April 23, 2025 • 29 mins
Money matters can be overwhelming for everyone, but for those navigating life with a disability, financial markets often seem doubly intimidating. What happens to your benefits if you start investing? Is trading even accessible? Can you practice without risking real money?
Today we tackle these questions head-on with practical, straightforward advice from disability advocates who understand both sides of the equation. The good news? Social Security offers a six-month grace period before investment income affects your benefits, giving you time to test trading strategies risk-free. We walk through completely free paper trading options through apps like Webull and Robinhood that let you practice with virtual money before putting a single real dollar at stake.
Beyond the basics, we explore how to read market movements, understand stock offerings, interpret financial news, and recognize market corrections versus true crashes. For the more adventurous, we even discuss advanced options like prop firms that provide trading capital to qualified individuals. Throughout the conversation runs a realistic thread – trading isn't for everyone's personality, and that's perfectly okay. The emotional rollercoaster of watching investments rise and fall isn't suitable for every temperament.
Whether you're curious about dipping your toe into penny stocks or simply want to understand how financial markets work from a disability-conscious perspective, this episode provides a judgment-free roadmap to start your journey. Have questions after listening? Reach out through our website, and we'll connect you with expert advice tailored to your situation.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to our podcast.
When Life Gives you Limits, I'mKevin.
Speaker 2 (00:06):
And I'm Palmy.
We consider ourselvesdisability advocates and intend
to spotlight some disabilityissues and things we find
interesting that we frequentlyencounter when we're out and
about.
Also some history on disabilitythat we find interesting
history on disability that wefind interesting.
Speaker 1 (00:25):
I can't see if you won't lose your benefits either
way.
If you start making you knowdecent amount of money via the
stock market or any financialway, social Security gives you a
(00:49):
six-month grace period to makesure it's going to work out
before it affects your benefits.
Any other uh agency you getbenefits from you have to check
with because I don't know eachand every one of them.
Yeah.
Speaker 3 (01:03):
Good enough.
Speaker 1 (01:07):
Okay, Paul.
Okay, let's go back to Webull.
That's an app.
Is that free as well?
It is free.
Yes, so basically, you're usinga free app to make free trades.
Yes, paper trades.
Speaker 3 (01:24):
It's completely free, it doesn't cost anything.
It's an app in your free app tomake free trades.
Yes, paper trades.
It's completely free, doesn'tcost anything.
It's an app in your phone, youknow.
You can get it on your.
You can go to the website onyour computer and, uh, you just
go in and, uh, the paper trade.
I don't believe you have to puta bank account or anything in
there.
You do have to put yourinformation in there, but I
(01:46):
don't think you have to put abank account to it just to pay
per trade on there.
It's set up where at the top ofthe page it'll say that it'll
give you the top gainers of theday.
So you can go in and and clickon that and it'll scroll down
all the stocks that day that aremaking the most money in the
(02:09):
market and you can click on oneof those and pay for trade that
stock and see how you do with it.
You know it will do the topmarket.
It also will give you the toplosers of the day on there too.
But it would say like, if youget in there early, the stock
(02:30):
market our time opens at 830.
But you can trade in thepre-market before the market
opens and on Robinhood, that is6 am, and on Robinhood, that is
6 am.
On Weeble I believe it's 4 amthat you can start trading.
You can go in there and clickon that banner at the top and
(02:56):
it'll say pre-market top gainersand you can go in there and
there's a lot of penny.
Now it won't all be pennystocks, but there are a lot of
penny stocks in there too.
You just scroll through andyou'll see stocks for seven
cents, five cents.
You'll see stocks for threehundred dollars, but you just
(03:17):
scroll through and you can findany price point that you you
would be comfortable with tryingto trade and just paper trade
that stock and see how well youdo.
And do that for a few monthsand get used to it and see how
well you do before you startusing real money.
Speaker 1 (03:36):
Okay, you mentioned that Robinhood was free.
Did they charge for your tradesor anything?
Speaker 3 (03:43):
like that yes, they all charge for your trades or
anything.
Yes, they all trade, they allcharge for your trades, but it's
not much.
I mean it's uh, you won't evennotice it.
I mean now cryptocom, if you,if you wanted to get in strictly
into crypto.
There's a lot of a lot ofcryptos on cryptocom, but
(04:09):
cryptocom charges quite a bitper trade and and when you say
quite a bit, can you?
okay, I sold all apart.
Oh well, I sold a thousanddollars worth of shibu stock on
there two years ago and it costme 120 bucks to to sell it wow
(04:31):
but robin hood's nothing likethat robin hood.
Actually, I think how robin hoodworks is they don't charge you
until you pull your money out.
I think you can make all thetrades you want free, but I
think, when you pull your moneyout is they'll take a small fee
(04:52):
off of it, but it's nothing likethat.
I mean, it's maybe, you know, afew dollars compared, but, uh,
I haven't taken any money offduring a long time, so I don't,
I don don't know.
I tried trying to build myaccount up, so I've left my
money in there for now.
But, yeah, I would reallyrecommend people paper trade
(05:17):
before they try going in themarket.
And you might find there's alot of apps out there.
You know Robinhood's not foryou.
Charles Schwab has a veryfriendly app and they have what
they call Think or Swim app thatgoes along with Charles Schwab
(05:38):
and you can pay per trade onthat one also and it will give
you the daily news on there.
