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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: decisions with your bank, but keeping your money boring is

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Speaker 1: National Association Member FDIC.

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Speaker 2: Well, we could talk about it now, I guess if

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Speaker 2: you want to jump into that part is like, you know,

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Speaker 2: the eighty million UH situation allegedly, So what they said

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Speaker 2: is that, you know, obviously when Trump he made the

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Speaker 2: truth social post on Friday, and that made the stop

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Speaker 2: market fall very, very sharply, but it also made the

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Speaker 2: crypto market have a major pullback. It was actually the

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Speaker 2: largest liquidation in crypto history for a single day. And

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Speaker 2: allegedly UH there was a twenty million dollar edge that

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Speaker 2: was put in around an hour before he he made

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Speaker 2: that tweet, and that twenty million dollar that turned into

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Speaker 2: eighty million dollars very quickly. Now was even more suspicious

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Speaker 2: is that the account was opened just for that. It

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Speaker 2: wasn't an existing account, it was opened just for that.

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Speaker 2: And then I think it was closed shortly after that

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Speaker 2: closed it closed it out after shortly after that. So

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Speaker 2: twenty turn eighty once.

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Speaker 1: The that's a hell of a flop.

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Speaker 2: The market fell and the big cooin fell. But then also,

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Speaker 2: you know, unfortunately there was at least one situation where

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Speaker 2: somebody had committed Yeah. Now most people will say, like, well,

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Speaker 2: why would somebody commit suicide? Just wait, like you know

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Speaker 2: what I mean, like, just wait it out. But and

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Speaker 2: it's something that we haven't really talked about a lot.

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Speaker 2: But you know, when you trade on margin or you

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Speaker 2: use a high level of leverage and you're trading, what

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Speaker 2: happens is that you can get cashed out. And apparently,

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Speaker 2: I guess this was a big time crypto trader, and

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Speaker 2: apparently he was heavily leveraged on one of his trades,

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Speaker 2: and they said he lost forty million dollars and I

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Speaker 2: guess that led him to commit suicide. So this is

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Speaker 2: the dark side, the shot the alex energy. You know,

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Speaker 2: he had mentioned that maybe we should talk about this

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Speaker 2: on Blackout, but I think it's appropriate even on Market

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Speaker 2: Mondays because it is an investment conversation and it is

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Speaker 2: it does highlight the dark side of trading for sure,

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Speaker 2: where you can lose a lot of money if you

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Speaker 2: don't know what you're doing, or if something goes you know,

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Speaker 2: opposite favor. So the mental health aspect of it is

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Speaker 2: extremely important because this goes back to the nineteen twenties,

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Speaker 2: the Great Depression when people was jumping out of windows.

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Speaker 2: This is not a new lass stock brokers that jumped

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Speaker 2: out of windows in the nineteen twenties. So when we're

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Speaker 2: talking about investing and we're talking about trading, we also

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Speaker 2: have to put mental guardrails up and then also just

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Speaker 2: safety precautions in your investment strategy and your trading strategy,

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Speaker 2: because yeah, you know, when you when you when things

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Speaker 2: don't go your way, you know, you could potentially, you know,

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Speaker 2: fall into a deep depression. You could go into a

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Speaker 2: dark space, You can lose a lot of money, you

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Speaker 2: can lash out at people, or worst case scenario like

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Speaker 2: what happened last week, you could end up hurting yourself. So, yeah,

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Speaker 2: the dark side of trading, you want to talk about that?

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Speaker 3: Yeah, for sure in futures you can have five to one.

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Speaker 3: Ten to one verage is number one. That's the reason

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Speaker 3: why I say you should only take one to twelve

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Speaker 3: trades per year to mitigate risk. But there's a couple

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Speaker 3: of things you have to look at on crypto and

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Speaker 3: any leverage asset. A. If you're going overseas to have

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Speaker 3: one hundred to one leverage, it can go against you. Secondly,

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Speaker 3: the part that isn't talked about enough is when you're

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Speaker 3: down or let's say the market is bleeding down how

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Speaker 3: it was Friday, even if you have a stop loss

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Speaker 3: in place, you can continue to bleed past your stop loss.

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Speaker 3: I have four or five people message and you're like, hey,

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Speaker 3: I'm trying to go along in this position.

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Speaker 1: I can't.

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Speaker 3: And then a few others say, well, I'm past my

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Speaker 3: stop loss?

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Speaker 1: What do I do?

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Speaker 3: And I'm like, you have to call your broker because

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Speaker 3: at that point there's nothing you can do. That's why

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Speaker 3: we say trading has considerable risk, and the upside of

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Speaker 3: it is that you can make a ton of money.

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Speaker 3: I'm talking two to ten to fifteen million dollars in

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Speaker 3: a good day.

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Speaker 2: Well, we saw that. What is the tale of two stories,

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Speaker 2: right yep. The one guy leverage and off the leverage

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Speaker 2: made sixty million dollars in one day. Somebody else lost

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Speaker 2: forty million dollars in day.

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Speaker 3: And lost his life. And the other part is when

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Speaker 3: you're trading, you're not just competing against the best traders

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Speaker 3: in the world. You're competing against the best hedge funds.

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Speaker 3: And now people who may have intellectual sources that you

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Speaker 3: do not have, and governmental relationships that you may not have,

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Speaker 3: and a broker doesn't care either way. We were talking

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Speaker 3: before we started Martin Screlly, who got caught up in

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Speaker 3: that pharmacy scandal a few years ago, who bought the

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Speaker 3: Wu Tang rights. He was down twenty eight million or

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Speaker 3: twenty two million dollars the week before, and JP it's

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Speaker 3: on YouTube and JP Mortgan's calling his law like, hey,

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Speaker 3: you got to figure something out to wire this money in.

