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Cliff Notes - TOP 7 MISTAKES THAT INVESTORS MAKE · Earn Your Leisure

• 0:00
  Speaker 1: So here are the top seven mistakes that investors make.
• 0:03
  Speaker 1: This is regardless of what's happening in the geopolitical climate. Right.
• 0:06
  Speaker 1: So you can't control who's in office unless you're a
• 0:09
  Speaker 1: lobbyist or part of a super pac. But you can't
• 0:14
  Speaker 1: control how you invest, what you invest in, what you intake,
• 0:17
  Speaker 1: and how you execute. So Number one, We've talked about
• 0:21
  Speaker 1: this at nauseam, but not buying quality companies is the
• 0:24
  Speaker 1: biggest mistake that people make. Number two the thing that
• 0:29
  Speaker 1: I'm seeing the most, that is the most disturbing. You're
• 0:32
  Speaker 1: going to look back in six years or five years
• 0:35
  Speaker 1: and be like, damn, I should have listened to you,
• 0:36
  Speaker 1: Troy Rashad and Q I had a good play and
• 0:42
  Speaker 1: I held it for six months instead of five years.
• 0:45
  Speaker 1: Not holding is one of the biggest mistakes you'll make,
• 0:49
  Speaker 1: especially coming out of this era and riding it into
• 0:53
  Speaker 1: twenty twenty five or twenty thirty. Number three, this is
• 0:58
  Speaker 1: not nineteen fifty. We keep having these conversations. Is it
• 1:01
  Speaker 1: fundamentals or technicals, It's both, it's both. According to where
• 1:06
  Speaker 1: the economy is, the dow should be at ten thousand.
• 1:10
  Speaker 1: The dow Es are still doing relatively well, tech is
• 1:15
  Speaker 1: over inflated, of course, but they shot up like crazy.
• 1:17
  Speaker 1: And I'm going to show you a chart later that
• 1:19
  Speaker 1: is a prime example of how over inflated we are.
• 1:22
  Speaker 1: And at the same time, you have to take advantage
• 1:24
  Speaker 1: of voice in front of you, because if you just
• 1:26
  Speaker 1: try to time the market solely off of fundamentals, we
• 1:29
  Speaker 1: saw this with earnings with Apple. Apple beat earnings and
• 1:33
  Speaker 1: fell four minutes later to the downside. So it's not
• 1:38
  Speaker 1: if you have great if your earnings are great, that
• 1:41
  Speaker 1: you're always going to go up. And you guys have
• 1:43
  Speaker 1: seen the opposite, like companies have missed earnings and then
• 1:45
  Speaker 1: shot up because the earnings and miss wasn't as bad
• 1:47
  Speaker 1: as a projection. Number four, Please stop buying at a high.
• 1:53
  Speaker 1: I don't care how hot it is. I don't care
• 1:55
  Speaker 1: how many people are talking about it in Discord and Instagram.
• 1:58
  Speaker 1: And I'll give you the exact calculation. I'm gonna tap
• 2:00
  Speaker 1: into my Bonamin vibes later and give you the exact
• 2:03
  Speaker 1: calculation to stay away from. But stop buying at a high.
• 2:07
  Speaker 1: Number five fall off with the hype of a non
• 2:09
  Speaker 1: revenue generating company. Rust in peace of Nikro and no
• 2:15
  Speaker 1: matter how many times we have to tell you it's
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  Speaker 1: no good. It's all the fame.
• 2:22
  Speaker 2: Dead.
• 2:22
  Speaker 3: It is dead.
• 2:23
  Speaker 1: I'm going to use the is this time. Number six,
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  Speaker 1: trading too much instead of actually investing. I used to
• 2:29
  Speaker 1: have a conversation with a guy that I knew in
• 2:31
  Speaker 1: the past, and he was like, well, if you do
• 2:32
  Speaker 1: well enough from trading, you shouldn't even need to long
• 2:35
  Speaker 1: term invest. And my thing was, okay, but if something
• 2:38
  Speaker 1: happens to you, if you die, you get sick, you
• 2:41
  Speaker 1: then won't be able to produce returns. You want the
• 2:44
  Speaker 1: business to make money regardless if you're if you're in
• 2:47
  Speaker 1: it or not. And also, you can't teach your kids
• 2:51
  Speaker 1: how to trade at the same proficiency if you're a
• 2:53
  Speaker 1: great trader, because the hunger that you have to escape
• 2:56
  Speaker 1: poverty is not there if they have already been living
• 2:59
  Speaker 1: in life is going on for them. You have to
• 3:01
  Speaker 1: do both. And number seven, it's one of the biggest
• 3:04
  Speaker 1: mistakes not researching what the outcome of your asset allocation
• 3:08
  Speaker 1: is going to be. You guys need to go online
• 3:11
  Speaker 1: and pull up an asset allocation calculator and look back
• 3:15
  Speaker 1: on the past five or ten years and with your
• 3:18
  Speaker 1: portfolio that you're picking you should have an average expectation,
• 3:22
  Speaker 1: know what it's going to be.
