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