EYL #70 The Master Investor

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All Right, guys, Welcome back, l Yeah Exciting another exciting episode another one. Yeah, yeah, for sure, we're gonna jump right into We covered investing a few times, stock market investing and shout out to Trapper, shout Trap, shout out to.

Quinn, shout quin got Yeah.

So this is gonna be the third installment of Investing. Now we're gonna talk about some things that we didn't talk about the other two times. Futures market day, trading, some other stuff, because it's important for people to get a full range of investing.

There's a lot of stuff being given out that's misinformation, people being mislest. So we have some things today.

Yeah, so you got our guy, I donelap first and foremost, thank.

You, Thank you. I appreciate you guys for having me.

Yeah, and it's an investment expert. As you can see, looks.

The part trying to make my mom proud.

He's an investment expert. He's been featured on Huffington Post, Rolling Out magazine, He's spoken on the same spage with Eric Thomas.

Yeah.

Yeah, and he has a whole platform called red pandam Way. He teaches people how to invest and he has personal clients as well. So it's gonna be an interesting conversation. As I said, we're gonna talk about some things that we haven't spoke about yet, and it's important for people to know. So yes, the first thing I want to talk about is day trading. But before we get into

Yeah, I first heard about it from my seventh grade teacher, mister Smolling. He was an older, white gentleman. I didn't listen to him. I wish I would have, because at the beginning of the class in math class, he would go through the newspaper and take us through through the highs and the lulls, and I was like, I don't care about that.

I was too busy listening to mob.

Deep we can relate the fact, mister Smolan if you're still living, Sorry I didn't listen.

But fast forward to two thousand and seven in the recession.

One of my buddies art he's from Birmingham. One of my friends like, we need to talk to this guy that I went to school with because he just made a killing in the market, and I'm like, and he's black, and he was like yeah. So I talked to Art and Art was like, man, I don't know what you're doing, but I need you to put every dollar you have into the market.

Told you that, yeah, okay.

And Kramer was on TV screaming.

I remember in the Midwest a lot of my family members like being out of work because of recession hurt everybody.

I didn't listen. I was like, I ain't gonna listen to this dude, what the hell are you talking about?

But meanwhile, he's working at one of the biggest investment companies in the country.

Put every dollar he had into it.

He caught City at a dollar and three months later he was up five hundred percent from that. So once I saw him do it, with him being black and acting black, being proud of who he is, I was like, I need to listen to this guy. So he took me under his wing and he threw me in the deep end of the pool. He was like, if you're serious, you're going to do everything I tell you because I.

Already know what to do. What's the age difference between you and him? Twelve years?

Twelve years? Okay? So like he's the OG.

Now, yeah, he's og, all right, I love you, Manure.

So I think it's really important.

For us to share our stories, especially being black, because we underinvest we under saved, we're undercapitalized.

But yeah, he gave me my start and investment and introduced me to it.

Then you just took it and just ran with it.

You had to.

Was there anybody in the family, like maybe mom or dad had a background of business.

My dad, My dad was the one who inspired me to be an entrepreneur. So my dad had a construction company since twenty two So all of my work ethic I get from him. How strong and like directing to the point I am because like, business is tough. And then he was on business in the eighties and nineties there was no internet and they did well in their industry.

With yellow page ads, follow up direct mail, so it was harder.

So when he sees it now, he was like, you can text people and get businesses. Better, get your ass up at five o'clock and just text two to three hundred people. I had to get out and buy TV ads for twenty five grand and didn't know where were gonna be placed.

Yeah, for a younger most yellow pages. It was a yellow book that year.

Google Google from Indiana originally, right, yeah, each Chicago, Indiana, each Chicago, So that's like right outside of Gary, Indie, five minutes away.

So I didn't grow up in like.

Some amazing financial ecosystem, and we were poor for a long time. Like the reason why I don't even like the Bulls to this day. Like we got w G and programming with Chicago Programming, but when the Bulls were one of the titles, like our lights were off in the winter. So like most of my family is still to this day like lower income and poor. So like a lot of me giving back is because like I want to reach them and show like what's possible if

So yeah, information, So if futures futures market, right, yep, because we hear about this a lot, like CNBC. If you ever watched CNBC, they talk about the futures market, yep, And they talked about futures. So not the rapper the future that is good. What what is what is it? What is futures?

What are they?

Yeah, futures is the highest paying asset class that no one knows about.

What are the asset classes?

So you have you have stocks that you can invest in, you have ETFs, you have mutual funds, but futures pays the most out of all of them. So for every one dollar that you can invest in, let's say and get in the stock the e S which is S and P five hundred pays one hundred and twenty five times more, and bonds paid three hundred and twelve times more.

So what so what exactly is it?

Like?

What's the futures?

Futures basically is is.

Uh, you're making a guest or a bet whether the market is going to go up or down.

But what certain asset class is.

Like you know, the market is going to go up, generally gold is going to go down until something bad happens like they Iran attack.

We know CREUD is going to be volatile.

So it's what institutional investors use to gauge for what the market is going to do. And so like for example, I'll say, okay, who do you think do you think Lebron is going to average ten points this year or more?

Definitely more? Do you just place the.

Bet on Lebron averaging more than ten? That's all the futures market is.

So the futures market is like after hour trading, yes, and it's pretty much like it's so it's like calls and puts on the options.

But it's worldwide. And then it's twenty three hours a day.

So at the open, the American open at eight thirty, that's when you have the most volume on it. But most of us, especially that they're black, don't know about it because we were the asset class that were traded.

Why twenty three not twenty four hours a day because it has an hour arrest.

And then the way the cycle goes from America to Asian market in London market, it's like a little break in between you.

I got like that, like if you have like a file to like these channels from Asia. Yeah, they show the future market.

