![]() ![]() So people need to be really, really skeptical of who they follow and always do their own research when getting advice from anybody on social media” “For the most part, creators on finance TikTok are kind of winging it to try and build an audience. “People are giving away this information for free, because that’s probably what it’s worth,” Ross says. TikTok itself offers the following warning on relevant finance hashtag pages: “Before following any financial advice, keep in mind that all investments involve risks and consider doing your own research.” I’ll bring attention to certain things, but I remind people that they need to put in the time to actually understand what they’re doing.” One thing I say on my account is don’t take my word for anything. “It’s cool to get ideas from social media, but I think it’s super important to then go and do your due diligence. “There are a ton of creators who popped up after the GameStop and AMC situation who, in my opinion, just spew misinformation that shouldn’t be out there,” he says. Someone’s going to be left holding the bag.”Īs newbie investors seek to educate themselves on the stock market in the wake of meme stock mania, Errol Coleman ( errol_coleman), a 22-year-old creator with over 265,000 followers who’s been trading for over four years, says it’s important to take any financial advice on social media with a grain of salt. “For me, it’s kind of like a game of hot potato. “I tell people to stay away from meme stocks for the most part,” he says. While there are people who have made a lot of money in a short amount of time on meme stocks, Ross says that investing in them can be a risky business. “I think it’s great that all these investors are able to band together to try to move the market, but at the same time, people can lose a lot of money.” “These hype stocks can be very dangerous for new investors if they get into the stock market with the mindset of, ‘I’m going to buy these meme stocks and make a quick buck,’ rather than seeing the market as a vehicle to grow their wealth slowly over time,” he says. “You’d see people’s comments shift from understanding the fundamentals of companies to like, ‘My friend Joe is investing in AMC,’ or, ‘I saw this guy on Reddit who’s about to buy 1000 shares in GameStop.’ The conversation moved from sound investing to just kind of YOLO-ing money.”įor Chen, that kind of talk is indicative of the misguided notion that meme stocks are a surefire get-rich-quick scheme. “When all these meme stocks started coming out, a lot of the comments on my videos began gravitating towards hype,” he says. Since meme stocks arrived on the scene, Call to Leap founder and TikToker Steve Chen ( a former public school teacher who became “financially free” after learning how to invest in the stock market, says there’s been a noticeable shift in finance TikTok conversation. ![]()
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