Can You Get Started With $100? (Stock Market For Beginners)


Hey, it’s Clay at claytrader.com. So, can you get started in
trading, can you get started in the stock market as a
beginner with just $100? I wanna respect your time, so I’m gonna answer that question
right from the start here. Yeah, you absolutely can,
in fact, on the screen here you can see how I started
an account with $100 and now that account
is valued over $6,000. With all that being said from a transparency and
disclosure point of view, does this happen over night? Is this a situation
where, hey, I have $100 and then two weeks from then, you’re out shopping for your
Tesla and beach side mansion? Unfortunately, no. I get it, a lot of people
out there imply that. It’s a great sales and marketing ploy. But the truth of the matter is no, that’s not how it works,
it does take time. And that’s really the
first thing to point out and first note to make is, yeah, you can get started with
$100 but and the but is, you need to go into this
with a realistic mindset, you need to go into this with a framework of how things actually work
and the fact of the matter is, as, kind of, maybe
anti-climatic as it may be, it just takes time but if
you are able to accept that and if you’re okay with that, then, yeah, you can definitely get started with $100. Preferably, you start with more than $100. So, that’s something to keep in mind as we go through some numbers here that, had you started with
even a little bit more, the numbers add up that much quicker. But we’re gonna use $100 from the baseline to show that it is definitely possible. Now, a little distinction here. There are two forms that
you can go about this from a money management point of view and that is active income
versus passive income. What you see on the screen here is actually from a passive
approach and in fact, in a couple weeks, I’m
gonna be putting out a video of how this actually occurred, how I created this
source of passive income so, keep an eye on the
channel for that video. But you can also take an
active income approach and that’s what I wanna go over here, is how you can be active
and still grow that $100. But I also don’t wanna talk in theory, I wanna use actual, real world numbers and I wanna take a real world
example so that we can see how this would’ve played
out in the real world. There’s nothing worse
than just sitting there like you’re in school
and you have a textbook and you’re like, “Okay,
well, that’s great, “that’s all theory though, “can we take some real world examples?” So, that’s what we’re gonna do here. For some quick context, at claytrader.com, I offer a subscription service
and part of that services is, I send out my weekly scans and alerts and this is one of those from that scan. So, I bring that up just so you know that this was actually sent out to members and this all played out in the real world and it’s also giving us some
actual numbers to work with. So, the alert here was just based off of the fact that the price had come down here and bounced off that level on
two separate occasions before. So, that’s kind of besides the point. What I’m really after though
is, let’s look at some numbers because with numbers, we
can see and you can kind of just visualize much better, how the $100 would begin to grow. So, in this case, as I
mentioned up here, 2.90 and then down there, you
can see once again, $2.90. So, that’s $2.90 per share. So, if you wanna buy one
share, it would cost $2.90 and because you would
be starting with $100, well, there you go, you
can definitely afford more than one share. So, let’s walk through those numbers. First thing first, I hear quite a bit with beginning traders that
are new to the stock market and they think that they need
some sort of finance degree or degree in mathematics. No, nothing like that. So, very happy to report that
yeah, none of that is required as long as you can use a calculator, do some basic addition,
subtraction, multiplication then, as you’ll see here,
the math is very, very easy. So, the first thing you
need to just figure out is, okay, well, how many,
that’s the first question, how many shares can I actually buy? So, what will this $100 buy
me when each price per share, as we just talked about is $2.90? So, let’s plug those numbers
in and you just put $100 over $2.90 and that’s how you do it. You just divide, pull out the calculator. The good news is though
that, in all actuality, online platforms, online
apps that you can use, they’re gonna do all this for you. But it’s always good to know
just in general, how it works. So, that’s the basic way
you would go about it. So, after doing the basic calculation, you would be able to purchase 34 shares. So, at this point, let’s
jump into the real world and see how these results
actually played out for members of the community that would have partaken in this. But for us as a reference
point in using an example, we’ll use these numbers, like I said, as they actually occurred in
the real world of trading. What you see on the screen,
if you’re not familiar, it’s just called a technical chart. I offer lots of other videos on this but this is just gonna serve as a purpose to see how the stock price, off or acted and then, what it offered up from an actual trading perspective. So, just gonna kind of
go through things here. That green line down there,
represents the $2.90 mark. So, you can see, the price
eventually went down there and then, two days in a
row, would have allowed for the $100 to be put to use at $2.90. So, let’s just see how the
price played out after that. So, you can see it begins to move upwards, always a good thing. Moves up some more,
moves up that much more, always a good thing. And then continued to
go up that much more. And so far, it’s gone up as high as $4.33. So again, $4.33 is as high as it went up. That is what it’s being represented by that area right there. Again, $4.43. Once again, very happy to report that there is nothing complicated
at all going on from the math. A basic calculation that
we all learned how to do way back in elementary
school, some subtraction. And the numbers you just need to know are, what did you sell your shares
for, so, the selling price and then you just subtract out what you purchased those
shares for, so again, in this situation,
that’s that $2.90 number which we’ve been talking about. So again, very simple. What did you sell the
shares for, what price and then you subtract the
purchase price from that number. So, there we have our numbers,
again, $2.90 right there. Maybe you’re saying, “Wait a second, Clay, “you said the price went as high as $4.43 “and right here, you only have $4.15.” Very good eye if you were thinking that. But the one thing to keep in mind is, it’s very hard to make the perfect trade, meaning, you sell right at
the very top of the movement before it goes back down. Is that possible? Sure, it’s possible but for accuracy sake and just to keep this as honest
and realistic as possible, we’re not gonna assume that
you made a perfect trade. So, let’s just assume that
you sold it at $4.15 and sure, it did ultimately end up
going to 4.43 but again, very difficult to make the perfect trade. So, for our numbers, we’re gonna use the
selling price of $4.15. And that would give us
$1.25 profit per share. So, for each share you
own, you are making $1.25. And then the last step here, we need to figure out the total profit. So, how much did you actually make? How much did this $100 generate for you? How much did it put into your pocket? Once more, very, very
straightforward math. You’re just gonna take, well,
how many shares do you own, again, how many shares
did you actually buy? And then you’re gonna multiply
that by the profit per share which we just calculated. Thinking back to that
first calculation we did, hopefully, you remember that number but we were able to buy 34 shares. And then, as we just calculated, the profit per share was $1.25. So, 34 multiplied by 1.25. And that would leave you with
a total profit of $42.50. 34 shares, you made $1.25 per share and that equals $42.50 in total profit. Now, this is where things
get really interesting and quite frankly, really powerful. But think about it, the $100
yeah, that’s no more, why? Well, because we got that $42.50 profit, your total account value
would now be worth $142.50 so, there has been some growth. You have grown that $100 to now having a total
account value of 142.50. I wanna take this one step
further though so you can show just how these gains can
build upon one another. Now, to keep the numbers simple so we don’t have to go through
everything all over again, let’s just use the same exact situation as far as that stock
that we watched play out but let’s just assume that
you had actually started with 142.50, that way, you
know all the numbers already. But 142.50, now putting that into play and let’s see how much of a
difference that extra which, doesn’t maybe seem like
a whole lot, $42.50 but let’s see what that would actually do. So, quickly going
through the numbers here. First off, that number
should look very familiar, that was the price per
share in our example, $2.90 but the one difference here being, instead of using that $100,
we’re now using 142.50, which means that we can now instead of the original amount of
shares we could buy, we can now actually get 49 shares. So, think about that. First time through, you
could only get 34 shares. But by just gaining another $42.50, that number is now up to 49
shares that you could buy. So, from 34 shares on our original example to now, 49 shares,
that’s a big difference. To finish off the math, we
have our 49 shares, again, just keeping the numbers the exact same. That $1.25 would be the profit per share. Remember, we’re not assuming that anybody made a perfect trade but still able to get
$1.25 profit per share. Now, all of a sudden,
because you had 49 shares instead of the 34, that would generate a
total profit of $61.25. So, that quick, now all of a
sudden, generating profits, not in the $40 range
but up in the $60 range. Now, where would that leave the numbers? Well, at this point, again,
we no longer have $142.50 in your account because you
need to add in that $61.25 that we just calculated, which means, the new account value would be $203.73. So, you start with 100 but then it grows and then it compounds. Maybe you’ve learned in school
about compounding interest and just the idea of compounding. Well, this is compounding
in the real world and it’s the best topic
really that they should teach a lot more in school because you just witnessed it right here. This is compounding in action,
compounding in the real world and you can see right here,
there is a growth coming. Now, again, are you
gonna be able to go out and buy your Tesla with $203.75? No, you’re not gonna be shopping
for mansions on the beach. But my goal here was to show you that there is growth occurring and that you can make growth happen. At this point, I’m assuming
you’re thinking, “All right, “that’s awesome, Clay that
you can actually grow. “But how do you even buy stocks,
where do you buy stocks?” Well, that’s where you would
need an online brokerage or an app, app brokerage, same thing in the world
of the stock market. And what I would recommend is Webull, I’ll put a link down in the description. And the cool thing about Webull is, they’ll actually give you a
free stock if you use that link. So, just keep that in mind
that, if you wanna get invested, if you wanna start to grow then, Webull is a great choice to use for that, link down in the description
box and you can check that out. Also, there are lots of
other videos on the channel that walk you through how to buy a stock, what is the stock market, how do stocks make you
money and of course, hopefully, I accomplished a
lot of that with this video but I do offer a whole lot of other videos for beginning traders and
those looking to get started in the stock market, on
the channel as a whole. So, on that note, definitely be sure to
subscribe to the channel and you can check out whenever
I’m releasing new videos. Like I said, today, we
talked about active income and how I grew that $100 to
over 6,000 but in the future, I’m gonna be releasing
how exactly I did that through passive income. So, by subscribing, you’ll know exactly when that video is released. So, hopefully, you learned some things. If you have any questions,
I’m here to help, leave those down in the
comment section down below or if you have any
suggestions for future videos, I would love that too. But if nothing else, if
you enjoyed this video and like me to keep making
videos such as this then, hit that like button and
also leave me a comment below and just say, “Clay, thanks,
please keep making these,” and I will devote my time to doing these. And also like I said, just make sure to subscribe to the channel so that you can keep up to date on all the other videos that
I release in the future. So, thank you for hanging out. Get out there and start growing. Keep things from a realistic standpoint but it’s possible as
long as you go in there with a grounded in reality perspective and you have a strategy in place and you go about things
in a very wise way, which again, that’s what
the channel is designed for, to help you go about all
this to approach the market and approach growing money
in a wise and methodical way. So, thanks for hanging out.

