Ultra wealth q/a trader psychology and market review June 20th, 2024

Eric's over there looking like Richard Gear. I love it. Look at handsome.

Thank you.

All right, so here's, here's what I thought would be really fun. What I was going to do is take some of the, for like 30 minutes max. We don't necessarily do more than that, although we certainly can. We're going to talk more about trader psychology and stuff on Monday. I definitely want to review some trades with all of you while the market's open because it's really, really cool market out there right now and a lot of stuff going on. But that being said, that'll be fun if each of you also answer other traders trader psychology questions to see what your answers would be so that I'm recording it so you can hear yourself say the answers because you all know the answers too. And sometimes it's just really good for you to remind yourself, oh, wait a minute, I know this. And then when you have a copy of you saying the answer, it could be just like this. Oh yeah, of course. No brainer. So I'm gonna ask you a question that either one of you asked me in the past, one of the statements that you mentioned in your, in your behavioral, like the five worst trading aspects or a question another trader has asked in the past that relates to this topic of essentially trader psychology. And I would love to hear your answers. So I'm interested to see what you all say. So here's the first question. It's going to go to Julia. And Julia, if I'm a, if I am a newer trader, less than one year of trading experience and I want to make a living trading, what is the advice that you have? For me.

The advice I would have is keep your cash flow going even if it's part time, your life cash flow. And then on the trading side, I would say go to Jeremy Newsom.

Well, thank you. That's.

I know you're looking for other answers, but that's the easy route. All right. Yeah, I would say focus on learning technical analysis from someone reliable and focus on the trader psychology and allow yourself to grow into it versus want results right that moment because that's the quickest way to have it all backfire on you. And even if your first two or three months are going well, allow yourself to get the experience because everyone who's out there playing the game with you or against you, however you want to look at it, has potentially has many, many years of experience and you just don't know what you don't know.

So.

I mean, that's the advice I Gave myself. So I'm giving it back to you.

Yeah. All right. I love that. Awesome, awesome, awesome. Okay, this one. Next one's going to go to Catherine. Catherine, if I want to grow a small account, what is the best advice that you have for me?

Oh, goodness. I would say. Pick a large company that is solid and pick one trading strategy. Focus on that and build it slowly, but build up your confidence with it to get all what you need to help it grow within what you learn within yourself with how you trade the ups and downs of it just to help with that building over a longer time frame.

Yeah.

What. What's up? Thank you for that answer. What is a longer time frame?

Like, just so that you can sustain that over years. Like to be able to build upon that so that, you know it's compounding because it's a small amount and so you want to grow it.

So.

Yeah, years.

Love that answer. That, Love that answer. I'm. I'm giving me 30 seconds. I'm G. Be right back. My wife's. Call me and then I'll be right back. Okay.

Did you guys trade today.

A little bit?

No.

Did you have a win, Joe?

I had a win. I was listening into the Apex trading stuff on that live YouTube, so I did one on that, but it was just on my evaluation account, so not actual money, but it was a win. And then lost on Nvidia that I got into just before the market tanked. So. Okay. Yeah, overall up in numbers wise, anyway. So.

Cool.

Cool. That is cool.

Yeah. Yes, Catherine, thank you. That, I think that's a lot of people. Again, you're going to grow a small account. Right. A lot of individuals, they, they think that it needs to be done super quick. And I love how you said pick a large company, huge company, and just focus on that one and then just kind of like buy and sell, buy and sell, buy and sell. Because you can buy and sell that company pretty frequently on smaller time frames. And so for Jeremy and Armenian, what we're doing is I'm ask, I'm asking the questions to you guys now. And you all have to give me the trader psychology answers because, yeah, you, you all, you all know the answers deep down. And it's a, it's an exercise just for 30 minutes or for each of you to be able to hear yourself say it. And I'm not picking on any particular person for any particular reason. This is totally random. But I'll take questions I've been asked at some point by one of you or by someone else in the past and just have you give that answer so that you can hear yourself say it, because it's coming from you. Right, So I will then go into our means. Our means. So Catherine's question, she said that pick a large company. So I mean, how would you, how do you decide what's a really good company to trade and invest in?

A really good company? I would say, I mean looking at the market cap, the earnings, the amount of cash the company is making.

And.

Like the history of the company, I would say. And if we're investing in it, I would say also looking at the trend to make sure that it's, it's got a good trend upwards and then that's its best of breed in the sector that it's like doing business in. Those are the things that are coming into my mind.

I like that. Okay, okay. And what, what is market cap exactly? What does that mean?

Not sure if I said that correctly, but like, meaning that it's like a big company. So like, I don't know, maybe I miss said that.

