Episode Transcript
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Today I'm going to talk about howyou can plan for, prepare for,
and get through the next financial crisis. Let's talk about that and more right
now, Hey the Traders, AndrewMitcham here at the Forest Trading Coach with
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video and podcast number five hundred andforty. Now. I asked people to
give me some topics to talk aboutthings that will be helpful for you,
and one of the main topics hascome up is back, how do we
survive the next almost certainly coming financialcrisis? So to start and to prepare
for this, what I've done ishad a look on the internet and I
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want to talk about what they suggestand then my thoughts after that. First
of all, I have to letyou know that what I'm about to say
is not financial advice. It's purelymy own thoughts and opinions which may or
may not work for you. Sodid some research online typed in how to
survive a financial crisis? Upcome thestandard answers of one, increase your income,
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two decrease your expenses, and threeincrease your savings. Quick overview on
boats increasing your income, How areyou going to do that? Well,
you're probably going to if you're ina corporate job, work harder and up
the ladder, which means less timeat home, et cetera. Like that,
more stress you maybe working more hoursin your current job, not a
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great outcome either, or you mightbe going out there for a second or
third job. Again not a greatoutcome. So there's better ways you can
do that. Number two and decreasingyour expenses is something that most people can
do. From my own point ofview, we like to be completely self
sufficient here, I say we're aboutmaybe eighty ninety percent self sufficient in what
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we eat at home, and wechoose to do that. We choose to
grow our own food as much aspossible, our own you know, the
fruit, vegetables, meat, etcetera. Like that, Everything we try
to do is for our own choice, for a health reason and enjoyable reason.
Of actually growing and eating our ownfood, we know what we're eating
and less reliant on the system,on the supermarkets and the crazy inflated prices
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out there, So that may ormay not be something you could do.
As an example. The third one, to increase your savings not very practical
for most people around the world,giving the cost of living. Just as
an example, we've had interest ratescome off here just last week for me
personally at two point seventy nine.They wanted it to float it at eight
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point something or fix it at sevenpoint something. Just massive expenses going up
there for everybody. Your cost ofliving and cost of your groceries, it
food is we've mentioned your fuel,your rate, your taxes. You know,
everything goes up and up the wholeinflation. So saving more for those
people is not really a practical outcomeback. So that's what the Internet says.
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These are now my thoughts of whatyou potentially could do, because for
me, some surviving or anything forfinancial a lot of it comes down to
your mindset, your thoughts, youremotions, and most people don't give that
enough time to actually realize that finances. A lot of it is ay you
think, you know, we're taughtto go to school to get the job,
to get the grades, to dothe job, work up high,
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all those things, and you willknow that most people who are successful in
life do things a little bit differently, and you know that comes down to
a mindset and being willing to accept. But not everything we've been taught is
probably quite accurate. Different topic possiblyfor another day, but you get what
I mean. So for me,change of mindset is huge. You know,
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what are you going to do tochange what you're currently doing if it's
not working? You see, whenyou have financial issues, course, it's
all sorts of emotional stress and anxietyand relationship issues and it's a big,
you know, bubbling mess. It'snot good. So I think one of
the important things you can do rightnow is to plan and prepare. I
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don't think enough people plan and prepareanything. You know. You hear that
people will talk about and argue aboutwhat they're going to watch on TV or
what they're going to cook for dinnermore than they'll prepare and plan and talk
about their financial future. And that'ssad but true for a lot of people.
You need to change that. Butyou need to change that mindset.
You need to upskill yourself. Youneed to invest in yourself some time,
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some education. Turn the TV offit's a waste of time, there's nothing
on there worth watching anyway, andlearn a new skill. That's how you're
going to get there. Everybody hasthe same amount of time, so the
excuses of I don't have time andit doesn't work. We've had five kids,
different businesses, everything else. Iknow that a lack of time is
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a big issue for almost everybody,but we all have the same problem.