So I'm gonna actually what you just said, I'm gonna elaborate on that. But before so all right, just understand. So stocks and I'm buying a stock, regular stock, and I'm just buying it at that price. If it goes up, I make money. If it goes down and lose money. Futures is, for lack of a better word, it's like kind of a guess where you're kind of predict predicting it's going to go up, like it's ten dollars now, but you think it's gonna go up to fifteen. Yes,

Like you're guests.

In the future. Yeah, and you can you can guess the future if it goes up, or you can guess the future if it goes down. Is that correct?

Absolutely?

And then you can make money whether the asset goes up or down. Now what are we basing that off? Is there information that's tied to the price of the S and P five hundred and the bonds market? So long term, I tell people to invest in index funds, so s P, Y D I A, and then I'm like trade the future because if you buy it long term, you can look at.

Your account and see where it's going.

Most days of S and P five hundred is going to go up unless Trump do something crazy, which is all the time. But that volatility even provides some movements, So if the market falls down five hundred points, you can profit when the market goes down.

You can't do that with stops.

And the S and P five hundred For anybody that doesn't know, it stands for standing and poors five hundred. Yes, five hundred companies like a microcosm of different stocks. So a lot of time you had a market is up and a market is down, and not talking about every single stock in the stock market. They're using dal Jones,

Yeah.

I think of the SMP is like the NBA.

It's like the five hundred best players in one basket, and then the Dow thirty is like the best thirty. So when I people tell people to invest in the index fund, I'm like, imagine We was at the park and you have to pick five people, and I'm like, okay, you can get Giannis Lebron, Curry when he's not hurt, Harden and Westbrook and we play against five other teams, five other players that are just regular players.

Who do you think goes win All Star Team?

So you said that black people was traded? Yeah, can you talk about that?

The financial market is, unfortunately, was based off slavery, So we were the first comodity actually traded. So most insurance companies got their start from slavery and insurance slaves and then futures contracts. They would make a guess about how many slaves would actually make it across land. And so that's why most of us don't know about it, because we were the things that were traded.

We're not supposed to know.

You said, futures contract, what is that?

And so let's say hypothetically you had a thousand slaves. The companies would guess that maybe five hundred and sixty to seven hundred of them would end up dying, and they would have a contract on it that if they died, they would still make money off of it via insurance.

It's funny, it's crazy that you say that, because it's like, yesterday I went to Schaumberg. You ever heard Schamburg. So the Schomberg libraries in Harlem, and it's world famous and it's like African American museum type, but it's not a museum. It's a library, exhibition stuff like that. So long story short, just yesterday I went there randomly and I was in there. I was in there and I was looking at different things. So I looked on the wall, so I saw the

Yeah, and I hears it say it, but racism is America's first startup, so the country is built off of us. But of course when we died, like you just said, they profited heavily, like and when you lose that many quote unquote commodities, you have to have an insurance policy in place to be able to cover it. So everything is tied together, insurance. Wall Street, I mean Wall Street was one of the biggest slave markets before it turned into like the economic center that it is now.

Like slaves were traded on Wall Street.

Yeah. I actually took a summer group to the Black burial ground in Manhattan. Yeah, and they give a detailed expert that whole situation.

It's heartbreaking. Yeah, And once you dive into the information, it's fascinating but heartbreaking.

Yeah yeah.

Yeah. And the ships too. It's like I saw it on the ships where it's like they have people just like lined up, so it's like a lot of people not gonna make it because you it's like a month to get from Africa to America. And if you in a ship lined up with three hundred people right now next to each other, like people going to bathroom on themselves. It's like it's not really an efficient way to travel.

Yeah.

And also and during times of travesy like when crews shot down, you can make money as the market is falling. So unfortunately, whether we made it across the seas or not, they had a plan to be able to make money. And that's one thing I have to tell people when it comes to investing, like whether the market is good or bad, you have to be able to make money. We all have kids. Kids are not cheap by any means, and we have to invest more so we can have

So what are some markets that you can actually buy futures on.

You can do it through TD amer Trade.

I use Ninja Trader as well out of Chicago because it's five hundred per contracts at Ninja Trader.

If you did it through Thinker Swim five hundred dollars, yes.

Five hundred per but if you bought one future contract on TD Americ Trader, it would be sixty two fifty because most African Americans don't have six grand laying around to invest one contract, so they're a discount broker and that's how you can end up buying more contracts and the end up making more money.

So all right, so day trading YEP, day trade.

Or as I call it, short term investing, but short term investing because it's a lot of traders out there and most of them don't make money.

Okay, hey, sorry, So how do you make money day trading? Because you said so day trading for anybody is not familiar. Is that you're trading in today. That's why it's called day trade.

Ye.

So you could day trade anything, crypto, which I hate, hate crypto hate.

You can do. We've learned to hate it too.

You could day trade four x, which I hate. We'll talk about we'll talk about that. You could date trade stocks, but you said that stocks is not the best way to day trade or intry day trade, or however you want to prase it.

Well, stocks weren't originally meant to be day traded. They were meant to be held for long term period so like thirty forty fifty period. And you notice as an advisor, like if you if you had Apple and you traded Apple for one day ten years ago, you may have made a thousand, two hundred, one thousand, two thousand and three thousand dollars. If you would have put two thousand dollars into Apple ten years ago, you would probably have more than one hundred and fifty grand right now. So

What's the what's some tips on day like how do you day trade?

First you have to open up a brokerage account, so that would be through for features like Ninja trader. And then the most important thing, you have to know where the direction is going. It's a simple way to know. If the market is green, it means the market is going up. If it's red, it means it's going down. We've all opened up Yahoo finance another bad day.

So it's read.

But most traders they are buying when it's red, and that's a good investment strategy. But in today, you end up losing a lot of money. So if the market is going up, ride the market up or buy, and then if it's red, you want to sell.

But you have to have a predetermined target.

So like if you have fifty shares of let's say bonds, unless say you get two pennies worth the movement, you can make twelve to fifty and less than fourteen to fifteen minutes.