How To Buy Shares In Share Market For Beginners and Types of Orders In Stock Market By CA Rachana


Hi guys CA Rachana Ranade here and
I welcome you all to my next lecture on ‘Basics of Stock Market’ what I’m trying
to do now essentially is that I’m sure by now everyone knows that I already
have an entire lecture series 11 lecture series on ‘Basics of Stock Market’ I am
trying to give more concepts through YouTube which might or might not be
covered in that 11 lecture series or even if they are covered in the 11
lecture series maybe I’m I would like to discuss a
little bit more about that so that’s how I’m trying to you know progress with my
basics of stock market series even on YouTube now so today’s topic which I
plan to do is what I will tell you in minute but first let me tell you what we had done in the
previous video on basics of stock market I had talked about a very very important
concept which comes up during the account opening from account opening
phrase or phase I should say that is the concept of power of attorney very few
people I came across who actually knew exactly what is power of attorney there
was a concept of a power of attorney which we had discussed in the previous
lecture so if you have not watched that video you can find it here do watch that
first and then move on to this video because it’s a very nice sequence that
we are talking about first we talked about how to open an account now
presuming that you have opened an account now the next step is how do you
place an order so for placing an order you must understand that there are
various types of orders which you can place and there were many viewers who
said that we really don’t know that exactly when to place a day order when
to place a limit order what are the different types of orders so I thought
let me just make a video on that what could be the different types of orders
what are the meaning of that and how do you actually proceed with placing an
order on the exchange I would like to thank up stocks for sponsoring this
video so let’s check the portal of up stocks what you can see on the screen
I’ll just quickly explain here you have a plus sign where you can actually add
whichever stock you want to buy or sell or you just want to add it to your watch
list just as an example let me take Infosys so I’m just typing in fee and
immediately it has given me certain of options for entry whether I want to
check out the NSC cup rice or Bombay Stock Exchange so let me check NSC the
moment I’ve pressed in fee NSC it starts appearing on my screen you can easily
watch it as well here I start getting to three options here whether I want to buy
whether I’m gonna sell so let’s say I am placing a buy order for envy so I’ve
clicked on by now what do you see on the screen you see there are different types
of orders first of all you see the complexity tab in which you have simple
or a mo which is an after market order this typically gets placed after 3:30
the next one is a cover order and the fourth one o CEO is one cancels other
that’s one type of order that they have many people also call this as a bracket
order okay so let’s understand what are these types of orders one by one let’s
say click on simple in simple order type you have to further or for further
options broadly to only one is a market order one is like a limit price order so
the moment I say I want a market price order here you can see I can’t type
anything into buy price okay if this gets frozen out why because I’m saying
that I don’t want to bug in whatever is the market price I want to buy it right
away but the moment I press limit here see this becomes an editable option now
I can press whatever I want so let’s say I want to bug in now being a girl you
know that comes in built that I have to bug in I can just take it at face so
let’s say it’s the price is 771 I place an order at seven hundred and sixty
rupees okay and if I say buy then of course it will ask me for one more
confirmation but we are not here to directly buy that I’m going to show you
many many possible options okay so in this I told you either you can place a
market order or a limit order stop-loss limit and stop-loss market these are
like huge concepts I will just quickly tell you what is the stop-loss the word
itself says says that if I were to stock my losses so just an example if I were
to buy this same stock at 770 rupees and assume that the market price of the
share starts falling down after I buy it and it goes down and down and down till
let us say 760 so I have already incurred a loss of
was 10 or 11 rupees and I feel that that’s a maximum loss I can bear I don’t
want to go beyond that then I can put a stop loss order at seven hundred and
sixty rupees so what happens the moment the stock price goes down and down and
it touches 760 my stop-loss order will get executed
what is the benefit the benefit is that if the stock price goes below 760 also
let’s say it closes it’s 750 I’m pleased to bother about that because my position
has closed at 760 only so my loss is stopped it’s capped at 760 so rupee
terms may it will be stopped at 11 rupees in our example okay what is
stop-loss limit what is stop-loss market these are very very no intense
terminologies for that you can buy my basics of stock market lecture series in
which I have explained almost for 45 minutes what is the exact difference
between stop at stop loss limit and stop-loss market or the next position is
either delivery or intraday delivery is that you buy the shares and it goes into
your d-mat account now you don’t want to sell it off on the same day if your
intention is to buy and sell it on the same day then you choose the delivery a
position type as an intraday okay gif basically talks about again one more
concept time and force is the full form for that either it’s day or it is IOC
day means what assume that I had put this buy price at 760 and 24 the whole
day till 3:30 the stopper is never goes down till 760 it just you know goes up
and down from 772 to 770 maybe seven six seven seventy six or seven sixty-six on
the lower side but doesn’t touch 760 then what the order gets automatically
cancelled how does it get automatically cancelled because the time in force is
only one day so at 3:30 if the price doesn’t reach 760 your order will get
automatically cancelled what is ioc is is like Bajirao singham’s style are
bigger be image it or cancel you you don’t have time to even wait for one
minute or two minutes that’s an IOC the style of an order okay
so I hope simple all concepts are clear next one is an amo in amo again you get
all the similar options so no need to discuss this same type again Co is a
cover order now what happens with the cover order let us understand I can put
again I’d put limit price only I put a buy price at 760 but immediately it asks
me what is your stop-loss so I feel this is the most disciplined way of putting
an order see I feel that if you are a good investor if you are a good trader
also for that matter your buy price and your stop-loss price should be very much
clear in your mind this is more applicable for a trader rather than an
investor though because investor is least bothered about daily movements for
a short term movement if you’re a long-term investor it’s okay then if you
don’t go for a cover order but if you’re a short-term trader this is a must you
must put in your stop losses okay so assume that I feel that I don’t want
to go beyond 10 rupees as a stop loss okay so I can put what would be my
stop-loss amount here or I can even place how much rupees I am ready to take
as a hit okay so that’s a cover order for you one cancels other this is my
personal favorite because this says that my target price is this much and my
stop-loss price is this watch both prices get defined at the same time so I
just quickly show you a demo for that assume one quantity have to buy buy
price is 760 my stop-loss see again let me just define it for you 10 rupees so
the moment I pressed and here it starts showing that it means that my stop last
stop-loss will be at 750 I need not input this I just need to put
how much loss I’m ready to bear okay assume that with ten rupees loss I’m
expecting let us say 30 rupees profit so I feel that today this stock should
cross 800 rupees just as an example so I would press thirty rupees here the
moment I’m pressing thirty see 760 cut 30 arrow 760 plus 30 it automatically
starts showing 790 in your target selling price I can change this if I
save 40 it will start immediately showing yes
800 okay then you have types of stop losses as well one is a regular
stop-loss one is a trailing stop loss again complex terms but maybe we can
have a separate video on what is the trailing stop loss because I think that
deserves separate ten-minute discussion on what
is the exact terminology of trailing stop loss how it helps you and how it
can be dangerous for you as well so as of now I feel understanding the concept
of stop loss and a target cell at the same time makes sense now
why is it called as one cancels other let’s understand anything a very simple
way see them assume that this target selling price of 800 is hit so today the
stock reaches 800 then my buy the stock which I have bought will get sold at 800
so what happens this stop-loss order will automatically get cancelled that
does not stay in the market okay what happens on a contrary situation as a
contrary situation let us say instead of 80 hitting 800 it hits 750 unfortunately
then what happens 750 Tony Tony oh so my sale price will be executed at 750 this
800 rupees will get automatically cancelled in this scenario right so
either this price gets hit or that price head gets hit whatever gets hits
whatever gets hit first the other will get automatically cancelled that is why
I feel that this Osio one cancels other is a very good type of order which up
stocks has in its total so if I were to place this I just say by now then it
gives a confirmation screen it says that one quantities to be bought at 760 the
type of order is also given complexities or Co one cancels all other and I say
bye okay see the moment I say bye then you can see here you have few more times
here orders positions I’ll not show you what are my holdings okay I’ll just go
to orders in orders you will say you will see that the status of this order
is open and I’ve put a by for that the price is 760 I don’t want this top to be
bought right now let us say so what I can do is I just check this okay and
then I have this option of cancer and it asks me are you sure you wanna cancel
this order if I say yes this order gets cancelled now you can immediately see
and the status is cancelled okay the entire purpose of this video was just
show you that what are the different types of orders as of now after seeing
my various lectures on stock market I have received so many comments which say
that now we are pretty confident we want to buy some stocks we would like to buy
some stocks then how do we go ahead so that’s why I thought of making this
video on types of orders so go ahead by at least one stock of
your choice do some research for that just don’t buy because I am saying it
do your research by at least one stock jump into this amazing world of stock
market do let me know your suggestions in the description box I have given you
a link for opening an account with up stocks they have some promotional scheme
going right now wherein you can open a free account with up stocks till 31st of
August so I feel you should grab this opportunity and start your journey in
this amazing world of stock market right even if you have any other queries and
start in my show hashtag ask Russian our show you can put your queries in the
description box as well short description box basically gives you the
link to the ask rational show and it will divert you to the community tab and
in community tab you can go on asking your questions so feel free to ask
whatever questions you have keep on your research to the highest possible place
that’s it from my side for today thanks a lot Jay you

Stock Market for Beginners | How to Invest in Stocks 2019


How do you get started investing? How do you put your money to work without
getting sucked into all the hype and scams? By the end of this video, you’ll have a
crash course on investing in the stock market and how to invest in stocks for 2019. In fact, I’m using the same investing strategy
I developed as a professional equity analyst to reveal my three favorite stocks for next
year. We’re talking stock market for beginners
today on Let’s Talk Money. Beat debt. Make Money. Make your money work for you. Creating the financial future you deserve. Let’s Talk Money. Joseph Hogue with the Let’s Talk Money channel
here on YouTube. I want to send a special shout out to everyone
in the community, thank you for taking a little of your time to be here today. If you’re not part of the community yet,
just click that little red subscribe button. It’s free and you’ll never miss an episode. For this video, I want to take a step back
from our usual videos on investing and that analysis we do in individual investments. Instead, this one is going to be more basic,
a stock market for beginners video. I’m going to give you everything you need
to start investing in stocks from how to get everything set up to how I research stocks
for my own portfolio. I’m also going to reveal my favorite 2019
stock picks so make sure you stick around to see where I’m putting my money this next
year. Now getting started investing isn’t something
you just take fifty bucks out of your savings and buy some shares of the hot stock. Your investing plan is based on your life
goals and your own personality around money, that’s not something you can get in 30 minutes
watching CNBC . But don’t neglect this part of investing. I know it’s not as sexy as picking stocks
and talking double-digit returns but give me fifteen minutes and I’m going to show
you how to make investing stress-free and how to beat your goals. We’re going to start off with two questions
