially see it continue to slide for like the next six or 12 months or forever this guy made the video because he noticed that the ceo was buying more shares in his own company but that’s a pretty common transaction and not necessarily an indicator that the guy knows the stock’s gonna go to the moon

What is that digifinix what are these kryptos there was so so much wrong with this video right away he started out looking like he was making a guarantee that you could turn ten dollars into a thousand or ten thousand dollars or whatever it said i know that crypto’s been going super crazy and people have made returns like this i’m gonna continue to argue that many

Of these coins are just like the dot-com stocks in 1999 where everything’s going crazy but then they all decline to a pretty large extent and only a few of them actually persist to become economically viable in the future so for him to explicitly say not to touch the top 10 traded cryptocurrencies but instead look at these things on that digi eflex or whatever that

Program was that currency to me just feels so disconnected from reality that i cannot believe anyone would seriously consider buying these or especially give the advice to other unsuspecting people out there on the internet that they should be buying them buy these cryptos right now and get riches a bunch of money xrp a pretty common one solana don’t know tron

This is a guy preying on people who are not happy with their current living situations and he’s telling them that they can get rich which to the human mind is just like wow imagine all the other things i could do and they’re literally being baited into following this type of advice with the money going through the money counter and all that he picked three random

Cryptos whatever he didn’t give any basis for why he picked those sure they could go up next year they might go down i don’t know to me this video feels like the same thing as if someone were to post a video on facebook saying that they are familiar with cancer treatments and if you just drink lemon juice your cancer will be healed it’s like preying on people’s

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Weaknesses to try to get them to take action into something that you want them to do it just seems so morally wrong if you don’t know anything about finance you need to know this so listen up okay comes out here hustling investing trying to hit their goal it’s all to hit this financial rule it’s called the 10 20 rule we should have at least 10 times of our monthly

Expenses saved up just for emergencies what times 10 times your monthly expenses as an emergency fund this guy’s taking the complete opposite end of the spectrum then the very first video we saw where he said you shouldn’t have any cash on hand i’ve never recommended to anyone that they keep 10 months worth of living expenses as cash on hand and i have very few

Clients who decide to do that themselves even i mean maybe you’re gonna feel more secure if you saved up that much cash but at that point you really are starting to miss out on the potential growth of your net worth because a much higher portion of it is being allocated towards your emergency fund if you’re into cryptocurrency please watch this video because it

Might change your life so before i go on please just google 380 000 they all are this video now after you’re done doing that i want to explain to you how powerful this coin is okay now staking crypto is the future of crypto and it will be the next big thing and hex look how much it’s paying out every day when you stake hex you can get 40 percent interest

Per year if you haven’t seen hex before it’s a crypto where you buy in with ethereum and then you stake it meaning like you give your coins back to the founder of hex and then they deposit 40 of the balance of hex that you staked back into your account in hex the way that they’re able to pay 40 is they just create more hex coins out of literally thin air so it’s

Very very similar to a ponzi scheme this guy is obviously excited by the growth that the coin has seen in us dollars and the fact that it’s paying interest but i don’t know if he’s totally realizing where the interest is coming from or that this thing is not economically viable long into the future it’s definitely bad financial advice telling random people on the

Internet to buy into this okay that’s it for now a lot of that stuff was actually worse than i had expected let me know in the comments down below what you think if i’m being too critical about any of this or if these people literally are off their rockers or should just be thrown in prison for these claims they’re making if you haven’t subscribed already please

Go ahead and click that red subscribe button right down below leave a like on this video that helps out the algorithm and everything else and i really appreciate everyone who has done so so far as always thanks for watching

Transcribed from video
Financial Advisor Reacts to the Worst TikTok Investing Advice By Straight Talks – AJ Srmek