But then after that.

You have to stop because you only allowed a certain amount of trades per day because you don't want to gamble. That's what a gambling part comes in. That's associated with trading. It's like, well, you don't know whether it's going to go up or go down. I'm like, you know what the.

S and P is gonna do?

What's the number of trades you can make it down?

You can do unlimited, but I advise people only do one or two. Okay, one or two, because anytime you do more than that, you are, like I said, subconsciously trying to make up for the lack of money that you have in your life. Because we know most people that have money don't take huge risk, and I like to keep my risk caped to like two percent. But every time you get back in the market, you are assuming more risk on a particular trade, and you don't want to do that.

Yeah, can we just go back there for a second for the contract. I know you said there's an expiration of thirty days. Is that the standard? Are there other ones that are sixty or ninety days?

No, that that's the standard for futures. So every every thirty days they'll end up rolling over. So that's a maxi window that you can have.

To trade them.

And you could lose or gain money during that process.

Absolutely, yeah, but you can have a stop loss in place that mitigates your risk, and then you can have a predetermined target.

A lot of people they'll just hit by and hope that it goes up. And I'm like, hope.

It was a great strategy for Obama, But financially that's something we can't do.

So what's the S ANDP right at? Right now, it's.

Back in its close to the three thousands thirty five hundred range.

And then so all right, so thirty five hundred, let's just say thirty und could be on know when this will come out, So let's say thirty five hundred smps right now? Right? So I get up yep, I buy a future on it, YEP, and I have a target of thirty five oh one of thirty five oh one. Yes, I have a stop loss of.

Let's say you can put it at twenty nine ninety eight for easy numbers.

All right, so the stop losses once. If it goes I stop my losses. That's why it's goned to stop stop your losses. So you don't just it's not like a nose dive market just starts to tank. It's like, okay, oh yes.

Because then you can lose all of your money in.

You're sold at that point.

That can go down to one thousand yep.

But when it gets to the point where you're actually say comfortable buying selling it at.

Then it's sold absolutely automatically.

Okay. So but now it's like if it goes past that, what if it just keeps going, I.

Can't have fomo. You have to be think of it as a business.

McDonald's doesn't sell number one for ten dollars to one person, then twenty five to another.

All the prices are the same.

So you want to run it like a business where I'm like, okay, when I approach the market, anytime that I hit over a certain number, I'm happy a because I remember when I was broke and had no money, and then b it's not in my business plan to take more than a certain amount of trades. Today, a lot of people will get in, they'll start and black like, oh, I want to take fourteen fifteen trades.

I'm like, that's not in your plan.

So we have to, especially our people, we have to exercise a lot of discipline. And the financial market is because we're so far behind, and people try and get U portraying and it's like, you should have been investing ten years ago. I mean, even me knowing what I know now, me not putting every dollar into the market. When Art told me to cost me twelve million dollars. Wow, So it's like, wow, that's why I tell him. I'm like, damn, I should have listened to you.

I'm sorry.

He was like, but you're further ahead than you were and could have been. But I'm like, yeah, but I want to twelve. But he was like, but you have to go all in when you get the information. And we all sit and wish we would have invested. Were talking about it before we started recording. Could have bought City Bank of America. Apple was super cheap, MasterCard was cheap.

We sat on the sidelines.

And then but you know, some j's came out when we got to Jay's and we partied, don't win on vacation.

We have to put our money here first.

And you said, it's only like two hours a day where you should actually be our.

Yeah, two hours maximum the opening.

The clothes, where you should even uh, you don't like to hear what is it? What do you call it?

Short term?

All right, so only two hours a day where you should do short term investing. Yes, opening, which is eight thirty in the morning, Yeah, thirty nine, Yeah, closing which is thirty yeah, three.

Thirty, four thirty, and then you should be done. Just wrap it up. And that's Eastern time. And wrap it up because in the middle, that's where a lot of the amateurs play. There's not as much liquidity. So think of it as if you own the store, all your highest volume, let's say, if you're on a restaurant, will be breakfast and dinner time. In the middle, there's not as many people buying, Like you literally can see volume get cut in half. And I'm like, don't trade in

You say that one of your rules that never to give up more than one point six percent on any trade. Can you explain that?

So you have to have like a predetermined like risk of reward ratio, and so like let's say if we were playing ball outside and if we hit two three pointers, we got fifty thousand dollars.

Great.

I think anybody in this room, no matter how often we play, we can hit two shots, right. But most people when they trade, they're risking fifty percent of their capital. So if you miss them first two shots, you lose all your money. So if you cap it at one point six percent or two percent maximum, if you lose two.

Trades, you're only down four percent.

Your wife or your lady won't kill you. You're not messing up the kids college fun, and then your emotions aren't messed up. Whereas if you're risking fifty percent man two trades, your lady hate you. You messed up the bag for the kid, and now you are beating yourself up because we as Black people have.

So much trauma tied with money and not having it.

Any loss has hurt us more than other races I found out personally.

So, yeah, you know, you don't get wiped out, take it out the game. You don't. One bad day could take you out the game. Yeah, and we're seeing it.

And of course during a recession, so like when people will over leverage. A lot of the banks went under because they had assumed too much risk.

But a lot of it is psychology too, because like if you so, it's all synonymous with gambling. And I always tell people that investing is a game of knowledge. Yes, gambling is a game of chance, but especially short term trading, highly expecutive investments, it very it's synonymous with gambling. And you get the same feeling as a game. Like if you gamble, you get a euphoria, You get a feeling. You never look at it when you If you gamble and you win ten thousand on the crab table, you

My dad had them to cry. My dad's smart, been in business for a long time. He was like, I just didn't know, Like it's not that I wouldn't have put the money away for you. I just had no clue. And of course in the seventies and eighties, this information wasn't flowing.

Around at all. No, it's all right, So in the next seven we're gonna go into some more some more information. But yeah, the day trading or short term trading, not.