No, you didn't. I was just getting clarification. So, because if I'm a brand new investor, right. I'm asking you is like, maybe I'm some person on Twitter. What's market cap? What's the meaning of behind it? What's the value of knowing that number?

I actually don't know that myself.

Okay, well, perfect. This is a great answer. Yeah, so you, you did answer absolutely correctly. All those things are very, very crucial. So essentially, if I boil down what our mean said, how big is the company? How much money is it making? What sector is it in? These are all things that you all know. But keep in mind, every one of you, when you're investing in a company, you're, that's what you're doing. You're investing in a company. And so you want to make sure that you know how the company is making money and you do a little bit of due diligence to verify how much money is that company actually making. Because the more cash and profit a company is making, the higher the stock will go eventually. Unless it's just fraudulent accounting, but of course make sure that you know, like I said, how, how high is the company going? Like, what is it doing? How do you know the company's making money? It's like, oh, because I interact with it. So to give you all a definition of what market cap is, and this is a really, this, it's just good to know. But in general, really quick overview of market cap, give me three Three seconds. Navigate. Press H.

Oh, wow.

That takes way too long to load. Okay. That is like eternity. All right, market. I'm glad you guys can draw on this because it's taking me way too long. Market cap. So this is total shares multiplied by share price equals how big is the company? So we have a new leader in market cap. We have a new company, the biggest company in the world. Do you guys know what it is now, brand new, is now the largest company in the world. Yeah, by market cap. It's crazy. Biggest company ever. So they just passed Apple and Microsoft. Now, here's what's interesting. So let's say that you go look at a market cap of a company and you realize that it's a hundred billion.

Right?

So $100 billion, to give you guys the scale of what that is, I. I forget the exact stat. I'm probably going to mess it up to some degree. But Europe, like the whole continent of Europe. Europe has never created a company worth more than $70 billion, ever. That's how big a hundred billion is. And there's like 75 of those things floating around the U.S. right? Really, really, really, really big companies. So how much money does it take to. To go to 100 to 200 billion? And market cap, right. That's doubling your investment. So you have to think, how big is that exactly to go from 100 to 200 billion and the size and the scale for that to really, really occur. So when you're buying a company, you're again, buying the size of the company. You're buying its total size and shares, you're buying its cash flow, you're buying its profits. And so if a company is worth 200 billion, but it makes $800 million of cash off the top of your head, you think that's overvalued. Undervalued over, yeah, overvalued. It's worth 200 billion. 1% of 200 billion is 2 billion. So it's. So it doesn't even make a half a percent of the size of its revenue. Like, this is. This is revenue, right? This isn't profit. This is a revenue. That means sales. So that means it's overvalued. So just really, really, really quick numbers. Like you can look at the market capital company and go, wow, this company is worth whatever it's worth, you know, $500 million, but it's making $600 million of revenue. That's going to be a good company. And that company is probably going to grow substantially. So the more you can look into these numbers and the more it's aware, this will also tell you, in my opinion, how heavy you should go at ipo. So what I mean by that is I have a friend who has a strategy. I haven't implemented the strategy, but I'm thinking about start doing it where if the company comes out and IPOs less than 50 billion, he buys $1,000 worth of the company and that's it. That's his investment. So IPO day, company comes out, he buys $1,000 worth and that's it leaves it alone if it's 50 billion or lower. Now, the reason he doesn't do it if it's 50 billion or higher is because it's like, well, is the company really going to turn into 200 billion? It's like, okay, cool, it might. But if it does, his investment's only going to do what it's going to 4x. So it's going to take a thousand, it's going to turn into 4,000, which again is not a bad return. But it's like, well, you know, so he buys the company and then just leaves alone forever. Right. Again, this is how he builds his portfolio. He buys a thousand bucks worth Day at IPOs and leaves alone forever. So a good example recently, let me do a new screen share. This is a new stock that just IPO'd. Let's go look at two or three of them. And I mean, sorry to go down this a little bit of a tangent, but you just brought up such a good term very, very few people use, in my opinion. So let's go look at Reddit as an example. So Reddit right now is worth 9 billion. That's low, in my opinion. And we can start looking through some of their numbers. And it's like, okay, their sales, almost a billion. Not bad in general. Right? Gross margins, 85%. That's not that bad. So you can go through and start looking through some of these and trying to get some more information and so forth. But it's like, all right, their sales is growing. So sales is growing and it's worth 9 billion and it's down 5%. So let's say hypothetically, which probably can happen, Reddit comes down to here and it's worth 5 billion. What's the chances that Reddit can go from 5 billion to 10 billion worth of market cap?

Good.

