What are the top ten investment lessons of this year?
For me?
Defense? One pound of defense will save you ten pounds of trouble. So I know we all want the gains, but the gains that we want are baked into defense first. So please write this down. In the worst case scenario, if your life was on the line and all your money went into one investment, whether it was a cryptocurrency, a person a stock token, derivative, what is the absolute rock bottom price that you should pay to get in
for it. Number two, your risk to reward ratio, especially in a recession or depression, matters even more so for me, even with people that I hire employee work with the minimum that I'm looking to receive in twenty twenty three going forward, it's eleven x. Secondly, is fifty x. Number three. Regardless of what you're investing in, you have to look at the top four and that space and don't deviate.
I know we want incredible gains to the upside, and sometimes we want to gamble into space, but when the drawdown hits us and some companies are like down eighty five, it's not fun to go through. Number four. Please write this down. Please stick with your process, no matter what anyone on Earth tells you. I remember when I was telling everyone twenty thousand was coming in bitcoin and what seemed like these crazy prices and ethereum, and what if
Michael Saylor's fund potentially went under. I don't want Mike's fun to go under, but it's at a level where I'm worried about margin could be called pretty soon if we have one more event, that's pretty bad for him. And the thing going back to making eleven for every dollar you put in, or making fifty twenty three to twenty twenty six. If you get eleven 's, those returns may have to stretch out for you over a three or four year period. So I don't think we may
be looking at for a year over year returns. If you're not a seasoned investor, you may have to look to get gains over a two year period that will last you for or one year the last year over three. Number four. Always keep the investor in front of anything else, and hunt for an edge in a market every day. So in my walks on Wall Street in the New York stocking shames, Peter, thank you, Frankie, thank you everyone.
I sit to theere, thank you. The one thing that I see amongst the traders that are really good, and there's a couple that I want to highlight. In twenty twenty three, I met a gentleman who when he initially went to a hedge fund only had three clients. He now has thirty bulk of business at almost three hundred million. I asks him what is he doing? And I'm seeing
them every time that I'm there. He's literally hunting for deals for everyone and finding one way to get better in the market every day, whether it's fundamentals, whether it's technical analysis, whether it's understanding arbitrage and how to bring deals together. So hunt for one edge in the market every single day. Never give up on your macro research, even when in the face of all the noise on Twitter, Instagram, TikTok, YouTube,
et cetera, that it's telling you to deviate. Because anyone who's been a season investment in more than four years felt in twenty twenty one and end of top of twenty twenty two that we were going to come down, and it may take a while for those things to come true, but here we are now and those that play defense are in an amazing position to capitalize for the next year, and I'll go to number seven. Then Troy, I'll come to you, and they were shot, and I'll
circle around my last three. But it is mandatory that you know how to trade, swing, trade, and invest, because if you can't generate capital while you're going down, I don't know how you continue to invest in the market. A lot of my biases from the market comes from me being able to trade the features market and be a being able to generate the alpha on demand. But trading also helps you allow to see when a market
is going to turn over faster. So like if you only long term investment, never practice trading, your entries won't be as sharp, like you're cutting with the acts opposed to a scalpel. And even though you may be taking losses in your trades, it will help your long term entries a hell of a lot better. And also being a long term investor helps you to see the trend of your trades a lot cleaner. This is why you
need both. And if you can trend trade, day trade and long term invest you have a formula that will work for an eternity. So but Betray, I wanted to come to you.
Yeah, I think where you left off is probably where I was gonna start, because you kind of nailed a lot of the points. But I was going to say that that point of yeah, long term investing, and that's what we do, it's what we preach. But I would say in twenty twenty two is one of those times where it was like, all right, you're gonna have to us you're playing a little bit adjust the person, all right, and so like you're gonna have you may have to
make some trades. And so it wasn't even though it wasn't a lot, it was still an adjustment because I was so long term, long term, and when you're seeing your portfolio turn red a little bit and you're like, wait, there's still ways to make money in this in this environment. And so it was like, all right, I've got to learn how to you know, not even learn, but I have to actually execute on now trading and the second part of it, So that was the first part. The
second part was not falling in love with sectors. Yes, so everybody knows how much we love technology, and everybody knows how much we love consumer discretionary, but it was like, there's money and to be made in these other sectors, right, Like we always say if there's a recession somewhere, or if there's a bull market somewhere, or there's a bear market in another place, and vice versa. And so it was like, all right, well, let's really lock in in
some of these other sectors. Let's look at the top two or three and maybe one emerging. Like I know we say that a lot, let's look at the top two or three, but I would like that was one of the things I implement. It was like, let me find one emerging. Let me see what's one that's emerging in some of these sectors.
