Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
And your own date there. So with with that, the
podcast has been getting a lot of traction. Now we're
trying to make this the global number one podcast Investing
in Trading Live wherever you list of your podcasts, Apple Podcasts, iHeartRadio,
and Spotify. So make sure to check that. I'll hit
the bell so you get notified when new segments come
out each and every single day on Investing and Trading Live.
(00:22):
So out with this next segment here, I do want
to just discuss briefly since we haven't got a chance
to do that yet. On the last segment, was the
good old Krispy Kreme. Back in my old construction days,
I actually built a few of these locations, did the
site work and development. I think it was four different
Krispy Cremes. And this was back in the early early
(00:43):
two thousands, if I'm not mistaken in Minnesota. In Minnesota here, yeah, no,
they're gone, I believe. I can't even I drove by
one the other day and it was I don't remember
what it was, but there was one in Apple Valley,
there was one in Eden Prairie, one in Waite Parkland
saying Saint Cloud, and there was a couple other ones
that we did, and they were booming back we'll call
(01:05):
it back in the olden days, but now they're gone
so quite frankly, let's almost reflected in their stock price
this past week. It was down to actually, you know,
around the three dollars mark, but they had a big
movement to the upside on the twenty third, which is Wednesday.
(01:26):
But it gapped up and shot straight down. Now what
happens when people just invest after the news, because you know,
there's a lot of people that bought after the market
went up and it shot straight down. Everybody lost their money.
So why do people do that? And what can you
do so that doesn't happen to people?
Speaker 2 (01:42):
Yeah, and that happened in a big way back a
few years ago with Game Stop where we shot up.
I mean just it was like a rocket chant AMC.
Yeah in AMC's right, and people kept buying on the
way up. That's what drove it up. There were some
people that ended up buying at the very top and
then lost a ton of money. That's what That's what
when we call these meme stocks. Uh, the activity there
(02:05):
is primarily caused initially by short selling, shortcovering, I should
say those stocks are heavily shorted, and then when some
news comes out, and that's typically on some kind of
a social media platform, people jump in. They start buying,
causing the people that are short to go in and buy.
They're either doing more options or buying the stock itself.
(02:26):
That's what drives them up. They're late to the party
because these people are doing this short term, but the
public doesn't necessarily know that, so they end up again
buying at the wrong time, you know. And I think
one of the things that you have to understand is
that you don't need to always be looking for an
opportunity like that. You know, that's a gamble. You have
(02:49):
to determine what kind of a trader investor you are.
But if you're gambling, typically the other.
Speaker 1 (02:55):
Word that goes along with that is a loser.
Speaker 2 (02:59):
But I'm being realistic, you know, and there are all
sorts of assets out there that you can trade on,
some really great companies that give you the opportunity to
generate income on a regular basis, that also give you
the opportunity to get better returns from your stock. Just
because you own a stock doesn't mean you're getting the
(03:20):
most out of it. And what I mean by that is,
here's an analogy. Let's say that you and your neighbor
each plant a rosebush in your yard. Okay, your neighbor
doesn't water it, never weeds around it, but you do.
You take really good care of that rose bush. Who's
going to have the better roads probably you. Well, the
same thing is true with just have to hold it
(03:42):
and sit there and watch what happens. There are assets
you can use and strategies where you can boost the returns.
You can have protection on it, so if it does
happen to go the opposite direction of where you want
it to go, you're protected.
Speaker 1 (03:55):
Well. With that being said, so what also is happening
there al is there time up a lot of capital.
So say about a thousand shares at four bucks per share,
that's four thousand bucks that you're actually risking in the market. Now,
going back to the leverage aspect, how do you protect
that a little bit? Because if you're able to use leverage,
you're using smaller amounts of money, so you're not putting
(04:17):
all of your money in the market. You may only
risk fifty bucks a time one hundred bucks of time,
and then you because of that smaller amount of money,
you're using or tying up, that rate of return is higher,
So talk about that a little bit.
Speaker 2 (04:30):
Yeah, in position sizing is one of the important thing.
That's one of the ways that you manage risk is
not to put too much money into any individual asset.