every beginner investor needs to ask. Two questions that are going to tell you a
lot about yourself and how your personality is going to fit with your investments. Based off just those two questions, I’ll
show you two ways to get started investing in the stock market. I’ll then give you a simple three-step process
I use to pick stocks, something I developed over a decade as an equity analyst and working
in private wealth management. I’ll then apply that three-step process
to the stock market and show you the three stocks I think could produce the highest returns
in 2019. Now on to those two questions and these are
going to seem vague and maybe even a little unnecessary for some of you. You want to jump in to picking stocks and
getting that process for stock market research but don’t neglect these basics. They’re going to lay that foundation that
will show you how to be a better investor, a smarter investor, and protect you from all
the bad investing decisions that destroy wealth. Our first question here is, “Are you comfortable
with risk and losing money?” This might seem like an easy yes or no but
really think about it from past experience. What are some times when you’ve lost money
maybe say from gambling or from investing? This doesn’t mean you have to be ok with
losing money, that would be psychotic. The question is, how much stress do you feel
with the idea of losing money or risk? Our second question is, “what kind of an
investor do you think you might be?” Do you want to be actively involved on a monthly
basis picking stocks, reading the financial statements, or do you just want a stress-free
way to make your money work for you? I’ll be honest, I enjoy reading the markets,
learning about different investments and taking that active part in my planning. Everyone’s not like that. There are a lot of people that either don’t
have time to devote to doing their own investing or just don’t want to be a part of it. There’s nothing wrong with that, nothing
wrong with wanting a hands-off investing strategy. You do you, make your money and let the market
do its thing to make your returns. Your answers to these two questions are going
to determine whether you want to invest through an online broker or a robo-advisor. Now I’m going to go into each of these,
show you the difference between the two, pros and cons of each, and how to get started before
we get into that process I use to pick stocks. First though, I want to share a very important
report I just finished, an inside look into something I learned over nearly a decade working
for money managers and the wealthy. That Wall Street lies to you. Wall Street found out decades ago that if
it wanted to keep making money, good investment advice just wasn’t going to cut it. Instead, it would have to become more like
Las Vegas, entertaining investors and keeping them gambling. To do this, the entire investment industry
has built itself around ten lies it tells investors to keep them scared, to keep them
glued to the news and to keep them losing money. This is one of the reasons I don’t work
for Wall Street banks anymore and why I can put this in a free report I’m giving to
the Let’s Talk Money community here. I’ll be sharing a link to get your copy
of that free report, the 10 Lies Wall Street tells investors towards the end of the video. But I want to get back to that idea of getting
started investing and those two ways to invest, through an online investing site or a robo-advisor. Both of these are going to meet your financial
goals, the only difference is how active you want to be as an investor. First we have the online sites like Ally Invest,
ETrade and TD Ameritrade. These websites give you all the access you
need to buy stocks, bonds and anything else that’s going to help you grow your money. You’ll get all the stock research you need,
financial calculators and a lot of them will even provide some time with an advisor. I like Ally Invest because it’s not just
an investing site but part of a bigger financial company that includes a bank and lending. That means you can have all your savings and
investing in one place plus mortgage and car loans at great rates. It takes less than five minutes to set up
an investing account. I’ll leave a link to a review of the site
and how to get started in the video description below. On the other hand, if you answer those two
investing questions and find out you just don’t want that investing stress. If you just want to have your money working
for you but don’t want to pick stocks or deal with the ups-and-downs of the stock market
then you’d be better off using a robo-advisor. Robo-advisors are just a computer doing what
a financial advisor is going to charge you thousands to do . Robo-advisors like WealthSimple
and Betterment take your age and answers to an investor questionnaire and then customize
an investing plan that meets your financial goals. Since it’s all done by a computer, the costs
are a fraction of what an advisor would charge. Some sites like WealthSimple even have advisors
available to answer questions so it’s really the best of both worlds. I’ll leave a link to WealthSimple in the
video description if you want to learn more about that robo-advisor option. So you’re set up with an online investing
site like Ally and ready to invest but what stocks do you pick? How do you find those stocks that are going
to outperform and beat your goals? I want to share the investing strategy I used
while working for portfolio managers and private wealth funds. Understand that this isn’t going to apply
to you if you’ve got your money in that robo-advisor. Robo-advisors are going to put you in a group
of funds depending on your plan and you won’t be investing in individual stocks. This three-step process is the one 80% of
equity analysts use on Wall Street. It’s a tested and proven way to find stocks
that are going to outperform and a way to position your money to take advantage of themes
in the market. The reason why this investing strategy works
so well is because it doesn’t depend on picking individual stocks. Instead of trying to pick winners from the
2,800 stocks on the New York Stock Exchange, this process starts at a higher level with
the sectors and industries that are going to outperform. It’s called top-down investing, looking
at the bigger picture and those broader themes in the stock market before you try to pick
stocks . And you don’t have to be an economist or a numbers nerd like me to do it. We’ll go into finding those big picture
themes but what you’re doing is narrowing your list of stocks to the sectors that are
going to benefit. Instead of trying to find one stock out of
2,800 to invest, you’re saying, “Ok, energy stocks have some great advantages in this
market what are the best two or three stocks out of 100 companies?” The best part about this strategy is that
by finding these bigger themes, you don’t even have to be right on the best stocks. Let’s say you find that deregulation, energy
demand and political risks are going to really boost the energy sector over the next few
years. I’m going to show you how to find the best-of-breed
companies in the sector next but honestly with these big picture themes you could throw
a dart and hit a winner. By looking at these larger, powerful forces
driving an entire sector, all the companies within the sector are going to be boosted
higher. Picking a few of the best stocks will help
squeeze out that extra return but it’s going to be hard to go wrong and impossible to lose
money. So looking for these broad market themes,
you want to look for a few clues. • How do the different sectors react to
higher prices? • Are interest rates increasing and how
do sectors react to a stronger dollar? • Are there international trade problems
and what percentage of sales come from overseas customers for the sectors? • What are the demographics of the customers
for a sector? Are their customers better off or facing a
weaker financial future? • Is technology changing the sector or are
their opportunities for change that might increase profits? Now you don’t have to always be watching
for these big picture investing themes. Another advantage of this strategy is that
these themes play out over years so all you have to do is find a theme or two and then
ride it for as long as you can. Your stocks within those one or two sectors
are going to benefit for years. Once you’ve got your broad themes and sectors
then you start looking within the sectors to find those best of breed companies that
really lead the way. This is where you narrow your list to two
or three stocks that are going to outperform. The first place I go to compare companies
is the Statement of Cash Flows. This is by far the most important of the three
financial statements because it shows that cash generating power of the company. Management loves to manipulate the income
statement to make earnings look higher but it’s much harder to change actual cash flows
so you get a pure view of the company’s performance. You don’t have to be a professional analyst
to look at these financial statements. Once you have a list of stocks within a sector
from your bigger picture themes, there are a few things you want to compare on the cash
flow statement. • First is to compare the growth in cash
flow from operations. This is how much cash generation from the
business so the best place to look and what you want to do is look at it over the last
five years. How much has cash flow increased over that
longer period compared to other companies in the sector. • Another place to look here is the free
cash flow and the change over that same period. Free cash flow is that operational cash minus
the spending the company did to keep the company going so you get a feel for how much cash
is actually available. • On the cash flow statement, you can also
look at how much the company is returning to investors through a dividend or buying
back its own shares. You also want to look at whether it’s paying
back debt or borrowing money. Comparing the cash flow statements of companies
is going to help you narrow your list down even further. So you’ve found a few sectors that are really
going to benefit from these broad themes, that’s step one. Then you find the companies within those sectors
that are able to generate cash for investors at a faster pace and that are using cash responsibly. Finally, you’re going to be looking for
catalysts or roadblocks to growth for each company. This means looking in the financial news,
reading analyst reports and management presentations. By this time in the process, maybe you’re
only looking at four to six companies in a sector so this level of deep research won’t
take more than a couple of hours. You’ve already got that big picture view
of the sector, now you’re looking for company-specific plans that play into that view. You’re looking for companies that have a
defined plan to take advantage of those big trends and how they’re going to do it. Now I want to take these three steps and use
them to highlight three stocks, why I think these are the best stocks for 2019. Understand that even if you’re investing
in these three stocks, they shouldn’t be your entire portfolio. Use that stock market process above to find
at least six or seven other names in a few sectors. This is going to spread your risk out to limit
that downside and maximize your return. My first 2019 stock is Wells Fargo, ticker
WFC. This was an easy one despite all the bad press
the bank has gotten over the last couple of years. Few sectors have as much going for them as
financials with deregulation and rising interest rates that will drive profitability. This is actually something we talked about
in our Warren Buffett series because Buffett has more of his money in banks than anything
else right now, almost $40 billion. Wells Fargo is the largest deposit gatherer
in the country and a leader in the mortgage market, meaning it’s going to win big when
those long-term rates head higher. Return on assets has slumped to 1.1-times
this year from 1.4 in 2013, leaving room for stronger profitability on management’s turnaround
plan . Non-performing assets have shrunk for four consecutive quarters and the bank has
been able to grow deposits consistently. I’ll admit that it may take time to rebuild
the company’s reputation after the scandals but Wells Fargo always had some of the highest
marks for customer satisfaction among banks and I think it can get there again. Our next stock for 2019 is CVS Health, ticker
CVS. Now the company has seen its shares gradually
melt 45% lower since July 2015 on weakness in drug pricing and fears around competition
but this is a company with a huge advantage and some great drivers . The Aetna merger will create a vertically-integrated
health care company like no other, able to control pricing and patients at every step
in the process. This idea started with that giant shift to
an older population and growth in healthcare spending. Being able to control drug pricing and insurance
could boost profits significantly and the shares now trade for just 10.4-times trailing
earnings. Even if Amazon is able to carve out a share
with its acquisition of PillPack, the market is underestimating the healthcare market advantage
controlled by nation’s largest drug retailer. My last 2019 stock pick, and I’m going to
get sooo many comments from this, but General Electric, ticker GE. For nearly a decade, we’ve been under easy
money but no growth so all companies have been doing is buying back shares. There’s been no capital investment. That’s slowly changing with tax reform,
stronger growth and the move from low rates. Companies are going to be investing in new
capital and that’s going to benefit the industrials and especially GE. Now I know GE has been a dog for the last
couple of years, shares are down 60% since the 2016 high. But management has made the tough decisions,
selling off some assets and spinning off others. Cash flow is protected and I don’t think