Exactly. Really good. Like 80% or higher, I guess, just, I mean, because it's already been there. And so that means that you can go, all right, well, if I take cash $3,000 and put it into Reddit. And that's my total investment. If Reddit goes from 5 billion to 50 billion, you've 10x your income, you 10x your investment. And the question is, do you think Reddit could be worth 50 billion in six years?

Certainly could.

It could. I'm not saying it will, but I think that's, I think that's definitely, definitely in the realms of possibility. Like is worth, I mean what's another online software website that's done really well in, in the last decade? Like, oh, I don't know, which one do you want me to go through? Right, There's a lot of them, Facebook being Pinterest, so there's a few out there. Let's just go look at the market cap of Pinterest really quick. So Again, Reddit is 9 billion, Pinterest market cap 30 billion. Again if it goes from 5 to 30, that's a 6x return on your investment. Like that's not that bad. And we all know Facebook is huge. We all know Shopify is huge. Twitter got bought out for 52 billion. So Reddit, right, if it goes down to 5 billion dollar market cap could be, could be low and I'll buy some if and when it gets down there. So it's totally fine. Is there anything else? I want to talk about that. Oh, ARM ARN. So when ARM came out, let's go look at this ARMS IPO value, right? It's 166 billion, 160 billion now but it was worth right at that. Like IPO is worth like 35 billion. So this is one that my buddy bought at open on IPO day for a thousand bucks and he's up 180% on that thousand dollars in the course of two months or sorry, two years now in that year and some change that this has been around, could this keep growing? And the answer is it probably will most likely keep growing because it's made new all time highs. So you have a little bit of a pullback here and then you know, chops around and eventually probably keeps going up because the company's making more money. As the company makes more money, they take that money and they go reinvest into the company. So fundamentals do matter, companies do matter. And, and Catherine, to your point, when you're talking about like a good large company for people to buy and invest in, that could be one, not that one example, but that's, that's all you have to do is just go look at the actual chart and start analyzing It, I mean, imagine if you said yourself, okay, I'm just going to trade the 10 EMA and I'm only going to trade it on ARM. That's all I'm going to do. Like you would have made some decent money here. You would have made some decent money on the downside. Maybe, maybe not. That's fine if you didn't. And then you could have really made some really good money up here. And even if you're trading with $5,000 or $10,000 or $20,000, like you still have the ability to capture some okay profit because the family, I never want you to, I never want you all to underestimate the ease of the market. Tell yourself every day when you're waking up the market is as easy or as hard as you want it to be. Tell yourself that every day because you got to capture three points on a thousand shares 200 days a year. That's $600,000, right, Armin? And I know you're doing, I know you're doing well in business, but I know you want to make $600,000 a year. Don't you lie to me.

Yes, I do.

Right? Yes, you do. So here's Palantir, which we looked at for my girl mj and on Palantir last, we really analyzed this bad boy. It had three nice, strong updates in a row. That's when we looked at it and it had a really, really good, nice two day pullback. Then you had a bear day. A bear day, another pullback. So if you sell at the green candle and you get, you can all see that this is a 10 EMA trade setup. There was another strategy here that also worked, but you can all see the 10 EMA. And all of you can afford a thousand shares of Palantir. I mean, that's $20,000. So if you bought a thousand shares here and it runs up, what's, where's three points? It's like, oh, there's three points right there. That's 13% from here to here. That took a month. Cheap, really, really fast, really volatile. Stocks are really fun to trade with. And all of you can easily create a scanner in Finviz for free. Let's do it together. Where we go to screener and I show you what something a nice little volatile thing looks like. Or you can get, you can get some movement on this bad boy. So we're going to go target price, we're going to go 10 to 50. All right? We're going to do average volume. We want some steak on our meat. So we're going to over a million and we already at 680. Okay. And I go to fundamental technical. All right, technical. We're going to do beta over one. So this just means that it moves one times faster than the overall market does. We're going to do average true range. So we got ourselves a nice little dollar. So now we're down to 121 tickers. Target price. Let's do 10 above. So analysts think it's going to go higher.

Okay.