But for a lot of people investing in companies like
Tesla or Google, that's really expensive. If you want to
have enough shares to make any money, you know, you
might be tying up thirty forty fifty thousand dollars. That's
(04:52):
a lot of money to have in one position, which
you never.
Speaker 1 (04:54):
Some people it is. Yeah, yeah, sometimes that's everything ever
someone has.
Speaker 2 (04:57):
Yeah, but let's just say that you're looking at where's
what's Google trading at? Right now?
Speaker 1 (05:02):
Google is trading at one hundred and ninety three bucks
share of.
Speaker 2 (05:05):
Okay, so let's just say it's nineteen thousand or twenty
thousand dollars to have one position. What if you could
still benefit from the movement of Google and keep that down,
say under one thousand dollars or under maybe four or
five hundred dollars.
Speaker 1 (05:19):
So you can control shares of Google and you don't
have to buy or put all of your money in
that one hundred and ninety few bucks per share.
Speaker 2 (05:26):
That's correct, So you can you can benefit from the
movement of Google without actually owning Google. If you own
Google stock, you can benefit from increasing the returns and
also making sure that if it does Because stocks fluctuate,
the market fluctuates all the time, so there will be
periods of time when something goes down. I've used Intel
(05:46):
as an example many times. In the year two thousand,
intell Is trading is seventy four dollars a share. It's
twenty five years later and it's trading around twenty two
dollars a share.
Speaker 1 (05:56):
Yep, twenty two to eighty seven rough that's the time
of the show. A.
Speaker 2 (05:59):
Yeah, a lot of people that just bought it and
held on to it are way underwater. But a lot
of people basically traded it and used some of the
leverage assets to get benefit from Inteling probably made a
lot of money with it.
Speaker 1 (06:13):
So there's different ways to tackle these markets. And it's
not just buying and holding. It's actually, like you talked
about and alluded to in the second segment, happens and
before you even execute that trade, and that's actually built
with a trading and investing plan and That's one of
the cool things about Trading Academy is they have strategies.
(06:36):
Trading Academy has a bunch of strategies, but each strategy
might be a little bit different based on what the
market is actually telling you to do. So there are
strategies for up markets. Everybody knows that, that's pretty obvious
as consumers. Everybody knows that there are strategies for down markets,
and there are also strategies for those sideways markets. And
(06:57):
as al mentioned in the second segment as well, there
are strategies in some of the leveraged asset classes, or
one of them in particular, where it doesn't matter which
way the market goes. You just want a big movement
in either the up direction or the down direction, so
you don't even have to be right. So that's what
Trading Academy does is trains these different techniques and concepts
(07:20):
on market conditions rather than just a one size fits
all strategy. And the problem is that's what most people
are doing, is they have one direction. Not the musical group.
The musical group on directions, it's pretty good. They have
a lot of hits, how hit singles, But if you're
in a one directional strategy, you have one out of
(07:41):
three opportunities to benefit in your accounts. So, in these
free investing and trading workshops that I've been given away
seats to over the last few segments, here we dive
into that dive into market condition. What might be opportunities
in up markets, so it might be opportunities in those
(08:02):
down markets. What can you do for investing for the
quote unquote long term or the trading side of it.
If you're looking at trading strategies for an income strategy,
Trading Academy has strategies for that as well. So I'd
like to invite you to this free investing and trading
workshop that we do locally here at the Academy. It's
a physical place you can go. We have a state
(08:22):
of the art facility right here in Bloomington. We also
have locations all across the metro where we go to
and deliver these free investing and trading workshops. To come
into one of these, just text the word investing to
the number two ten two ten for two seats, one
for you and a friend, Or go to Trading Academy
dot com and you can go and you can pick
(08:43):
your own seats. There. That's Trading Academy dot com and
you can pick your own seats and date there so
when you do that, we have these classes during the
week the weekend so anybody can attend. So coming up next,
we're going to get into why it's so important to
do this yourself, not to try us a stranger to
get you to that promised land. So stay tuned to
(09:04):
managing your own accounts. Coming up next, this is joshuaw
with investing in Trading Live. We will be right back
And your own date there. So with with that, the
podcast has been getting a lot of traction. Now we're
trying to make this the global number one podcast Investing
in Trading Live wherever you list of your podcasts, Apple Podcasts, iHeartRadio,
and Spotify. So make sure to check that. I'll hit
the bell so you get notified when new segments come
out each and every single day on Investing and Trading Live.