You know also, and it it willgive you the daily news on there
.
You know that's.
Another thing about trading isif a stock has news come out
that day and it's good news,chances are that stock is going
to do well.
So, uh, you can go to yahoofinance, you can go to cnbc
(06:09):
finance, you can go to cnbc appand you can see all this news.
You know you can read the newsand, uh, and there's apps that
you can.
You know, there again, thatcosts money, but there's apps
you can download.
You'll get the news beforeanybody else.
But on, we will.
If you click on a stock let'ssay, the number one gainer of
the day is 11 cent stock and youthink, okay, this might be what
(06:30):
I want to get into Well, clickon that stock and at the top it
will it'll have another bannerand it'll say news and then
it'll have a new and then I havea feed where people are talking
about that stock.
But click on that news and ifthat stock has news out that day
, then there's a good chancethat stock's going to do good,
(06:53):
which of course, the news has tobe good news.
If the stock is coming out withan offering, you don't want
anything to do with that becausethat means that that stock's
going to drop.
So an offering means they'regoing to add shares to their
portfolio.
So if you have 100 shares ofthat stock and then they go and
(07:17):
they however many shares thatcompany has of that stock.
Let's say they double theirshares.
They make an offering, theydouble your shares.
Well, your stock just cameworth half of what it did it did
was worth.
So if you had 100 shares and itwas worth a hundred dollars,
(07:38):
well, you still have 100 shares.
But now, since they made anoffering and they doubled the
amount of shares that came outin the company, now your stock's
only worth fifty dollars.
You know, does that make sense?
Speaker 2 (07:50):
you know.
Speaker 3 (07:51):
So you want to stay away from any, any news where a
company is saying they're comingout with an offering.
Unfortunately, some somecompanies don't warn you about
that.
I took a big hit a few weeksago on that.
I was in a day trade and I wasup over $200 on this stock and
(08:16):
within a matter of seconds I wasdown $175, and there wasn't
nothing I could do about it.
I just had to get out of itbecause they came out with an
offering and their price oftheir stock went down.
It doesn't happen very often.
I mean, I've been doing thiswell, day trading, I've been
(08:36):
doing that for two years, cryptoand everything.
I've been doing it since beforethe pandemic, and that's the
only time it's ever happened tome.
So I don't want people to think, oh, that's something that
happens all the time.
It does happen all the time,but chances of it happening to
you all the time is pretty rare.
I mean there's how many stocksis there on the stock market?
(09:00):
I mean it's a crazy amount.
I mean it's a crazy amount andfor you to have that happen to
you more than once, then it'spretty rare, you know.
Speaker 1 (09:13):
It's like somewhere along the lines of being struck
by lightning twice.
Speaker 3 (09:20):
Kind of, kind of.
But you also got to know whatto look for.
Like I said, you know I onlytry to trade stocks that has
news behind it.
That way I know why it's goingup and why it's not.
You know, china likes to comeout with these new IPOs, which
is a new stock.
(09:40):
They'll form some company withtwo people in it and they'll
throw a new, some company withtwo people in it and they'll
throw they'll throw a new ipo onthe market and they'll they'll
put a bunch of money into thisstock to get people to come to
it.
And I've seen these things gofrom four dollars all the way up
(10:03):
to $3,000 or $4,000.
I mean not lately, that wasback in pandemic days but it's
nothing for them to go up to$100, $150.
And it's easy to get wrapped upinto that stuff, because I was
(10:27):
for a while trying to chase that.
You know that big win.
But the problem with themthings are most of the time 99
of the time they're going tospike real high and then they're
going to give it all backwithin within minutes and for
one of them to break out and golike that is very rare.
I mean very rare, and those areanother one you have to be
careful with, you know, becauseyou want to chase one of them.
(10:51):
You, you're watching it and yousee it started out that morning
at three dollars and you knowit's at thirty dollars now.
Oh man, I gotta get in this.
Well, that's strong time to getin one when it's already up to
three hundred percent.
That's a strong time to get inone when it's already up 200% or
300%.
That's not the time you want toget into a stock.
You want to get in a stock aslow as possible.
You want to be the first guy toget in that stock.
(11:12):
You want to end that stock whenit's at $6, not when it's at
$30.
And those stocks will alwayspull back at some point too.
Those stocks will always pullback at some point too.
And you know, buying a dip buyon a stock, that's where a stock
a spike like that then itstarts giving back and it gets
(11:34):
back down to the support line,which is where is usually a
previous high on that stock.
You know that's usually wherethe support line will be.
That's where, if you're goingto get into a stock that's
already spiked, that's whatyou're looking for.
Is that first dip buy.
When it comes back down to thesupport line, then you want to
(11:55):
get in it for that next wave up.
Like I said, that's all part ofday trading.
You know, if you're looking todo a long-term investment, it's
really hard to do with pennystocks, I mean because most of
them just do not hold theirgains.
Speaker 1 (12:12):
I've always heard that one of the safest
investments are bonds.
Speaker 3 (12:18):
They are Right they are.
And why do you think all theyou know Wall Street's made up
of?
Most of the wealth on WallStreet is like the top 18% of
the people trading it.
And when the market crashedFriday, where do you think all
(12:40):
those wealthy people put theirmoney?
Speaker 1 (12:42):
In bonds.