• 3:24
  Speaker 4: I know this.
• 3:25
  Speaker 1: All this is feeling that the market is mystical and
• 3:28
  Speaker 1: no one knows what it's going to do. That's a lie.
• 3:31
  Speaker 1: They told you at six thirty this morning the Dow
• 3:33
  Speaker 1: is going to go up four hundred points, and guess
• 3:34
  Speaker 1: what it did? Went up four hundred points. All this technology,
• 3:39
  Speaker 1: they know where the market is going to go. So
• 3:42
  Speaker 1: please know before you invest in Tesla, and if you
• 3:45
  Speaker 1: pair that with XLK and VTI, and if you also
• 3:49
  Speaker 1: paired that with g just because you don't want to
• 3:50
  Speaker 1: listen afford what the outcome is going to be for
• 3:55
  Speaker 1: my traders. The biggest mistakes that you make and I'll
• 3:57
  Speaker 1: keep this simple because I'll talk about this every day
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  Speaker 1: in the trade room, but not knowing what target you're
• 4:03
  Speaker 1: going to use every single day, type and chat what's
• 4:05
  Speaker 1: your percentage based outcome is going to be for every
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  Speaker 1: trade that you take, two trading at the wrong times,
• 4:17
  Speaker 1: three having to search for what to trade. I'm going
• 4:21
  Speaker 1: to give you a quick secret. You should trade the
• 4:23
  Speaker 1: same few things every single day. So if your commodities traded,
• 4:29
  Speaker 1: trade commodities, if you're index index traded trade that if
• 4:32
  Speaker 1: you trade natural grass or crew trade that, but you
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  Speaker 1: should not be scanning and looking for new things to
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  Speaker 1: trade all the time. And then number four, the one
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  Speaker 1: thing that no one wants to hear is most traders
• 4:45
  Speaker 1: take too many trades per year. So I got this
• 4:50
  Speaker 1: out the Amazing Eyo group, and I took your name
• 4:53
  Speaker 1: out because I don't want the whole world blowing you up. Right,
• 4:56
  Speaker 1: But look at this when you actually check your fees.
• 5:00
  Speaker 1: This queen was paying four percent in fees add it
• 5:03
  Speaker 1: and it's unnecessary. Now, four percent to some does not
• 5:06
  Speaker 1: seem like a lot, but if you look over fifteen years,
• 5:10
  Speaker 1: that's sixty percent in additional fees that are not necessary.
• 5:14
  Speaker 1: So please type in yes if you have done a
• 5:17
  Speaker 1: check on your fall one K or any of your
• 5:19
  Speaker 1: retirement and if you had a console or a shot.
• 5:22
  Speaker 1: He's already walked it through this process. Eric, Kudos to you.
• 5:27
  Speaker 1: The VIX is important because the VIX has hit forty
• 5:31
  Speaker 1: seven twelve key time since nineteen eighty seven. Your homework
• 5:35
  Speaker 1: for tonight is I want you to tell me next
• 5:40
  Speaker 1: week and if you find it tonight, great. What is
• 5:43
  Speaker 1: the average return on investment in the indexes after Vix
• 5:47
  Speaker 1: goes to forty six. So here's a little lesson for you.
• 5:52
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  Speaker 1: You can take the average of each time, divide it
• 8:44
  Speaker 1: by twelve bond and one vibes, and then it'll be
• 8:48
  Speaker 1: able to tell you how far the market is going
• 8:51
  Speaker 1: to go up from the time that it hits forty seven.
• 8:54
  Speaker 1: You have to plan for disaster before it reaches your doorstep.
