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Buying the Dip Is a TRAP — The Truth About Surviving the Next Crash · Earn Your Leisure

• 0:00
  Speaker 1: Yes, sir.
• 0:01
  Speaker 2: Super sane. Yeah, I got a quick question earlier.
• 0:04
  Speaker 3: And it was like, when I'm dollar cost averaging, at
• 0:09
  Speaker 3: what point should I not do it on the way down?
• 0:12
  Speaker 2: And shout out to Justin. He had called me and
• 0:14
  Speaker 2: asked me that.
• 0:14
  Speaker 3: I thought it was a good question. I'm like, you
• 0:16
  Speaker 3: know what? I think you have to have a plan. Obviously,
• 0:18
  Speaker 3: when you walk into any trade, you should have a plan.
• 0:20
  Speaker 3: So if you start seeing your equities, and this is
• 0:22
  Speaker 3: talking about shares, if you start to see the shares
• 0:25
  Speaker 3: fall down, Is it a good time to buy in?
• 0:28
  Speaker 2: I told him, honestly, I would put percentages, right?
• 0:30
  Speaker 3: If it gets down 30%, that might be a new
• 0:33
  Speaker 3: buy-in from you. Or if it's down 50% from the side,
• 0:35
  Speaker 3: that might be a buy-in. What you don't want to
• 0:37
  Speaker 3: do is average down and it keeps falling and it
• 0:39
  Speaker 3: keeps falling and you're doing it. I've been averaging down
• 0:41
  Speaker 3: for a year now. Have a disciplined approach. Because you
• 0:47
  Speaker 3: don't want to spread your capital thin and something keeps falling.
• 0:50
  Speaker 3: And it might not have anything to do with the technicals.
• 0:51
  Speaker 3: It could be something that's happening in the economy itself.
• 0:54
  Speaker 3: It could be interest rates, right? Like they may raise,
• 0:56
  Speaker 3: we'll talk about it later, but just make sure that
• 0:58
  Speaker 3: you have a plan when you're going to dollar cost average,
• 1:01
  Speaker 3: especially on the way down.
• 1:04
  Speaker 1: All right. Buying a dip is not a strategy.
• 1:07
  Speaker 2: Thank you.
• 1:08
  Speaker 1: But dollar cost averaging is a lifestyle. People are confusing
• 1:13
  Speaker 1: it too. People are trying dollar cost average on trades.
• 1:19
  Speaker 2: Yes.
• 1:21
  Speaker 1: It was never really recommended to dollar cost.
• 1:23
  Speaker 2: Average on trades. Which is called market gambling, yeah.
• 1:26
  Speaker 1: If you're committed to dollar cost averaging, you should always
• 1:29
  Speaker 1: dollar cost average, no matter what happens. If you believe
• 1:33
  Speaker 1: in asset, for instance, Bitcoin. If you believe in Bitcoin
• 1:37
  Speaker 1: and you believe Bitcoin is going to reach a million
• 1:38
  Speaker 1: dollars in 20 years, 10 years, whatever, my personal opinion,
• 1:44
  Speaker 1: buy it every single month, no matter what. No matter what.
• 1:47
  Speaker 1: If it keeps falling for 13 months, keep buying it
• 1:50
  Speaker 1: because you have strong conviction that that is going to
• 1:54
  Speaker 1: turn the corner. And it always has turned the corner.
• 1:58
  Speaker 1: I think you fall into trouble when you, if you're
• 2:01
  Speaker 1: committed to dollar cost averaging and then you stop. That's not,
• 2:07
  Speaker 1: you have no conviction in what you're doing. It's like Microsoft.
• 2:10
  Speaker 1: Like if you really believed in it and Microsoft had
• 2:12
  Speaker 1: a bad 18 months, but if you really believed in it,
• 2:16
  Speaker 1: you're looking for 10 years. So I think a lot
• 2:20
  Speaker 1: of people, the dollar cost averaging thing, they're trying to
• 2:24
  Speaker 1: dollar-cost average into trades. That's a little different from dollar-cost
• 2:30
  Speaker 1: averaging into investments. If you dollar-cost average, you got to
• 2:34
  Speaker 1: stay with that. You can't stop. And that's for long-term.
• 2:37
  Speaker 2: Yeah, but when you're doing that, you're going to.
• 2:40
  Speaker 3: I was going to say, that's why I think you
• 2:41
  Speaker 3: need to be strategic, right? There's some people who have
• 2:44
  Speaker 3: it done weekly, right? They'll put a certain amount into
• 2:47
  Speaker 3: their portfolios weekly, or some people might do it bi-weekly
• 2:50
  Speaker 3: or monthly, right? And if you're doing $ 1, 000... That's why
• 2:54
  Speaker 3: I think the percentage, it makes it a little bit
• 2:57
  Speaker 3: more strategic where it's like, okay, hit this metric.
