#1,341 How to use the proper vehicle investing and trading

Episode Transcript

Speaker 1 (00:03):
Welcome back to Investing in Trade Live sponsored by Trading Academy.
As always, I am your host, Josh little Quist with
my good friend al Conics and dropping some dues and
don'ts on the financial markets how they work. Trading Academy
is a place where you can actually go right here
in Bloomington to learn these skills of investing in trading,
how to make smart investing decisions in those retirement accounts,

(00:24):
which we'll talk about here coming up, but also in
those trading accounts as well. And we had a lot
of people texting in and going to the website for
those free investing and trading workshops. If you wanted to
learn more about financial literacy and things you can do
to protect those retirement accounts or grow them if you
need them, there's strategies designed to that. But also if

(00:46):
you have trading aspirations you want to learn how to
trade for an extra income strategy or whatever, maybe it's
income during retirement, there are strategies designed for that by
using those markets as well. There's different asset classes which
we'll also talk about coming up here. Simply just come
into one of these free investing and trading workshops and
learn these techniques and concepts to help you make smart

(01:07):
decisions financially. Text the word investing right now to the
number two ten, two ten, and that's for two seats,
one for you and a friend. Or go to trading
Academy dot com and you can pick your own seat
and date there. That's text investing to the number two
ten two ten, or go to Trading Academy dot com. Also,
don't forget to follow our podcast that's Investing and Trading

(01:28):
Live wherever you listen to your podcasts, Apple Podcasts, iHeartRadio
on Spotify. Gosh, I believe we're probably the one of
the longest raining podcasts on the financial markets in the metro.
Here we got about thirteen hundred and forty or so episodes.
I mean, gosh, we've been doing this for how many years?
Al it is so many years, that's crazy. I don't
even remember what I did yesterday, but I don't know
a lot many many years have been doing this financial podcast.

(01:51):
So make sure you follow the subscribe to us wherever
you listen to your podcast. So l on this next
segment here. As we talked about in that last segment,
important to first off know who's moving the markets we
know it's the banks and institutions, the big monies, but
also it's all important to have a strategy that's step
by step, that's designed to follow them, and that's supply

(02:13):
and demand. We talk about that in these free investing
and trading workshops for people that are coming to those
But once you have that strategy, you have to utilize
the right vehicle or the right asset. Now when we
talk about the right asset or I call it the
right vehicle, because each vehicle does something a little bit different.
If you're going to you know, if I'm gonna go
to my place in Daniel Beach, Florida, I could ride

(02:35):
a bike. It's gonna take me a while. I might
have a couple of choice words might be a little
sore by the time you get look at a map.
Technically you're going down to sea level right, which down exactly,
but that you know you can take a bike there.
That would be a way to do that. That's kind
of like the stock market. Slow right, it's going to
do whatever. Then you have I could take a jet plane,

(02:58):
which might be the futures market, or you might take
a ferrari there, which would be like the four x
market or SUV. Say you're taking the family and you
need to pull a trailer or have some luggage, you
need the multi used vehicle to do that. That's kind
of like the options market. The options market no pun intended,
but has many many options that you can utilize. So

(03:19):
once you have a strategy but also the right vehicle,
then you have something that you can do for what
you needed to do for right. So, say you're looking
for an income strategy. A lot of people utilize these
markets that have leverage, so that way you don't have
to use all your money because a lot of people
come to us and say, you know, I got I
only want to put five thousand bucks in the market. Well, great,

(03:40):
you don't have to put all your money in there.
You shouldn't put all your money in the market, but
technically with stocks you kind of have to. There are
ways to use less capital. Dissect that a little bit, ol.
How do you use less capital or leverage in the
market so that way you keep most of your money protected.

Speaker 2 (03:57):
Yeah, you know the example you used as vehicles that
you could utilize to get to Florida. You know, basically
in investing in trading, what you need to do first
of all is identify what your goal is. Your goal
is to go to Florida, and then when do you
want to get there. I mean, if you don't need
to be there for two or three years.

Speaker 1 (04:15):
You could ride a button, I could write it, but
you need to get for the long haul.

Speaker 2 (04:20):
We hear that a lot, don't wait. But if you
need to get there quickly, maybe you need to be
there this afternoon or tomorrow, you have to use a
different vehicle to do that. And that's the same thing
in trading and investing.

Speaker 1 (04:30):
Well, thinking about this way too. If you have time constraints,
you need to do it in a faster.

Speaker 2 (04:36):
Pace, right And the problem is if you don't know
how to do it properly, you are taking on risk
that you shouldn't be doing that. You know, risk is
the volatility. Risk is something we use in our favor.
You take calculated, managed risks and that's very different than
being reckless and that's what most people do. But let
me talk about the difference between trading and investing, and

(04:59):
it's it's really just time. Somebody who is a trader
is looking at getting into and out of something more
short term. That's income. If you need income, you can't
wait ten or twenty or thirty years to get money
to pay for something. Now, that's more long term investing.
But if you need income, you have to use the
right assets and the right strategies to get into something

(05:22):
and get out quickly.