A short term swing trading the same thing.

Yeah, So you can hold it for multiple days, so for like a thirty day period, so you're holding it, so then you have a higher probability because you can hold it for multiple days.

But it costs more to do that.

So even that, so if you swing trade the S and P five hundred, it costs almost seven thousand because most of us are blocked out from being able to do that, because the win ratio is higher with swing trading because you're holding it over multiple days. You may get a bad price on the S and P Monday, but then by Thursday it's back up, so you're fine. And yeah, and listen, Investing is risky, especially on a

I'm like, flipping doesn't work in the streets.

Like you either get jammed up, have to get a lawyer, or you end up giving it all away, so we have to. I want us to take that drug mentality away and run a market, even though a lot the Wall Street trapping name I love, I love the content, No share with that because I love your material. I want us to start to think bigger about what we can achieve and long term pass.

On money and to be able to even help our friends.

So all right, okay, So in the next segment, we're gonna talk about some more things. I was investing, okay, So as far as trading right, whether you're trading commodities, whether you're trading stocks, whether you're trading futures. Like you said, it's practice makes it perfect, right, and you could becoming good at anything if you have good habits and if you apply yourself here, how can somebody become a good trade?

Like?

What is some tips to improve somebody's trading?

That's the best thing. When you sign up with any platform, they let you practice for free. Most people want to start making money right away, and a short term investment is more like a sport. So I can't expect to go to the league. If I'm putting up two jumpers a day, I don't care how good the two jumpers are under different conditions, I won't be able to perform well. So I tell people like, start off practicing and take one hundred trades, see how it goes for you, then

Simulate it.

Simulate it, because then you'll get comfortable and say, Okay, either I do have the discipline to do this or I don't. For me, coming from East Chicago, Indiana poor area, when I got introduced to long term investment and short it clicked to me right away, I'm like, wait, So if I put it in one hundred shares here and I get four pennies up in movement on the ES, I can make twelve fifty. I'm like, I'm sold. I'm like, but most people may not have a discipline because they

So it's on the brokers platforms they have actual simulators. Because that's a good thing to know, especially when we're trying to teach kids to actually do.

And for kids, they have a game called Chartcut, So it's a game that you can download the app store and you literally can if you think the market is going to.

Go up, hit by, if you think it's going to drop, hit sell, and you.

Can practice there simulated trading. I'm glad you said that, especially for children is extremely extremely valuable because spot especially trading, it's a competitive sport. It is so like a lot of schools, even for teachers. A lot of time, I always recommend, like if you want to do like an investment club for your class, and you can start with like fake money, think of I'm a prize whoever wins.

Have to practice this.

Yeah, it's the same as it's like the preseason, like the preseason.

I think it's dope because, like I said in our saw A program, we teach stocks. So we start we teach them about the market, but then like they do a simulate it and then they actually get to go down to Wall Street and see how it's incredible. So that's important. After we do the simulation, though, right now it's time to get in the game, Like is there a certain amount of money we need to have or like.

Yes, I would say start with two thousand, but before you get to intra day trading, like, you have to invest long term. So even though I love investing on the short term, I made my chops and reputation off long term investment. So the foundation is indexes, second layers technology stocks to start there and then start with a thousand and two thousand bucks. Don't put everything you have into it because then when the money's involved, emotions come out absolutely.

And then now you.

Have to stick to your rule of one or two trades a day and not forty five trades and not trading a four x and crypto and everything at the same time, Like you have to be very disciplined. So start small and then earn your way up to put it in more. Most people just want to throw in ten grand and hope it goes up, and I'm like, you can't hope. You have to practice your way through this to be able to do better.

One of the things you said too, I heard an envy was like people just throw money into an investment and they just leave it there. Yeah, Like there has to be some discipline where you have like, all right, every month, I need to throw this certain amount about that a little bit.

Yeah, So you want to set goals in place. So even if you only let's say you get one pennyworth of movement on bonds and you max out your contracts, you can get six and a quarter percent growth on one pennyworth of movement.

You don't have to be great to do that.

So I tell my students you have to have one small target you can hit every day, because, let's be honest, you have to produce. Even if emotions are there, you're having a bad day, you've been fighting with your significant other, you still have to make money because bills are going to come in. And then go for a longer target. So that's when I tell them to do like a

And now you're in profit of ten. But it's a sport.

It's no different than playing basketball, mma, which my son loves to do.

Heyes, Ander, I love you. Or we all went to school with people who were.

Really talented and then end up not doing well because they were just lazy as hell, Like we look at James Harden of course in Houston Lebron. Regardless of what you think of him. Man, the kid worked hard, works hard, puts a lot of money to his body in the offseason. So you have to treat the investing part the same way.

Yeah. So all right, so you said the first lady should be index funds. Yes, the second lader should be tech. I'm glad you said don't want to talk about tech a little bit because I'll tell people all the time, like, if you don't know anything, just invest in tech absolutely, because technology is not the way of the future is right now. It's now and it always has Yeah, every industry is effective by tech, like this is there's a mutual fund called the Diamond Tech Fund. Franklin Templeton yep.

Because our lives are rule by technology, even back when that's assembly line before that was the technological innovation that made.

Ford great at that time.

Then IBM, of course in the Apple and Microsoft had been in a great run. Netflix, Facebook, Google, I mean, and I tell people like invest the major tech companies you heard of. If it's a biotech company that you never heard of in Delaware, don't touch it. We all

Off of them.

And especially in our community, we know who the hottest players are, who the hottest rappers are.

We make it that way. Yeah, and we make it that way.

So even when I went to E C Centro and talk to the kids, I'm like, who's hotter Cardi or MC light? Most of the kids like who is the mc light? Now yeah, it's like it's like Cardi's hotter? Okay, cool, Cardi is Apple, And okay, who's hotter Drake or rock him?

Peace to the God?

