The GameStop stock market wobble has shown how investments can go wrong, especially as new investors get sucked into the ‘noise’ across the Internet about what might, initially, appear to be a good deal. Instead, a more careful and nuanced approach is required.
To learn more, Digital Journal spoke with Joe Murphy, CEO of Ticker Tocker. The focal point was the importance of taking control of one’s financial destiny by making informed decisions about investing choices versus what is buzzing through gamification and Internet noise.
Reader’s should note that Murphy is looking at the issue from the point of view of the US economy.
Digital Journal: What if anything should traders take away from the GameStop run up and collapse?
Joe Murphy: Have a plan and stick to it. Know when to get out and avoid margin loans. 97% of day traders lose money eventually but If you lost money remember that investors can use losses to offset gains in the market with the IRS. Check with a good CPA to know the best current methods and reduce your taxes owed.
DJ: How does your company, Ticker Tocker, help make sure that retail investors have the right education?
Murphy: Only 1 in 5 students take a full-semester high school personal finance course. Ticker Tocker wants to teach you how to level the David and Goliath playing field. Our experts deliver on that educational gap for individual investors. Individual knowledge is the key. The bottom line is that Ticker Tocker connects You as the investor with seasoned experts giving you access to the knowledge that they use that made them successful. When you have money on the line – you should do that with the best experts by your side.
DJ: You just released a new Trade Signals product how can that help someone make more informed trades?
Murphy: Ticker Tocker Trade Signals is an additional guide designed to help individual traders take actionable steps towards profitable trades. Trade Signals provides verified entry signals for taking advantage of the market’s trending activity. The product is intentionally designed so that novice, experienced or professional traders will have direct access to actionable information derived from Ticker Tocker’s expert systems. By distributing exclusive proprietary trading signals, we aim to transfer our vast repository of expertise into the hands of every trader.
DJ: What do you predict for the future of trading this year?
Murphy: I believe we will continue to see more individuals training. While 56 percent of finance professionals have a degree, there are many that are just starting to trade for the first time. Given the life changes from Covid, more of us are working from home, trying to find news ways to make money or just repair the damage done to our finances. It almost seems that we are day traders and now we are powered by social media and apps. Robinhood was just the beginning and gamification will drive more investing, more wealth, and more losses. Whoever is trading – Intelligence is the key.
DJ: What is your best advice for someone starting to trade for the very first time?
Murphy: Don’t take too much of a risk. Manage your emotions and make sure that whatever you do that you keep your house and your 401K. You are investing the right way if you find yourself getting rich – slowly and earning compounded value. Do not look for the rush of adrenaline – avoid YOLO Trading and look towards the finish line of your goal. Don’t be reckless. Close out all of your position by end of day – do not sleep and trade – it’s called day trading for a reason.