A WARNING For ALL Stock Investors

A WARNING For ALL Stock Investors
A warning for all investors in the stock market ► My Stock Portfolio + Stock Tracker: https://ift.tt/2KqBrL1 ► Limited Time - Get 4 FREE Stocks on WeBull (Deposit $100 and get 2 stocks valued up to $1600): https://ift.tt/2NB3auj ► Get up to a $250 in Digital Currency: https://ift.tt/3liB1FS ► ROBINHOOD (Get 1 Stock When You Sign Up): https://ift.tt/37viyjH ► Open A Roth IRA: https://ift.tt/2OwbFGy ► How I Store My Digital Currency: https://ift.tt/3prl17V ► FREE Discord: https://ift.tt/2DYWTGc ► Follow Me On Instagram: https://ift.tt/2jBkyTg My PO Box: Andrei Jikh 4132 S. Rainbow Blvd # 270 Las Vegas, NV 89103 Remember the stock market crash in March of this year? Quadruple Witching happened on Friday the 20th, and then we hit a stock market bottom on that Monday March 23, it was the lowest the stock market had been this year. So it’s going to get interesting. If you’re an investor in the stock market whether that’s an index fund investing in the S&P500 or a passive income dividend investor like myself, this is a very important video to watch. On December 18th, we’re going to get something called the The Quadruple Witching Day in the stock market. What does that mean? The Quadruple Witching event happens when stock index futures, stock index options, stock futures, and single stock options all expire at the exact same day. Usually it’s the last hour of the trading day that sees an increase in trading and peak performance of volatility and price movements.This happens relatively often which is another way it got it’s name because it happens on a Friday, in fact the third Friday of March, June, September, and December - and on December 18th specifically, we’re going to get our last Quadruple Witching day of 2020. So let’s break it down. 1. Stock index futures expire. The most important thing to understand about futures is that they aren’t actually investments in and of themselves, instead, they are considered derivatives which means their value is derived from something else. In this case, an index future takes it’s value from the index itself. When I say “index” by the way, it just refers to a set of criteria that we create. Some good examples are the S&P500 which tracks the 500 biggest companies in the US, there’s the NASDAQ, the Dow Jones Industrial Average etc. So an index future looks at an index, and tries to predict it’s future value at a specific date. That’s why they’re called futures. A bunch of contracts in the market expire on December 18th. 2. Stock index options expire. Options contracts, exactly like futures contracts, are derivatives in that they aren’t investments themselves, they are just bets trying to predict where the stock market is going to go. Except unlike a stock option which is a contract on a single stock like Disney for example, this is a stock option index which looks at exactly the same type of indexes I mentioned for futures. The difference between futures and options is options give people the option to trade their contracts but it's not an obligation. 3 & 4. The third wave of these expirations are individual stock futures and these are no different than the stock index futures I described in the first part except these are individual stocks unlike an index which remember is a basket of stocks that track specific markets. The fourth thing to expire is going to be single stock options, exactly like the second thing, except instead of indexes, it’s individual stock options. Okay - so we’ve set the stage. On December 18th, you’re going to see some more volume, and volatility and price movements in the stock market so don’t be surprised if you wake up, check your stocks and see them all over the place. So going forward this week, there’s two things you need to know. 1. There’s no evidence that shows us the stock market will go up because of this event, and there are no studies that show it usually goes down either. Typically, it’s a non event that doesn’t really do much at all and you could just as easily sleep right through it. For me, I'm going to sell my stocks. Don't worry, not all of them, just my biggest losing ones and I show you the 6 in this video. 2. Tax Loss Harvesting. I can sell my stocks for up to $3,000 worth of losses this year, and carry over the rest to next year, saving me money on taxes. Alternatively, I can do something called a free step up in cost basis which is a way to buy stocks while lowering my tax burden in the future. *None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
via YouTube https://www.youtube.com/watch?v=of4Pr24TxWU