And so it made me.
A better like analyst. Right now I can see the game. I'm looking at the whole field, whereas I used to just look at a few pieces of the field, Like all right, technology good, consumer discretionary good, consumer stables pretty good, healthcare is good. Oh but what about over here? This episode is brought to you by P and C Bank.
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An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States
Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fined nearly one thousand dollars a day, imprisoned, and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return
legally do what's right. Leave now. Under President Trump, America's laws, border and families will.
Be protected sponsored by the United States Department of Homeland Security, the utilities what about that, you know what I'm saying, And so having a wider range looking at those top two but trying to find one that you know, this looks like it has some potential.
I think that was one of those things too, that over the course of the past twelve months I've had to implement in my game plan.
I love it, shout what about you? You have two more? You want to throw it.
As far as lessons learned this year, yes, so I think that the lessons learned this year is never react off of FOMO. That's extremely important lesson, and even switching
gears to the real estate market. I think that that's something that people learned, you know, in the springtime when people were paying twenty thousand over asking in fifty thousand and in Miami one hundred thousand dollars over asking, and then the market corrected itself, and now it's like, all right, if you paid fifty thousand dollars over asking because you thought that the market is gonna keep going up, that's
what that's the definition of fomo right missing out. So it's like, all right, this house is only worth five hundred thousand, but they're not going to sell it to me unless I give them five hundred and fifty thousand. So I would rather pay five hundred and fifty thousand because I think in two months it's gonna be worth six hundred thousand. Well, that's not really the best way to go about it. You buy investments low and you sell high. This is the easiest thing. This is rule
number one. It's like in boxing. The number one rule in boxing is protect yourself at all times. The number one rule in investing is buy low, sell high. This is extremely This is probably the most difficult thing to master. Like you could have fundamentals, you can have all of this stuff. If you don't have emotional intelligence, you're not going to be able to be a good investor. You
have to be able to wait. You have Patience is probably the biggest virtue that you have in life when everyone like you have to be a special person to just say no, not right now, I'm gonna wait because human nature is that you're gonna feel like an idiot because you're waiting and everybody's making money and you're not gonna be able to live anywhere, and it's like just
chill out. Everything comes down. Everything comes down. Crypto comes down, stocks come down, real estate comes down, NFTs come down, Watch value come down. Everything comes down. You have to be patient enough to wait, and then when it comes down, you have to have enough courage to act, because that's
the second part of the situation. The second part of the situation is that when it actually does go down, human nature nobody wants to buy at the bottom because something that is fifty percent off and you're thinking it's going to zero. You see, you buy a bitcoin at fifty thousand, but then when it gets to fifteen thousand, you're thinking, this thing is going to two thousand. I'm
not going to lose all my money. So you have to have enough courage to buy discounted investments and have enough fortitude to stay in it for the long haul. So this was a good year because when we first started market Mondays during the pandemic, everything was going up. Everybody's making money, everybody's trading options. Anything that you put money and is going up, right, But now it's like, Okay,
who's going to survive the tough times. Who's going to have enough education and enough perseverance to patiently wait it out? And on the other side of the coin now in ten years, fifteen years now, this is the long game, right, So this is what we're in right now, and it's extremely important to go through these adversities because it makes you stronger, but it also makes you more intelligent. Very important.
Yeah, which brings me to my final three lessons. Number One, the most important thing that you have to look at is the macro economic environment that we're in. I've given the indicator before, but there is an indicator that predicts sessions ahead of time. And when you pair that with quantitative easing, which is when it Federal Reserve prints money.
So when the quantitative easing stops, when you tie that in with the indicator that tells you when market is going to slow down the most important lesson, but you've seen me struggle with and thank you for Peter for telling me this. And then two people who run Ahead Fund that I talked to in exchange this past week, they said, to stop being offended when people do not
want to hear your advice. Your job is to make sure you your family and your friends get rich from what you know, And man, I tell you that was fucking freeing. It's like I know you want to save everybody. I know you do, but your job is to make you sure that you first your friends and those with you, and Red Panda get rich and whoever else. Listeners leave it at that, and this person is close to a
billion dollars from trading. Sometimes our emotions can be so big that we want to help people who are not ready to be helped or who have not put in the work to be besides you, to get that help for all of you that watch Crypto nine to one stock Shorty, like for all of those of you Aaron p Don macdrew whose hearts are big, I have to allow you to also be free and make sure the number one rule is that you take care of yourself.
My graduates from my school being force back drop bag Drop, Mike drop back.
Drop, an illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christine Home, the United
States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported, you will never return. But if you register using our CBP home app and leave now, you could be allowed to
return legally. Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.
Sponsored by the United States Department of Homeland Security.