(00:22):
So out with this next segment here, I do want
to just discuss briefly since we haven't got a chance
to do that yet. On the last segment, was the
good old Krispy Kreme. Back in my old construction days,
I actually built a few of these locations, did the
site work and development. I think it was four different
Krispy Cremes. And this was back in the early early
(00:43):
two thousands, if I'm not mistaken in Minnesota. In Minnesota here, yeah, no,
they're gone, I believe. I can't even I drove by
one the other day and it was I don't remember
what it was, but there was one in Apple Valley,
there was one in Eden Prairie, one in Waite Parkland
saying Saint Cloud, and there was a couple other ones
that we did, and they were booming back we'll call
(01:05):
it back in the olden days, but now they're gone
so quite frankly, let's almost reflected in their stock price
this past week. It was down to actually, you know,
around the three dollars mark, but they had a big
movement to the upside on the twenty third, which is Wednesday.
(01:26):
But it gapped up and shot straight down. Now what
happens when people just invest after the news, because you know,
there's a lot of people that bought after the market
went up and it shot straight down. Everybody lost their money.
So why do people do that? And what can you
do so that doesn't happen to people?
Speaker 2 (01:42):
Yeah, and that happened in a big way back a
few years ago with Game Stop where we shot up.
I mean just it was like a rocket chant AMC.
Yeah in AMC's right, and people kept buying on the
way up. That's what drove it up. There were some
people that ended up buying at the very top and
then lost a ton of money. That's what That's what
when we call these meme stocks. Uh, the activity there
(02:05):
is primarily caused initially by short selling, shortcovering, I should
say those stocks are heavily shorted, and then when some
news comes out, and that's typically on some kind of
a social media platform, people jump in. They start buying,
causing the people that are short to go in and buy.
They're either doing more options or buying the stock itself.
(02:26):
That's what drives them up. They're late to the party
because these people are doing this short term, but the
public doesn't necessarily know that, so they end up again
buying at the wrong time, you know. And I think
one of the things that you have to understand is
that you don't need to always be looking for an
opportunity like that. You know, that's a gamble. You have
(02:49):
to determine what kind of a trader investor you are.
But if you're gambling, typically the other.
Speaker 1 (02:55):
Word that goes along with that is a loser.
Speaker 2 (02:59):
But I'm being realistic, you know, and there are all
sorts of assets out there that you can trade on,
some really great companies that give you the opportunity to
generate income on a regular basis, that also give you
the opportunity to get better returns from your stock. Just
because you own a stock doesn't mean you're getting the
(03:20):
most out of it. And what I mean by that is,
here's an analogy. Let's say that you and your neighbor
each plant a rosebush in your yard. Okay, your neighbor
doesn't water it, never weeds around it, but you do.
You take really good care of that rose bush. Who's
going to have the better roads probably you. Well, the
same thing is true with just have to hold it
(03:42):
and sit there and watch what happens. There are assets
you can use and strategies where you can boost the returns.
You can have protection on it, so if it does
happen to go the opposite direction of where you want
it to go, you're protected.
Speaker 1 (03:55):
Well. With that being said, so what also is happening
there al is there time up a lot of capital.
So say about a thousand shares at four bucks per share,
that's four thousand bucks that you're actually risking in the market. Now,
going back to the leverage aspect, how do you protect
that a little bit? Because if you're able to use leverage,
you're using smaller amounts of money, so you're not putting
(04:17):
all of your money in the market. You may only
risk fifty bucks a time one hundred bucks of time,
and then you because of that smaller amount of money,
you're using or tying up, that rate of return is higher,
So talk about that a little bit.
Speaker 2 (04:30):
Yeah, in position sizing is one of the important thing.
That's one of the ways that you manage risk is
not to put too much money into any individual asset.
