Speaker 1: So here are the top seven mistakes that investors make.
Speaker 1: This is regardless of what's happening in the geopolitical climate. Right.
Speaker 1: So you can't control who's in office unless you're a
Speaker 1: lobbyist or part of a super pac. But you can't
Speaker 1: control how you invest, what you invest in, what you intake,
Speaker 1: and how you execute. So Number one, We've talked about
Speaker 1: this at nauseam, but not buying quality companies is the
Speaker 1: biggest mistake that people make. Number two the thing that
Speaker 1: I'm seeing the most, that is the most disturbing. You're
Speaker 1: going to look back in six years or five years
Speaker 1: and be like, damn, I should have listened to you,
Speaker 1: Troy Rashad and Q I had a good play and
Speaker 1: I held it for six months instead of five years.
Speaker 1: Not holding is one of the biggest mistakes you'll make,
Speaker 1: especially coming out of this era and riding it into
Speaker 1: twenty twenty five or twenty thirty. Number three, this is
Speaker 1: not nineteen fifty. We keep having these conversations. Is it
Speaker 1: fundamentals or technicals, It's both, it's both. According to where
Speaker 1: the economy is, the dow should be at ten thousand.
Speaker 1: The dow Es are still doing relatively well, tech is
Speaker 1: over inflated, of course, but they shot up like crazy.
Speaker 1: And I'm going to show you a chart later that
Speaker 1: is a prime example of how over inflated we are.
Speaker 1: And at the same time, you have to take advantage
Speaker 1: of voice in front of you, because if you just
Speaker 1: try to time the market solely off of fundamentals, we
Speaker 1: saw this with earnings with Apple. Apple beat earnings and
Speaker 1: fell four minutes later to the downside. So it's not
Speaker 1: if you have great if your earnings are great, that
Speaker 1: you're always going to go up. And you guys have
Speaker 1: seen the opposite, like companies have missed earnings and then
Speaker 1: shot up because the earnings and miss wasn't as bad
Speaker 1: as a projection. Number four, Please stop buying at a high.
Speaker 1: I don't care how hot it is. I don't care
Speaker 1: how many people are talking about it in Discord and Instagram.
Speaker 1: And I'll give you the exact calculation. I'm gonna tap
Speaker 1: into my Bonamin vibes later and give you the exact
Speaker 1: calculation to stay away from. But stop buying at a high.
Speaker 1: Number five fall off with the hype of a non
Speaker 1: revenue generating company. Rust in peace of Nikro and no
Speaker 1: matter how many times we have to tell you it's
Speaker 1: no good. It's all the fame.
Speaker 2: Dead.
Speaker 3: It is dead.
Speaker 1: I'm going to use the is this time. Number six,
Speaker 1: trading too much instead of actually investing. I used to
Speaker 1: have a conversation with a guy that I knew in
Speaker 1: the past, and he was like, well, if you do
Speaker 1: well enough from trading, you shouldn't even need to long
Speaker 1: term invest. And my thing was, okay, but if something
Speaker 1: happens to you, if you die, you get sick, you
Speaker 1: then won't be able to produce returns. You want the
Speaker 1: business to make money regardless if you're if you're in
Speaker 1: it or not. And also, you can't teach your kids
Speaker 1: how to trade at the same proficiency if you're a
Speaker 1: great trader, because the hunger that you have to escape
Speaker 1: poverty is not there if they have already been living
Speaker 1: in life is going on for them. You have to
Speaker 1: do both. And number seven, it's one of the biggest
Speaker 1: mistakes not researching what the outcome of your asset allocation
Speaker 1: is going to be. You guys need to go online
Speaker 1: and pull up an asset allocation calculator and look back
Speaker 1: on the past five or ten years and with your
Speaker 1: portfolio that you're picking you should have an average expectation,
Speaker 1: know what it's going to be.
Speaker 4: I know this.
Speaker 1: All this is feeling that the market is mystical and
Speaker 1: no one knows what it's going to do. That's a lie.
