S6 E15 | No Prejudice in the Stock Market

So you've heard all about real estate, insider developer trading, all these things. All these things. So the question is, you know, you asked me how do I pick locations? How do you pick stocks? There's so many stocks. How do you know if it's going to be a winner? What tips do you have for people who are new that are just overwhelmed with all the things that you could know about stocks?

So many things to know. So you said that, well, there's 78 different types of real estate investments.

That's just what I came up with in an hour.

Sure. Probably very similar to trading is like there's so many things you can do, so many stocks you can invest in. But I will say this. There's really, really, really cool scanning softwares. And most scanning softwares are free. So your mls, your Zillow for real estate, we have that as well. And it makes it a lot easier. Yeah. So you can pop in there and just start scanning for stuff. Would you like to know the scanner that I use? Thought so. That scanner is called finviz.com F I N V I Z com. Wow. And so I can pop into Finviz and I can literally scan for anything. And one of the things I can scan for is what's called fundamentals. Fundamentals is the underlying value of a company.

The fun.

And they're dement, they're dements and their mentals. So the fun, all the fun things that stand out. And when we're talking about stand out, we're saying, how much money does this company make? How much net profit do they make? What are their gross margins like? You can search for that. What's their sales growth quarter over quarter, what's your sales growth year over year, how they've been growing the last five years. You start baking that in, you can scan for that.

Wow.

It's incredible. So if a company has good fundamentals, here's one of the things that you should all learn. It's very easy. If the revenues are going up and the profits are going up, the stock price will go up.

Nice.

Eventually.

Simple math.

Simple math.

Simple math. I don't have to look at all 72 other numbers. Those are the like two to focus on.

Those are the two really big ones. So if, if this profits aren't going up, that's fine. It doesn't have to be profitable because they can be investing into themselves. But if the revenue keeps increasing, it's a matter of time. It's just a countdown. When is it going to happen?

Makes sense.

Yeah, makes perfect. Sense. Right. So for me, scanning, that's why I start. And if I'm going to go pick good companies, I'm going to go look through and actually really understand the fundamentals of these companies. Understand how much revenue, understand how much profit, understand the margins. Get that kind of nailed down. But then there's also something I can scan for called volume. Now you kind of alluded to this when you talked about the, you know, the cities or the portion of siege that are trending up. I use that term all the time. And the stock market. Right. Notice the trend. What is the trend? If it's a trend up, is the trend down? You do not want to fight the trend. If a stock is just plummeting, yeah. It's going to be very, very hard to time and call the bottom.

Right.

So you got to buy low and you got to buy slow. Don't be buying aggressive if the stock is slow. But if the stock continues to go down and the revenues are going up again, it's just a matter of time before the turnaround happens. So be patient. As with everything, everything takes time and or money. But it always takes time and money. Now, volume. I can literally go and scan to see how many people are buying or selling a position. And that's extremely useful.

Is that fair?

Of course.

Why is that fair?

Fair and legal and easy and free. What I can go in and scan and go is a bunch of people buying this particular company. I can even look for insider transactions. I can look for institutions, I can look for banks, I can look for hedge funds. I can find out how many people are buying an individual company. Wow. Because if I can visually see tons and tons of people are now demanding the stock. What happens if demand increases and what happens to price generally if there's more.

Demand, it's worth more because there's less of it.

Yep. That's simple. So if demand is going up, the price of that instrument generally is going to go higher, whatever that instrument is. And that's one of my favorite things to lose for. And another really, really incredible tip for stock trading is you can pop in to Finviz, you can pull up the fundamentals, you can look at the volume. But I also have one other thing they use called trading view.com why? So trading view is the visual of what's going on in this company. So I can actually look at it so very similar. Like you've probably maybe bought some houses side unseen, but you've probably least seen photos or you've looked at numbers, you've visually Seen something, someone didn't just tell you the address, you went buy it. Yeah, this is what Trading View is. Trading View allows you to visually see what the company's doing, what the chart's doing, what the historical movement of this company is doing. So you can also see, is it high or is it low? Britney, do you want to buy something at the all time high?

No. Come on, I know you love buying silver high, but we've been cutting that habit.

We've been cutting that habit, thankfully. And if you begin to understand you're looking at a stock chart, you can visually see, wow, this thing is low. I'll give you a great company right now. So we're in March 2025, Google. You ever, you heard of Google?

I've heard of it, yeah. I think once, yeah, it's a small.

It'S a tiny little company. They're doing about 38 billion in revenue right now every three months.

Oh, that's it.

Yeah, that's it. Right now. YouTube is 13 billion of that. By the way. YouTube does 13 billion in revenue from ads. Yeah, it's amazing. So that being stated, Google, presently this exact moment of recording is down 23% from the highest that it's ever been, which was three and a half weeks ago.

Why is it down so much?