the market is giving the company credit for it yet. I think a solid turnaround in stock price
could start in 2019 with even more gains over the next five years. That’s a crash course on the stock market
for beginners and some of the best stocks for 2019. We’ve got a lot of great videos on getting
started investing here on the channel. I’m leaving a link to get your free report,
those 10 lies Wall Street tells investors, in the video description below. Make sure you click through to get your free
copy because it’s really going to open your eyes on what Wall Street is doing and how
you can invest by your own rules. We’re here Mondays and Wednesdays with the
best videos on beating debt, making more money and making your money work for you. If you’ve got a question about money, just
scroll down and ask it in the comments and we’ll answer it in a video

Yield Curve Inversion! Is the Stock Market Crash Here? by Adam Khoo


hi this is Adam Koo here and if you’ve
been reading or watching the mainstream news you may be freaking out right now
because in the news all they are talking about is that the yield curve has
inverted and they are talking about a recession coming a stock market crash so
is there any truth to this right it’s a stock market crash it’s a recession
eminent so let’s look at the facts right now before we make a decision well first
let’s take a look at the news from yesterday right and again it’s all doom
and gloom from you know CNBC to CNN they all sings the end of the world right so
on CNBC is saying that the Dow Jones drops 800 points as Wall Street
suffers worst day of the year on recession fears the market sell-off was
a response to the yield curve inversion in government bonds right CNN says Dow
tumbles 800 points after the bond market flashes a recession warning which
again is the inversion of the yield curve in the Bond market all right
global stocks slide as bond markets send recession warning that’s on Reuters
and CNN says five of the world’s biggest economies are the risk of a recession
but of course you’ve got people like Janet Yellen from the previous Fed chair that
says well you know this yield curve inversion may not be a recession signal
this time okay now you can’t blame most retail investors from freaking out over
the news and selling in panic but should you sell in panic should you get out of
the market sell all your stock or should you buy more or should you hold let’s look
at the facts right now remember in order to succeed as an investor or trader you
never make decisions you never act based on emotions or panic you always
disassociate look at the facts and make your decision so let’s look at the facts
right now now first of all an inverted yield curve has correctly signaled all nine
recessions since 1955 and was only wrong once and the fact is that when the yield curve goes negative there’s a 90% chance of a recession starting within the next 17
months or so now that sounds really scary but I’m gonna explain in this
video why you should not sell stocks right now in fact you
even buy stocks right now so just hold onto your horses now first of all what’s
a yield curve for those of you who don’t know what a yield curve it’s a curve
okay that plots the yield which is interest rates against the time to
maturity of US government bonds or known as US Treasury bonds right so in a
normal you curve or normal situation it’s sloping upwards in this case
sloping up right where bonds that have a shorter time to maturity example the two
year bond commands a lower interest rate then a longer term bond like the
ten-year bond okay now this makes a lot of sense why
because obviously if you buy a long term bond it means you’re lending money to
the government in the long run you demand a high interest rate because your
money’s locked in for a long time right but if you lend money for the shorter
term you don’t mind a lower interest rate so that’s a normal yield curve an
inverted yield curve happens when it is the reverse now the 2-year bond commands a higher interest rate than the long-term 10-year bond so what this
means is now if you lend money to the government for ten years you get less
interest than lending money to the government for just three months or two
years okay so what causes this yield curve inversion and what does it mean
right now first of all how is yield calculated yield is also known as the
interest rate the yield is equal to the interest that you get right the interest
that you’re paid by the government divided by the price of the bond now
what happens is that when bond prices increase when the price of the bond
increases what happens that’s right the yield the interest rate you get drops
okay so what causes inverted you curve is that the long-term bond yield has been
dropping below the short-term bond what causes
the yield to drop is because the price of the long-term bond has been increasing
why because many institutions many people have been buying the long-term
bond and by buying the long-term bond demand has pushed up the price of the
bond and has caused the yield to drop and hence lower than the short-term yield
causing the curve to invert so what does it mean why I have been why have a lot
of people being buying the ten-year bond is because they are scared is because
they are fearful of a recession they want to lock in their money into a bond
which is a fixed interest so they buy the long-term bond causing the price to
go up causing the yield to drop and the yield
curve to invert so it’s a sign that people are scared is a signal of a
recession alright so basically if you take the 10 year interest right 10-year
yield and you minus you deduct the 2 year yield right if you deduct it if you get a
negative figure it means the yield curve has inverted if it’s a positive figure
10 minus 2 which means it is not inverted right and here’s the thing it
recently inverted guess what for just a few minutes it inverted yesterday for
just a few minutes right so let’s take a quick look right now
so this is the spread between the two-year andten year born which is
basically the tenure you – the two-year you and you can see that usually it is
positive okay now the last time which inverter was over here
it started the inversion in December of 2005 and that predicted the recession
that started in 2007 over here so what has happened now that when 2019 is that
the yield between the two and tenure which means that 10 year – the two year
has just turn negative okay but it only went negative for a couple of
minutes intraday yesterday but now it has actually gone back up again tonight
so in fact if you look at this chart you can see this the two year interests or
the you and this the ten year interest rate and as of now which is today’s the
15th right s off yes that is close you can see that ten-year is back above the
two-year so it has an inverter already right but the point is that this
guy the tenure went below the two-year briefly yesterday and that free people
are it oh my god and they sold so the first thing to not be so concerned about
is that it just went inversion for just a few minutes alright for it to really
signal a recession it has got to invert and stay inverter for a few months I can
see over here is stay inverted for about two and a half years but this was only a
slight inversion for just a few minutes alright so that’s the first thing to pay
attention to right unless it stays down there for many months a recession is not
gonna come right now even if it does stay down there and a recession is
coming is the you curve inversion a good way to time the market should we sell
stock right now right in response to me and the answer is no right
why do I know why shouldn’t we use this signal to sell well let’s take a closer
look right now now you can see that historically whenever the you curve
inverse a recession starts not immediately it takes a couple of months
for the recession to begin so going back to 1978 August the iewk of inverted
recession started January 1980 17 months later right you have again inverted
September 1980 recession started ten months later and so on and so forth and
most recently the you have inverted in December of 2005 and the actual
recession started in December 2007 which is about 24
months later so on average it takes about 60 months from an inversion to the
recession now at the same time the stock market doesn’t start going down only
when the recession happens in fact the stock market starts to reverse into a
downtrend a couple of months before the actual
recession because the stock market is a leading indicator of the economic cycle
the stock market tends to move three to six months over nine months a hit of the
economic cycle you know take a look at this table right here and you can see
again historically when the yield curve invertor the stock market started to
change its trend to go down only a couple of months later and it’s really
different from time to time so when the you curve inverted august 78 the stock
market started to plunge only 19 months later 19 months later there’s more than
one and a half years later of the market going up before he went down right and
most recently you can see that when the yield curve inverted in December 2005
when the stock market start coming down not immediately in fact the stock market
started to change the trend only in October 2007 which is 23 months later
almost two years later right so the lag time between the top of the market and
the you curve inversion is all over the shown all right sometimes it’s as short
as two months as long as 23 months and that’s why using the you curve to time
the time to get out of the market doesn’t make sense because is it 2
months later is it 2 years later right so how do i time the markets how do I
know is the best time to get out and the best time to get back in I rely purely
on technical analysis of price action or price trend so let me teach you right
now how I do it and how you can do it for your own portfolio so let’s take a
look at the last recession and the last inversion
US stock market crash see what can learn from it right so the last one happened
more than ten years ago and again the u k– of inverter on december 2005
so once the u k– of inverter when did a stock market actually reverse into a
downtrend and start crashing it started reversing only twenty three months later
in October or on on October 2007 over here when the market made a top right so
what does it mean it means that if you had sold when the yield curve inverted
over here guess what for the next twenty three
months you would have been out of the market you would have missed the twenty
five point six percent return on your portfolio alright so you can see that by
you know look at the U curve you’re not getting out at the best time so when
would you want to get out of the market or to protect your portfolio and the
answer is you want to get out or protect your portfolio somewhere around here
right somewhere around here just before the market goes into a bear market
before it goes into a severe downtrend and the question would be how would I
know that is going down I mean hindsight is 20/20 but at that time how would I
know that the trend has changed well really simple there are a few things I
use number one I look at price action which is the a patterns of price
movement I’ll use trend lines and I use moving averages I’m going to show you
how we can combine all three right now okay so first of all you can understand
that how do you define an uptrend again uptrend is defined as a pattern of
higher highs and higher lows right so an uptrend looks like that there’s an
uptrend right so the price makes a series of higher highs and a series of
higher lows so we call this a blue market and the
bull market reverses into a bear market when we see a change in the price action
from higher highs and higher lows it makes lower highs and lower lows
again let me kind of draw this out for you so this is a high over there that’s
a high it makes a higher high eunuchs a higher high it’s a law it makes it
higher low a higher low right and it makes the top right and from the high
iMix a lower high and a lower high so I’m always looking at a pattern of highs
and lows to see if the trend is still an uptrend or downtrend now take a look at
this over here you can see that this is a high right mix a higher high high high
high high high high high high higher low so as long as I see a pattern of higher
highs and higher lows I know that we are still in a bull market I stay invested
and i watch the stock going up the market going up now over here you can
see the market makes a top and from a higher high it makes a lower high a
lower high a lower high a lower high and lower low and lower low and lower lower
and lower low ok so from this pattern you can see a
shift in the price action now some of you may say but Adam sometimes it’s not
really clear right like for example you may say hey over here from this high it
may in lower high I mean a lower high so why isn’t that a Down trend right or you
know from over here he made a lower high over here or from
here it made a lower high in me yeah you know a lower high over there so how do
you tell right ok here’s my secret right ready secret number one you have to c4
lower highs in sequence only when you see four lower highs in a row it’s a
signal of a changing trend four in a row so check it out over here you can see
that is a high that’s a low high that’s only one right
from over here to here that’s only one from here to here that’s only one and
from here to here it’s one two and only tree we don’t have four in a row right
check it out one two two lower highs in a row we don’t have one row but check it
out from here we’ve got a high right we have got a lower high we have got a
lower high and a lower high then we have it we’ve got the first high one two
three and four that’s right so when you get four lower
highs in a row it’s a very high probability that the price action or the
