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r/WallStreetBets (WSB), GameStop, Short Squeeze – Why having a secure job is more important than shorting the markets.

Personal Finance, Stocks

Written by:

Sin Yee

Any budding investor with the slightest interest in investing and stocks would have seen their Facebook and social media feed dominated with memes and articles on WallStreetBets and GameStop these few weeks.

In one of the most exciting time in recent history, retail investors on reddit forum WallStreetBets (or “retards” as they call themselves; an anagram of ‘traders’) ganged up to squeeze hedge funds out of their short positions on GameStop.

The collective action of individual investors drove GME’s price up from just around US$20 in mid-January, to reach a record high of US483 by the end of January, a spectacular 2415% returns.

For those who have not been following the saga, you can watch Alvin’s video where he explains this “David vs. Goliath” story.

With returns like this being posted online almost daily during the initial frenzy, it is only human to feel tempted to jump on the bandwagon and throw your money in with the crowd. After all, isn’t this the chance of a lifetime to make some serious money?

As interest in investing and trading has skyrocketed in the last few months, we have observed more and more first-time investors jumping into the markets. With low-cost platforms like Tiger Brokers, TD Ameritrade and Interactive Brokers, it has become so much cheaper and easier to buy your first share.

With the economic uncertainties caused by COVID-19, many who faced difficulties with their jobs may also feel that trading or investing is an easy way out. GameStop has also created an impression that it is easy to make insane profits via stock investing.

Yes, while we are advocates of using investing to help you grow your money, we have always believed in taking the long-term (and some may say slightly conservative approach) to investing. And to do so, you need to have a secure career (or a sufficiently large sum of capital that you can use to fund your living expenses before you can ‘fire your boss’).

Why a regular income is required for wealth accumulation?

Your career and a monthly salary is still the best way of growing your wealth. Having a job means you have a regular stream of income to pay bills, while the excess savings can be invested. It is difficult to fund your living with your investments for two key reasons.

  1. A huge capital is required, which can often only be achieved after you have socked away enough savings and invested for many years.
  2. Stock markets are volatile; Nobody can guarantee you profits and you do not want to be forced to sell at low prices in order to fund your living expenses. Having a job would give you the sense of security you need to make you psychologically stronger to weather the ups and downs in the stock market.

Investing comes with risks and you wouldn’t want to find yourself in a bad spot should your investments not perform the way you’d dream they would.

If you are currently unemployed, here’s how you can use MyCareersFuture to help you secure a new job:

  1. Know what you want – The first step to doing great things is always to understand your own passions and interests, as well as your strengths and weaknesses. Who you are matters! By taking the time to take stock, you are able to determine your career objectives and identify the best career pathways for you to achieve your goals and the life that you want to lead.

Workforce Singapore has a career coaching programme to help individuals uncover their strengths and get on the right career path. Download the 3 tools that will help you to learn more about your Values, Interests, Personality and Skills, identify jobs that match your capabilities and experiences as well as to tailor your strategies and action plan for your job search. Get immediate feedback on your job search plans by registering for 1-1 professional career coaching here.

  1. Know what the industry is about and what the employer wants – Deep dive into your interested industries to find more industry insights from experts who are in the industry. You can read more about the following industries – Healthcare, Social Service, Early Childhood Education, Travel and Tourism, Retail, Build Environment, Precision Engineering or Energy & Chemicals, via the ‘Know Your Industry’ section on the MyCareersFuture webpage, where first-person accounts from industry professionals are posted. Use Linkedin as a platform to connect with individuals who are working in your desired company to understand more about the job and the work environment. MyCareersFutures also organize networking events to allow job seekers to network with potential employers.
  1. Know where to find the great jobs – Let’s face it, competition is stiff. But did you know that you have free access to the MyCareersFuture portal that’s available only for Singaporeans and Permanent Residents? This ensures that the jobs posted are offered to citizens/PRs first, providing local jobseekers with greater visibility of job opportunities and employers with an avenue to reach out to their target audience of local talents.

Another feature unique to MyCareersFuture is the ability to filter for jobs that are available under the various government support schemes, allowing you to tailor your search to your own individual needs and circumstances. For instance, users can search for jobs that are specific to mid-career switchers, posted by SMEs, short-term trials or workplace attachments under the fresh graduate traineeship or mid-career attachment schemes.

Such schemes provide opportunities for job seekers to work and train at the same time, allowing them to enter industries that were previously not available to them due to lack of relevant experience or training.

You can search for jobs under these schemes easily using the filter function on the left sidebar of the job portal. Tick the checkbox for the specific scheme that you are interested.

  1. Getting called up and acing your job interview – The final step to securing your new job. How can you standout amongst the sea of resumes that employers receive every day? How can you kick ass your next job interview? Preparation is key, and MyCareersFuture offers various workshops that can help you improve your personal branding, resume writing as well as interview skills. Check out the various resources and articles posted online that will guide you on how you can further improve your actual day performance. Use the job interview starter kit to help you stay focused on interview day. After all the preparation, all you need now is to stay calm, keep cool and outperform yourself.

Finding a job can be tough. MyCareersFuture runs a programme which offers support and counselling to job seekers. If you feel discouraged by the process, call 68835885 to speak to a certified professional today. We are in this for the long run, and regardless of how difficult it might feel, always know that help is available.

Regardless of how the markets perform in 2021, we should continue to stay the track. Having a secure career will ensure that you have the capital that you need to build and compound your investments over time.

This is a sponsored post by MyCareersFuture – a job portal developed by Workforce Singaore(WSG) in partnership with Government Technology Agency

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