Well, it was at the highest price it ever been. So the highest price it's ever been, people are going to sell because every single person on planet earth who ever bought the stock is profitable. That's the main reason. And with the selling that's been going on in the general tech market presently Google's kind of been impacted by that. So we're down 23%. Stock is down 23%. So based on some of that evidence, right. Google's revenue is increasing. The stock, it is down. And is the volume right now, do you think the volume is increasing or decreasing? Present day on Google, volume is starting to increase. Yeah. So I know that Google is a good buying opportunity, present moment. And I also know that Google will be higher probably by the time this episode airs. Good. And so people can pull up and look at it and they can actually go look at the stock chart and they can see March 20, 2025 or Google was. And then where they're listening to this recording, they can pull it up and go, oh wow, it's higher. That's crazy because it's really not that big of a surprise when good companies, they're always going to have pullbacks. Every market has these shifts and the stock market's just Faster. And so volatility and speed. People are taught to avoid volatility. They're taught that volatility is bad, that speed is bad. But if you know how to protect yourself, if you know the strategies to implement to protect your downside, to mitigate risk, makes it a lot safer. Because, as you know, you can buy stock market insurance.

Yeah.

And if you can buy a stock.

This is crazy.

It's crazy, right?

I cannot believe all the weird things people do with stocks.

I know. It's amazing. It's really amazing.

It seems like, how can you lose if you know all the things?

Well, here's what's really cool. So how many real estate deals have you lost on?

Several.

Yeah.

Personally?

Totally. Like, in the total, like, what's a percentage?

Very few, honestly.

Exactly.

And that's. That's what I like about real estate is you can control it and you can change it and you can keep adding to it.

Yeah.

So very few.

Yeah. And I think over the long enough time horizon, it's probably the same for investing into stocks as well, especially if you know what you're doing. But what I have understood, and what I've heard you say numerous times in season six of Broke to Awoke is know the rules, know the rules of the game. Once you understand the rules of the market, you really get what's going on. You do realize that the rich do get richer. That's a true statement. Because they know the rules. If you're watching hockey and you have no idea what on size or offsides are, you have no clue why they're in the penalty box. You have no clue what's happening. You don't know who's scoring. You don't know anything about hockey. It's not a very enjoyable game. Mm. If you know the rules to a game, it's a lot more enjoyable play.

And if you know the players. Yeah.

If you know the players, if you know how it works, like, it's a lot more enjoyable. And so in stocks, most of the time, people are just terrified because they truly have no idea how many it works. And so that's why I was able to create the company that I created, because I'm teaching and educating people about how all this stuff works. I'm teaching people the rules of this game.

Yeah. Love that.

Yeah.

So cool. And thank you for doing that.

Yeah. That's amazing.

You've helped a lot of people that I know understand how to get into this, and they feel like it's so daunting initially.

Yeah.

But that's what you do.

You.

You take daunting, scary things. You add all of your years of experience, and you make it simple to understand.

Thank you. I mean, because here's the cool thing, right? Real estate. And again, you mentioned this a couple times, like, you need some backing. You need some experience. You got to go to a bank. You need resumes. You need people on your team. You know these numbers. You know these forms. Stock market don't care. Are you a felon? They don't care. Right. Are you Republican? Democrat? They don't care. Black, white, Asian doesn't care. Bad credit doesn't care. The stock market will take all of your money. It'll give you a bunch of money. It does not care. I think that's so fascinating.

That's so crazy.

Yeah. It doesn't matter what your credit is. None of that matters. You can just participate in the stock market regardless of who you are. I think that's so fun.

That's so cool. I actually didn't know that it didn't care that you were a felon.

Yeah.

There's no, like, background anything. Check. Does it matter if you live in another country?

Nope.

So anybody in Honduras can trade our stock market?

Yeah. What?

That's legal? Why?

Well, we. We open up that we're a capitalist society. Right. Like, we want as much money any.

Country, trade any other country stocks.

Yeah. What? No.

Really? How many different stock markets are there?

Oh, man, that's a good question. And I. People are gonna make fun of me for not knowing. I feel really bad.

I mean, is there, like, three big ones, like America, London, Russia, or is there just.

There's a little bit more.

One in each country?

Yeah, there's one in each major large country.

Okay.

Yeah. Like, I mean, Australia has one. Canada has one. Toronto. Toronto Exchange. Like, each major company has their own exchange, but they're generally.

People mess with ours.

Yeah. I mean, almost every other country plays in the US Markets.

Wow. So much money to be made.

So much money. And. And the amazing part is, like, you can open up a broker. There's a broker called Interactive Brokers. It's huge. It's global, it's massive. It's like the second or third largest financial institution in the world. And if you open up an account with them, you can trade any other. Any other country's markets. So I can go over to the footsie. I can go over.

What's it called?

Interactive Brokers.

Interactive Brokers. Okay.

Yeah. But if, like, I want to trade Australia's market, I can. If I want to train the London stock market I can, if I want to go trade India, the Bombay market, I can, I can go trade Hang Song, which is do you ever trade.

Any of the markets on the reg?

I actually don't. I don't. Now what I do interact with is something called ETFs. And ETF stands for exchange traded funds. And so what happens is you will get a company. The most popular one is called iShares, lowercase I shares. So iShares will go and build essentially what's called a financial model that people are investing into. And the financial model oftentimes takes an aggregate of something, blends it together, averages it out and then you can buy that financial model. So a great example of that is I can go and buy the Argentinian country etf.