trend is reversed and that is when you want to sell everything or to hedge your
portfolio using put options we’ll talk about in a while before the bear market
goes all the way down right so that’s the first thing I look at do I have four
lower highs in a row the second thing which I look at our what we call trend
lines right so this is known as a trendline where you can see the price if
you connect previous low points it’s kind of like a level of support where
the price is bouncing off the support right so we call that support support
support support support support now the moment it breaks the support it’s kind
of like as long as the car is on the road you stay in the car the moment that
car drives off the road get out of the car because the cars gonna crash down
the hill all right so you can see over here that the car has driven off the
road that could be a time to get out as well to sell everything or to hit your
portfolio right those of you understand packet analysis technical analysis we
know that when support is broken it becomes resistance right there over here
you can see this is the support is broken
and it goes up it becomes a resistance Kissel resistance and comes back down
again so this could also have been a time to exit when the support has become
resistance his the resistance reverses and you exit over there so that’s a
second method I use the third method I use is a simplest method using moving
averages now for those of you who have been watching my videos before you know
that to identify the big trends I use the 50 and 150 simple moving average so
the 50 moving average is the one in blue that’s the 50 moving average the one
here in blue 50 and the one in green is the hundred and 50 moving average okay
now the rule is pretty simple whenever the blue line is above the
green line and it’s sloping up its a confirmed uptrend a downtrend is signal
when the 50 crosses below the 150 in other words the blue line crosses below
the green line and both lines start to slope down now the slope is very
important some people think that okay the 50 crosses below the 150 is a
downtrend that’s not true if the 50 crosses below the 150 but the lines are
still sloping up that’s not a downtrend signal it has to be accompanied by a
change in the slope really important stuff alright so you can see that by
using the moving averages it can tell us again the change in trend so over here
you can see that this was a very clear uptrend why because the 50 blue line is
above the 150 green line so that’s a very clear uptrend now over here you can
see that there was a cross 50 crossing below the 150 right so would that have
been a sell signal yeah sure why not right so you could have for example
bought you know somewhere over here all right a lot earlier and you sold it
there and you have taken a very nice profit from the market right and the
moment you saw what happened it crossed back above again 50 up to 150 so you
would buy it back over here because that’s an uptrend signal right
so by back over here and over here what would you do that’s right fifty crossing
one fifty sloping down you would sell over there so that would be another
signal right so it could have bought there so there salt here get out before
the crash as long as the fifty remains below the 150 the trend remains down now
when would you buy back you buy back when again the blue line crosses back
above the green line and it starts sloping upwards so fast forward to about
one and a half years later that’s what would have happened right so you have
again cross over so everything over there all right let
it crash all the way down that was a fifty six percent drop during the
financial crisis it took about 18 months for the market to bottom in stereo nine
and over here when you see again a change in the trend fifty crossing above
the 150 sloping up you would have bought back over there when the SNP was at
about nine hundred fifty points and if you had held that all the way now the
SNP is about two thousand eight hundred points
alright so you can see that moving average is also very very powerful now
let me ask me and that which one do you use you use the price action use the
trend line use moving averages and the answer is this I use all three at the
same time right so when I combine all three I can define the markets with
precision now if you think that this is pretty powerful let me tell you that
this is the kindergarten stuff this why I teach kindergarten kids right for
those of you who attend my life wealth Academy program or taken my online
training you know that this is basic stuff right when you actually come for
my training I teach you even more powerful stuff of how you time the
market even more accuracy but for those of you watching this this is good enough
for you to you know get out at the right time and get back in in the right time
alright so let’s take a look at the charts right now so this is the S&P 500
and as of yesterday you can see that we have
a pretty big closed down yesterday right and big drop in the markets as if you
are panicking oh my god the market has collapsed hello and they don’t collapse
it’s just a small drop you can get over it right so you got to look at a chance
now again right now as of yesterday again we had the yield curve inverting
for the first time in a long time right well just a few minutes right
what’s the big deal anyway so the you cliff inverted there
do we sell well again let’s look at the price action are we making lower highs
and lower lows are we having for lower highs in a room no we are not right so
you can see that that was the highest point this is the lower high so we call
that as one week um there’s two and again not yet right we need two more
lower highs to signal a downtrend we’re not there yet
right now how about using the moving averages so let’s put in the moving
averages ready tada there we go alright sometimes it doesn’t
draw very well okay let’s go back there okay so based on the moving averages you
can see that yep the 50 moving average the blue is still above the green and
it’s still sloping upwards and the price is above the 200 moving average and yes
we are still on a pretty pretty clear uptrend right now right the trend has
not changed at least for the big picture right and if I can see that after
yesterday’s drop it is now finding a support at be 150 moving average right
now 150 the green line looks like a strong support bouncing off bouncing off
and bouncing off so it looks like is being supported right now so as of now
again we can’t predict the future I’m not a fortune-teller I can’t predict the
future but all I can do is to read the trend right uptrend we buy downtrend we
get out or we hitch our portfolio so for now we’re still on a major uptrend and
probability is that we should see higher prices going up but again anything could
happen right anything could happen could always break below and the 50
could cross below the 150 eventually signalling a downtrend a bear market and
yes that’s a time when well you could protect your portfolio by buying put
options in the CTS oh I could sell everything and buy everything back again
when the market bosses can do all those things right so I’ll talk more about
that in future videos at the same time if you’re picking the Life wealth
Academy program or attending my online classes you’re gonna learn a lot more
about how to manage individual stocks in your portfolio
now while the medium to long term trend remains are of course a short term trend
is currently down right now so to look at a short term trend I use a shorter
term moving averages like the 2040 exponential moving average which is over
here let me just put it in over there there we go so you can see let me just
zoom in a bit alright so this red and blue dotted lines are the 20 and 40
exponential moving average it’s for me to read the short-term trend so you can
see in the short term the 20 has crossed below the 40 indicating a short term
correction shot them deep or downtrend but the overall trend is still up so
what I do is when I see a short term downtrend yeah I’m holding on to my
investments because I know they’re going up over time but in the short term could
I make some money as the markets coming down yeah so what I do is I buy put
options or put option spreads so please learn how to use options so you can make
some extra income while the markets coming down while holding on to your
investment portfolio alright so let me give an example so the moment I started
to see the market correcting I started to buy some of these put options spreads
to make some extra income and to sell covered call options so so you can see
one of my portfolios overall I am long on the market right I’ve got long
investment investment positions but at the same time I also have got short
positions where I’m short the market so that means when a market goes down in
their shorts my short positions are generating
profits for me and although you can see my short positions
I sell calls against my stock these are selling cupboard calls and can see the
unrealized profit from these calls right these are put options which I just
bought about two days ago so I bought a few put options to generate the
unrealized profits over here in order to hit or protect some of my short-term
losses from the stop position so the stocks I only make go down temporarily
so you see a negative over there but by using put options and selling cupboard
calls it generates enough profit to cover the short-term drop in my
investment position so as a result you can see that for the year year-to-date
I’m still up about 20% for the year right I was up about 40% but because of
the correction down a bit to 20% but still positive for the year right and I
have to manage many portfolios and have to do all this for all my portfolios so
this is these are the things that I teach my students in our live classes in
our online classes how to manage their portfolios so they generate consistent
high returns with lorries and to protect themselves during a bear market so what
if this bull market really changes into a bear market and we go into a major
downtrend now I don’t think it’s gonna happen but you never know it could
happen now so if we go to a bear market what do you
do it depends if you’re short on trader like I’ve got a short term trading
portfolio you obviously will not take any more long trades in fact your treats
make hit the stop loss and you get out right and you you just take short trades
where you profit by going short the market now if you’re more for investor
or you got an investment portfolio like for me I’ve got this investment
portfolio what do I do well here’s the thing if you have bought
fundamentally good companies you don’t have to worry right so if you’ve taken
my value momentum investing cost you know that I only buy very good
businesses that are fundamentally strong so that I know that over time the
we’ll always go up so you don’t know where just hang on to it you know it’s
shot and turbulence you always go higher so for example what what are some of the
companies which are great companies like for example now by the way if you look
at this chart is the 15-year chart of the S&P 500 and you know they’re in the
long run the stock market always goes up it always goes up right so regardless of
short-term bear markets recessions crashes you will always go up and that’s
if you buy every single stop in the index but if you know how to select the
best companies you know that it’s gonna perform even better than the index right
so in the last 15 years for example if you had bought a great company like
McDonald’s you can see McDonald’s despite the recession and the trade war
it has done really really well right from 20 bucks to two hundred twenty one
dollars right and this is the last 15 years going through many crisis and
going through the financial crisis and this Amazon again for the last 15 years
again going through the financial crisis back in 2008 but from a hundred bucks to
now over almost two thousand dollars on Amazon right Oh Google alphabet right
again from ninety dollars or other 48 bucks from a low 48 dollars again going
through the financial crisis you just hold it you know in the long run it’s
now over a thousand dollars so if you own good companies no worry just close
your eyes hold it you go hi eventually right just just have the confidence
there you know companies will grow in the future but again in the short term
could you make some extra money while it goes down temporarily yeah you could buy
again selling covered calls or buying put options now you know nothing about
options do check out my free option videos on YouTube just go to youtube and
search for options trading atom cool good my playlists under my playlists
look for options trading find a mobile options find out more about the stock
market stop investing stop trading so much to learn for you to build your
portfolio so I hope you’ve learned something over here do subscribe to more
videos or check out my websites for more information about our training programs
Adam Koo I’ll see you soon made of markets be with you hey if you like this
video do remember hit the subscribe button if you like to find out more
about my online professional training courses like the professional forex
trading course value momentum investing course professional stock trading course
or professional options trading course go on to Piranha profits calm and learn
to trade like a professional and generate income from anywhere in the
world if you’re in Asia like to travel to Asia
check out wealth Academy global com where I teach people live in my wealth
Academy programs so may the markets be with you and take care and generate the
profits you deserve

How to Make Money in the Stock Market — Growth & Value Investing


Nick Sciple: Hey, I’m fool.com editor
Nick Sciple, and on this episode of FAQ, we’re answering the question you’ve all been asking:
how do you make money in the stock market? People invest to make money, plain and simple.