• 8:59
  Speaker 1: So when to forty one other day, everyone pattis like,
• 9:01
  Speaker 1: what are we going to do? I'm like, you should
• 9:03
  Speaker 1: already know how far it's going to retrace base off
• 9:06
  Speaker 1: of those levels For our commodities bugs, It's tell me
• 9:10
  Speaker 1: that we don't cover commodities enough. Look at this right here.
• 9:13
  Speaker 1: Commodities are at a opportune time because of COVID. So
• 9:19
  Speaker 1: when I tell you guys, go look at every asset class,
• 9:21
  Speaker 1: even international So if you look at the Nike but Vesta,
• 9:25
  Speaker 1: there are opportunities there that you could potentially take advantage of.
• 9:28
  Speaker 1: But you need to look at the commodities across the
• 9:30
  Speaker 1: board to see which ones that are lows and that
• 9:34
  Speaker 1: can go up as a result. Those opportunities are there,
• 9:37
  Speaker 1: and most people are not talking about them or thinking
• 9:40
  Speaker 1: about it, and things are going to get better in
• 9:44
  Speaker 1: twenty twenty one for a couple of reasons, but this
• 9:46
  Speaker 1: is one of the main ones. The same Thank you
• 9:48
  Speaker 1: for this heads up. Private equity has two point seven
• 9:51
  Speaker 1: trillion dollars waiting to be deployed.
• 9:56
  Speaker 2: Now.
• 9:56
  Speaker 1: Housing inventory is only about two and a half months,
• 10:00
  Speaker 1: so we may have a little bit of a slight
• 10:01
  Speaker 1: dip there, not a full crash, and then commercial but
• 10:04
  Speaker 1: when they start deploying capital as a result, it's going
• 10:09
  Speaker 1: to push the market up as well. But I want
• 10:11
  Speaker 1: to remind you, I want you to long term invest first,
• 10:15
  Speaker 1: then trade. I know trading is sexier, but some of
• 10:18
  Speaker 1: you are going to look up in three years and
• 10:20
  Speaker 1: even like, let's be honest, type yes in chat if
• 10:23
  Speaker 1: you lost trades this year and trade and trading that
• 10:25
  Speaker 1: if you would have just bought the actual asset you
• 10:28
  Speaker 1: would have been better off. Please put yes in chat.
• 10:33
  Speaker 1: And this is the main reason why I'm going to
• 10:34
  Speaker 1: tell you not to worry about what happens tomorrow. I
• 10:37
  Speaker 1: want you to look at this graph a zeem. I
• 10:39
  Speaker 1: appreciate you. Look what happens even if we have a
• 10:42
  Speaker 1: split government. What the average return is everybody type in
• 10:46
  Speaker 1: chat thirteen point one in zoom and YouTube. Look at
• 10:53
  Speaker 1: these numbers here and with the Republican president nine point
• 10:57
  Speaker 1: five three percent Democrat, we can see what the numbers are.
• 11:02
  Speaker 1: So historically Democrats have pushed the market up a little
• 11:06
  Speaker 1: bit more and GDP has been better, but taxes have
• 11:08
  Speaker 1: been higher. They kind of wash each other out. Regardless
• 11:12
  Speaker 1: of who is president, the market is still going to
• 11:14
  Speaker 1: go up the same age to twelve percent. There isn't
• 11:17
  Speaker 1: that much to worry about. These next couple of days
• 11:19
  Speaker 1: will be crazy, but when January comes, you got guys
• 11:22
  Speaker 1: don't care. But going back to fundamentals, some of you
• 11:26
  Speaker 1: have asked what do I look for? I appreciate this
• 11:28
  Speaker 1: lobby through me earlier, but I'm looking at revenue and
• 11:31
  Speaker 1: if you can guess and chat what company this is,
• 11:36
  Speaker 1: and it's obvious, I'll be happy to cash up you
• 11:38
  Speaker 1: one hundred dollars tonight. I'm looking at revenue, net income,
• 11:43
  Speaker 1: cost of goods sold, and gross profit. This lets me
• 11:49
  Speaker 1: know how well a company is doing. This lets me know.