Speaker 3 (12:43):
They put them in bonds and they took it out of
the market and they put it inbonds to wait until this market
corrects itself, which themarket's in a correction mode
right now.
There's nothing really foranybody to panic with, really
(13:06):
for anybody to panic with.
You know, if you, if your 401ksare looking bad right now, is
there's there's really no reasonto panic just yet because the
market is in a correction mode.
The market has been going nuts.
S&p 500 you know it was sooverextended.
You know it was up over $600,and it was so overextended that
it had to come back down.
So as long as we stay above,I'd say, $450, $460 on the S&P
(13:37):
500, we're going to be fine.
We're going to bounce back andeverything's going to be fine.
This you know.
We're going to bounce back andeverything's going to be fine.
If that, if that goes below that, we look like we could slip
into a recession.
But if we do slip into arecession, I think it's going to
be short-lived, I don't thinkit's going to be long.
So, getting back to those bonds, what's the government do with
(14:01):
bonds?
Government takes the interestthat they get off of these bonds
and they pay bills with it.
If these rich people areputting their money into bonds
right now, then that means ourgovernment is going to be able
to pull the interest rates offof these bonds and possibly pay
(14:24):
down some of our debt, maybehelp fund some programs that
need program, you know, helpfunding maybe Social Security,
whatever it may be, and that'snot a bad thing.
It all kind of works hand inhand with one another.
So I think the next two orthree months is going to be very
(14:45):
telling of what happens, youknow, in our market.
But right now I don't thinkthere's any reason to panic
whatsoever.
I think that we're just in acorrection mode and a people
have a little bit of extra money, you know to invest in the
market.
You know now's the time to doit, because it's a historic lows
(15:06):
and that's when you want to getinto the market is when
something's low.
If you do have a little bit ofextra money and you don't know
how to invest it, I suggesttalking to you know a broker,
you know a stock broker, youbroker a retirement broker and
see what they have to say.
But if you're just $20 or $30here, I would really look into a
(15:40):
Roth IRA or something, becausethat's your safest bet.
But if you just want to play inthe market, then I would learn
all I could about it before Iput real money into it.
Speaker 1 (15:54):
Yeah, for sure, there's a lot of knowledge to be
had out there with internet,knowledge to be had out there
with you, and that it's justlike a scientific data or the
studies you do.
There can always be bias whenyou listen to somebody else's
(16:14):
opinion.
Yeah, you have to just figureout what that bias is.
You, you know.
Speaker 3 (16:22):
Do your research.
I mean that's the biggest thingI can tell people is to do your
research and come to your ownconclusions of what is best for
you.
I don't want anybody takingfinancial advice from me.
I'm just here trying to giveyou some options of what to look
at and how to go about it, butI would never recommend any
(16:44):
stock to anybody.
I would never recommend you putmoney into stock.
I wouldn't recommend you putmoney into crypto.
I'm just saying I'm giving youthe options of what I would do,
you know, or what I do do.
Speaker 1 (17:00):
I don't think stock trading, whether it be penny
stocks or crypto, is like foreverybody no I don't have the uh
sort of personality to you know.
Make that work, I'm too cheap.
Speaker 3 (17:17):
You gotta have nerves , and it's too cheap I chicken
out before I would make moneyand you know it didn't freak out
when I didn't so it'sdefinitely it plays on your
emotions.
You know, that day I lost 175dollars.
My heart was broken.
(17:37):
But but you know, the next dayI made it back and I was on
cloud nine.
I mean, it was just a rush likeyou wouldn't believe.
But you know, unfortunatelythere's been more of those lost
days and you know, it seems likemy losses are a lot bigger than
(17:58):
my wins sometimes.
But I'm getting there.
I mean it's all a work inprogress.
I mean I uh, it's uh.
There's another thing.
I we didn't talk about thisbefore we got time to go over
something else here.
Sure, if you do get in to stocktrading and you find that you
(18:25):
have a niche for this and youthink that you can make money at
this and say you do make money,but you just don't really have
the money to invest in it, toreally fund your account the way
you want to invest in it, toreally fund your account the way
(18:46):
you want, there are companiesout there.
They're prop firms and whatthey do is you can buy an
account from them.
You spend your real money andyou buy an account from them,
account from them and you haveto pass a test depending on how
big of a account you want.
(19:09):
They go from $10,000 all theway up to $200,000.
So you can get in.
You can get into one of these$10,000 accounts for under $100.
So what you'll have to do isyou'll have to make $10,000 in
(19:31):
the market before you lose$10,000.
If you lose $10,000, thenyou've lost your money, you've
lost everything.
You had to refund the account,and if you had to refund the
account the next time, it costsmore so.
But the good side is, if you getfunded, then they give you real
(19:56):
money because you're papertrading on the test, and this
isn't penny stocks.
This is, this is s&p 500 stocks.
These are blue chip stocksyou'll be trading.
So you go in and you get funded.
Well then you, the first threewithdrawals you can make off of
(20:21):
there will be $1,000 apiece.
If you make that much, you haveto be able to make that money,
but you'll get funded 100% ofthat $1,000.
Then after that, you can pulloff however much you want.
If you make $20,000, you canpull off however much you want.
(20:42):
If you make twenty thousanddollars, you can pull off that
twenty thousand dollars, butthey get ten percent of that.