• 3:00
  Speaker 2: I'm buying because it may not, right. Or maybe it will.
• 3:03
  Speaker 3: But if somebody is doing it on a regular, they
• 3:06
  Speaker 3: might say like, Hey, I'm running short on capital at
• 3:08
  Speaker 3: this point.
• 3:09
  Speaker 2: And this thing is still going down.
• 3:10
  Speaker 3: Now you're here for the longterm, but even just having
• 3:13
  Speaker 3: a strategic plan about the downside is important.
• 3:17
  Speaker 1: Well, even it's okay. So that's important. Budgeting. Budgeting is the,
• 3:20
  Speaker 1: is the, Most boring aspect of financial literacy, financial empowerment,
• 3:25
  Speaker 1: but it's the most important.
• 3:26
  Speaker 2: But most important.
• 3:27
  Speaker 1: It's the foundation of every house. You have to learn
• 3:30
  Speaker 1: how to budget. Dollar cost averaging should be a bill.
• 3:33
  Speaker 1: So you should never run out of- It should be
• 3:35
  Speaker 1: the first bill that you pay. You should never run
• 3:37
  Speaker 1: out of money to dollar cost average because that's money
• 3:39
  Speaker 1: that you already have budgeted in your monthly budget. So
• 3:43
  Speaker 1: it's like the 401k, right? Like whatever you've chosen, whether
• 3:46
  Speaker 1: it's $ 100 or whether it's $ 10, 000, if you can afford it,
• 3:50
  Speaker 1: unless you just lose your job, things just fall apart,
• 3:53
  Speaker 1: your business blows up, you should never run out of
• 3:56
  Speaker 1: dollar cost average money. That's like running out of your
• 3:59
  Speaker 1: cell phone bill. You never run out of your cell
• 4:01
  Speaker 1: phone bill money, right? You never run out of your
• 4:04
  Speaker 1: car note bill money. You never run out of your
• 4:06
  Speaker 1: rent money. I'm just saying, hypothetically, you're not supposed to.
• 4:11
  Speaker 2: We know these people.
• 4:11
  Speaker 1: But it's budgeting. It's budgeting. So this is important for
• 4:16
  Speaker 1: people to understand. Pay yourself first. You have to treat
• 4:20
  Speaker 1: your monthly investments like a bill. You have to prioritize
• 4:25
  Speaker 1: it like a bill because the moment you treat it
• 4:27
  Speaker 1: like it's optional, it's going to be the first thing
• 4:31
  Speaker 1: to go. Life insurance. Life insurance is the first thing
• 4:36
  Speaker 1: to go when times get hard because people don't look
• 4:39
  Speaker 1: at it like it's mandatory. They look at it like
• 4:42
  Speaker 1: it's optional. Psychologically, you have to reverse the way that
• 4:47
  Speaker 1: you think. You got to pay yourself first. Those things
• 4:52
  Speaker 1: that's for you and the betterment of your future, they
• 4:56
  Speaker 1: got to be non-negotiable. They got to be just like
• 5:00
  Speaker 1: your cell phone bill. You're going to do whatever you
• 5:02
  Speaker 1: can to keep your cell phone bill on. It's the
• 5:04
  Speaker 1: same thing with your monthly investments.
• 5:06
  Speaker 3: And that's the part, I think, that mindset. People have
• 5:09
  Speaker 3: to get to that point. I had a Zoom call yesterday,
• 5:13
  Speaker 3: and the conversation was beginning.
• 5:17
  Speaker 2: The idea of beginning to.
• 5:18
  Speaker 3: Invest or creating a portfolio and that idea of, hey,
• 5:22
  Speaker 3: I'm starting this, but if I start needing money, the
• 5:25
  Speaker 3: first place I'm looking is back to my portfolio to
• 5:27
  Speaker 3: cash it out.
• 5:28
  Speaker 1: Take it out your kid's account.
• 5:29
  Speaker 3: You start doing everything to liquidate because you need the money.
• 5:31
  Speaker 3: And it's like the mindset has to be there. That
• 5:34
  Speaker 3: discipline has to be there if you're going to be
• 5:35
  Speaker 3: successful at this.
• 5:36
  Speaker 2: It's not going to work any other way.
