The Hidden Cost of Investing Apps: Avoid this easy psychological mistake when starting to invest

[@kyahgirl1360]

Thanks for the insight. I get a ton of these emails flogging apps and services but I ignore them.However, I my kids are early twenties and just starting to manage their own money and the type of content you are providing is really helpful.

[@PreetBanerjee]

@@kyahgirl1360 Thanks you, that’s very nice of you to say!

[@Helix5370]

Glad to see a new video Preet. I've been following you since your WhereDoesAllMyMoneyGo days. I've had to reference your book recently as I'm reviewing our insurance needs. Thank you for sharing with Canadians great personal finance advice!

[@PreetBanerjee]

Wow - thanks Brian! WDAMMG - what a long time ago that was. I remember when I first told the brokerage I worked for that I had a blog and they said: "What's a blog?". THAT's how long ago that was lol

[@Helix5370]

That was an amazing time. I would visit you, Million Dollar Journey, Canadian Capitalist, and Four Pillars daily. What a great community it was. @@PreetBanerjee

[@kbeestube]

Great video … and info. Thank you …

[@cherylhurst]

Great video as per usual Preet

[@isaiah_b_3798]

It is important for people to develop a saving/investing mindset early on. Once it becomes part of your lifestyle its hard to break that habit.

[@littleninjai222]

'You got the brains and the looks', Preet. Thanks for educating us and helping us make 'lots of money'. Another very helpful video. Validation that starting with small sums is good, so long as you start, and continue to increase the contributions as your income increases.

[@PreetBanerjee]

Overall, I think it's good to start the journey sooner because I have yet to meet anyone who knew how to invest when they started. No one I've ever met ends up investing the same way they started. Hopefully they learn good things and get better though, and not worse 😊

[@alexwong8851]

Great video! Definitely something to keep in mind. I think another potential drawback with the free investing apps is that it makes it almost too easy to buy and sell stocks, which could lead to day trading or timing the market versus just buying and holding for the long term.

[@PreetBanerjee]

100% - and there is a preponderance of evidence that suggests these types of features on brokerages tends to encourage gambling and excessive trading. It can take many years to graduate to "portfolio management" level thinking, and then many more to think about prudent portfolio management, etc. There is likely going to be another trend where the social aspect of trading gets put into overdrive (maybe it's already there with WallStreetBets) which encourages group think into riskier speculative strategies...

[@alexwong8851]

@@PreetBanerjee 100%. Couldn't agree more. I know because I made the same mistake when I first signed up for Wealth Simple during the pandemic and invested in a bunch of stocks that were over inflated and I didn't understand. Ended up losing some money but it's a good lesson. Much better to keep things simple, buy a low cost index fund and buy and hold companies you understand and believe in for the long term.

[@daveconlon3453]

I could be accused of anchoring my stock purchases, as I buy when my dividends accumulate to a $500 value. I buy what's on sale and wait until my next "anchor" is reached.

[@CARL_093]

thanks bro very informative video

[@PreetBanerjee]

👊

[@jeffreysebern4693]

Nice intro Preet! 🎶

[@PreetBanerjee]

Thanks! Been having fun with a new music licensing service 😊

[@kevinpowell3667]

Sabotage...they've had 5 years because of the SEC to find other alternative. The want a bigger pieces of the Pie. Trust no one as it could even be the works of a partnership deal within Ripple. Ripple Dlt have got to put themselves first regarding security. Just my thoughts on what could have played out. A lot at stake to come.