Speaker 1: They told you at six thirty this morning the Dow
Speaker 1: is going to go up four hundred points, and guess
Speaker 1: what it did? Went up four hundred points. All this technology,
Speaker 1: they know where the market is going to go. So
Speaker 1: please know before you invest in Tesla, and if you
Speaker 1: pair that with XLK and VTI, and if you also
Speaker 1: paired that with g just because you don't want to
Speaker 1: listen afford what the outcome is going to be for
Speaker 1: my traders. The biggest mistakes that you make and I'll
Speaker 1: keep this simple because I'll talk about this every day
Speaker 1: in the trade room, but not knowing what target you're
Speaker 1: going to use every single day, type and chat what's
Speaker 1: your percentage based outcome is going to be for every
Speaker 1: trade that you take, two trading at the wrong times,
Speaker 1: three having to search for what to trade. I'm going
Speaker 1: to give you a quick secret. You should trade the
Speaker 1: same few things every single day. So if your commodities traded,
Speaker 1: trade commodities, if you're index index traded trade that if
Speaker 1: you trade natural grass or crew trade that, but you
Speaker 1: should not be scanning and looking for new things to
Speaker 1: trade all the time. And then number four, the one
Speaker 1: thing that no one wants to hear is most traders
Speaker 1: take too many trades per year. So I got this
Speaker 1: out the Amazing Eyo group, and I took your name
Speaker 1: out because I don't want the whole world blowing you up. Right,
Speaker 1: But look at this when you actually check your fees.
Speaker 1: This queen was paying four percent in fees add it
Speaker 1: and it's unnecessary. Now, four percent to some does not
Speaker 1: seem like a lot, but if you look over fifteen years,
Speaker 1: that's sixty percent in additional fees that are not necessary.
Speaker 1: So please type in yes if you have done a
Speaker 1: check on your fall one K or any of your
Speaker 1: retirement and if you had a console or a shot.
Speaker 1: He's already walked it through this process. Eric, Kudos to you.
Speaker 1: The VIX is important because the VIX has hit forty
Speaker 1: seven twelve key time since nineteen eighty seven. Your homework
Speaker 1: for tonight is I want you to tell me next
Speaker 1: week and if you find it tonight, great. What is
Speaker 1: the average return on investment in the indexes after Vix
Speaker 1: goes to forty six. So here's a little lesson for you.
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Speaker 1: You can take the average of each time, divide it
Speaker 1: by twelve bond and one vibes, and then it'll be
Speaker 1: able to tell you how far the market is going
Speaker 1: to go up from the time that it hits forty seven.
Speaker 1: You have to plan for disaster before it reaches your doorstep.
Speaker 1: So when to forty one other day, everyone pattis like,
Speaker 1: what are we going to do? I'm like, you should
Speaker 1: already know how far it's going to retrace base off
Speaker 1: of those levels For our commodities bugs, It's tell me
Speaker 1: that we don't cover commodities enough. Look at this right here.
Speaker 1: Commodities are at a opportune time because of COVID. So
Speaker 1: when I tell you guys, go look at every asset class,
Speaker 1: even international So if you look at the Nike but Vesta,
Speaker 1: there are opportunities there that you could potentially take advantage of.
Speaker 1: But you need to look at the commodities across the
Speaker 1: board to see which ones that are lows and that
Speaker 1: can go up as a result. Those opportunities are there,
Speaker 1: and most people are not talking about them or thinking
Speaker 1: about it, and things are going to get better in
Speaker 1: twenty twenty one for a couple of reasons, but this
Speaker 1: is one of the main ones. The same Thank you
Speaker 1: for this heads up. Private equity has two point seven
Speaker 1: trillion dollars waiting to be deployed.
Speaker 2: Now.
Speaker 1: Housing inventory is only about two and a half months,
Speaker 1: so we may have a little bit of a slight
Speaker 1: dip there, not a full crash, and then commercial but
Speaker 1: when they start deploying capital as a result, it's going
Speaker 1: to push the market up as well. But I want
Speaker 1: to remind you, I want you to long term invest first,
Speaker 1: then trade. I know trading is sexier, but some of
Speaker 1: you are going to look up in three years and
Speaker 1: even like, let's be honest, type yes in chat if
Speaker 1: you lost trades this year and trade and trading that
Speaker 1: if you would have just bought the actual asset you
Speaker 1: would have been better off. Please put yes in chat.