Float short. Many people are betting against the stock. Let's do over 5% current volume. Let's do over a million. And then you got yourself a list of 25 stocks, ladies and gentlemen, that are going to move. And they're going to be cheap, these puppies. Would you guys like that screener? Throw it in that. That's worth ultra wealth right there. Because I promise you, go in and just start practicing. These companies pretty often. And these aren't companies that necessarily have to hold forever. You can very, very easily. In and out, in and out. Because you got a firm on here, whatever that is. Bloom Energy. Our girl, our girl Nancy has crushed some Bloom Energy. Let's go get tiger ticker be. I mean, look at this. Just the last two or three days. Look at this 10 EMA trade right here. Bear candle. Bear candle. You know, Bear candle, really good little pump back in May. And then you got a bull candle closing below the tenny ma right there. That's a short. I mean, this bad boy is moving. Cheap little company. And the more analysis you do, the more you can buy or sell or in and out. But that's. There's a lot there. Solar Edge is just going straight down. Sun Run, moving a lot. PBF Energy, General Motors, and so these are all companies that you all know, some of you might have heard of. I wonder what the one that's really ual. So the airlines are pretty fun to trade. This is United. Sorry, it's not United Airlines. That's. Yeah, yeah, it is. They have a split ual. Look at this perfect little tennyma right here. You know, and it's like this is a really nice, like, head and shoulder pattern. But even if you just took it today, again, let's not over complicate the process. You shorted it today. Yes, it was an inside candle. You got in at 49, 42, and right now it's at 48.74. That's a. That's an easy dollar. Oh, cool. I captured a dollar a share today. And look at the average volume of this thing. Six million shares. There's a lot of these socks that will move like this. And again, you don't have to trade them every day, but you can come up with a watch list of really fast moving companies. You can tweak some of these dials a little bit, right? Like current volume or float short. Those probably be the two, maybe target price. You can, you can tweak, play with some of these dials to get some different companies. But ultimately you can have a lot of fun with that, kind of like with that setting. Because it's really just speed. Like, don't. You're trying to capture movement on dollars per share. That's all we're trying to do. Never even heard of wolf speed. No idea what it does. There you go. There's a list. So now since we're talking about speed and quickness and we discuss market cap really quick. All right, Jeremy, not me, my other Jeremy. The question I'm g. Pull up second is how do I know if I'm over trading and what should I do if I think I am. Might not be here. You might have stepped away. All right, who wants to feel that question? Eric, Eric, you're feeling that question.

All right, how do I know if I'm over trading or how do, how does a person know when they're over trading? When they don't do enough analysis and they feel like they have to win for that day. So they got to get into something. That's how I like, I got to make my r back.

What?

Looks give me something. That's what happens to me. What should they do about it? They should go outside. Should go outside. That's what I do. I go outside.

So is it a, so is it a feeling that you can recognize internally? Like, how do you recognize that emotion?

That's a good question. I, I, I've done it so many times that I know what it feels like. What it feels like to me is like, I gotta just get into something. That's what I tell myself. I'm getting into something.

Sometimes I've heard even people say that out loud. They're like, I gotta get into something, man. It's noon. I haven't traded anything today. I'm an idiot. I'm missing out on all this money.

Yeah, it really hurts when Apple goes up like a rocket and you weren't in it and Nvidia goes up and you weren't in it. And then it goes up so much that you're like, hey, this thing's going up. And then you buy it at the top at the third, third green day. Ask me why. I know.

Why do you know, Eric? Yeah.

Because I did that today with Nvidia. Well, I tried to pick the bottom on it, and you know, and I'm in 600 shares. And I'm like, oh, man, I didn't pick the bottom, did I? So then I'm turning us day trade into a swing trade, which is another strategy that I'm not sure is very healthy. But it's Nvidia. But, you know, who knows, right? So, yeah, so that's what I know about that. Yeah.

Well, it's a good question because when you say who knows? I know someone who knows me. I know. Of course. Yeah. You're way too high on Nvidia. Way too. I wouldn't be with 600 shares right now if you paid me to be in 600 shares. Like, no way. It's either a sell short or not being in at all. That's what Nvidia.

Yeah, well, I can close it out. I got 29 minutes left.

Exactly. It's got to take that small loss. It's all not a big deal. It's nothing crazy. But, yeah, it is way too high.

Because I just did what you asked. What you just asked. I did two hours ago.

How funny is that?

Now I'm going to close out my trade and lose a thousand bucks, which is better than not sleeping tonight.

Bingo, my brother. Bingo. Absolutely. And so the beautiful part is, I told you guys, I'm not. I'm not gearing these questions towards anybody. But the beautiful part is we all need to know what's true and what's available. And what happens is it's absolutely a real thing. The more you start asking. And you can come up with a list of questions. Remember, I still want all of you to post your trading plans. You're welcome to do that between now and Monday and or sometime next week. Still totally, totally welcome to say, hey, here's my trading plan. Here's what it looks like if you already have it fully printed out. Right. Take a picture of it. If you want it to be laminated, let me know. I can help you create a really beautiful trading plan if that's kind of like your fear. Like, I don't want to make something ugly, Jeremy. I'm a luxurious woman. All right, well, we can. We can make it pretty for you. Like, that's. That's easy. If you are stressed out about, oh, I don't want to get married to this plan. You don't have to get married to it. You can just. This could be your plan for four months, three months, eight days. It needs to be a time frame that's longer than what you think is realistic so that you don't get stressed out, in my opinion. Eric, by the way, lastly, but not leastly, I think this candle and this candle are identical. I think you can do some research on those two. That's probably what's going to happen. Very, very, very close. Almost, if not the same exact thing.

