The stock market crash of 2021 continues...I sold ALL my stocks

So it's now week 4 of the

crash. Is it a crash? I guess not, it's

more of a correction. Well, it is a crash

depending on which stocks you were mostly

invested in, and because I made the fatal

error of investing pretty much all of my

money into the hype stocks like the EV

stocks and the overvaluated meme stocks

and tech stuff, I have suffered a

40% loss in my portfolios,

which is pretty bad. I think in my last

video I said I was still up by £2,000.

Well, I am now down on every single

account now. Uh, I'm down a

total of £2,900.

So yeah, not great news. I've had a very

painful and very expensive £13,000

lesson on why you should have a

diversified portfolio and why you

shouldn't invest all your money into these

meme stocks and hype stocks. This

correction is just taking such a long

time. I can't believe it's week 4 and this

is still happening. I like to call it the

Great Bleed, the Great Bleed of 2021.

So this first started in February, I think

about mid-February, there was a big dip

dip, and I wasn't really panicked because

I'm quite used to these little dips. And

before, up until now, I have been buying

the dips, and usually it just goes

straight back up, and I'm happy because I

bought the dip and I bounced back up even

stronger. And I kept buying the dips

thinking this was over, this is it, it's

going to go back to normal now. Week 2, I

carried on buying dips. Week 3, I carried

on buying dips. End of week 3, I ran out

of money to buy dips. So I started selling

at a loss and then buying back in when it

dipped. And I kept doing this hoping it

would go back up to where it was, but it

never did. And then end of week 3, I

decided to just give up and I sold all

my stocks. I sold my BNGO, I sold my

Microvision, I sold my NIO at a 35

to 40% loss. So I went down from Um,

how much money did I have in total?

£29,000 plus £8,000,

so maybe £38,000 down

to about £23,000,

roughly around that amount. So I went down

quite a bit and I decided to put all my

remaining money into safe stocks. So I put

it— I put half into bank stocks and I put

the other half into oil stocks just

because those were the only ones that

weren't bleeding out. All of the other

stocks like Tesla, Apple, Microsoft,

anything that's tech related, anything

that's kind of like a hyped up stock like

NIO, XPeng, BNGO, the EV sector,

all of that was just bleeding out. So I

didn't want to put my money into any of

those stocks, and I noticed, oh look, the

banks are going up and oil was going up,

so I might as well just hide out in those

stocks whilst this is still bleeding out.

And it's actually worked pretty well

because I'm now up about 4% on my bank

stocks, which I'm quite happy about

because I never thought I would invest in

bank and oil stocks. That just seems

really lame and boring. It's just kind of

funny because when I first started off

investing, it was about November last year

and everything was just booming and all of

these stock YouTubers were raving on and

on about NIO and XPeng and Tesla and these

little penny stocks like ZOM and BNGO and

NNDM. And almost no

one was talking about these boring sectors

like banking or oil companies or,

you know, like boring retail shops like

Macy's. Hardly anyone was talking about

that. So you get this impression that

those stocks don't really move much and

you have to be in stuff like NIO and XPeng

because they're electric cars and that's

the future. And, you know, green energy

like solar panels, Enphase, that kind of

stuff, that's going to be the future. And

I actually joked about putting all my

money into Exxon, the oil company. I

thought to myself, wouldn't it be funny if

I just put £20,000 into Exxon? And then

get dividends. And then people were so

resistant to the idea. They would say,

oh, oil companies are not a good idea for

the future. No one's going to be using oil

soon. Everyone's going to be using

electric cars and solar panels and blah

blah blah. And yeah, maybe that's going to

be true in, in 10 years' time, in 20

years' time. Yeah, maybe that would be

true. But the thing is, um, Exxon has

actually doubled since I started

investing. And I should have just put all

my money into Exxon because then I would

have doubled my money and I would have

gotten the dividends as well. I would have

gotten amazing dividends if I just left it

in Exxon. And oil was just going up and up

and up and up, and banks are going up and

up and up. And all the cool stocks I

thought were trendy and hip and

interesting, like Tesla and NIO and

Enphase and all these kind of trendy

tech companies who are doing really cool

futuristic things. I thought that was the

way to go, and now everything has just

crashed. All of those stocks in that

sector, they've gone down. Some of them

have gone down 40%. Not all of them have

gone down the same amount. So the NASDAQ

has gone down 10%, but then things like

Apple and Amazon and Google, they've only

gone down a couple percentage points.

Tesla's gone down like 40%. BNGO has gone

down by like 50%. And I had over

half of my money in BNGO. That's just

crazy. And I was even thinking about

putting more money into BNGO before this

bleedout started because I thought

everyone's saying, oh, BNGO is going to

reach $20 by March. Yeah, right. At this

rate, BNGO won't even hit— won't even

recover back to $15 before this year ends.

At this rate, I don't know how long it's

going to take to recover. But everything

has, has come down nearly 50%.

And people are saying this can go on for

more, more weeks, weeks longer. It's not

going to end anytime soon. It could go on

for months until this rotation has

finished playing out, which is basically

what it is. A lot of it is because people

are taking the profits and selling out of

these overvalued hype stocks and tech

stocks, and they're going into the boring

stocks, the boomer stocks. They're called

value stocks, and the ones I was heavily

invested in were called growth stocks.