It's how you make use of thattime but becomes important. So I think
one of the best things you cando is to learn a skill today whilst
maybe when not in that financial crisisright now, to prepare yourself and to
plan and think about how you're goingto do things differently right now when that
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pressure maybe not completely is not completelyon you, so you can prepare and
train your mind and improve your financessome other way. You see, if
you're out there trying to increase yourincome by working X amount per hour,
that's not likely going to give youthe result that you want, so you
have to do something differently. Youcould go out there and do the traditional
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things of borrowing money and invest inproperty and all those type of things,
and there's nothing wrong with that,but you've got to be prepared to be
in more debts and there's quite alot of risk involved obviously with more borrowing
and finances, especially now that formost people around the world, the interest
rates on your payments have gone upquite substantially over maybe like sort of three
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four five years ago, so youhave to be prepared for that. If
you're out there looking at maybe commercialproperty, you've got to realize that a
lot of business is going out ofbusiness and are not requiring physical presences any
longer because of online you know,shopping et cetera, like bats. So
that's one thing to be careful of. If you're out there investing in maybe
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property, are you doing it forcash flow maybe that's getting quite tough,
or are you doing it for thehopefully one day it goes up in value
and you can sell for a higherprice. That's potentially an okay thing,
but it may it's may not goingto actually help you through with cash flow
today. So for me, asyou know, as a forest trader,
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it offers so many more benefits.It's a mindset thing. It's enjoyable.
It makes you realize what's happening inthe world. There's a bit of interest
there. It's something you can dofrom home, it's something you can do
while you're traveling, but you stillneed to know what you were doing now.
Just last night I held my livewebinar with my clients. So to
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our session on that webinar took sixtrades live in front of our clients while
we're on the session. The firsttwo trades both hit their profit targets on
that session. I also showed howin three days of the week, like
up until when I held that webinaror three completed days, I was up
two percent on my account, whichyou can trade on prop firms with only
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a quarter of one percent risk pertrade. And I was explaining to people
that you do not need to havevast amounts of money to trade the forest
market. You just need to knowwhat you are doing. So where you
live, what your income is,how much money you have, your available
time, all those things are almostirrelevant. It's do you want to put
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some time, effort and expend intotraining yourself how to do this. If
this is what you want to do, and you have to make sure it's
what you want to do, don'tjust do it because you've seen me talk
about it or someone else online.You have to do this because you really
want to do this. But giveyou the example of that two percent with
still like two trades days to go, and if you multiply that in add
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and you go, well, I'mgoing to a prop for Once you know
what you're doing, it doesn't meanthat you have to have lots of money
yourself. You can go to thingslike prop firms and maybe you can sell
signals, you know, for fiftyhundred dollars per years of per month coppying
what you are doing. You canbe out there on prop firms and once
you pass their challenges, it maytake you three, four, five,
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six weeks. But if you getto their ten percent gain, and let's
say you're on one hundred thousand dollarsas an example, and you're on an
eighty twenty profit share, it mayhave cost you five hundred and six hundred
dollars to get into it. Itmay have taken you a bit of time
to pass their first challenge. Butonce you've done that and you're into real
money an eighty twenty share and you'vejust made ten percent on one hundred thousand,
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all of a sudden there's eight thousanddollars back to you. Now you
can do that on multiple prop firmsand keep increasing as you keep going forward
in the lot and the size oftheir cats that you're trading. But you
think about that and you say,well, I'm going to give myself six
months twelve months from today to getto that stage. I'm not rushing into
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it. I'm going to do itrealistically with low risk and do it properly.
But you'll imagine taking that forward,how much you potentially could earn that
way or with multiple income streams throughyour trading. Once you know what you
are doing, and you also thengo back and think, well, how
long would it take me to earnthat money in my current job or how
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many extra hours would I have todo? And is that more enjoyable?
Yes, we'll know. So survivinga financial crisis, to me, comes
down to your mindset, thinking differentlythan traditionally and you know, doing something
different, doing something different to mostother people are doing out there. So
mindset is huge. My computers hasgone to sleep behind me here because I've
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been talking too long. So justto quickly finish. If you're out there
looking for a broker, I canhighly recommend Blueberry Markets. If you've not
been on my webinar, wear totalk about prop firms, I'm going to
put a link to that. Ifyou've not been on my webin I want
to talk about trading in general andhow we can help you. I'll put
a link to that, and ifyou'd like to have a chat with myself
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one of my team. I willput a link to that as well.
I heard that helps. Like Isaid, it's not financial advice, it's
purely my own thoughts and opinions aboutpotentially what might be coming and making sure
you're prepared for that right now.I see this Sun next week. Both Nat