Well, what you said about the market cap is, is I've heard others say that, like, why is this company worth this much? It only generates X amount compared to Apple, which is worth a lot less, which generates a lot more capital. So then, yeah, I thought about all that after I tried to pick the bottom. So I'll let you know that I'm out of that trade and I'm gonna sleep very good tonight.

You are, man. Yeah, because look, it'll. It'll go lower from here, guaranteed. But you can now start planning. Okay, what's a really, really, really good trade? Because on a day trade, hey, man, it's okay to lose a thousand bucks. Yeah, that's. That's a good day trade loss. It really is. And like. All right, cool. Hey, it didn't work out. So what I'm gonna do is I'm gonna look for a really good trade and I'm gonna start planning based on all the tools, you know? Right, Elliott? Wave all those things. When's a good day trade for me to take advantage of and start planning it ahead of time so that you can get that thousand dollars back.

Awesome.

Yeah, awesome, man. Beautiful. Thanks for sharing. Thanks for sharing. Okay, so then I'm gonna go to Joe. Joe, how do I get the confidence to become a full time trader?

These are directed questions.

No, totally random. Oh, whatever. That's why Jeremy left.

Totally, totally random. Not. I'll let you know when I get there.

Ah, you can't give me that answer. I'm seeking your guidance. I need help.

Keep your risk low back. Trade a lot. Get confidence in your plan. Just again, go along with Catherine's. Just use one strategy. Pick a good company that you know and use practice. There's lots of practice.

How. How long would you trade that one strategy for?

A year at least. If you want to get good at it, to become full time and like, leave your income and that sort of thing. You have to be confident in it and know that you'll be successful at least in one thing. And then you can branch from there.

Love it. Okay. Awesome. That is a correct answer check mark for you, Joe. Pass. Yep. Absolutely. All right, Jeremy, who was supposed to get the other question? I want to read it verbatim. All right, Jeremy, how do you deal with a losing streak when you have bills to pay as a professional full time trader? Oh, you're. Oh, you're just thinking, sorry, no, you're not.

Oh, yeah, yeah. Dramatic pause. So for me, I would have number one. I'd have, like, a cushion, I suppose, like six months of. Of expenses outside of that. But then, so outside of that, let's say I used up. It's a really bad losing streak. I used up my six expenses, and now I really got to pay the bills. I would just start going and back, trading my wins, all my wins, over and over again. And then I would feel the feeling of the winds and put myself in that mindset and that. That frame of, like, when I did win and what I was thinking and what I was feeling that way. Because my concern would be not actually taking trades because I'm afraid to lose, and that's counterproductive. So that's. That's how I would deal with it. I go back, back, trade all my wins and get in the winner frame mindset.

Love it. Become. Become a winner is what I'm hearing. Yeah. Because a lot of people when they do lose, they. They just. They focus on their losses. Totally. They just can't. They're like, oh, I suck. Right? And then they go study their losers, which is important. Studying losers is important. But I love that shift that you told us. All right? If you feel like you're just an awful trader and you can't trade your way out of a paper bag.

Stop.

What you're doing is you're focusing on only the negative. So you can only see negative. Right. So when you're a hammer, everything is nailed. So you got to start figuring out, okay, wait a minute, let me shift and become a winner again and just go look at how I can win. Go back, trade, find a win, replay that 10 times, get a win, be a winner, change my mindset. You'll attract winning trades. That's what I heard you say, and I love it. That's so good. Okay, beautiful. Does anyone have any trades that you want to review on any market that exists in the world? Because I will look at that AMD trade again that Jeremy's brother played. Good grief. I've already spent 40 minutes looking at that chart if you guys are wondering. 40 minutes this morning as soon as you send it to me. Yeah, it was amazing. All right, here it goes. We're gonna look like, look at it. All right. Amd. So the, the thing that was interesting about amd, I see two things here. Now this is a great long term purchase. Keeping that in mind, right? Really, really good long term, nice stock to be in. It's going to be, it's gonna be really pretty. We had some nice down days and there was some bull candles here closing below the 10. You had some failures off the 100. And so there's a lot of people that are expecting, I don't know, this tap on amd. And while it could, it's very possible. I mean anything is possible, right? A lot of people forget to look where to the left because to the left you'll see this and then this. And what's normal is if you get this and this, what's normal is that eventually you should look down and we've went back, remember we, we analyzed, all of us did together, we analyzed the movement of this move here which was 100 some percent. And then we analyzed this move which was a 30, Tom. And that's the average that AMD generally does. Has a nice 100 move and a big 30 pullback before it, you know, and then chops around, around the long terms and then goes higher. So I was prepared to buy some shares here at the 200. Surprise, surprise. But Eric, what's that one strategy that has extremely high probability of winning? That you can get paid to own the shares at the price that you want to get out.