You'll get 90 and they'll get10, and you can.
Only you'll have the way it'sset up you can only pull money
off of it every 14 days.
Up is you can only pull moneyoff of it every 14 days and you
(21:04):
have to make at least six tradesof 50 or more one way or the
other, loss or gain in those inthose 14 days.
So now these firms are set upto make money.
So the guy that I follow hasbeen in the stock market for
(21:24):
years.
He's 31 years old, he's aself-made millionaire and the
first two prop firm attemptsthat he made he failed both of
them.
So I don't want people to thinkyou know this is easy money
because it's not.
So I don't want people to thinkthis is easy money because it's
not.
I'm doing one right now andI've not failed out of it yet,
(21:52):
but I'm getting close.
I bet on the S&P 500 yesterdayor Friday to bounce back up and
I didn't make it.
So if I was shorted to the S&P500 yesterday instead of betting
on it to go up, then I'd havebeen sitting all right, but that
(22:14):
is an option.
But I only suggest you evenlook into this after you're
familiar with the market andyou've been doing it for a long
time and you feel comfortablethat you can make money in the
market Right.
Speaker 1 (22:34):
But it is an option.
Our discussion so far, thefreest, cheapest and best option
to start with is going withpaper trades.
Get a feel for what you'redoing.
Speaker 3 (22:53):
Yes, absolutely.
Speaker 1 (22:54):
The app is free and the trades you're making you're
using fake money for it.
So it you know it's likeplaying a video game, if you
will, it's just rightentertainment, education,
whatever it's kind of likeplaying monopoly right then
(23:17):
perhaps, if you decide this issomething you want to do, you
want to look at Robinhood.
Speaker 3 (23:24):
Yes.
Speaker 1 (23:25):
And then you can start trading.
Is there anything you can'ttrade on Robinhood?
Speaker 3 (23:34):
Well, there is some penny stocks that Robinhood
won't have on there, I mean, butfor the most part, robin hood
has everything.
Now crypto they're limited towhat they have on crypto.
You know they do have thebasics of crypto, but but they
don't have a lot of crypto onthere.
(23:56):
But, uh, no, you can.
You can trade just aboutanything on there.
I mean, uh, and the thing aboutrobin hood that's good, why I
say it's good for beginners mostof these apps they have a buy
and ask.
(24:18):
When you're trading and you haveto put in a price to what you
want to buy the stock at.
Let's say the stock is, let'ssay the ask is three dollars and
the buy is two 289 or whatever.
Well, you have to decidesomewhere between those two
(24:40):
where you want to buy.
On Robinhood, you don't have todo that.
On Robinhood, you click on theticker, you pull up the stock,
you hit buy, you punch in howmany shares you want and then
you just swipe up and it buys itfor you.
You don't have to worry aboutputting in any price, but now it
(25:01):
buys at the price you can watch.
Whenever you set everything up,you can sit there and watch the
stock and you can watch it,move the price on it.
So you can say, okay, you knowthe stock's at $1.49, you know,
but it went down to $1.46.
Well, you can keep watching it.
(25:21):
Maybe it goes down to dollar 46.
Well, you can keep watching it,maybe it goes down to a dollar
40 or whatever.
Then you can swap.
You know you can swipe up andget a cheaper price on it.
On the other hand, you can goon there and it could be going
running away the other way.
So you know, but the good thingis you don't have to put a
price in, you just swipe it upand you buy it.
(25:46):
Now you can do limit orders andall that, but that's I think
that would be for another lesson.
I mean, you know there is waysthat you can set a price on
Robin Hood, but you know it's alittle more technical and I
don't think today would be areal good way to get into it,
(26:09):
you know.
But but for the most part anybeginner can buy on, tick on on
Robin Hood.
All you gotta do is just swipeup.
After you put your price in andhow many stocks you want, you're
good to go and you sell it thesame way you go in, you can sell
part, partial.
Say, you buy a hundred sharesand you only want to sell 50.
(26:34):
You can go in, punch in 50shares, swipe up and you've sold
them.
Or there's a button there tosay sell all shares.
You just click on that and itpulls all your shares up and
then, when you get ready to sell, you just swipe up and it sells
all your shares.
And uh, so you buy in at adollar 40 and 30 seconds later
(26:58):
it's a dollar 60.
You swipe up and you get outand you made 20 cents a share.
You know, that's, that's on agood day, that's that's what I
like doing, you know.
But uh, yeah, it's.
It's nothing like making a fewhundred dollars in a 30 second
time span.
Then again, in 15 seconds Ilost a $100, almost $200.
(27:22):
So you know, it's nature of thebeast, I mean.
Speaker 1 (27:28):
Well, paul, thanks for your expertise and I wish
all of our listeners the best ofluck if you're going to go out
there.
But by my alibi, Paul said itwas to make money then to lose
money all right, you know justif you got the sort of
(27:50):
personality where you can dealwith that sort of situation,
great.
If you don't, like me, I'm justtoo chicken to take the plunge
into there.
Speaker 3 (28:07):
I totally understand.
Well, I hope I was clear as mudto everybody.
I just like to wish everybodyluck that tries this and just be
safe with your money and besmart.
This and just be safe with yourmoney and and be smart.
You know, and I sure don't wantto see anybody lose their money
, but it'd be nice to see a fewof you make a little bit of
(28:28):
money.
