 Hey guys, it's MJ the Student's Actory and I wanted to make a video on the stock market So if any of you guys are thinking of playing in the stock market, then you've come to the right place I mean the joys of the stock market. It's a place where your choices can make you a lot of money I mean most people studying finance You know their goal is to be the next Warren Buffett and become one of the richest men in the world and And I mean why why work hard building your own company when you can select a few promising stocks and relax or the money just pours in But if this is your thinking Then stop. Let's just take a step back because I'm sorry to say, but it's not that easy Before we continue talking about stocks, I just want to share with you a famous fable about a swallow The the fable goes As follows there was a man who who loved to spend and it was the start of spring So it was still very cold, but he had a nice warm coat Anyway, he sees a single swallow flying into his town and he's like well Oh my gosh summer has come early, so he goes out and he sells his coat and he spends the money straight away Only to find out later that the swallow has died from the cold and Without his coat and with no money to buy one back he to froze the lesson being That one swallow doesn't equal summer Now what does this fable have to do with finance and the stock market? Well everything The average person watching this video is most likely a university student you know studying some sort of financial degree and I mean this is an amazing time of your life as you're learning a whole bunch of new things and you're sharing your ideas with your peers I mean, it's great and I'm sure some of you have probably thought Hey guys, why don't we start investing in the stock market? You know, we're a bunch of smart individuals. We can do this And I mean you're gonna back yourself because you've gone to so many classes. You've learned so many formulas I mean, you know about economics and how the world works. I Mean, I'm sure you guys are probably even thinking about like how you're gonna be spending all your new riches I mean, how hard could it be? I mean oil prices are dropping the simple short petroleum companies You know easy money a newspaper publishes a story, you know The market is definitely gonna react in this sort of way or oh interest rates are increasing Surely I must buy into a financial firm or oh look look at this pretty graph It's a definite indicator to buy into this asset class now If that's your thinking wait, just just just wait remember One swallow doesn't equal summer Well, let's check it out that oil company They might have used financial instruments to distance its sensitivity to oil price shocks that new story Well, it could just be a rumor that Financial firm. Well, it might be under investigation by the regulators and you've just overpaid for the price of that share Or the graph pattern breaks down and isn't as predictive as you thought You know, you can end up losing a lot of money very quickly on the stock market you know trading is a full-time job and If you're going in at varsity, you're competing with millions of professionals We've had years of experience behind them and I just want to show you something known as the Dunning Kruger effect and What this graph is saying is our Confidence increases with just a little bit of knowledge as we learn more We realize we're not that smart and it goes down until we become an expert when our confidence rises again Right now in university or if you just come out you're to the left of this graph This is this is also where I am at at the moment Okay, we have a little bit of knowledge and we think we understand the market, you know we are so overconfident about our abilities and Trading on the stock market is not easy. So please don't don't fool yourself And so the wisdom or the pearl of wisdom that I want to share with you guys is That just like how one swallow doesn't mean it's summer one indicator doesn't predict the market So go out there. I mean read as many books as you can on the market But remember to look at a company holistic lead before you invest just because oil prices went down Doesn't mean all the petroleum stocks are going to decrease. Okay, don't be overconfident like that Do your homework look at their financials see what they you know what their hedging strategies are Look at their risk management, you know, just just engage yourself with with the company and look at everything You know, make sure you've thought of all the indicators before you make your move And y'all that's that's about it I mean, I hope you guys enjoyed the video But if you are keen to play the stock market and you do want to have the best education You know to equip you for this task Then maybe you should consider studying actuarial science now a link should be appearing somewhere on the screen Which will take you to my other video which explains what actually an actuary is Check it out Because it is one of the professions along with accountants and CFA's that really just trains your mind for looking at multiple Indicators and making sure that you do Make lots and lots of money on the stock market and that you don't just lose it all But y'all this will have time for thanks so much guys for watching. Cheers