Speaker 1 (05:23):
That always reminds me of that all commercial it's my
money and I need it now.

Speaker 2 (05:27):
JG wentber there you go.

Speaker 1 (05:29):
I think that's who it was.

Speaker 2 (05:30):
It was, Yeah, And also understand that now seven out
of every ten Wall Street dollars is used in trading,
so seventy percent of the activity is in trading as
opposed to investing. Why is that well, because these guys
know and we do too, that when you're looking at
putting something together for ten or twenty or thirty years,

(05:52):
basically you're trying to predict what the economy and the
markets and that particular company or industry is going to
be likened to twenty or thirty years. You know, years ago,
if you had put all your money in Blockbuster, how
would you be doing? Not too well's And that's one
of the things about technology. Technology is always changing things,

(06:14):
so you really have to almost be able to identify
things on a short term basis. When you're a trader,
you are not looking at what the growth of a
company is going to be over time. You're looking at
the movement of price on a short term basis, which
is relative to you. That's part of what we identify
when we put a plan together for someone. When do

(06:35):
you need the money, how soon do you need it,
what's the frequency? And then a goal is put together
with the right assets and strategies to identify and get
to that timeframe when you need it. So that's important.
If seven out of ten dollars, seventy percent of all
the money in Wall Street is used in trading, and
the big institutions are responsible for eighty to ninety percent

(06:59):
of the trades of investments they're trading. You know, if
you look at people, a lot of people have seen
coverage of what the trading pits used to look like.
You know, when the bell rang to open the market,
it was just pandemodium. These guys were yelling and screaming
and trading with each other. If Golden Sacks hires somebody
to invest their money for them, they are not putting

(07:22):
together a one time portfolio that they're going to hold
on to pretend or twenty thirty years. They need to
be getting in and out of something the same day,
maybe within a few minutes, or maybe a couple of days.
They're doing something different, and they're doing it because they
understand that's how they make their profits. That's how you
take advantage of these markets. And then the other thing

(07:43):
is I mentioned before, what are the problems people have
is they don't know the answer to these questions? What
is if the banks do that you don't and what
is that the banks know that you don't. Well, the reality,
the truth is that it's really nothing more than you
have access to just to They don't want you to
know what they're doing. They try to hide it, and

(08:04):
they don't want you to learn too much. They would
rather have people be more financially illiterate.

Speaker 1 (08:10):
Well, I think the challenge they're all is is you know,
I would contest that a little bit because all the
knowledge is out there, it's all free knowledge. Sure, you
can get anything you want, you can google any knowledge.
But the difference is is what you do with that
knowledge and how you interpret.

Speaker 2 (08:25):
It, interpret that it's how you use it. And if
you don't use.

Speaker 1 (08:29):
It, Yeah, and if you don't have that strategy, well,
then you're just basing your decisions off of guesses and hopes,
which is not a consistent strategy. And that's one of
the challenge I think a lot of listeners have, is
they're basing their decisions off Oh, I hope this works out.

Speaker 2 (08:43):
Now.

Speaker 1 (08:44):
You got to think about this a couple of times.
I mean, you've got to think about you mentioned a
few times over this last couple couple of segments here
that institutions are moving in the market. It's the big
money and you almost have to if you're listening right now,
say you're in your fifties right now, and we talked
about using the leverage assets to have the opportunity to
speed things up because they go faster, kind of like

(09:05):
rel and ride a bike or take a plane or
take a sports car. Right if you're in your fifties
right now and you're not where you need to be financially,
and you've been doing that, whatever you've been doing to
get there, what do you think will change if you
do the same thing, just more of it, Nothing's going
to change. That's why it's so important to use the
right asset class or the right vehicle to get to

(09:27):
where you're trying to be so you can be efficient
with your time, also your schedule, and then most importantly
be efficient with your money. And that's what the institutions
are doing. And that's one of the big things that
Trading Academy does is bridges that gap from what the
institutions are doing and what you're doing right now, if
you're listening and what can you do a little bit

(09:49):
differently to have the opportunity to reach the goals or
objectives that you do have. And sometimes it's financial, sometimes
it's just time, sometimes it's just there's many different reasons
people are looking for something different. But if you continue
to do that same thing over and over again, you
will get that same result. So in these free trading
and investing workshops that we do right here at the

(10:11):
Academy and all across the metro, we bring in these
strategies what are the opportunities And the cool thing about
that l is now you can make your own educated decision,
not someone deciding for you. So coming to one of
these investing in trading workshops and check that out by
texting the word investing to the number two ten two ten,
and that's for two seats one for you and a friend,

(10:31):
or go to Trading Academy dot com and pick your
own seat and date there. We have these classes all
across the metro days, evenings, and weekends. Now coming up next,
we have a lot more to discuss. It seems like
we're not getting anything done here today, but we have.
We're going to talk about those income strategies and more
retirement strategies. If you have those four O one k's
and I rais, this is Josh and Nol investing in
Trading Live.

Speaker 2 (10:51):
We'll be right back