Speaker 1 (28:29):
So yeah, what we do is, uh, you have the email
address on our website, which iswwwwhenlifegivesyoulemonsnet.
If you have questions orsituations you'd like to discuss
with Paul, I'll pass those overto him and that way you can get
(28:55):
a little bit more than myguesstimation.
You can get somebody who's gotsome educated guesses for you
and perhaps answer some of yourquestions.
Does that work for you?
Speaker 3 (29:10):
I'll be happy to help , if I can, you know.
Speaker 1 (29:14):
Okay, until next episode, take those lemons and
make your own lemonade.
Welcome to our podcast.
When Life Gives you Limits, I'mKevin.
Speaker 2 (00:06):
And I'm Palmy.
We consider ourselvesdisability advocates and intend
to spotlight some disabilityissues and things we find
interesting that we frequentlyencounter when we're out and
about.
Also some history on disabilitythat we find interesting
history on disability that wefind interesting.
Speaker 1 (00:25):
I can't see if you won't lose your benefits either
way.
If you start making you knowdecent amount of money via the
stock market or any financialway, social Security gives you a
(00:49):
six-month grace period to makesure it's going to work out
before it affects your benefits.
Any other uh agency you getbenefits from you have to check
with because I don't know eachand every one of them.
Yeah.
Speaker 3 (01:03):
Good enough.
Speaker 1 (01:07):
Okay, Paul.
Okay, let's go back to Webull.
That's an app.
Is that free as well?
It is free.
Yes, so basically, you're usinga free app to make free trades.
Yes, paper trades.
Speaker 3 (01:24):
It's completely free, it doesn't cost anything.
It's an app in your free app tomake free trades.
Yes, paper trades.
It's completely free, doesn'tcost anything.
It's an app in your phone, youknow.
You can get it on your.
You can go to the website onyour computer and, uh, you just
go in and, uh, the paper trade.
I don't believe you have to puta bank account or anything in
there.
You do have to put yourinformation in there, but I
(01:46):
don't think you have to put abank account to it just to pay
per trade on there.
It's set up where at the top ofthe page it'll say that it'll
give you the top gainers of theday.
So you can go in and and clickon that and it'll scroll down
all the stocks that day that aremaking the most money in the
(02:09):
market and you can click on oneof those and pay for trade that
stock and see how you do with it.
You know it will do the topmarket.
It also will give you the toplosers of the day on there too.
But it would say like, if youget in there early, the stock
(02:30):
market our time opens at 830.
But you can trade in thepre-market before the market
opens and on Robinhood, that is6 am, and on Robinhood, that is
6 am.
On Weeble I believe it's 4 amthat you can start trading.
You can go in there and clickon that banner at the top and
(02:56):
it'll say pre-market top gainersand you can go in there and
there's a lot of penny.
Now it won't all be pennystocks, but there are a lot of
penny stocks in there too.
You just scroll through andyou'll see stocks for seven
cents, five cents.
You'll see stocks for threehundred dollars, but you just
(03:17):
scroll through and you can findany price point that you you
would be comfortable with tryingto trade and just paper trade
that stock and see how well youdo.
And do that for a few monthsand get used to it and see how
well you do before you startusing real money.
Speaker 1 (03:36):
Okay, you mentioned that Robinhood was free.
Did they charge for your tradesor anything?
Speaker 3 (03:43):
like that yes, they all charge for your trades or
anything.
Yes, they all trade, they allcharge for your trades, but it's
not much.
I mean it's uh, you won't evennotice it.
I mean now cryptocom, if you,if you wanted to get in strictly
into crypto.
There's a lot of a lot ofcryptos on cryptocom, but
(04:09):
cryptocom charges quite a bitper trade and and when you say
quite a bit, can you?
okay, I sold all apart.
Oh well, I sold a thousanddollars worth of shibu stock on
there two years ago and it costme 120 bucks to to sell it wow
(04:31):
but robin hood's nothing likethat robin hood.
Actually, I think how robin hoodworks is they don't charge you
until you pull your money out.
I think you can make all thetrades you want free, but I
think, when you pull your moneyout is they'll take a small fee
(04:52):
off of it, but it's nothing likethat.
I mean, it's maybe, you know, afew dollars compared, but, uh,
I haven't taken any money offduring a long time, so I don't,
I don don't know.
I tried trying to build myaccount up, so I've left my
money in there for now.
But, yeah, I would reallyrecommend people paper trade
(05:17):
before they try going in themarket.
And you might find there's alot of apps out there.
You know Robinhood's not foryou.
Charles Schwab has a veryfriendly app and they have what
they call Think or Swim app thatgoes along with Charles Schwab
(05:38):
and you can pay per trade onthat one also and it will give
you the daily news on there.
You know also, and it it willgive you the daily news on there
.
You know that's.
Another thing about trading isif a stock has news come out
that day and it's good news,chances are that stock is going
to do well.
So, uh, you can go to yahoofinance, you can go to cnbc
(06:09):
finance, you can go to cnbc appand you can see all this news.
You know you can read the newsand, uh, and there's apps that
you can.
You know, there again, thatcosts money, but there's apps
you can download.
You'll get the news beforeanybody else.
But on, we will.