And you might be thinking, oh, just buy

the dip. Well, I did buy the dip, and the

dip kept dipping and dipping and dipping

over weeks and weeks, and I can't buy the

dip anymore because it's just stupid. I

was thinking of just taking all my money

out, putting it somewhere safe, and then

waiting until it finishes dipping and then

putting my money back into it because it

might just rebound and bounce back up as

fast as it dropped, but I don't think it

is. I don't think all these hyped up

stocks like BNGO and Tesla, NIO, I don't

think they're going to bounce back as fast

as they dropped. Yeah, maybe eventually

they'll recover back to where they were

before February, but that could take a

year, that could take half a year, that

could take months and months and months,

and I don't know if I

want to put my money back into the stocks

I sold out of and then wait half a year

for them to recover and get back to the

point that they were at before. Or I could

just put my money into the stocks that are

doing well now, which is the rotation play

into value stocks. It's kind of like 2

escalators. One's going down, one's going

up, and you just You're on the one

that's going down, and you could just stay

on the one that's going down and keep

going down and down and down. Or you could

just quickly jump over to the one that's

going up and ride that one up. So I feel

like that is a better plan. I feel like

instead of just waiting and holding,

which I think is kind of stupid, there's

like this macho kind of

this macho thing about not selling your

stock when it goes down and holding, you

know, diamond hands or whatever they say.

And they say you don't actually lose money

until you've sold, which I think. Is a

load of rubbish. You do lose money and you

don't— what I mean is, well, if you sell

all your stocks and the stock keeps going

down and then you buy back in at a lower

point, then you haven't really lost your

money. You're going to get more money when

it goes back up. You only lose the money

if you sell all your stocks and then they

go back up and leave you behind, and then

you have to buy back in at a more

expensive rate. Another thing you hear

people saying a lot is, well, have the

fundamentals of the stocks or the company,

have they changed? And people say, oh no,

nothing has actually changed with the

business model of blah blah blah that I've

lost 40% in. Yeah, well, maybe the

company's fundamentals haven't changed,

but the entire fundamentals of the market

and the current economic situation that

we're in has changed. I don't think 2021

can be treated in the same way that people

were treating 2020. In 2020, The stock

market was just going like a ballistic

missile, just going straight up. You could

put money into almost anything and you'd

get a 10 or 20% gain in a couple of weeks.

It was so easy. You just put money into

anything and I would make 1,000 here and

2,000 there. And I don't think that's

going to work in 2021 because the economy

is recovering. There's all these different

aspect you have to, you have to consider

now because oil is coming back and,

you know, interest rates are going back up

and inflation is something people are

worrying about. So bank stocks are doing

better and tech stocks aren't going to do

as well 2020 because now they're, they're

so overpriced and the valuations of some

of these tech stocks are just insanely

high and People are just selling them,

taking profit, and they're getting

corrected. So I felt like I had 2 options.

I could just hold on to these stocks that

were being corrected and bleeding out,

and I could carry on losing money, and

then eventually, hopefully, cross my

fingers and wait for them to recover,

which could take ages. Or I could just

jump onto the whole rotation thing and

switch up what kind of stocks I was into

And then try and position myself so

that I'm in the best stocks that are going

to benefit the most from the economy

recovering and the, uh,

you know what being vaccinated. And I feel

like that's a better way. I could have all

my money bleeding out in BNGO and NIO, or

I could just put, put it all back into

stuff that isn't going down, you know,

like oil And banks. What are

the other ones that are going up? Oh yeah,

Verizon and AT&T also going up for some

reason. It's kind of funny because back in

February when Warren Buffett announced

that he put $8 billion into Verizon and $4

billion into Chevron, I thought to myself,

what? Why? Why is he putting $4 billion

into an oil company? Why is he putting $8

billion into Verizon? It's just some

boring telephone company. It's just some

boring oil oil company that has no future.

And well, look at the stocks that are

going up. Verizon and Chevron are going up

so much, and it makes me feel kind of

stupid that I didn't pay more attention to

Warren Buffett's moves. It's like he knew

what was going to happen before it

happened. Maybe next time pay more

attention to what he's doing because he's

been doing this for a very long time.

It's just really frustrating because I

made so much money from these hype stocks

and the EV hype stocks,

and I did take profit, I did sell them,

but I put the profits back into more

hype stocks and more EV stocks when really

I should have started putting them into

different sectors like Coca-Cola or,

or oil stocks or even Altria

that does tobacco, they're doing really

well right now. It's just really

frustrating because I took the profits and

I didn't diversify and I just put it back

into the same kind of stuff that I just

took it out of, which means makes it

completely pointless. And yeah, that's why

I lost 40% of my gains. I'm not

going to quit the stock market. I still

feel optimistic. I feel like I had a very

expensive lesson that I needed to learn.

And I do feel like my knowledge— it

just made me realize that my knowledge of

the stock market and the economy and all

this financial stuff is just so basic. I

have no idea what I'm doing. And now

there's so many different things I need to

learn about, like inflation and interest

rates and treasury bonds and treasury

yields and how that affects stocks and how

that affects the market. There's all these

different things you have to anticipate

that this could happen or that could

happen. So I guess my plan now is to just

leave my money in the oil stocks and the

bank stocks since they seem to be doing

well and they seem to be on track to carry

on doing well as the economy reopens. It

makes sense really. Obviously as the

economy reopens and people start flying

again, start driving again, then the

demand for oil and energy is going to

increase. It just seems like such a

no-brainer now. And bank stocks seem like

a really good idea because inflation,

stuff like that, interest rates, blah blah

blah. So I think I'll just keep all my

money in those kind of stocks for the

short term, and once they've gone up a bit

and I've made a bit of profit, I'm gonna

take some of those profits out and then

put them into the stocks that are bleeding

out now because they're actually at pretty

good prices now to get into. So I think I

have learned why diversification is

important. It's kind of like a seesaw.

When one end goes up, you take some off

and then you put it onto the other end,

and then they keep going up and down, up

and down, and you just keep having to

reshuffle your money. You can't just have

it all on one end.