Anyone. That you can get paid to own the shares you can sell puts down there on the 200.

You can sell puts at the 200. And do you want to sell puts on an update or a down day?

Down days, preferably three in a row.

That is correct. So we had three down days in a row here on amd, right, there's four. You can see the red bars, right, for the four down days. And I sold some puts at one hundred and forty five for July and I was able to buy back those put sales today for a 62 premium capture. Now that was a trade that I did, so it was a small win. Now I'm still in shares of AMD that I bought and at one bottom on that day here at 150. And so being in those shares now, my overall plan is I'm in a collar. I don't care what AMD does. I'm selling calls and buying puts. They're going to expire on Friday, I'm getting into another caller on Monday. The day trade itself specifically is pretty easy, right? Did it take out the higher low of yesterday? Yes or no? Look for the first bear above or the first bull below. So here's the three minute chart, Tom. I'll zoom back in. And here you go. That's the high of yesterday right there. So it takes out the high the previous day. There's a high wave indecision candle, which. That's the first bear above. I was trying to ask myself how would I have taken this trade when I was back trading it? Because I felt like that candle was a little extended. Anytime I feel like a candle pattern is extended, I wait one more candle or two more candles that can have a really good upper shadow. So my thought process was if I was day trading, I'd have no problem getting in here and I would have had my stop below here. So something like that. And, or, and, or if we get this really, really beautiful breakout here and you still want to get in Armin, what type of order entry would you put in to get it on a pullback?

Can you repeat that question, please?

Yep. If you wanted to get in on that trade was there on the candle that I'm pointing to in black and you wanted to still get in on the 10 EMA, what order entry would you use to get in on the pullback?

Limit order? Is that what you're asking?

That's it, baby. That simple. Yep. So you just throw in a limit order to say, okay, I wonder if the trade comes back to me. And it did came back down to the 10 and then bounce and then I noticed the Joe candle. So if Joe was taking this trade, this is how she would have taken it. Because do you see that excellence right there? I mean, when I was back trading this, I was like, this is a, this is gorgeous. Like Joe's gorgeous. You have a such a good pump and then you get what the S curve into the 10. Right. Four bear candles in a row. You already know it took out the prior high of day. And the entry is above not only the bear candle, that's above the tennis, that's perfect. But you also get to enter above the high of that bear candle. So your entry goes boom. Stop. Could go there knowing you're gonna be able to place it there. And what a perfect yourself. Amazing. And then, and then you could have played it on the downside, which again, I did not do all good, but that short right there would have been so good. 160, 165 and a half. Take it. You got to hold through those. You're going to move your stop once this candle comes in because there's no one here at this point has their stop right there. There's no, no way you guys have that stop loss initially. You know that's where your stop loss is going to go. So your entry is here in the red line short and your stop loss is probably, you know, a dollar or two above the high because you need to know that it needs to test it and you need to be able to lose less than an hour. So then after it turns in, that pivot creates that bear candle, you lower your stop to there, right? MJ 0.7 and then crush. Obviously, if you're a maniac and you're able to play this trade, that's even better. But yeah, just a really, really good trade. I mean again, take out the high day or low day. Pretty, pretty clean, pretty straightforward. So yeah, AMD had a nice move today for anyone who was day trading it. I was able to get the put sales purchase back, which is really, really nice.

Just a quick question, psychology related question if you can just on the daily. Like when you asked Armin about the what kind of trade? What kind of deal or yeah trade to enter for getting back in a limit buy. I typically set up a stop limit because I hate buying it when it's going down if I want it to go up. So I wait for it to, I put in the stop limit and I enter that when it drops below so it'll catch it on the way back up again. Am I being too big of a chicken or just cautious?