• 5:38
  Speaker 1: And trust me, the hardest thing to do, I've done
• 5:42
  Speaker 1: it before. Nobody's perfect. The hardest thing to do is
• 5:46
  Speaker 1: not take money out. I'm telling you, when you got $ 5, 000, $ 10, 000, $ 3, 000,
• 5:51
  Speaker 1: and it's sitting in your IRA, it's sitting in your
• 5:56
  Speaker 1: kid's account, it's sitting in your brokerage account, the hardest
• 6:00
  Speaker 1: thing to do is not to be tempted to say,
• 6:03
  Speaker 1: I'm going to take it out, I'm going to put
• 6:05
  Speaker 1: it back, because you're never going to put it back in.
• 6:08
  Speaker 1: You're never going to put it back in. You're never
• 6:11
  Speaker 1: going to flip it to more money. I'm telling you. Unless...
• 6:15
  Speaker 1: Nine times out of ten.
• 6:17
  Speaker 2: Ten times out of ten.
• 6:18
  Speaker 4: If you're thinking about taking the money out, you don't
• 6:21
  Speaker 4: have the acumen or the discipline to flip it elsewhere
• 6:24
  Speaker 4: today and put it back in.
• 6:25
  Speaker 2: Keep going, keep going, keep going.
• 6:29
  Speaker 4: And also on the trading side, how many times should
• 6:32
  Speaker 4: you average down once? It's called martingaling, which was a gambler.
• 6:37
  Speaker 4: And by the term gambler and martingale, you can go
• 6:40
  Speaker 4: look how that went for him and Jesse Livermore. So
• 6:44
  Speaker 4: dollar cost averaging is different than investing. But for those
• 6:47
  Speaker 4: who are thinking of not paying yourself first, if you don't,
• 6:50
  Speaker 4: who will? The country is on the brink of financial
• 6:54
  Speaker 4: collapse and they're doing everything that they can. If you
• 6:56
  Speaker 4: go outside and ask anybody who's outside, things are tighter
• 7:00
  Speaker 4: than ever. And my fear is even we're going to
• 7:03
  Speaker 4: sit in the thick of a recession and they're never
• 7:05
  Speaker 4: going to announce it because they don't want pure and
• 7:07
  Speaker 4: utter chaos to hit Main Street, Wall Street and private equity.
• 7:12
  Speaker 4: There's a lot of bubbles that are being hidden by
• 7:15
  Speaker 4: not saying that we are in a recession.
• 7:17
  Speaker 2: So pay yourself first.
• 7:19
  Speaker 4: And if you're taking the money out to go to
• 7:21
  Speaker 4: Turks or because you got to get your girlfriend a
• 7:24
  Speaker 4: birthday gift, get another girl who believe in the vision
• 7:27
  Speaker 4: long term.
• 7:29
  Speaker 2: I'm sorry. You deserve to be broke.
• 7:32
  Speaker 4: And trust me, then she's going to fall for the
• 7:34
  Speaker 4: fake fucking football player anyway. And he's going to get
• 7:37
  Speaker 4: $ 16, 000 off of her.
• 7:39
  Speaker 2: This dude said.
• 7:41
  Speaker 4: He owned part of Gucci on Fifth Avenue.
• 7:44
  Speaker 1: Saks Fifth. Saks Fifth Avenue.
• 7:46
  Speaker 2: Saks Fifth. And they fell for it.
• 7:48
  Speaker 1: Gucci on Saks Fifth Avenue.
• 7:50
  Speaker 2: We're going to talk about profiling on Black. They asked
• 7:54
  Speaker 2: for them. Or somebody asked for them. We found them.
• 7:58
  Speaker 2: Spin that. Remix out, by the way. LaBabe and Kodak.
• 8:02
  Speaker 2: We found them.
• 8:04
  Speaker 1: Yeah.
• 8:04
  Speaker 2: Wish has been granted.
• 8:06
  Speaker 1: But hold for a long time. Hit the like button
• 8:09
  Speaker 1: and share. Hold for the long term for sure, at
• 8:12
  Speaker 1: all times.
• 8:14
  Speaker 4: And really quick, the number one reason to hold for
• 8:17
  Speaker 4: the long term, my personal business philosophy is if only 1%
• 8:22
  Speaker 4: of the market likes me, I need to be able
• 8:24
  Speaker 4: to get wealthy off the 1%. So if you're putting
• 8:27
  Speaker 4: your money into the market, all the leverage is in
• 8:29
  Speaker 4: your favor. If you're constantly taking the money, and I
• 8:33
  Speaker 4: know we had the conversation about, and my friends even
• 8:35
  Speaker 4: tell me like, you should spend money on this.
• 8:37
  Speaker 2: I'm like, I want to.
• 8:39
  Speaker 4: The purpose of having FU money is to be able
• 8:42
  Speaker 4: to say FU if the tide turns.
• 8:46
  Speaker 2: Yeah. Keep that money tucked away. You need that. Keep
• 8:50
  Speaker 2: it tucked away.
• 8:51
  Speaker 1: At all times.