this post was submitted on 24 Feb 2024
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A lot of Redditors hate the Reddit IPO | Reddit warned us that its users were a risk factor, and boy do they sound excited about shorting its stock.::Reddit seems like a likely candidate for a meme stock. But the actual reaction suggests that r/WallStreetBets isn’t going to send the stock to the moon.

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[–] [email protected] 8 points 8 months ago

If you want to look at investments, DO NOT buy individual stock. DO NOT short stocks. These are gambles that people play, where you try to guesstimate what the general market thinks about future prospects of a company. Many stocks that over-perform, do not do so because the company is doing well, they over-perform because a large percentage of investors think it might do well in the near future.

Step 1 is just building a stable budget for your household. Pay off debts, earn more than you spend, build an emergency fund. Many companies have savings accounts that you can safely put money into that you can pull out at a moments notice without taking a loss because of a dip in the economy. There's no reason to look at anything else if you have large amounts of student loans, credit card debt, or car payments you're working off.

Step 2 is decide what you want to save for - retirement, a home, etc.

Step 3 is start investing towards that goal. Use investment portfolios that match what your Step 2 goal is.

Step 4 - What country are you from? Because the following advice is for Americans:

If you want to actually earn money, you do it slow and steady. Invest in whole market funds, like VTSAX or similar. They are called "whole market index funds" where you invest a small amount of money into an index fund and it grows along with the entire market. You would put money into a 401k, IRA, or other tax advantaged account, and put that money into a whole market index fund.

IF you have thousands of dollars that you are willing to just throw away and it doesn't matter to you, THEN you can start buying stocks like Reddit, TSLA, or whatever. But that money shouldn't be considered an investment.