Great question. That's a great question. And what I would do if I were you in that exact scenario. So really the question is how do I practice especially on a day trade. But kind of in general, Joe's more or less thinking of a day trade but big question for a lot of traders is how can you practice buying into these gnarly, scary red candles? So for example, if this is all you're looking at and this is all we see, who really has the stones, Tom to buy right there on a pullback? Because that's terrifying. Like how do you know it's going to bounce? How do you know? And so the only way that I, that I've practiced overcoming this and again this is just my, my, the way I've done it is if I'm looking at that stock and I'm asking myself, oh my gosh, is this going to pull back? Is it going to Bounce. And I'm setting up a limit order. I do my best, Joe, to make this a physical product. And I try to put in my mind, depending on how I'm feeling that day, I either do hundreds or the same price. But if I was going to buy it, pair of shoes, and I'll sell those pair of shoes for $163, when I buy it at $163, or I try to buy it low, and my brain's like, well, you really, I mean, probably doesn't really ultimately matter, but I'd really like him less than 160. I mean, 163 for one pair of shoes is a lot. So I, I, I'm telling my brain at that point, I want to buy it lower than it is here. Step two, if that number doesn't help me at all, then I go into a bigger number. So then I go, all right, if I want to buy a house, do I want to pay $1,630,000 and, you know, 82, or am I going to try to get it lower than that? So if that number allows me to start saying to myself, I want to try to buy it lower, I might even go, all right, let me see if I can get it right here with this Little Heart at 161. So then I go, sorry, I missed a three up. Let me delete this. This should be 16382. So 1,638,200. There we go. So then if I can buy it down here, or 160-million, Comma, six zero zero. It's like I'm saving 38 grand. It's like, will I do that? It looks better. I'd like to save realtor commissions maybe or taxes or title or something. So I'm gonna try to throw an order just down here to see if I can get it lower. And again, it just, it really is a rep, a repetition of trying to take the stock, make it a tangible product. Because, Eric, same thing for you. Anytime you're looking at a thing and you feel like you missed it, if you make it a physical item in your mind and you tell yourself, this is not a stock, I'm now buying a pair of shoes or I'm buying a house, you will naturally try to buy it. And I think it's just practice, Joe, because I love buying things on a limit. Because the reason, also from a psychologist standpoint, Joe, is you hate losing. Because if you buy on a limit order, it's a get. It has to go below your limit. Price and so you're gonna, you're gonna be in the red for a little bit. There are. Sometimes you're getting to a stop entry like here where there's no red ever. You just get in and just starts pumping green the whole time. That's all that means is you just gotta start continuing to readjust your timeframe, readjust your thought process and just kind of keep reminding yourself. When I get into a trade, I say this out loud, I'm never going to pick the bottom. I'm always have to hold the red. If I do a limit order right. If I'm wanting to come down here and buy it, because it's going to come down here and it's going to do one of these things before it goes up. So I literally have to say to myself out loud, you're never going to buy the bottom. It's always going to fluctuate more. You're going to have some red on the screen leave alone. So hope that helps.

Yeah. Thank you.

You're welcome. Beautiful stuff. Any other trades? And Julia, are you anything? I mean, are you thinking. I know you got filled in your Sheba position. I mean off the 200. Good job waiting. You saved yourself some money. Bought lower.

Yeah, yeah, I tried. Now on bitcoin, it looks like the 200, like the chart you sent, it's coming closer to the 200. I think that's going to be a good place to. To buy.

Yeah. If it gets down there. Yeah, absolutely.

Yeah, yeah.

We're just kind of failing the 100. I still do think that you're absolutely right. We can get. There's a good chance we can get one more good push down to these levels before we get a little bit of a move higher. And that would be really close to 200. The other position from a stock perspective, family is what stock should we be focusing on if and when Coinbase gets around the 60s?

Coin.

Coinbase, Robin Hood. Coinbase for sure. There's probably. There's a few other ones. Coinbase is the most reasonable micro strategy is just crazy. So if, if Coinbase gets down to like hereish again, this was a trade that I bought this protective put. You can get rid of that now. That was when I bought it off of the 100. I did catch the bottom on Coinbase. That was pure luck. That was really nice. Rode this bad boy up. So now three bull candles in a row. What I do, Eric, you already know.

Yeah. So the covered call up there.

Yeah.