Except in special circumstances, like shorting a stock, investors buy a stock with the hopes
that it will increase in value, allowing him or her to sell the shares later at a higher
price and pocket the difference as profits. But how do we know a stock is going to go
up before we buy it? In the short term, stocks go up or down for an endless number of reasons
— from military conflict and news releases all the way down to individual tweets. However,
there’s only one reason a stock’s price increases or decreases over the long term: to match
the value of a company’s assets and cash flows. As Ben Graham famously said, “In the short run,
the market is a voting machine, vacillating based on the news of the day. But in the
long run, it’s a weighing machine, measuring the actual value of a business.”
Now that we know why a stock’s value increases over the long term, we can answer how to make
money in the stock market. There are two ways to make money in the stock market. You can
either buy a company for less than it’s worth, or you can buy a company at fair value and
hold it as it continues to grow over time. Let’s look at each of these in turn.
Imagine I offered to trade you a $1,000 car for $500. Would you take it? Most of you probably
said yes. Free $500, right? Now, you can take that car, and with patience and effort, find
a buyer for the car’s full value. Maybe the seller didn’t want to put in that effort,
didn’t know what the car was really worth, or, for whatever reason, they needed the car
gone quick, and they decided to sell it to you for that reason. This same
thing often happens in the stock market. A stock falls out of favor, whether
due to bad news around a company, market volatility, or really a number of other reasons, and its
price falls below what the company would be worth to a reasonable purchaser based on its
earnings and assets. Intelligent investors can take advantage of these opportunities
to purchase shares of a company for less than it’s worth, and just like with the car,
sell the shares for a tidy profit once the market realizes its mistake. Also like the car,
it may take a long time to find a buyer, because markets can remain irrational for a long period
of time. However, this strategy has been among the most successful in the history of investing.
This approach — buying shares of companies for less than the resale value of the company
as a whole — is known as value investing. It’s been used for decades by famous investors
like Warren Buffett and Benjamin Graham to build incredible wealth.
But that’s not the only way to make money in the stock market. Now, imagine I offered
to sell you a grocery store in a small town with only 100 people for its fair value.
This grocery store is the only one in town. Everyone in town shops there for all their food.
And it’s profitable. You know that in five years, a new factory is going to be built in the
town that’s going to bring 500 new people to the area, bringing the total population
up to 600 people. Would you take my offer to sell you the grocery store for fair value?
Of course you would! You know that in five years, the grocery store will have six times
as many customers as it does today. With a larger customer base, it should pull in even
more money, making the store look extremely undervalued in five years. This same
phenomenon often occurs in the stock market. For example, when Amazon went public
in 1997, it enjoyed a market value of around $450 million. However, over the ensuing 20 years,
as consumer preferences shifted towards e-commerce and the company wrangled emerging
trends like cloud computing, streaming games, and advertising, Amazon’s earnings have skyrocketed
by 34,000%, and it now holds a market value of over three-quarters of a trillion dollars.
For investors who were patient and confident enough to hold the company for the long term,
through 50%-plus sell-offs, competitive risks, and probably some boredom, Amazon has provided
life-changing returns. This investing style — buying companies with promise for future
growth and holding for the long term to realize the benefits of that growth — is known as
growth investing, and it’s a strategy that’s been used by famous investors like Philip Fisher
and The Motley Fool’s own Gardner Brothers to great success. Whether you
decide to invest for value or growth, or you shoot for some of both, successful
investing requires knowledge and patience. Knowledge of what a business is worth,
and where a company has opportunities for growth in the future. Patience to wade through many
investment opportunities until you find one where what you know about a company’s long-term
worth and what the market thinks it’s worth are out of sync; and finally, the patience
to wait for the market to recognize that worth. However, if you can master the patience
and discipline it takes to stick to either of these investing approaches, you’ll be able
to drive life-changing returns for yourself and your family over the long term. 
Thanks for watching, guys! If you enjoyed this video, we’ve got plenty more like it
on our channel. Hit subscribe on the bottom right and give us a thumbs up if you liked
our video. If you have any questions on things I hit in the video, drop them in the comments
section below. We love getting ideas for future videos!

How the Stock Market Works… EXPLAINED!


Both: Hey! Mike: So Emma, you and I are pretty savvy
investors Emma: You mean how we bought stock in New
Unlimited Timetravel Megacorp before they released the chronocopter? Mike: Right on the money. So do you think
we should share some our stock knowledge? Emma: I think we should! Part one: what is
stock? A stock is a part ownership in a company. If a company has 100 shares of stock available
and you buy one stock, you essentially own 1% of that company. Most publicly traded companies
have millions of shares, so average investors own only tiny portions. Mike: Companies typically offer stock in order
to expand their business without taking on traditional debt. When they start selling
those shares to anybody who wants one, they become known as a publicly traded company. Emma: Of course, unless you’re Warren “The
Buffetator” Buffett, most people aren’t buying stocks for ownership rights. Most stocks are
purchased with the intent to grow your money over time. You can make money with stocks
in two ways. Mike: First way: a stock’s value may increase
over time as the company grows, so your share is going to become more valuable. Emma: Second way: a company may issue dividend
to shareholders. Now let’s dive into both. Mike: (record scratch sound) Big E, I gotta
admit, I’m not really feeling that thrill-a-minute, how to adult experience right now. Emma: You want to time travel don’t you? Mike: absolutely. I’m gonna go get the chronocopter
ready, I’ll be right back. Emma: While Mike preps our incredible journey,
let’s talk about part 2, how stocks make you money. As we mentioned, one way is by increasing
in value after you’ve bought it. A stock can go up for many reasons, maybe a company has
a new product that seems to be a hit with the public- Mike: Copter’s almost ready. Okay, just a
couple of things before we go. Desirability of a stock will drive up two things, the ask
price and the bid price. This stuff is mostly handled by computers and when the ask and
the bid prices line up, ba-da-bing, that is a sale. Chronocopter: Your chronocopter is ready. Mike: Nice! Okay, so before we go, I’m just
gonna do two things really fast. I’m going to put $100 in a saving account and another
$100 in the stock market. Emma: Let’s go to the future and see what
happens to the money! (chronocopter music) Emma: Welcome to the year 2065. Robot! Mike: So Emma, let’s check those numbers,
eh. Bup-boop-beep-bup-boop. Oh, look at that. Future. Uh, right, Emma, it would appear that
my $100 invested 50 years ago has gotten an average return of 10% and it has become $11,739.09 Emma: Now let’s check out the money in the
savings account. It looks like there was an interest rate of .06% per year which means
that $100 is now $103.04 Mike: Which I think can almost buy a gallon
of gas today. Both: Whoa! Mike: That was a jet-pack crash. Let’s get
out of here, okay? Emma: Okay, okay. Mike: So Emma, I think we just learned a very
valuable lesson: don’t drink and jet-pack. Emma: Also investing can be super helpful.