If you click on a stock let'ssay, the number one gainer of
the day is 11 cent stock and youthink, okay, this might be what
(06:30):
I want to get into Well, clickon that stock and at the top it
will it'll have another bannerand it'll say news and then
it'll have a new and then I havea feed where people are talking
about that stock.
But click on that news and ifthat stock has news out that day
, then there's a good chancethat stock's going to do good,
(06:53):
which of course, the news has tobe good news.
If the stock is coming out withan offering, you don't want
anything to do with that becausethat means that that stock's
going to drop.
So an offering means they'regoing to add shares to their
portfolio.
So if you have 100 shares ofthat stock and then they go and
(07:17):
they however many shares thatcompany has of that stock.
Let's say they double theirshares.
They make an offering, theydouble your shares.
Well, your stock just cameworth half of what it did it did
was worth.
So if you had 100 shares and itwas worth a hundred dollars,
(07:38):
well, you still have 100 shares.
But now, since they made anoffering and they doubled the
amount of shares that came outin the company, now your stock's
only worth fifty dollars.
You know, does that make sense?
Speaker 2 (07:50):
you know.
Speaker 3 (07:51):
So you want to stay away from any, any news where a
company is saying they're comingout with an offering.
Unfortunately, some somecompanies don't warn you about
that.
I took a big hit a few weeksago on that.
I was in a day trade and I wasup over $200 on this stock and
(08:16):
within a matter of seconds I wasdown $175, and there wasn't
nothing I could do about it.
I just had to get out of itbecause they came out with an
offering and their price oftheir stock went down.
It doesn't happen very often.
I mean, I've been doing thiswell, day trading, I've been
(08:36):
doing that for two years, cryptoand everything.
I've been doing it since beforethe pandemic, and that's the
only time it's ever happened tome.
So I don't want people to think, oh, that's something that
happens all the time.
It does happen all the time,but chances of it happening to
you all the time is pretty rare.
I mean there's how many stocksis there on the stock market?
(09:00):
I mean it's a crazy amount.
I mean it's a crazy amount andfor you to have that happen to
you more than once, then it'spretty rare, you know.
Speaker 1 (09:13):
It's like somewhere along the lines of being struck
by lightning twice.
Speaker 3 (09:20):
Kind of, kind of.
But you also got to know whatto look for.
Like I said, you know I onlytry to trade stocks that has
news behind it.
That way I know why it's goingup and why it's not.
You know, china likes to comeout with these new IPOs, which
is a new stock.
(09:40):
They'll form some company withtwo people in it and they'll
throw a new, some company withtwo people in it and they'll
throw they'll throw a new ipo onthe market and they'll they'll
put a bunch of money into thisstock to get people to come to
it.
And I've seen these things gofrom four dollars all the way up
(10:03):
to $3,000 or $4,000.
I mean not lately, that wasback in pandemic days but it's
nothing for them to go up to$100, $150.
And it's easy to get wrapped upinto that stuff, because I was
(10:27):
for a while trying to chase that.
You know that big win.
But the problem with themthings are most of the time 99
of the time they're going tospike real high and then they're
going to give it all backwithin within minutes and for
one of them to break out and golike that is very rare.
I mean very rare, and those areanother one you have to be
careful with, you know, becauseyou want to chase one of them.
(10:51):
You, you're watching it and yousee it started out that morning
at three dollars and you knowit's at thirty dollars now.
Oh man, I gotta get in this.
Well, that's strong time to getin one when it's already up to
three hundred percent.
That's a strong time to get inone when it's already up 200% or
300%.
That's not the time you want toget into a stock.
You want to get in a stock aslow as possible.
You want to be the first guy toget in that stock.
(11:12):
You want to end that stock whenit's at $6, not when it's at
$30.
And those stocks will alwayspull back at some point too.
Those stocks will always pullback at some point too.
And you know, buying a dip buyon a stock, that's where a stock
a spike like that then itstarts giving back and it gets
(11:34):
back down to the support line,which is where is usually a
previous high on that stock.
You know that's usually wherethe support line will be.
That's where, if you're goingto get into a stock that's
already spiked, that's whatyou're looking for.
Is that first dip buy.
When it comes back down to thesupport line, then you want to
(11:55):
get in it for that next wave up.
Like I said, that's all part ofday trading.
You know, if you're looking todo a long-term investment, it's
really hard to do with pennystocks, I mean because most of
them just do not hold theirgains.
Speaker 1 (12:12):
I've always heard that one of the safest
investments are bonds.
Speaker 3 (12:18):
They are Right they are.
And why do you think all theyou know Wall Street's made up
of?
Most of the wealth on WallStreet is like the top 18% of
the people trading it.
And when the market crashedFriday, where do you think all
(12:40):
those wealthy people put theirmoney?
Speaker 1 (12:42):
In bonds.
Speaker 3 (12:43):
They put them in bonds and they took it out of
the market and they put it inbonds to wait until this market
corrects itself, which themarket's in a correction mode
right now.
There's nothing really foranybody to panic with, really
(13:06):
for anybody to panic with.
You know, if you, if your 401ksare looking bad right now, is
there's there's really no reasonto panic just yet because the
market is in a correction mode.
The market has been going nuts.
S&p 500 you know it was sooverextended.
You know it was up over $600,and it was so overextended that
it had to come back down.
So as long as we stay above,I'd say, $450, $460 on the S&P
(13:37):
500, we're going to be fine.