But Drake would be like Microsoft, So these are easy best You have like top five performers in every industry and just tie your money into them and you'll be okay.

So why are you so big on indexes though? Because it's a debate between like indexes. Warren Buffett is believing index He's believing he's like just pushing my index fine if you don't know, not, no, it's just pushing my index line. And a lot of people like that. Yeah, but then people want.

Are you anti index?

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I'm not okay, but I'm just interested to get your perspective on it. Like why why is index funds the top level for you?

Yeah?

Because it provides a certain level of safety. So let's make it a comparison like the Knicks. GM has had a lot of opportunity to draft some good players. He has not for the longest time. So let's say we're going to be in GM of picking stocks. Okay, so we can either pick one individual company which we may have a bust on, or an index fund is nothing more than an All Star team. So if I give you the Eastern All Stars to go against Orlando, who do you think is going to win? All Star team

So all right, And another thing with the index fund is that you can actually invest Most retirement plans, most fall on k's have an option where it's like the S ANDP, you can invest in an index fund inside of your retirement what dreaming to my next question? So what stocks should people invest in for retirement.

The two biggest technology companies that are keep us up. Well, my plan is very simple to indexes two tech because if you make if you invest in twenty five companies, you made your own mutual fund. Why now you can talk if from an asset allocation standpoint that you should have and tech ruin runs our lives. So whether Amazon takes over or Apple takes over, it's going to be two tech giants always tie your money.

And you can go back and look at IBM.

So what tech giants look right now?

I've always advised Apple and Microsoft.

Now Google, well, if you can afford it, Google's too pricey for most people.

That is true. Yeah, it's too pricey.

If you can do Google, absolutely, but I know most in our community they can't afford where Google is. I mean I recommended Amazon and Google in twenty fifteen to twenty sixteen, and Amazon before it got two thousand this year. Once to hit a thousand of share, most people it's like I don't have enough money to buy one.

Share to buy one Yeah, Amazon's gonna keep going up to infinity.

Yeah, they the king of retail. Yeah, So if you guys can afford it, do it.

No stopping. Yeah, yeah, okay, And that's just that's the retirement strategy, yep, because those companies are never going to afford.

Never, and if so, someone's gonna overtake them. So even with Marksoft, like I'm thirty seven, Microsoft is popular, Windows ninety five was popular, and Bill Gates had that company doing well in the mid nineties. So even like twenty grand or ten grand back in the nineties now would be several hundred thousand dollars. Great companies tend to be great for a long period of time, and shitty companies

Why we'll get that?

Yeah?

Why touch it?

And if you don't know how to properly invest in, like start with the big boys and think of it always. You're you're drafting, so you want to draft the best players. So I'm going to whether you like Lebron or not, I'm Lebron's going to be one of the first people I picked, Like Duranta's like a salesforce, like so on, steady gets.

Better every year. Underrated.

But then a lot a lot of people are like, well, I want to get a weed company.

Like can that falls through the floor.

And I'm like, why just because you smoke weed like that doesn't make you an expert. And I feel like, just tie your money to what's working. So we got two tech stocks, and what are the two indexes?

Spy is it easy?

Or you can do vol which is Vanguard and then the Dow Jones which is DA.

And keep it very very simple.

Keep it very simple, because you don't need twenty five stocks in your retirement plan, because once you have so many, they'll start to weigh down your portfolio. Well, you may have a winner that's up twenty five percent, but the loser may have lost twelve percent. And now you've cut your retirement and half. And the number that we actually need for retirement is five million in our community.

That's a hard as.

When you look at inflation and then also how many kids you have one you have one.

Two, you have two. They're not cheap, no, it adds up.

And then also when we get in this position to be fortunate financially, we also have to help other people, so it's the heavier on us. And then of course it will cost of living going up. I mean, you guys are living in a pricey state. It's not gonna be cheap to you can't. There is no four or five hundred dollars mortgage is here anymore, so that we.

Just need more money.

And then it's the four percent rule. Yeah, go ahead, four percent rule. So if anybody's not familiar, that's what most people say, like you should only take four percent of your retirement account a year to make sure that it stays forever. Yeah, So four percent of a million is forty thousand dollars. When you look at it, like, that's not that much money.

You're at break even pretty much, right, So maybe so.

Then five million, four percent of five million is two hundred thousand dollars. So if you look at it from that standpoint, especially with inflation and rise in health care costs, not really a lot of money at all. Like God rustled, so my grandmother gave all of our life savings away trying to get back healthy once she had cancer, Like My grandma probably went through two hundred grand maybe in eight months. Wow, like going through key and I'm like,

This is a business.

So it's great for the healthcare field, but for us well, if we ever have any disaster or because we're all going to have a downturn, at some point, something will happen, and that's why we need more money put away.

It costs a lot of money.

And look at all the bankruptcies that happened because of high hospital bills. Like I have a friend that had a two hundred thousand dollars bill last year. It's like you can try and write it off a five bankruptcy, but it's like it's going to dig a deeper hole for you.

So four X, which is we're gonna do an episode. We're going to do a whole episode of us. Stop asking. We appreciate it, We got it.

We heard you had some thoughts about.

It, but yeah, currency trading four X, So why are you not a fan of four X?

The regulations are tough so if you do, it's gotten better. So they are brokers here that are regulated. Finally, can we just say it's not a new thing. No, you know, like I'm working around kids all the time and they'll try to approached me about it.

I'm like, guys, yeah, it's like it feels like a new fad that's going on, but it's not because of Instagram.

It's on social media.

On social exactly.

Yeah.

And when people mentioned, they'll be like, well, one time an investor took a trade and made two billion dollars. I'm like, he wasn't traded on MT four Like that was a bank play that he actually made, So that's different. Currency trading from a bank standpoint is good, but a you have to deal with regulation to the brokers are shitty. So a lot of them take your money. Like I have friends that invested in four X and then literally all their money was taken. You aren't going to be

What the money is.