So got myself into a collar. Now I'm just Chilling. Whatever Coinbase does, I don't care, it's only with 100 shares. But it's like, whatever, it's still good profit. If Bitcoin has a nice little drop, be watching around this 200 area because you will be able to crush some put sales, bullput, spreads, all kinds of stuff in here. And then again, if you're able to buy coinbase anywhere around 190, I, I think that's pretty reasonable. Now, granted, you might look at this and go, well, this could turn into a double top. And I would say to you, it absolutely could. This will be the neckline. And so never let a possible double top scare you out of getting into a trade because that just simply means that if you do this and it comes down to here, you have really, really, really good risk reward. You already can begin to plan what happens if we take this out. And then you just buy puts and, and, or get out of the trade. But you can already know. And again, if you're going to get into the trade as like an investment, something you want to be in for six months or six, you know, yeah, six months, maybe six years, you're going to use options around your position. If you're going to get in for six hours or six days, yeah, stop, loss, target, all that stuff is fine. But if you're going to really be in a chunky, larger, bigger position, you're going to need some options so that you can kind of trade around the position. Right. Catherine, this is what you're going to love doing after you get your household and you're buying good, good chunky positions of stock, selling calls, buying puts, buying puts, selling calls, maneuvering around the position, just getting yourself into a position where you're either making 3 to 4 to 5% on a couple hundred thousand dollars or you're making 18%. That's a great position to be in. So anyway, Coinbase is going to be good. I mean, on the bitcoin pullback. Yeah, I think, I think it's just still kind of prime and ready. Tom is building a lot of pressure. The longer we hold 186 the better. If I go to a monthly chart again, it still looks good, I guess, I guess. And about 200 and 100 is gonna be really, really strong. So. And I don't, I don't trade microstrategy, but I'm sure if anyone has, you know, the stomach for this type of volatility, the volume's not there anyway, I don't trade it. But yeah, if, if Bitcoin had a good pullback. This would probably pull back to 1200. And you could take advantage of some opportunities down here too. Any other questions about any other trades that you're in? Family, anything that you want to be in, anything that you're reviewing, I'm here for all of it. Mj.

I have a couple of questions. So I am in coin a SMIDGE really at 215 and I'm kind of thinking should I get out and just wait for it to come down lower or should I just leave it alone and just buy more when it comes down for the.

The second one. Yeah, the second one. Because you're in a, because you're in a smidge, which just means you bought a little bit.

Yeah, I have like 20, 30 shares. Not a whole lot.

Yeah, just leave alone.

I have one other stock that I'm stuck in for a very long time. Beto. Are you familiar with it, this ETF? Yeah, I've been stuck in it for two years now. But they pay a dividend so on 400 shares, my monthly dividend recently has been 6 and $700.

Nice.

But the stock itself is down. You know, I'm down on that position about 5k and I'm not sure whether to just write it out because I know if bitcoin goes up, this is going to go up and I can get out with just 700 monthly income on 15K.

No, it's a really good point but.

It'S.

But I don't want to stay in it forever. It's.

And it probably doesn't have options and you can't do covered calls on it.

Not from the price I bought it at.

Well remember because you're, you're almost at the all time high. Like I mean you can't have bought much higher than where it is now. I mean the highest you could have bought is 29 like ever.

That is actually not correct. I got it higher than that.

Really?

Or as I recall. Yeah, I'd have to double check but I'm pretty sure.

Well just double check for me. I mean I'm sure it's possible. But the highest, again unless it was off the market or something, but the highest was 29.61 all time. November of 2021. Yeah. Only reason I'm saying is if it has option capability you can still sell covered calls above the price that you bought it for potentially. And if you did buy in the 30s, then you can always look for covered call premium. Ultimately though, my answer probably is and probably will be I really do think the overall crypto market's in a really nice consolidation pattern. I think we get one more good push at the end of the year. That's my. That's my take. I'm kind of holding off on that. So if I were you, I would leave it alone. I would double check your cost basis. You're welcome to get back to me on it because again, you might have bought it off market potentially before it really converted over and. Or you might not be in as bad of a hole as you think you are because it's getting closer to that break even price. And then lastly, shares with your dividend.

What's that?

Are you rebuying some shares with your dividend?

I'm buying other shares. Not this.

Okay. Yeah, well, this will be tied to bitcoin performance. So, you know, bitcoin goes higher, this will.

Yeah. Until then, I mean, I think 700 bucks a month is nothing to sneeze at on a 15k investment.

That's what I'm thinking. I think you should just leave alone and then maybe. Yeah, like you said, either buy other shares or just buy some more of this one, potentially.

No, I don't want to be in this one. I'll buy more coin instead.

Okay.

I think it's more reliable. This one's tricky.

Awesome. Awesome. Awesome. Well, family, thanks so much for being here. I would love for all of you to throw out any trading plans you want me to help you with. If you need to help me finalize something, it can be specific as you want. It can be crypto, it can be credit spreads, it can be day trading, option trading. Feel free to let me know how I can provide value and assistance. Always happy to do so. And just let me know how I can assist and. Or if there's anything specific that you want me to touch on, because. I don't know what I'm not gonna do in July on, like, Monday morning. I'm not gonna know what to do. I'm gonna feel awfully.

It's almost over.

Crazy. So if there's anything that you needed for me, specifically, family, please let me know. Keep me posted and let me know how I can. Let me know how I can help you provide more value. Whatever I can do. Love you all so much. Post your training plans. Let me know how I can help. You guys are the best. Bye.

Thanks.

Bye.