Although 10% is the average, there will be down years, say when a company releases a
bad product. But if the market is down 30% one year but up 60% the next year, you’re
still better off than when you started. That is, assuming you are diversified. Mike: The other way a stock can help you:
part three: show me the dividends. A dividend is a payment that a company will pay to its
stockholders from its reserves or profits. When a company does well and has excess cash,
they will typically either reinvest it to grow their business or- and- and/or (beep)
and/or they will pay out a portion of it to shareholders. Emma: Some companies started out with the
sole purpose of paying dividends. For example, REITs which stands for Real Estate Investment
Trust, info in the doobly-doo. Which takes us to part four: how do I invest? Mike: You can invest by contributing to your
company’s retirement funds and/or you can do it privately a through brokerage. Online
brokerages are very popular these days, and once you get the hang of it, it’s like, as
easy as making any other online transaction. Emma: Stocks of course are just one financial
tool. If you’d like to hear about others please let us know in the comment section below.
We would love to hear from you. Mike: In the meantime, I just programmed the
chronocopter to take us to the day when we’re going to reveal the catchphrase. Emma: And when will that be, exactly? chronocopter: Date unknown (X files theme plays) Mike: By the way we wanted to thank one of
our Patreon patrons, who is our awesome person of the week. Her name is Mel Harch. Emma: Hi Mel! Mike: HI Mel! Thank you so much for your h-
awesomeness. Uhm. This is a picture of Mel. Emma: (excited noises) Yay! Mike: Yay! Thank you! Emma: Thank you. Mike: If other people would like to become
our awesome person of the week, what do they do? Emma: Go to Patreon. Mike: Yeah Emma: Patreon.com/howtoadult Mike: Excellent. Emma: Is that our URL? Mike: It is, yes. Emma: Awesome, yes, that is the place.

How to Invest In the Stock Market for Beginners in 2019



good date subscribers thank you so much for joining us today my name is Graham and welcome to the financial education Channel I'm so happy finally we've been talking to each other for probably like a year and a half I finally got Jeremy on my channel today so if you're not already familiar with Jeremy he has a slightly bigger channel than me like two hundred twenty thousand subscribers where he talks about the stock market and everything that goes along with that Jeremy by the way has grown a two hundred thousand dollar stock portfolio by the age of 25 and when it comes to stocks I really trust his judgment so today we're going to be doing a yeah besides go pro but anyway we're gonna be doing a video today about stock market investing for beginners in 2019 everything you need to know from start to finish from A to Z exactly how to get started doing this step-by-step so with that said let's first talk about why would you choose or why would someone choose to invest in stocks in the first place alright so here's how I view things when I got started in the stock market I was a natural saver and here's the thing like if you're trying to make your money into money there aren't a lot of avenues that are realistic for you real estate investing if you don't much money really it's hard to get into right there's a certain cost you have to get to stocks you can get into stocks if you have a hundred bucks 200 bucks a 500 bucks safe like you can use a Robin Hood app which is completely free no trade commission's or any link in the description I'm going to be shameless affiliate link in the description if you use that link by the way you end up getting a free stock I end up getting a free stock win-win you may as well do that yeah you Lincoln isn't really a trade for free so there's almost no cost to getting into it okay second part is it you get to own great businesses okay so let's say you you believe in Apple you you you see how much money Apple makes all the time okay and you're like that business is probably gonna do well in the future okay you can go ahead and read the 10k Xin 10 Q's annual reports on their Investor Relations page you can google that and you could literally learn more about Apple's business and what not and you can go ahead and if you decide that's a good investment obviously there's a lot more that goes into that but that just kind of shows you the power of it okay you want to invest in Google invest in Google you want to invest in Facebook you can invest in Facebook you want to invest in Alibaba you can invest in Alibaba like it doesn't matter what company is long as a public company you can actually invest in them and if that company does good financially over the coming years you're probably going to do very well over the coming years as well short term anything can happen but a lot of long-term wealth can be created by owning great American businesses you know it's been done a million times before and will continue to be in the future yeah so what are some of the benefits of investing in stocks versus investing and let's say something else or investing in a business you're investing and yeah whatever it might be well first of all I'll say if you have a successful business already if you have a really good idea for a business I always say that's actually the best place to put your money because you can probably make a lot of money from that business and then go ahead and stuff it into the stock market okay but let's say you don't have a successful business or you don't have a plan for that then let's say you're just working nine to five well then your next option is let's go ahead and invest in the stock market obviously you know on real estate sidelight like we've talked about many times there's definitely some costs and some barriers to entry costs you know there especially you know in your market la like you need to have a lot of money for that first down payment and whatnot stocks you and get started way earlier you know with hundreds of dollars or maybe a few thousand and whatnot yeah and then you feel like this Savings Account CD accounts you're not getting you know crap for a return the returns horrible there so the way I view it is is stock market investing it is a realistic Avenue for a ton of people out there especially when you have a long term vision okay now starting over from the beginning what sort of strategy do you think is best for people just starting out we have day trading swing trading long term investing what would you recommend for someone who's literally just starting out 2009 personally regardless if they're new if they're experienced I always am impartial to long term investing you believe in a company you think it's undervalued because you've looked at a million different metrics out there right you know invest in that company and like that as that company grows and grows and grows you should definitely grow your money as well okay short term anything can happen but I think that's the most realistic way for the average Joe out there and I think honestly it's the best way overall it's it's a Warren Buffett strategy at the day you buy into a company and if that company goes down you buy some more okay if you feel that's a great business now it's a business and nothing ever works out long-term you make a bad business decision by investing your money there then you have to you don't eat the loss but you know day trading it's a swing trading things like that I'm not saying people aren't making money because there definitely are some people that can make money day trading or swing trading or things like that but the way I do it is is it's a very hard Avenue to go down most people that go down that Avenue you know don't end up making money okay long-term investing you invested in Apple Google five years ago ten years ago like you've made a lot of money these aren't complicated stocks to be in if you want to get in some of the riskier stocks of it and then you're taking a bigger risk there but long-term investing especially in the bigger tech corporations that you know you understand you feel or undervalue look at all the metrics you're gonna more likely do very very well for yourself over 5 10 15 20 year span yeah so so what's the first way then to get started if you're to say that what's the first step the first step is you gotta ask yourself if you can handle volatility stocks are open everything that you should have said use the Robin Hood affiliate link sorry at the same can see a stock price every single day and that is scary okay imagine you know you're a real estate investor imagine if every single day or a you know not only every single day but every single minute sometimes during the day the the price now real estates changing you're like crap and my house number four just went down by ten thousand dollars I think a half with stocks that's the issue okay you have to be able to handle volatility you have to have the mindset that you know that position could go down a lot in the short term that may happen you got to be able to handle that inside if you can't handle that inside then it's not the place for you then if you can handle that and you think this is something you're gonna have the work ethic to and you can go ahead and start in you know researching companies looking at their investor relations page you can simply like let's say you want to look into coca-cola now typing Google coca-cola investor relations page you pull it up start looking at all their documents or 10-k 10-q read about the company learn about the company look at the company's financials and then when you're actually ready to start investing then you can invest through something like a Robin Hood I invest personally through fidelity investments but that you know I I suggest that more for people that have bigger piping so it's just about to ask you then what are your favorite brokerages for people just starting out and then also for people that are a little bit more advanced personally I use fidelity investments I've been with them for about 10 years now the customer service is amazing ok I've called them up at 2:00 3:00 in the morning before to talk about a strategy or talk about something here or there they're there to speak to me all right however if you got a smaller tip account I could just imagine you by the way in your living room and your wife's like who are you talking to it's like it's just Adela tee honey honey it's fidelity it's okay any other person like who is it it's nobody don't worry about it so about Elon Musk no so the customer support there is phenomenal yeah nothing bad I can say about that again Robin Hood definitely if you have a small amount of money it's worth to go with them just for the simple fact that no trade commission through pretty much every other brokerage you're paying at least five dollars every time you buy a stock yeah all the stock so do you recommend paper trading first before anyone actually puts money at risk for a long-term investment not so much because the payout is sometimes years down the road if you're day trading yes you absolutely need to do paper trading if your swing trading day trading anything that is short term volatility where you're you're doing short term money types of stuff yes you need a paper trade however for a long term investing I'm investing in company because I believe in them for the next three to five years whether I hold that stock or not is gonna depend on a lot of factors maybe it goes up a time I sell it okay but paper trading is more for I say short term investors you want to do something there you want to get in day trading swing trading paper trade you want a long term invest it's probably you know start slowly if you got a lot of money behind you don't throw it all on your account at once build get confidence in yourself and go from yeah so how do you begin first even finding stocks to trade and where do you begin looking to find them I would recommend besides your YouTube channel anya i mention a lot of stocks on the youtube channel all the time I always recommend downloading the CNBC app maybe spending some time on Bloomberg some of those things they've mentioned so many stocks in a given day okay I remember when I was first starting out I would watch a lot of CNBC television and whatnot and they would mention you know if I watched let's say for two hours they would mention you know 20 30 40 stocks and all of a sudden I could see or I could see their tickers going on the bottom yeah and I'd be like let me look up company then you go stock tracker app if you had that you go ahead and view that stock and start you know what kind of you know getting in your mind oh maybe this is a company I want to look into then you go their Investor Relations page and go from there but I think you just kind of paying attention to CNBC Bloomberg YouTube channels like I in my own maybe even things like seeking alpha which is another phenomenal app out there and you can start getting some ideas of what companies are what stocks are available out there and then you can take it down to there so what sort of charts do you look at or what sort of earnings do you like or what sort of news do you read that makes you bullish on a stock I've read everything I can about a company I own personally and any company I track I try to read as much as possible all news is relevant news all news is relevant news okay there's nothing I just totally dismiss there's nothing I just totally go after I'm reading everything and I'm taking everything into account okay charts for me personally as a long-term investor it is not an important thing okay Warren Buffett doesn't look at charts okay he views a company says is this company undervalued where's this company's growth going forward let me start putting money in this and acquire position charts are not important for us you're a short-term trader yes charts are vital to you and looking at oh my gosh you know stock up to here now it's going down but I'm looking at the 10k which is the annual report I think that's a most important document you can read you can find out all the information about a company the financials everything and then you go from