Speaker 1: And this is the main reason why I'm going to
Speaker 1: tell you not to worry about what happens tomorrow. I
Speaker 1: want you to look at this graph a zeem. I
Speaker 1: appreciate you. Look what happens even if we have a
Speaker 1: split government. What the average return is everybody type in
Speaker 1: chat thirteen point one in zoom and YouTube. Look at
Speaker 1: these numbers here and with the Republican president nine point
Speaker 1: five three percent Democrat, we can see what the numbers are.
Speaker 1: So historically Democrats have pushed the market up a little
Speaker 1: bit more and GDP has been better, but taxes have
Speaker 1: been higher. They kind of wash each other out. Regardless
Speaker 1: of who is president, the market is still going to
Speaker 1: go up the same age to twelve percent. There isn't
Speaker 1: that much to worry about. These next couple of days
Speaker 1: will be crazy, but when January comes, you got guys
Speaker 1: don't care. But going back to fundamentals, some of you
Speaker 1: have asked what do I look for? I appreciate this
Speaker 1: lobby through me earlier, but I'm looking at revenue and
Speaker 1: if you can guess and chat what company this is,
Speaker 1: and it's obvious, I'll be happy to cash up you
Speaker 1: one hundred dollars tonight. I'm looking at revenue, net income,
Speaker 1: cost of goods sold, and gross profit. This lets me
Speaker 1: know how well a company is doing. This lets me know.
Speaker 1: Now you can dig deep and go twenty columns deep,
Speaker 1: but these are the main four. I want to see
Speaker 1: a company with good revenue, good and net income. It
Speaker 1: doesn't cost that much to move those goods, and they
Speaker 1: have good gross profit as a result. And I know
Speaker 1: you guys are probably gonna brek zoom in a second,
Speaker 1: but I'll be sure to cash up you because you
Speaker 1: know they're gonna be emailing. Troy twelve thirty em said
Speaker 1: he was going, I got you guys leave jetting alone?
Speaker 4: How many times?
Speaker 3: Right?
Speaker 1: Yeah, It's like, come on, how to avoid a board trap?
Speaker 1: So when the market runs up and then all of
Speaker 1: a sudden you see people that are better that are
Speaker 1: worse invested than you, they caught a great move and
Speaker 1: we all get fomo, how can you avoid getting caught
Speaker 1: in this trap? I want you to stay away from
Speaker 1: one to nine percent from the high mark, off ten
Speaker 1: percent and twenty percent down from wherever that high is.
Speaker 1: And even if you're not using technicals that will give
Speaker 1: you an idea of where to get in. Sometimes the
Speaker 1: stock could be at fifty bucks and you guys are
Speaker 1: buying it at forty eight and they're like, hey, what
Speaker 1: do you think. I'm like, it's gonna slide down. You
Speaker 1: have to give it room to breathe, no matter, even Tesla.
Speaker 1: Tesla had a great run up and then you can
Speaker 1: see it pulled back Apple, same thing we were debating
Speaker 1: about there earlier.
Speaker 5: Yep.
Speaker 1: The price always comes down if you wait for it
Speaker 1: and check this out. This is the greater example of
Speaker 1: like why indexing works and also shows why the market
Speaker 1: is being artificially inflated. This is the Zimbabwe Industrial Index.
Speaker 1: This looks like Tesla. I will give you five hundred
Speaker 1: dollars in cash app without googling if you can name
Speaker 1: me two companies and the Zimbabwe Industry Index you can't.
Speaker 1: But they also benefited from all the quantitative easing. The
Speaker 1: market is not fair. The market is rigged to stay up.
Speaker 1: Quantitative easing, like you talked about in episode seventy, is
Speaker 1: that lever that pushes it up. It's straight up. This
Speaker 1: is like a tech company. There are some tech companies
Speaker 1: that have more value in them alone than the GDP
Speaker 1: of like. But this goes to show you you cannot
Speaker 1: fight what happens on the chart. You have to follow
Speaker 1: a direction at all times.
Speaker 2: My graduates from my school being forced back.
Speaker 1: Drop bag drop Mike, drop bad drop drop.
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Speaker 2: the roof.
Speaker 3: Are you saying it was the off field play that
Speaker 3: made the difference on the field.
Speaker 2: Hey, little play makes your day, and today it made
Speaker 2: the game. That's all for now, Coach.
Speaker 3: One more question played the new Los Angeles Chargers, San
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