I've never heard three heads fund managers ever mentioned four X on TV or in writing. It's just not a good thing to invest in because you're trading against other people.

And let's say you do get twenty.

Five pips a day. Because we all see the postal Instagram fourteen fifteen. I'm like, I don't know how your bills are structured, but that one hundred dollars win not gonna do shit for me and my kid. Like, it's not it's an amateur's market and it's a good place to start. Have there been people that make money, yes, but there are not a lot of more.

It has a ninety five percent loss rate.

Yeah, I feel like this thing like hit college campuses and hit social media like wow.

And then the multi level marketing companies took over, and I'm like, if you can actually trade.

Why do you need to recruit people?

And I tell people all the time whether you join me, and I'm complete, like, you don't have to join. But that's where the financial freedom, having no debt, having money comes in because my I'm trying to be less dame dashes and approach and be kinder, but I feel the energy because it's like, if you're.

Financially free, you don't need to chase anybody.

Yeah, it becomes like you know what, like, what's the fastest thing to get money right now? Especially for a kid who's in college no money. It's like, I'll do this.

And I was that broke kid in college to understand it. Vulnerable.

Damn, they're all fast money is bad. Anybody I knew who was making fast money in any endeavor they lost it because when you make it too fast, you don't appreciate it.

Kids, listen not please, please.

Or you can lose it and then say, hey, you were right two or three years later, but please don't touch for X.

And I know some of y'all love f X that is trashed.

Can we talk about bonds for a little bit. So bonds all right? You hear about stocks and bonds a lot. We've covered stocks, we're covering stocks today, but we haven't spoken about bonds yet. So bonds all right? So stocks, you buy ownership of a company, and you buy stocking Apple. You're part owner of Apple, right, Yes. Bonds kind of like the reverse in a sense where you're loaning a company, yes, or a municipality or country you're loaning no money, and

Yes, Okay, you're good at making it simple.

I always say, if eight year old can't understand it.

It's too complex, too complex.

The litmus test is always my son too, so like that green means up, red means down, like drill Xander on that all the time and he's like and as you know.

Kids get it, they get it like super easy, and they love it when they get it.

Yeah, because the adults, we are so fearful because we made so many mistakes before, because we all wish that we put more money in Apple ten years ago.

I remember when Google first came out on the stock market. Yeah, I remember all of that from two thousand and eight, everything.

Invested, we invested I before they even announced the iPhone, I had Apple and I got I got nervous man.

And it's a good tip too, Like if you want to know if if a company is a good thing to invest in, click on the ten year chart and it should go up and be green. And the same thing is like if you're in a relationship or marriage after ten years, you know it.

Person, I'm glad you said that. I'm glad you said that because I said I do that all the time. It's like if I show them fund and stuff like that, Like I look at it, like, Okay, what's the five year rate of average? Ten year average? And since it's inception, absolutely so, since its inception is when it was created, so if it had like Franklin Dometech f on going back to that, So since it's inception nineteen sixty eight, is average nine point seven percent a year.

That's incredible.

So odds are Yep, it's average almost ten percent a year for sixty years. Yep, I'm not going to fall off the cliff and yet sixty one highly unlikely. Yep. You know what you're gonna get now something that is up forty seven percent for one year. But if I look in ten years and it's minus one. I can't trust you. Yeah, so you could look at four one k's that all of them the same thing. It's like, that's an easy way. That's the easiest way to look to see if it's a good investment or not look

Absolutely absolutely.

And then because if you look at all the legacy companies and to make the analogies with players, bron has been good since he came out, Lebron's and that's why the wash King things funny, like eighty has been good since this came in. The players that were terrible five years ago, they're still terrible.

And that's true of companies as well.

So you looked at ten and fifteen year period and like you said, since inception.

Like Apple has been a rocket.

And I make the joke all the time, but Forrest Gump talked about Apple like there was a whole scene carved out about how he invested money and how much it grew, and Apple's continued to hit all time after all time.

So we spoke about dividends when we spoke about bonds, Yeah, what are your thoughts on stocks? Dividend stocks.

It's tough.

There's only a few that I like, Apple, Microsoft, Mandalay. But my thing is, I want you to pair a dividend play with a company that is growing, so you still want to see that chart go up. A lot of dividend plays they pay because they're a bad company. So I always tell women it's like having a shitty boyfriend that I'll buy you a Gucci bag. Is there

So but we didn't we didn't talk about bonds, Jack. I wanted to go on somewhere with that. The bond, So how do you make money on So now we explain what bonds are, but how do you make money on bonds? Because you said bonds is actually the best thing to try. Bond's features, So yeah, how does that? How does that work?

So there's a unit of measurement called a tick. Think of it as a penny. So anytime that the bonds go up or down that you can make money whether the market goes up or down and pays thirty one dollars and twenty five cent per tick or per penny. So if you get fifty contracts and you ride it down, you can make money really faster. Now, from a long term investment play, there are some different theories of whether

So the thing about trading, what's.

The court for each contract when you trade in bonds?

Five hundred per same thing?

Yeah, the same thing, five hundred per So you can get four pennies down with fifty contracts, and you can make a few thousand in a day doing it that way.

And then this is the most important thing.

After you trade, you have to take a good portion of the capital and then put it back into your long term and not go right to bottle pop and the vacations and tear down the mall and gallery or where I'm in Houston.

So, yeah, are there any court where I think like commission calls anything.

For that, Yeah, their costs.

You can buy a lifetime license and you can lower and reduce your fees. So any financial transaction, you know there's going to be a cost associated with or a fee. But Ninja Trader has cheaper fees and I don't have any affiliate deals with them. But the fee structure is like a dollar forty five round trip, which is entry and then the dollar forty five out, which is pretty good because after you net profit, you're still walking away with probably twenty eight bucks per participant.

Is there a difference between the commission calls and execution colls.