We're going to bounce back andeverything's going to be fine.
This you know.
We're going to bounce back andeverything's going to be fine.
If that, if that goes below that, we look like we could slip
into a recession.
But if we do slip into arecession, I think it's going to
be short-lived, I don't thinkit's going to be long.
So, getting back to those bonds, what's the government do with
(14:01):
bonds?
Government takes the interestthat they get off of these bonds
and they pay bills with it.
If these rich people areputting their money into bonds
right now, then that means ourgovernment is going to be able
to pull the interest rates offof these bonds and possibly pay
(14:24):
down some of our debt, maybehelp fund some programs that
need program, you know, helpfunding maybe Social Security,
whatever it may be, and that'snot a bad thing.
It all kind of works hand inhand with one another.
So I think the next two orthree months is going to be very
(14:45):
telling of what happens, youknow, in our market.
But right now I don't thinkthere's any reason to panic
whatsoever.
I think that we're just in acorrection mode and a people
have a little bit of extra money, you know to invest in the
market.
You know now's the time to doit, because it's a historic lows
(15:06):
and that's when you want to getinto the market is when
something's low.
If you do have a little bit ofextra money and you don't know
how to invest it, I suggesttalking to you know a broker,
you know a stock broker, youbroker a retirement broker and
see what they have to say.
But if you're just $20 or $30here, I would really look into a
(15:40):
Roth IRA or something, becausethat's your safest bet.
But if you just want to play inthe market, then I would learn
all I could about it before Iput real money into it.
Speaker 1 (15:54):
Yeah, for sure, there's a lot of knowledge to be
had out there with internet,knowledge to be had out there
with you, and that it's justlike a scientific data or the
studies you do.
There can always be bias whenyou listen to somebody else's
(16:14):
opinion.
Yeah, you have to just figureout what that bias is.
You, you know.
Speaker 3 (16:22):
Do your research.
I mean that's the biggest thingI can tell people is to do your
research and come to your ownconclusions of what is best for
you.
I don't want anybody takingfinancial advice from me.
I'm just here trying to giveyou some options of what to look
at and how to go about it, butI would never recommend any
(16:44):
stock to anybody.
I would never recommend you putmoney into stock.
I wouldn't recommend you putmoney into crypto.
I'm just saying I'm giving youthe options of what I would do,
you know, or what I do do.
Speaker 1 (17:00):
I don't think stock trading, whether it be penny
stocks or crypto, is like foreverybody no I don't have the uh
sort of personality to you know.
Make that work, I'm too cheap.
Speaker 3 (17:17):
You gotta have nerves , and it's too cheap I chicken
out before I would make moneyand you know it didn't freak out
when I didn't so it'sdefinitely it plays on your
emotions.
You know, that day I lost 175dollars.
My heart was broken.
(17:37):
But but you know, the next dayI made it back and I was on
cloud nine.
I mean, it was just a rush likeyou wouldn't believe.
But you know, unfortunatelythere's been more of those lost
days and you know, it seems likemy losses are a lot bigger than
(17:58):
my wins sometimes.
But I'm getting there.
I mean it's all a work inprogress.
I mean I uh, it's uh.
There's another thing.
I we didn't talk about thisbefore we got time to go over
something else here.
Sure, if you do get in to stocktrading and you find that you
(18:25):
have a niche for this and youthink that you can make money at
this and say you do make money,but you just don't really have
the money to invest in it, toreally fund your account the way
you want to invest in it, toreally fund your account the way
(18:46):
you want, there are companiesout there.
They're prop firms and whatthey do is you can buy an
account from them.
You spend your real money andyou buy an account from them,
account from them and you haveto pass a test depending on how
big of a account you want.
(19:09):
They go from $10,000 all theway up to $200,000.
So you can get in.
You can get into one of these$10,000 accounts for under $100.
So what you'll have to do isyou'll have to make $10,000 in
(19:31):
the market before you lose$10,000.
If you lose $10,000, thenyou've lost your money, you've
lost everything.
You had to refund the account,and if you had to refund the
account the next time, it costsmore so.
But the good side is, if you getfunded, then they give you real
(19:56):
money because you're papertrading on the test, and this
isn't penny stocks.
This is, this is s&p 500 stocks.
These are blue chip stocksyou'll be trading.
So you go in and you get funded.
Well then you, the first threewithdrawals you can make off of
(20:21):
there will be $1,000 apiece.
If you make that much, you haveto be able to make that money,
but you'll get funded 100% ofthat $1,000.
Then after that, you can pulloff however much you want.
If you make $20,000, you canpull off however much you want.
(20:42):
If you make twenty thousanddollars, you can pull off that
twenty thousand dollars, butthey get ten percent of that.
You'll get 90 and they'll get10, and you can.
Only you'll have the way it'sset up you can only pull money
off of it every 14 days.
Up is you can only pull moneyoff of it every 14 days and you
(21:04):
have to make at least six tradesof 50 or more one way or the
other, loss or gain in those inthose 14 days.
So now these firms are set upto make money.
So the guy that I follow hasbeen in the stock market for
(21:24):
years.
He's 31 years old, he's aself-made millionaire and the
first two prop firm attemptsthat he made he failed both of
them.
So I don't want people to thinkyou know this is easy money
because it's not.
So I don't want people to thinkthis is easy money because it's
not.
