- Yeah, I mean there's,
obviously you can trade a whole bunch of stuff.
You can trade commodities, I trade stocks.
I think that it's actually better to be a trader
than an investor.
Like, I talk to a lot of people,
like oh, you're in the stock market,
I've invested in Apple and Facebook and Google.
And that's fine if you wanna like grow your money
over the long run,
but traders have different time periods.
So, I made like two thousand dollars this morning here
and I held the stock for like 20 minutes.
And I actually sold too soon, but if you can compound
two thousand type dollar profits like every few days
or every day, I like to say, you know,
two thousand dollars a day keeps a real job away.
I don't win every time.
I loose actually roughly 30% of the time,
but I cut my losses very quickly.
So, if you win two thousand, win a thousand,
win 500 and lose 50 dollars, lose 20 dollars.
It adds up.
So how do you actually win?
What am I trading?
Well, I'm trading basically inefficiencies
in the stock market, right?
So I trade low price stocks, which the whole world hates
because most of them are scams.
They're very speculative companies
that might have one or two products.
They're probably gonna go out of business
in the next few years, but I'm not investing in them
when they're going out of business.
I don't care what happens to them in two or three years.
I care what happens in the next
two or three hours or two or three days.
That's my time horizon.
- So a trader by definition has kind of a short time frame.
- Yes.
- They're looking at how things move in relation
to other things and they're making quick decisions.
- Yeah.
- Where as an investor, it's kind of a buy and hold
for a medium or long term, and is expecting
some type of annualised return
- Yeah.
- It's not gonna really get anyone excited
or buy Ferraris and Lamborghinis.
- If you have a small account long term investing,
I mean you might get rich by the time
you're Warren Buffet's age, and they you can buy
like a titanium hip like with all your millions
after a few, you know, literally decades.
That's how compounding works.
But for me, I'm holding very short term,
and I want my small gains to add up.
And I'm trading these low prices stocks, why?
What I do this, like, no one asks to like become
like a penny stock trader or low price stock trader,
but there are inefficiencies.
Like I said, most of these companies go out of business
in the long run, but because very few people pay attention
to them, sometimes there's news and it doesn't get priced
into the stock for one day, two days, five days.
If you look at Google, and they announce some big news,
within five or 10 seconds, traders around the world know it,
it's on CNBC, the algorithm traders are all involved,
and there's no inefficiency.
So, for me, I see good news, and I'm like,
I just hear crickets.
No one even notices, and then you can buy the stock,
and then when people start to notice it,
like there starts to be, you know,
journals writing about it, hedge funds buying it, like,
later, two days later, three days later,
and you have time before the world recognises it
if you're meticulous.
So, I trade these stocks, I teach my students
to spot these stocks, and we just look for news.
You don't have to try to predict news.
I like to wait for the news to happen
and then recognise which news has leverage.
I'll give you an example, VLTC was a stock
that I bought years ago, and the stock was up
from one to two on news that Carl Icahn,
famous billionaire investor, was investing in it.
The stock doubled.
- He used to be the buyout guy, right?
- Yeah yeah. So, he was buying this low price stock,
and it was like this big news.
So the stock doubled.
- One to two dollars?
- One to two dollars per share. That's it.
- Yeah.
- But that's a big move. The value of the company doubled
overnight because Icahn's involved, but I said no,
when a billionaire invests in a low price stock,
like, he's basically done the research,
like he can invest his money anywhere,
so he's giving credibility to this little stock.
So, I bought the stock.
My whole chatroom, I have like a thousand traders,
and they're always like looking for video lessons,
and I teach them, not just about picks but like the process.
And they're like, why would you buy a company
that just doubled, don't you think it's up too much?
And I'm like, no, this news has legs.
A few days later, I sold it at roughly
three dollars a share.
So, I made like 50% on my money,
- Right.
- Two to three dollars,
and then two weeks later it was at 20.
So, I underestimated that.
That, that's an extreme example,
but as more and more people realised Carl Icahn invested
in this small company, it could go up more and more.
So, I'm looking for these inefficiencies.
(confident music)