there the 10-qs lives in a conference call and go for them so what do you like to see in a 10k in a 10k I'm looking for first a business I understand if it's a business I can understand it's not worth me investing I don't care if they have the best financials in the world I don't care if you know everybody's hyped about this talk I can't fundamentally understand that business why am i gonna invest in it it's not worth it because what's gonna happen is that stock will probably go down the short term maybe and I'll end up selling out for a loss or something like that because I don't feel confident the business and that's what happens in Apple all the time they don't know that business well enough they don't know the insides and outsides to get that confidence to go through that volatility and also their position starts to go down they panic they sell for a 5% loss 10% loss 15% of lost 20% loss whatever the case may be and you know that's an unfortunate thing if you don't have business inside now you don't make those type of decisions okay you make decisions based upon the business and that's what's very important so what sort of bearish signs do you do you see in it like a 10k report or an earnings reports or anything that you're like always avoid that that's a bad sign I try to never touch on profitable companies that's something I've got killed with in the past my worst investment ever in my life as a far as a particular stock was a company named GoPro invest in our company it was an unprofitable company I need to stay away from unprofitable companies it's not my strength so if it's unprofitable not for me somebody else wants to trade it trying to make money out there good for you I'm investing in companies that actually make a profit at the end of the day okay and I want to invest in companies that have good balance sheets our loaded on cash loaded on investments and have as low a debt as possible that way when when the cards come crumbling down they can make it through it because they got that type of money behind them or if they want to go ahead and buy another company that's troubled or buy another company that's on the come-up they can't they have the money to go and do that to beautiful things so how do you diversify your whole thing's den do you've liked it invest in a particular sector or do you like to spread it out and how do you recommend beginners first start allocating our portfolio I'm looking for many different stocks upon many different industries okay now I'm the most diversified I've ever been now it is mainly because I'm getting older I'm still very young but I'm getting older and also my wealth has been building over the years so I want to diversify more however if you're just getting started it's not as important to diversify let's say you buy you only have a hundred dollars to invest like you could split that between I don't know when there are two stocks maybe like now like you know a lot of stocks are a hundred plus dollars so maybe you could only buy one stock with that so you'll be you know very into one stock at one time if you're starting out and you're investing a ton money ten thousand a hundred thousand a million dollars diversify from the get-go and think about getting in different industries in different businesses that you believe are gonna do very well over the long okay so how long do you think you should ideally hold the stock for my when I go into position I try to think three to five years out that's my realistic kind of like Goldman you know 10 years out so much can change however if I'm only thinking a year out I'm thinking too short-term and we're gonna base up things up on earning and what an analyst says and a lot of different stuff I'm thinking three to five years out doesn't mean I'll always hold it stock three to five years it means that's my mindset going in that stock might jump 20 percent fifty percent a hundred percent in the real quick amount of time let's say I invest in it it all sudden over the next year jump so much I might sell out of it because I feel like now it's out of fear of value yeah it's out of fear value you don't want to sell out okay you know I'm sure if real estate was like that a lot of people who would be doing the same thing right if they prices jumped fifty percent or 100 percent in a year a lot of people would be like oh let me take my profit here and his company this house might be overvalued so that's the way I think about it my mind says three to five years but I might not hold it that long just depends on where the stock price goes how do you get over then the emotional aspect of owning a stock and having the price go down or having the price go up and you think oh my god maybe like how much money can I make or it goes down did I make the biggest mistake of my life that's been the hardest part for me with owning so like individual stocks I don't own any individual stocks more because I see the price go down or up and it just impacts me too much you in my opinion you've got to know everything about that business you've got to have done you know massive studying of that particular business to be that confident that you know that business like the back of your hand and you can just say I'm good like it goes down short-term oh well I'm gonna buy some more I still love the business I'm gonna buy some more or hold that position because you know that business so well what happens is is most people don't do the type of work necessary to feel confident in that situation so when the shares go down and you know some things happen short-term volatility and Trump said this so North Korea did this and this is going on in China although some people panic they sell all their shares they sell their stock market portfolios generally for a loss unfortunately yeah and it's because they never even did the real work in the first place to give them that confidence to hold through the bad times so what about then tax treatment do you recommend people invest within like a Roth IRA or a 401k or a taxable account or hold it for more than a year so they get the capital long-term capital gains like how do you structure this and what do you recommend for a beginner so for me the goal is to try to hold stocks long-term the one reason is because I'm a long-term investor the other reason is you are taxed much differently as a long-term than a short-term investment so let's say I buy a stock today and let's say a stock goes up a bunch and I sell out next month I'm gonna be taxed at my normal tax rate which might be 28 percent or 31 percent or something like that versus if I hold that stock for a year or longer I want to be taxed at around 15 percent it's a massive massive ounce tax advantage to be a long-term investor okay and as far as you know a Roth IRA versus you know a traditional IRA or traditional 401k it depends on if you want to be 'text later on down the road you want to be taxed now and that's really you know up to people for you know to decide that out there for me personally I just try to stay long-term and you know the goal is to hold of business a year plus if it doesn't work out that way it doesn't work out that way so what industries do you personally believe are gonna do really well over the next five years I don't necessarily look at it as in a specific industry a big trend I love is companies that have many growth levers to pull so think about it from from a perspective of there are certain business models that they only have one product or one service really and they sell that one product or one service and they make their money off that and when times are good times are good when times are bad they're really bad okay there are other companies when I look at it that had many growth levers I have a ton of different things going for it I'll give you you know an example let's just talk about Apple for a minute you know biggest company in the world when you think about Apple they have many growth levers they not only haven't iPhone as far as volume is potentially going up in future years but they have the ASP s continued to rise the average selling price per phone they have services business which is growing phenomenally they have iPads they sell they have max they sell they have you know headphones out they have Apple watches there's so many different businesses to pull from that when I look at you know that was the type of businesses I really want to be involved with that have many growth levers to pull so that's the way I think about it are there any industries that you think are just not gonna be doing well over the next few years well besides those indicators like specific sectors or you think maybe the marijuana stock I think is they're definitely covered yeah there are definitely some you know marijuana stocks out there that has some ridiculous valuations I spoke about those when you until where I went to $300 a share that same day it posted a video and I'm like guys this stock is out of control okay since then I think this stocks down 50 plus percent out there definitely some sectors there as far as a big one I think auto industry is gonna be hurt very bad you think about this next time we have a recession everybody's gonna pull back in a lot of these automakers are still making iced auto automobiles and the wave is all in electric and I think a lot of these companies are lagging and that's why when people look at Ford and GM they see all these companies look so cheap well you're not pricing in the fact that these businesses can be in a massive massive decline not only you know regardless if we have a recession or not then you add on a recession on the top you know to some of those companies and who's going to really want to fund those type of companies when they make a subtle Beales and we're changing to the electric wave so and you know the self-driving wave who's gonna want to buy you know invest in Ford to get them through those times or a Chrysler or something like that so it's something some some people should think about I think autos is a dangerous industry you know and obviously like we talked about there's some speculation out there you know some of the marijuana stocks and haffley fit that criteria yeah where do you personally see the market going over the next five years and it's kind of short-term yeah I'm always gonna I'm always gonna be bullish I'm always gonna be both five yards out you know short-term em I think in 10 years how about three and what's what's your personal belief I have to know your internet I haven't decided on that yet and you know what I do is at the end of every year over that toward the end of every year like November December what I go ahead and do is I look at all the economic indicators you can't look at everything across the board I listen up all the companies that are reporting in usually the october/november time line and I'm hearing a lot of what they're dining out for the next year a lot of them do guidance for what they expect for 2019 I'm listening to all that and I'm making that judgment so I don't really want to make a prediction all the stock market's gonna do that yeah I got to hear what companies expect I got to hear the economic numbers and then we and what do you say to the people who feel like we've been in such a long bull run this can't last forever and now that we're getting like you know basically almost 10 years into it then it's got it it's gotta end like this is the longest run we've had no very little time what are your thoughts you know that's a question I get a lot and that's a lot of you know the further up the mountain you get that you know I'm scary it gets to last it's just how it is okay first off you got to understand we went through a massive recession that's the first hand tell people in like like that was one of the worst recessions we've had in a long long time okay and it took a long time to get out of that most people didn't feel like we were starting to gather a recession sound like 2012 okay so although the indicators said we were out of that recession 2009 I think most people in general didn't feel like we were starting to get out till 2012 that's something to keep in mind then also I'm not a believer that just because you haven't had a recession in let's say eight years you need to have one now or something like that like I'm not a believer in that because the economy is always changing the the industry dynamics are always changing the political parties are always changing so just because it's eight years or nine years since we had a recession or whatever people want to say out there I don't think that necessarily means we're gonna crash I don't think it necessarily means we're have boom times I think you just have to take a day by day and it's almost like the gamblers fallacy that if you flip heads five times in a row the sixth time is more likely to be tails just as you do it's still 50/50 every single roll so it's a little bit like that when you mentioned I've gotten into some trouble playing roulette doing that that is all about crap I'm like oh I gotta stick it on black again oh it's gonna come up black simulator and then your bank drills done all about it's all about craps in baccarat and that's that's what my those are my favorite games so anyway Jeremy thank you so much and for all of you watching I really hope this is a really good beginner tutorial of exactly what to look for when starting to trade stocks and if this is something you want to get into I think we have a lot of information here for you to get started if you haven't already checked out Jeremy's channel I'll put the link in the description and I'm sure you better comment and I'll pin your comments at the very top yeah I guess you have to do that so anyway check out his channel if you want to learn more and if you made it to the very end and you haven't already subscribed yet make sure to smash that subscribe button smash that notification bell – so YouTube notifies you anytime I upload a video which they sometimes do the whole algorithm is broken also make sure to smash that like button add me on snapchat Instagram I post there pretty much daily so if you want to be a part of it there feel free to add me there and thank you good for watching until next time