Okay.

And that is the ticker argt. So essentially what I'm doing when I go buy ticker symbol argt, I am buying the broader market of Argentina. They got compiled together, grouped together, average down, boiled down, watered down, divided by a special magical number. And now I own that particular instrument. And what's fascinating is you can do that with India, you can do that with China, you can do that with Australia.

Essentially betting on that country.

Exactly. Well, which is really, really cool.

Which country should we be betting?

I love that. America. I love how fast you ask those questions. 100% bet on America.

Yes, America.

We're always going to win or else. But the truth is that's really the S&P 500. Right. You've heard me say that a million times.

So that's our boiled down.

Yeah. So if you're going to bet on America, buy Spy. Spy. That's, that's America in a nutshell. Right. That's the biggest barometer of the entire economy is The S&P 500 ETF. The spy. Spy. But for me, honestly, Argentina, probably top second would be India.

Really?

India's gonna blow up. I mean they're, I mean, humongous.

Is there a specific leadership in place that's gonna make it go up versus historically?

Not yet, but it's gonna come.

I mean Argentina has a new Argentine does.

Yeah.

A new leadership, a new pushy president.

Yep.

And he's really make things change.

Yeah. And he's pushing some things around. A lot of people don't like him, but he's doing, he's making a big change in the country and the country can feel it and they can see it. And that etf, by the way, to give you some real cool numbers and don't murder me if I'M exactly wrong, but I'm not. It was at $44 and a half months ago. So, you know, November, and right now it's at $79 a share. So it's essentially doubled in four and a half to five months, which is. So if you get put in 100,000 dol, it's now 200.

Wow.

It's amazing. So cool.

And you think it'll still go up?

Yeah, yeah, yeah. I mean, right now, this exact moment, it'll probably have some slight pullbacks, but yes, it'll continue to go higher.

Oh, can we go there? I know that these episodes, we try to make them timeless, but yeah, I know. What do you think's gonna happen to Spy? I know Trump's doing some, some interesting things to the market. So for your best bet on what's gonna happen to the American. Watered down, drained down, chopped up.

Yeah. Spy betting on America.

You're betting on America. You know, how soon will America be looking good? Sometimes you got to trim the fat. Seems like they're working on that right now.

Yeah, I agree. I think that's going to happen. I mean, ultimately, what would be my favorite scenarios? We actually go a little bit lower. So right now the broader markets are down about 14%. 23% would be amazing. That'd be a nice, really good actual correction, which we need. We haven't truthfully had one since 2023. So we have. We've had two years of straight up, and now we have the new president come in, he's shaking some things up. Markets are dropping across the board. Right. Google, Amazon, Meta, Netflix, Apple, like Tesla, obviously. I mean, everything's down. Airlines are getting murdered. Why murdered? Mostly because a lot of them are catching on fire and crashing.

I know why.

Yeah. So why is that happening? That's. That's a question.

It's like the Internet loves showing a new plane crash every day.

Yeah. And that scares Americans, obviously, as it should. But also at the same time, anytime. And here's an unfortunate pro tip, anytime there's a plane accident in the skies, airline stocks are going to go lower.

Okay.

And I have. Yeah. And I've taken. And I've taken strategic bets when that has happened. And they generally do pay off. But anytime I make money from a natural disaster, I always donate those profits.

Oh, that's nice. Do people actually fly less or they're just like planes catch on fire.

That's what happens.

But they're not actually flying less.

No, they're not. They still fly a whole bunch. Yeah. Really, really strange really strange. But again, to your point, these episodes are very, very timeless. But I would say that right now, markets hopefully actually do go a little bit lower. The shake up continues. People kind of continue to get scared. This is what I would call a rug pull on Trump's presidency where people are like, oh, this guy is a terrible president. What a shank. Market's dropping, everyone's like, see, I told you so. And then everyone starts looking around and going, yeah, but man, there's a lot of good discounts right now.

Right? Right.

And most likely my call is this year, Feds will lower the interest rate a little bit more. And when they start coming in, lowering interest rates, market loves lower interest rates. So does the real estate market. So what's going to happen is markets go down a little bit more, they get this interest rate lowered more this year, and stock market starts going higher, real estate market starts going higher. And we do really, really start surging, especially as some of the numbers of the Department of Government Efficiency starts coming out. They really start posting, hey, we have saved this amount of money. Hey, we have done this. Because the other reason that we want lower interest rates is because right now I think there's about $7 trillion coming to, coming due that we need to refinance at a lower interest rate.

Oh, what happens if we don't?

We can't pay the interest on, on it right now. Like our gross domestic product is too small to pay the interest on, on this debt. So we need it.

And the debt is owed to China.

Yeah, soon, like weeks.

No.

Yeah.

What's going to happen to America? You'll find out in the next episode.

In addition to this podcast, the award winning transformational podcast known as broketowoke.com we now are also launching our separate individual podcasts that are focusing on different things, they're also addressing different challenges and that are designed and implementing brand new mind shifts for people all around the world. Go to broketowoke.com and check out the individual podcast that both myself and Brittany are creating for more impact in this world.