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 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 shadow band 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 to 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 nscc-002 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 rule change that's our type our date is march 18th this is 2021-02 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
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 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 and 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 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 they're going 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 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 to as many people as possible so again have a good night anna thank you very much