But for a lot of people investing in companies like
Tesla or Google, that's really expensive. If you want to
have enough shares to make any money, you know, you
might be tying up thirty forty fifty thousand dollars. That's
(04:52):
a lot of money to have in one position, which
you never.
Speaker 1 (04:54):
Some people it is. Yeah, yeah, sometimes that's everything ever
someone has.
Speaker 2 (04:57):
Yeah, but let's just say that you're looking at where's
what's Google trading at? Right now?
Speaker 1 (05:02):
Google is trading at one hundred and ninety three bucks
share of.
Speaker 2 (05:05):
Okay, so let's just say it's nineteen thousand or twenty
thousand dollars to have one position. What if you could
still benefit from the movement of Google and keep that down,
say under one thousand dollars or under maybe four or
five hundred dollars.
Speaker 1 (05:19):
So you can control shares of Google and you don't
have to buy or put all of your money in
that one hundred and ninety few bucks per share.
Speaker 2 (05:26):
That's correct, So you can you can benefit from the
movement of Google without actually owning Google. If you own
Google stock, you can benefit from increasing the returns and
also making sure that if it does Because stocks fluctuate,
the market fluctuates all the time, so there will be
periods of time when something goes down. I've used Intel
(05:46):
as an example many times. In the year two thousand,
intell Is trading is seventy four dollars a share. It's
twenty five years later and it's trading around twenty two
dollars a share.
Speaker 1 (05:56):
Yep, twenty two to eighty seven rough that's the time
of the show. A.
Speaker 2 (05:59):
Yeah, a lot of people that just bought it and
held on to it are way underwater. But a lot
of people basically traded it and used some of the
leverage assets to get benefit from Inteling probably made a
lot of money with it.
Speaker 1 (06:13):
So there's different ways to tackle these markets. And it's
not just buying and holding. It's actually, like you talked
about and alluded to in the second segment, happens and
before you even execute that trade, and that's actually built
with a trading and investing plan and That's one of
the cool things about Trading Academy is they have strategies.
(06:36):
Trading Academy has a bunch of strategies, but each strategy
might be a little bit different based on what the
market is actually telling you to do. So there are
strategies for up markets. Everybody knows that, that's pretty obvious
as consumers. Everybody knows that there are strategies for down markets,
and there are also strategies for those sideways markets. And
(06:57):
as al mentioned in the second segment as well, there
are strategies in some of the leveraged asset classes, or
one of them in particular, where it doesn't matter which
way the market goes. You just want a big movement
in either the up direction or the down direction, so
you don't even have to be right. So that's what
Trading Academy does is trains these different techniques and concepts
(07:20):
on market conditions rather than just a one size fits
all strategy. And the problem is that's what most people
are doing, is they have one direction. Not the musical group.
The musical group on directions, it's pretty good. They have
a lot of hits, how hit singles, But if you're
in a one directional strategy, you have one out of
(07:41):
three opportunities to benefit in your accounts. So, in these
free investing and trading workshops that I've been given away
seats to over the last few segments, here we dive
into that dive into market condition. What might be opportunities
in up markets, so it might be opportunities in those
(08:02):
down markets. What can you do for investing for the
quote unquote long term or the trading side of it.
If you're looking at trading strategies for an income strategy,
Trading Academy has strategies for that as well. So I'd
like to invite you to this free investing and trading
workshop that we do locally here at the Academy. It's
a physical place you can go. We have a state
(08:22):
of the art facility right here in Bloomington. We also
have locations all across the metro where we go to
and deliver these free investing and trading workshops. To come
into one of these, just text the word investing to
the number two ten two ten for two seats, one
for you and a friend, Or go to Trading Academy
dot com and you can go and you can pick
(08:43):
your own seats. There. That's Trading Academy dot com and
you can pick your own seats and date there so
when you do that, we have these classes during the
week the weekend so anybody can attend. So coming up next,
we're going to get into why it's so important to
do this yourself, not to try us a stranger to
get you to that promised land. So stay tuned to
(09:04):
managing your own accounts. Coming up next, this is joshuaw
with investing in Trading Live. We will be right back
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