I'm doing one right now andI've not failed out of it yet,
(21:52):
but I'm getting close.
I bet on the S&P 500 yesterdayor Friday to bounce back up and
I didn't make it.
So if I was shorted to the S&P500 yesterday instead of betting
on it to go up, then I'd havebeen sitting all right, but that
(22:14):
is an option.
But I only suggest you evenlook into this after you're
familiar with the market andyou've been doing it for a long
time and you feel comfortablethat you can make money in the
market Right.
Speaker 1 (22:34):
But it is an option.
Our discussion so far, thefreest, cheapest and best option
to start with is going withpaper trades.
Get a feel for what you'redoing.
Speaker 3 (22:53):
Yes, absolutely.
Speaker 1 (22:54):
The app is free and the trades you're making you're
using fake money for it.
So it you know it's likeplaying a video game, if you
will, it's just rightentertainment, education,
whatever it's kind of likeplaying monopoly right then
(23:17):
perhaps, if you decide this issomething you want to do, you
want to look at Robinhood.
Speaker 3 (23:24):
Yes.
Speaker 1 (23:25):
And then you can start trading.
Is there anything you can'ttrade on Robinhood?
Speaker 3 (23:34):
Well, there is some penny stocks that Robinhood
won't have on there, I mean, butfor the most part, robin hood
has everything.
Now crypto they're limited towhat they have on crypto.
You know they do have thebasics of crypto, but but they
don't have a lot of crypto onthere.
(23:56):
But, uh, no, you can.
You can trade just aboutanything on there.
I mean, uh, and the thing aboutrobin hood that's good, why I
say it's good for beginners mostof these apps they have a buy
and ask.
(24:18):
When you're trading and you haveto put in a price to what you
want to buy the stock at.
Let's say the stock is, let'ssay the ask is three dollars and
the buy is two 289 or whatever.
Well, you have to decidesomewhere between those two
(24:40):
where you want to buy.
On Robinhood, you don't have todo that.
On Robinhood, you click on theticker, you pull up the stock,
you hit buy, you punch in howmany shares you want and then
you just swipe up and it buys itfor you.
You don't have to worry aboutputting in any price, but now it
(25:01):
buys at the price you can watch.
Whenever you set everything up,you can sit there and watch the
stock and you can watch it,move the price on it.
So you can say, okay, you knowthe stock's at $1.49, you know,
but it went down to $1.46.
Well, you can keep watching it.
(25:21):
Maybe it goes down to dollar 46.
Well, you can keep watching it,maybe it goes down to a dollar
40 or whatever.
Then you can swap.
You know you can swipe up andget a cheaper price on it.
On the other hand, you can goon there and it could be going
running away the other way.
So you know, but the good thingis you don't have to put a
price in, you just swipe it upand you buy it.
(25:46):
Now you can do limit orders andall that, but that's I think
that would be for another lesson.
I mean, you know there is waysthat you can set a price on
Robin Hood, but you know it's alittle more technical and I
don't think today would be areal good way to get into it,
(26:09):
you know.
But but for the most part anybeginner can buy on, tick on on
Robin Hood.
All you gotta do is just swipeup.
After you put your price in andhow many stocks you want, you're
good to go and you sell it thesame way you go in, you can sell
part, partial.
Say, you buy a hundred sharesand you only want to sell 50.
(26:34):
You can go in, punch in 50shares, swipe up and you've sold
them.
Or there's a button there tosay sell all shares.
You just click on that and itpulls all your shares up and
then, when you get ready to sell, you just swipe up and it sells
all your shares.
And uh, so you buy in at adollar 40 and 30 seconds later
(26:58):
it's a dollar 60.
You swipe up and you get outand you made 20 cents a share.
You know, that's, that's on agood day, that's that's what I
like doing, you know.
But uh, yeah, it's.
It's nothing like making a fewhundred dollars in a 30 second
time span.
Then again, in 15 seconds Ilost a $100, almost $200.
(27:22):
So you know, it's nature of thebeast, I mean.
Speaker 1 (27:28):
Well, paul, thanks for your expertise and I wish
all of our listeners the best ofluck if you're going to go out
there.
But by my alibi, Paul said itwas to make money then to lose
money all right, you know justif you got the sort of
(27:50):
personality where you can dealwith that sort of situation,
great.
If you don't, like me, I'm justtoo chicken to take the plunge
into there.
Speaker 3 (28:07):
I totally understand.
Well, I hope I was clear as mudto everybody.
I just like to wish everybodyluck that tries this and just be
safe with your money and besmart.
This and just be safe with yourmoney and and be smart.
You know, and I sure don't wantto see anybody lose their money
, but it'd be nice to see a fewof you make a little bit of
(28:28):
money.
Speaker 1 (28:29):
So yeah, what we do is, uh, you have the email
address on our website, which iswwwwhenlifegivesyoulemonsnet.
If you have questions orsituations you'd like to discuss
with Paul, I'll pass those overto him and that way you can get
(28:55):
a little bit more than myguesstimation.
You can get somebody who's gotsome educated guesses for you
and perhaps answer some of yourquestions.
Does that work for you?
Speaker 3 (29:10):
I'll be happy to help , if I can, you know.
Speaker 1 (29:14):
Okay, until next episode, take those lemons and
make your own lemonade.
Host
Jetheswaran Gunasekaran
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