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Speaker 3: So be careful if you're trading on leverage. If a

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Speaker 3: profit factor is not fifteen or high or so, for

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Speaker 3: every dollar you put into the market, JA able to

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Speaker 3: get fifteen out. Don't trade on leverage. And this is

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Speaker 3: a lot of times, even when it comes to newer

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Speaker 3: stocks or I even had a brother this weekend asked

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Speaker 3: me like, well, why won't you talk about some of

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Speaker 3: the quantum stocks, and like the platform is too big

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Speaker 3: for me to tell you to invest in something that

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Speaker 3: they have even said privately is not going to be

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Speaker 3: the leader of Quanta. The upside is always the ment

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Speaker 3: amount of money that you can make. But when you

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Speaker 3: are in the whole forty million, that kid didn't have

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Speaker 3: somebody he can call and say, let me get a

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Speaker 3: bridge long for twenty five million so I can work

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Speaker 3: my way out of the hole. He can't just run

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Speaker 3: to another country and escape the problem. And even when

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Speaker 3: you're down that much, some brokers won't even let you

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Speaker 3: open up another account to trade your way out of it.

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Speaker 3: Trading has considerable risk. Please be careful, Please protect your

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Speaker 3: mental health, and don't over leverage in trading.

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Speaker 1: God rest his soul. Yeah, it's unfortunate, it's tragic, but

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Speaker 1: I'm glad we speaking about it because all the things

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Speaker 1: that Shoddy mentioned are true. If you're new to this,

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Speaker 1: it can become daunting. It can become depressing and it

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Speaker 1: can feel overwhelming. It's margin is something that we don't

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Speaker 1: talk about because I don't think any of us actually

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Speaker 1: use margin. It's not something that.

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Speaker 3: I want to do a future. But that's why I

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Speaker 3: say you got to limit the number of trains you

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Speaker 3: take per year.

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Speaker 1: So people even just need to know how it actually works. Right,

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Speaker 1: And so margin has borrowed money. It's borrowed money from

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Speaker 1: the brokerage and they are allowed to use that up

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Speaker 1: to a certain extent or a certain point. And when

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Speaker 1: you see when it's stocks are appreciating, futures appreciate absolute appreciation,

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Speaker 1: it's great. Right, you're making the money. You're making the money.

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Speaker 1: The problem is when you see a day like Friday

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Speaker 1: happens and it's a drastic pullback. Right, Those margin calls

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Speaker 1: happen very quick.

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Speaker 4: In the margin call is saying hey, we want our bread,

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Speaker 4: we want coy, and they click in very very quickly,

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Speaker 4: hit a certain threshold and we want our money back.

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Speaker 4: The first thing they're going to ask is, hey, you

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Speaker 4: need to put more money into your account or you

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Speaker 4: need to liquidate all of your assets. Now, you might

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Speaker 4: have put that margin call on a certain position, but

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Speaker 4: it looks at your entire portfolio to get its money back, right,

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Speaker 4: So if you're on a brokerage, they make a marginal

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Speaker 4: and it's not inside of that goal. They're gonna look

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Speaker 4: how to liquidate all of your portfolio.

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Speaker 3: That you want to hold it for five years. And

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Speaker 3: that's why you need to separate the trading account from

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Speaker 3: your long term investment account.

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Speaker 1: That was that's where I was going. That's where I

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Speaker 1: was going, and it is the reason why you have

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Speaker 1: separate accounts type of trading. Right. So for me it

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Speaker 1: was three accounts. I have my long term holds right stops,

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Speaker 1: have some indexes in another account. Then I have an

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Speaker 1: options account, all three different brokerages. I don't mix the

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Speaker 1: money up. The other thing is time, all right. We

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Speaker 1: always talk about using time as an asset, especially trading,

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Speaker 1: which is why we talk five to ten years or

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Speaker 1: you know, for an eternity, if you're holding some of

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Speaker 1: these companies, or or you're buying yourself time. In terms

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Speaker 1: of leaps and options, we always want to use that

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Speaker 1: because the volatility is going to happen, it's actually needed, right,

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Speaker 1: so we can have better points earners. What's up? You

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Speaker 1: ever walk into a small business and everything just works like.

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Speaker 1: The checkout is fast, their seats are digital, tipping is

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Speaker 1: a breeze, and you're out the door before the line

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Speaker 1: even builds odds are they're using Square. We love supporting

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Speaker 1: businesses that run on Square because it just feels seamless.

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Speaker 1: Whether it's a local coffee shop, a vendor at a

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Speaker 1: pop up market, or even one of our merch partners.

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Speaker 1: Square makes it easy for them to take payments, manage inventory,

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Speaker 1: and run their business with confidence, all from one simple system.

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Speaker 1: One of the things we love most is seeing neighborhood

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Speaker 1: businesses level up business West Indian Spired writing our community

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Speaker 1: that started with a small takeout counter. Now with Square

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Speaker 1: they've been able to expand into a full sit down

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Speaker 1: restaurant and even started catering events across the city. That's

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Speaker 1: the kind of growth that inspires us, and it's powered

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Speaker 1: by Square. Square is built for all types of businesses,

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Speaker 1: from the corner bagel shop that turned into a local chain,

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Speaker 1: to the specialty market with thousands of unique items, to

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Speaker 1: the stylist who's been holding you down for years. If

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Speaker 1: you're a business owner or even just thinking about launching

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Speaker 1: something soon, Square is hands down one of the best

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Speaker 1: It's not just about payments, it's about giving you time

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