• 11:54
  Speaker 1: Now you can dig deep and go twenty columns deep,
• 11:57
  Speaker 1: but these are the main four. I want to see
• 11:59
  Speaker 1: a company with good revenue, good and net income. It
• 12:02
  Speaker 1: doesn't cost that much to move those goods, and they
• 12:04
  Speaker 1: have good gross profit as a result. And I know
• 12:08
  Speaker 1: you guys are probably gonna brek zoom in a second,
• 12:10
  Speaker 1: but I'll be sure to cash up you because you
• 12:15
  Speaker 1: know they're gonna be emailing. Troy twelve thirty em said
• 12:18
  Speaker 1: he was going, I got you guys leave jetting alone?
• 12:21
  Speaker 4: How many times?
• 12:22
  Speaker 3: Right?
• 12:23
  Speaker 1: Yeah, It's like, come on, how to avoid a board trap?
• 12:27
  Speaker 1: So when the market runs up and then all of
• 12:29
  Speaker 1: a sudden you see people that are better that are
• 12:31
  Speaker 1: worse invested than you, they caught a great move and
• 12:34
  Speaker 1: we all get fomo, how can you avoid getting caught
• 12:37
  Speaker 1: in this trap? I want you to stay away from
• 12:40
  Speaker 1: one to nine percent from the high mark, off ten
• 12:44
  Speaker 1: percent and twenty percent down from wherever that high is.
• 12:49
  Speaker 1: And even if you're not using technicals that will give
• 12:51
  Speaker 1: you an idea of where to get in. Sometimes the
• 12:57
  Speaker 1: stock could be at fifty bucks and you guys are
• 12:58
  Speaker 1: buying it at forty eight and they're like, hey, what
• 13:00
  Speaker 1: do you think. I'm like, it's gonna slide down. You
• 13:02
  Speaker 1: have to give it room to breathe, no matter, even Tesla.
• 13:05
  Speaker 1: Tesla had a great run up and then you can
• 13:07
  Speaker 1: see it pulled back Apple, same thing we were debating
• 13:09
  Speaker 1: about there earlier.
• 13:11
  Speaker 5: Yep.
• 13:12
  Speaker 1: The price always comes down if you wait for it
• 13:16
  Speaker 1: and check this out. This is the greater example of
• 13:18
  Speaker 1: like why indexing works and also shows why the market
• 13:22
  Speaker 1: is being artificially inflated. This is the Zimbabwe Industrial Index.
• 13:27
  Speaker 1: This looks like Tesla. I will give you five hundred
• 13:33
  Speaker 1: dollars in cash app without googling if you can name
• 13:36
  Speaker 1: me two companies and the Zimbabwe Industry Index you can't.
• 13:40
  Speaker 1: But they also benefited from all the quantitative easing. The
• 13:45
  Speaker 1: market is not fair. The market is rigged to stay up.
• 13:48
  Speaker 1: Quantitative easing, like you talked about in episode seventy, is
• 13:51
  Speaker 1: that lever that pushes it up. It's straight up. This
• 13:55
  Speaker 1: is like a tech company. There are some tech companies
• 13:59
  Speaker 1: that have more value in them alone than the GDP
• 14:02
  Speaker 1: of like. But this goes to show you you cannot
• 14:06
  Speaker 1: fight what happens on the chart. You have to follow
• 14:09
  Speaker 1: a direction at all times.
• 14:13
  Speaker 2: My graduates from my school being forced back.
• 14:17
  Speaker 1: Drop bag drop Mike, drop bad drop drop.
• 14:33
  Speaker 3: Coach, The energy out there felt different. What changed for
• 14:35
  Speaker 3: the team today?
• 14:36
  Speaker 2: It was the new game day scratches from the California
• 14:38
  Speaker 2: Lottery players, everything. Those games sent the team's energy through
• 14:42
  Speaker 2: the roof.
• 14:42
  Speaker 3: Are you saying it was the off field play that
• 14:44
  Speaker 3: made the difference on the field.
• 14:45
  Speaker 2: Hey, little play makes your day, and today it made
• 14:48
  Speaker 2: the game. That's all for now, Coach.
• 14:50
  Speaker 3: One more question played the new Los Angeles Chargers, San
• 14:53
  Speaker 3: Francisco forty nine Ers and Los Angeles Rams scratchers from
• 14:56
  Speaker 3: the California Lottery. A little play can make your day.
• 15:00
  Speaker 3: Pease play responsiblely. Must be eighteen years or older to
• 15:01
  Speaker 3: purchase play or claim