Yeah, but they put them all in so you know, most brokerages they're going to have the different level of fees. So there's an entry cost of course, like a data feed and other things associated with it. But and the aggregate, like it's worth it because if you went to a bigger platform, like like I said, td Ameritrade, for the S and P you'll have to pay almost seven thousand, and then for bonds you will have to pay thirty five hundred. I know almost black people don't have that

All right, So In the last seven we're gonna talk about your yeah yeah, read paying their platform and some other tips for investors. All right, So this is the question that anybody wants to know, like how much money, what's realistic? And how much money can you make short term trading a ton.

So when I first talked to the guy that introduced me to the futures, I'm like, how much can I make?

And he was like, well, how much money can you put up?

Because that determines how much you can But on a short end, let's say you can trade one hundred shares of the S and P five hundred and you only get one penny worth of movement up or down. That one penny represents twelve fifty. So if you get four present how much twelve fifty two hundred and fifty.

So if you get four that would be five thousand.

Now, on average, the market will move anywhere from seventy to ninety pennies in a day. I'm telling people only go for one or four to start.

That's why you're saying invest first thing in the morning and right before clothes.

Yep, because then you have all the volume coming through. And then what bonds is bonds pay more, you can make three four or five six thousand. So even with four texts, if you do fifty shares, you can make three thousand.

One hundred.

How much money invested, twelve thousand, five hundred, twelve thousand, five hundred invested, Yeah, you can make how muche twenty five?

Yeah, and so the more you put in. So people always ask how much should I start with? I'm like, ten grand, twenty five grand. If you can do fifty, great, if you can do one hundred better, Everyone's at different levels. I'm like, but if you don't have ten, you should not be inter day investing at all.

Long term investing, yeah, yeah, start there.

Like if you don't have ten put away, start with that because Apple in ten years is going to be great. And I think too many people like you said, try and gamble because they're behind. But I'm like, start with the basics. The first level is index funds, second is technology, and then you can go to short term investing.

After that.

You have a strategy to make three and twenty five dollars in a day trading bond futures. Yeah, I said very specific number.

So yeah, because each penny is thirty one twenty five per So you guys can do the math. If you do fifty contracts, you have four pennies times thirty one point twenty five, that gives you thirty one twenty five.

So it's a day. Yeah, in a day.

How do you do that?

So you have place the order. So let's say I think bonds are falling, I will place the order. Let's say at fifty six twenty five the market will there will be tag the way. I have an exit point for those four pennies. I will buy fifty shares of it, and then if it drops that four it automatically takes me out. So you don't have to worry about, well, what if it goes down eight and comes back.

To your stop loss? Yeah?

Yeah, And then you have a predetermined target. So on every trade you need a predetermined target or a target that you're gonna hit. So think of it like a sales goal. Like once you hit that goal, you have to stop. So a lot of people when they trade, they want to leave the money in all day. It's not designed for that. You have to have a predetermined target in which you will exit, and that four penny or four tick target is the easiest one that you can.

Hit, so you put it in and then what's the sales target again? Four pennies four pennies up? Yeah, So if you're buying, you want a four pennies up. If you're shortening, which means you to profit when the market drops four pennies down and then you're golden. So what's the stop loss? All right? Four pennies up? I got that, but what's the stop loss on that? You can set it that eight eight pennies down, yeah, because you have to give us.

Some room to breathe.

And then when you get into more advanced, higher targets than you would have have four penny target and then now you excuse me, eight tick stop loss and then like a sixty tick profit target.

So now you're in.

Like a positive risk reward because I can see the wheels spending as an advisor.

It's a negative risk of award on a smaller one.

But I tell people like, if you have a higher risk of reward, you don't have to win as many trades, because if you have a fifteen to one or ten to one ratio, you can lose seven eight trades and on your ninth trade make all the money back, wipe away your losses and all your losses and then.

Being profit one of your strategies having eleven to one.

Because you're going to perform bad some days, like everyone isn't able to be emotionally disciplined. You may have a fight with your lady, your kids may bother, you may be tired. So if I tell you to invest in the S and P and it goes up, your first two trades may be bad.

Your third one will work out. But if you.

Can't out perform math, no matter how much willpower you have. So if you have a one to one risk of reward, you only have one trade to win two to one, you can lose two trades before you're negative. We don't want to risk fifty percent of our money on two trades because that's like playing roulette.

Almost at that point.

Anybody in here I think can win one trade out of eleven and then still be profitable. It just it's a financial assessment that you'll be able to make to know, Okay, even if only make one out of eleven, I can still be able to profit. Most people are doing one to one ratio, so they'll risk one hundred to make a hundred, and then they lose and now they're out of Montive.

So all right, So it's like, you got a thousand dollars to invest most people putting a thousand dollars in one investment, You should do that, and they just rolling the dice for it.

I mean, we've all heard don't put your eggs in one basket. And then when it comes to financial stuff is like.

All the handsight, yeah goes out the way you're saying, if you have a thousand dollars, you should never put ninety more than ninety.

No, yeah, because you want to cap the risk on every trade. So if you lose the ninety on a thousand, it's not going to ruin your day. If you lose eight to fifty out of a thousand, you're going to be pissed. You're going to be pissed. And that's true of every business. So we know we need to bring in customers at a certain rate. There's a certain amount you can spend on ads for that. These numbers are true in every business.

On a good week, right the market's out. If we're doing the thirty one to twenty five strategy, we're talking them over fifteen thousand a week at that point we're doing this full time. At what point do you become a master and you can now do this full time.

It depends on what your what your financial targets are. So for me, what's made it easier is like being really disciplined. So my grandmother used to say, like, baby, pay down on your debt, no credit cards.

Out the grandma, Yeah, I know. And then Dave.

Ramsey got super popular, and I'm like, this all the stuff my grandma told me.

Yeah, I wrote one close. She was like, negative thoughts have negative actions with these negative results, yeah, it seems reversal positive.

