Conversation between Spencer and Jerremy Newsome about the psychological challenges of trading and managing newly acquired capital. Key themes: learning mechanics (orders, entry/exit), experiencing an "adjustment period" when capital increases, emotional reactions to losses (casino mentality, panic spirals), value of coaching/mentorship to reframe responses, differences in tempo between equities/crypto/options vs. real estate/business, thinking in months vs decades for returns, and subconscious beliefs (e.g., retirement resistance) that block wealth outcomes. Tone is practical and coaching-oriented, emphasizing experiential learning.
Chapters
I thought it was all about the mechanics and where to buy, where to sell. Once it started, I realized as good as I felt like I was in certain components of my life with mindset, whoa, did I have a long way to go on the financial. And so started with the buttons and understanding how to place the orders and how to read the markets and which lines to buy off of and sell off of. And once I under. Once I started to understand that, I realized I need to understand how money flows and how it works. Because I think I have a lot of friends like this too. Where it got almost like I was watching a basketball game and cheering for my investment and treating it like it was going to win or lose within a certain amount of time. And when you do that, like I had in the past, you make mistakes.
And so he was in a space now where he has six, seven figures, liquid that's kind of floating around out there. That's a little scary. And without knowing what to do, there's what I refer to as an adjustment, a period. And the adjustment of periods. That first three months when you start interacting with money, but you do it so fast and so quick, there's so many changes and there's so much velocity that you become overwhelmed. And there was these really cool shifting mechanisms that we both experienced together.
You've lost today and now you're going to try to get it all back like you're at a casino. It's not how this works. There's a flow, there's a rhythm to it. And understanding that rhythm and understanding myself, because I was completely, again, I just put my money back in my own companies. I was completely unaware of how I would react in a high pressure situation with a lot of money in a stock. And I didn't like how I reacted. And I needed somebody there to help me say, well, hold on, this is part of it. And, and now it's kind of fun.
The beautiful part is if you don't understand for yourself, meaning you don't go through it, even if someone tells you exactly what to do, you'll still be too afraid to do it yourself, which is fine. But now that you've seen it, experience it and now understand it is much easier. Now I can literally tell him what to do and he'll do it no problem, because he's understands that there's going to be these fluctuations in these shifts. But that's only through experience, right? You put yourself in the battleground and you got punched in the mouth and you survived.
Once I learned painfully that There is a flow. There. There is an ebb. There is a flow. You need to protect your downside. You need to be smart about the investing, and it's not always going to be a rocket ship to the moon. And while I knew that, emotionally, I couldn't, I couldn't figure it out until I went through it. And I had a mentor and a coach to walk me through that.
Right. The stock market and the crypto market and the options market is so much faster than real estate and business. It's a lever that you touch. You touch a button and within minutes you've seen a result and you have.
You have less control of the outcome. You can. Right. You can make the right decision, the right call at the right time. And sometimes it's still. Yeah, you can do everything perfectly. It still might go the other way. And it's not necessarily like a time period. Yeah, in business. Yeah, for a time period. But knowing that and then being able to understand it and be patient really, really helps to make it not only bearable, but enjoyable.
Right.
You see the opportunity in everything. When you go down this road, the way that, the way that we have gone, I would strongly advise you not to do what I did in the early. Don't listen to your emotions. Listen to him, because he does know. But he was patient and kind and walked me through it, and now I'm in a completely different place. I needed to go through it, to truly appreciate and understand it, because if all you do is ride a rocket ship to the top, you. You don't truly learn that adversity helped.
But yeah, 90% of millionaires are made through real estate, but 100% of billionaires are made through equities. That's a very large number. Right. So when I say equities, I'm referring to the ownership, the sharing of values of companies. And what I told Spencer early on is me and him are both very good at business, But Apple does $90 million of net profit an hour. So we're not that good at business. So why shouldn't we then just take our money and learn how to interact with Apple or Tesla or Google or Amazon, some of the biggest companies in the world, because that's, that's your entrance into the market. So, like, once you understand those movements and you, you understand the math, and again, you understand the buttons of entry, exit, target, then you have the ability to also start zooming out and playing with the more volatile, the more newer, the more unique instruments. So you can also increase your capital exponentially and then at the same time, every single coach as it relates to finance, they generally tell you to think in decades. I think, I think decades is a very long time. 20, 30, 40 years. I don't want to wait that long for him to take 3 million and turn into 10. Right. I want to do it in three years, not 30 years. Right. Three years is three years. Thirty years is three decades. So I teach people don't think in minutes, think in months. But when you deal with shorter time constriction, you're going to deal with more, more fear because things start, have, have to happen faster for you get the same result. And speed is something in height. Speed and height are both two aspects that always scare the human psyche.
Well, one of the things you said, I don't mean to cut you off, but one of the things you said to me was early when I was going through the fear, you know, one of my investments dropped and it dropped hard and, and how I reacted to it. I remember you said the stock market is, it exposes a lot about you that you might not even, you might not even know. And I did not know. I considered myself a very calm and strategic investor. Calm and strategic family man. I don't yell at my kids. I, yeah, you're great, dad. I calm. But man, it exposed this component of me that I didn't know existed. And having a coach that walked me through that was worth it alone because I was, I was in kind of a panic state. Anybody who has ever made a, a large investment and then just seen it drop and then you start believing in your mind, oh well, I'm just snake bit. I have bad luck. And then somehow you start attracting bad luck. And, and it's a spiral. And I had, I got into the spiral and had a coach who was like, no, no, no, hold on. Change my language helped me to change the way I viewed the entire situation. And I went from being this panic stricken worry wart to one who's like, when the market goes down, that's awesome. Because now there's opportunity to make more because it's going to go back.
Every man or woman watching this wants more in their life and they want more so they can have more time with their family, they can travel more, they can be a better husband or wife, they can be better as a human and they can give more. That's, that's why they want to make more. Those ghost components. He's like, I don't want to worry about money and I want to have enough money so that I can be able to retire and travel and just be with my kids and be with my wife. And I was sorry. Time to dive in on what the word retirement meant for him. And it was very hazy and grainy and ugly and gross and non fulfilling and non exciting. And he didn't want to retire.
He was dying.
Right, but you didn't want to retire. But your brain was programmed, if I have whatever $8 million, then I retire and I, and then, and then I will D. I guess so your subconscious was saying I, I'm not going to let you retire because you don't want to retire. And if retire had a number, aka 8 million and you didn't want to ever hit that because you don't want to actually retire, then you're not going to get the money. That's what, that's what happens when a subconscious barrier occurs. And then at the same time, right the be able to. Right. I want to be able to spend time with my kids. I want to be able to travel with my wife. I want to be able. I'm like you're able now. Like you have the money. Because it's much easier to be pulled by your purpose than pushed by your pain.
Eternal expansion. That's, that's the game. And when I signed up, it was about trading some stocks and some crypto.
