what's going on everyone we're going to take a look at how to trade better and in this one
we're going to learn how to read sec filings i'm sure a lot of you are curious on this one so i'm
going to break it down go into a lot of detail and hopefully allow everyone to be able to read
these easily because uh it's really not that hard let's go and take a look so a quick recap last
time we learned the importance of self research as it gives you a head start from the media clear
view of what's going on and allows you to better form your own psychology from the first trading
decision that you make resources discussed with the federal register edgar full text search system
and the company email registration alerts that you can sign up for 10ks proxy statements etc i will
go ahead and put a card up above if you haven't seen that one yet you can go ahead and catch up
before moving on to this one now i don't normally do this but i am shadow band so a lot of you have
recommended that i start making sure i ask people to hit the like button because apparently it helps
the algorithm helps people find me so if you don't mind doing that that would be much appreciated
again i do not like asking for that but a lot of people have told me that it could help
the problem that i have with being shadowband so whole point of these videos is to get this info
out there because a lot of misinformation comes from not knowing things like this
so real quick just a couple of uh interesting points here
ninety percent of traders fail to make money when trading the stock market now that stat is broken
down into eighty percent lose ten percent break even and ten percent make money consistently um
to be successful in trading the stock market you need to do what the majority of traders don't do
so it's a common misconception when everyone's jumping on discords with the same people under the
same mindset and the same play you're never going to be as good as the persons who set up that play
so again do things that majority of traders don't do now that may seem like a simple view
because you don't know what you don't know but you know the way you go about doing this
is research that is what no one does because they rely on everyone else to do that for them and then
the people actually doing the research get to distribute that knowledge how they wish and by
the way a great formula knowledge plus experience plus effort equals success two of the three won't
work you need all three so to the filings learning the trade is the easy part i mean anyone can you
know put money in the market and hit the hit the cell on the buy button that's the easy part it's
the researching and understanding the psychology behind the decisions you make that's hard
so keep in mind the nine inches between your ears will determine your success as a trader
that's your brain so if lack of knowledge is the main reason most traders fail then
psychology comes in a close second which is exactly why this series started off
with mastering your own psychology which again i will link that above if you haven't seen that yet
that being said the key part of market psychology is filings because you can infer a lot of language
from the regulators in the filings themselves if you look close enough and you can also learn a lot
of market terminology and you learn a lot of rules as well as far as law and general market rules
so let's go ahead and take a look and it's also a very helpful way to think of filings like a puzzle
that you can dissect by finding little clues within the filings
so the first thing i want to do is uh look at the heading now from the heading you're going
to and by the way this is in nscc002 the big one we've all been waiting on
check the header the date title and the filing type now there's six different types of
filings right there's a proposal withdrawal an amendment a longer designation for comment and
a longer designation to institute proceedings or hearings and then of course there's the approval
so we can tell by the title here proposed will change that's our type our date is march 18th
this is 2021-002 so we're good to go next you'll want to look at the for any form of reference in a
rule in the first or second section um terms of substance is typically what it's called but it
may be slightly different depending on the filing however usually this is what it will look like and
it'll give you a uh you know terms of substance it'll infer a rule if there is any and if there
is ever a rule that's referenced always jot that down look it up so you can infer what that means
so we can uh and luckily in this one they actually go out and tell you what it is right off the bat
so you can see here rule 4a supplemental liquidity deposits and then i looked it up to make sure that
that's exactly what it is rule 4a supplemental liquidity deposits and it also is nice enough to
let you know that sld which they reference many many times in the filing after this point um
they let you know up front that that means supplemental liquidity deposits oftentimes they
don't do that you have to go look for it yourself now the purpose section so always try and read
and see if you can understand it from the get-go because oftentimes that is the case if you just
read through it like you're reading a book and just try to infer what they're saying you will get
the gist of what they're trying to say now that's not always a lot of times you're going to be like
what the heck are they trying to say you're going to have to look up rules definitions
things like that and oftentimes you'll find a little tiny number after a definition
that looks something like this like a 26 or 25 depending on where you are in the filing all that
is is it's called a super note and whenever you see this number you're going to want to scroll and
look towards the bottom of the page and you're going to see numbered little notes and this is
just letting you know that this 26 corresponds with super note 26 which will explain to you
what the look back period is so it'll save you some time and researching so you're going to kind
of be bouncing around within the filing itself you know between super notes and definitions
things like that so keep that in mind now this is a big one date of effectiveness so
whenever you see the date of effectiveness section it's going to say within 45 days of the date of
publication of this notice in the federal register now that's underlined i think that's funny that
they underlined it because that's what everyone fails to realize whenever we get these filings
to show up so they're not just automatically approved even if they're effective immediately
you will not see it approved or implemented until it shows up here
on the bottom screenshot which is the fed register and you can see right here notice of designation
of longer period for com for commission action and longer period for comment on proposed rule change
so there went ahead and said right here that when this came out and this was filed on the 12th
they're saying that we need a longer period for comment so you could insert that date right here
so that's pretty much the gist of how to read the filings it's not really a whole lot i mean it's
most of it is just bouncing around looking up definitions that you're not familiar with but
once you get all that taken care of uh it's really pretty straightforward and you'll be
surprised at how much you'll actually learn in the process of looking up these acronyms rules
things like that so let me know if you found this helpful again if if you did so please
like and share this because i it's hard for me to get views right now i'm not sure what's going on
and the whole point of this channel is to share this valuable information
to get it out there as many people as possible so again have a good night and i thank you very much