And I didn't want to hear it. She of like, altitude determines your altitude.

I'm like, I do not want to hear that, but as an adult, it's very true. And then we have so much stress in our household because financially we're upside down. Like I remember when we were broke, our family would fight about everything, the remote control, who gets to watch the TV when we would go out. Having financial freedom takes that away. So a lot of times people think they need to earn more. I'm like, you need to knock that them debt down and quit overspending. And that's

Dave Ramsey made a half a billion dollars by telling people not to use any debt. That's it smart.

But look number one, follow seven step system.

He followed the same system over and over again. Yea, over and repeat it the same message. So it goes back to say the same thing. With trading, you gotta follow the same plan. And Day's been saying the same thing like thirty years, very few changes to it. So most importantly, like take what I'm saying and to everyone watching, like follow what the top five companies do. Apples systems are down, they only have a few products. Manufacturings are incredible.

Why change it?

Stick to the script?

Yep.

So all right, so can you talk about your platform Red Panda?

Yeah, so Red Panda is my baby that was birthed by accident because I never intended to show anyone my blueprint. So we have a couple of different programs for people that are interested to learn how to invest. If you're not financially stable, you should not be interday or short term investing at all.

Always start there.

So my foundation, of course is long term investing first, but I have a couple of different programs like Alpha is a more expensive program that teaches you how to make between ten to twenty five grand in a month, and then the one K program is the program that's really like I probably have maybe six hundred students in

A thousand dollars in a day and then you'll be good.

So you got six hundred students, what's the success rate? Are they coming to you, like, is there a massimind class where everybody's discussing their results or it's.

Like in pods of like two hundred they'll come in and then so it's the same eighty twenty rule, like eighty percent will do great, twenty percent won't follow the rules and then they won't do well.

So nothing has one hundred percent success rate.

But if you come in and follow the blueprint a plan, and I've posted this year probably one hundred and fifty testimonials, and I tell people anytime, like, if you don't, don't believe me, because I know from outside looking in and sound like some bullshit, But I'm like, if I was doing something wrong.

And they weren't women, it weren't winning.

Black women will tell you because most of them are black women in the program.

So the results have been posted a year after year.

Now are they trading for themselves inside the program or are you doing the trade.

They're trading for them So on our call, we have a daily call on every day chat Monday through Friday. Like I'll call out spots where they should not get in because they are either buying too high or they're trying to shorter low, but they're doing it for themselves. So even like like Monica is one of my students, she took seven hundred and turned that to twelve thousand.

Angi's making a thousand dollars a day.

She's been with me about six weeks. And then one of my students, Carry who's from my home county. She's probably my best student in the program. Like her win percentage is now is eighty nine percent for four months, so what she's doing incredible.

One of your rules is that you never want to buy in the middle.

Camp because because a moving average literally tells you what it is you're buying at an average price, I want to buy.

It extremes so extreme low.

So like when the Iran stuff happened or any there's a hard push down in the market, I'm like buy stocks then during times of crisis, because then they're going to shoot back up. Most people buy in the middle when the market is doing okay, or Google had all time high and people are like, well, I need to buy Google today. I'm like, you're buying too high. So we all know on Black Friday that's when the deals are. When the market falls apart, that's the time to buy.

So by low.

So it's the same strategy over there.

And most people, you know, they buy hid and so low. Yep, most people do Yep. Some emotions. Nobody wants to fomo missing absolutely. Nobody wants to feel like it's like bitcoin. Perfect example, most people brought bitcoin at nineteen eighteen thousand and then they sold it at three thousand because they thought it was gonna go to zero and they didn't want to have like a complete loss.

Yeah.

Logic goes out the window when emotions come into.

Play and money's in play too. Yeah.

Ye man, it's been a pleasure. It's a thank you for rocking with us.

Man.

Can you tell the people how to contact you social media handles and all that.

Yeah, my ig is the master investor on Facebook. You can just look me up Ian Donlap LinkedIn.

You can look me up. The site is joint Redpanda dot com.

If you type in your name and email, I'll add you to the VP list watching out some information and then if you put that you listen from earlier leisure, I'll do a free webinar why I don't sell anything and just teach for thirty minutes. So whenever this comes out a month later, I'll do that. But I want to tell you guys, thank you. I've been following you guys for a long time.

Appreciate that.

I appreciate you off for being cool and putting out the information that you do.

I appreciate that. Yeah. And then also we'll have the link in our YouTube if you watch this on YouTube and the bio and then if you're listening to it on Apple, Spotify or whatever, in the description will have a link to Yeah, your platform as well, if people are interested in and learning more about your platform.

And I want to say this, soak up all the information that they put out, because ten years ago it probably would have cost them four or five hundred thousands to put the same material out. And I wish there were some more brothers I could have listened to. Two thousand and five, two thousand and four that would have put out this kind of information. So seriously, like I'm not asking and I really appreciate all the amazing content you guys have put out, So prescribe to the YouTube podcast.

Will be back soon.

Yeah, shout to everybody on patreon dot com. We got a new one right before we came on and did this episode. Shout out to our hometown boy, chestnut key On. Yeah, he joined on Tier four be e y L. Shout to my boy. We went to the school together, we brought together play ball together, So shout out to him. He's a Tier four member. And as you can see now, our Patreon has been revamped, so there's some new features

Yo University is an online platform, educational platform. You got to teach a class for us, I'll be happy to we bring. We bring different lecturers on and it's it's dope because it's in zoom, so people ask questions in real time and it's a dope experience. So it's something that we're really excited about. And that's three days a week. We do different classes on all different topics, bring different people in. So yeah, Eyo University is an extension of

Subscribe comment like writer, review, the reviews, great share, tell a friend to tell afriend.

Tell a friend to telefriend.

That's the fact.

And then yes, thank you guys, rocking with us. We'll see you next week.

Peace, love you all, thank you, Welcome to alumna. Thank you brother, I appreciate it.

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