today we have something really interesting so I’ve prepared a few investing and trading content that went viral and we are getting the piran Profits mentors to react to it blind so they were not informed beforehand as to what they would be watching I think you guys
are going to like this let’s jump into it so I’m reading this case study about this guy who got his inheritance from his grandmother which is $700,000 and he thought that you know he’s good in investing so he decided to do a research and he found that Intel stock that used to be a
great company as you know has dropped significantly from its highs and he thought that so cheap you know it can’t go lower he did all his research and he felt that the stock can rebound and he put all his $700,000 on one stock Intel and he bought it at about $30 since then the stock has
dropped to $20 and now his 700k is like half a million so he’s lost about more than 200 th000 almost a quarter million of grandm inheritance so this is unfortunately a very very common mistake that many investors make which is they buy a stock just because it looks cheap you know and I always
say that cheap crap is still crap so the most important thing in investing is not buying the cheapest stock it’s number one buying high quality first you got to make sure you buy only high quality companies that are generating consistent Revenue and Profits
that are growing their economic mode or competitive Advantage now when these great companies are cheap that’s when I’ll buy it but when a company has lost their competitive advantage or there’s a lot of uncertainty about the company’s Future No Matter How cheap it is
I’ll be very very weary now of course he’s saying that he believes that Intel could recover and go back to its former glory and maybe he’s right maybe it could you never know but there’s an uncertainty there and if you want to buy these kind of stocks where you’re
betting on a recovery I’m not saying you can’t you can but for goodness sakes don’t put all your money into one stock because what if it doesn’t work out because just like everything in life in the color: #1a73e8; text-decoration: none;">Finance World there are no sure bets there’s no 100% guarantee there’s always a probability it won’t work out so always diversify your money your Capital into several Investments I would say at
least 8 to 10 so that if one or two or three don’t work out then the rest will be able to cover for those short-term losses but when you put everything to one stock to me it’s Financial suicide even if it does turn out right let’s say it does eventually rebound and he does very
well but if he has that habit of putting everything into one stock again eventually he’s going to put everything into another stock that never recovers and he’s going to lose everything so if this was me what I would do would be I would sell uh maybe not the whole position but
I’ll sell part of the position so I bring my allocation down and use the rest to invest in other companies which are high quality that are also undervalued and right now in the Markets
there are high quality companies that are undervalued that have a higher probability of growing in the next couple of years so if you want to learn more about how I identify high quality companies which have relatively very low risk and huge runways for growth and when I buy them when they
undervalued then join me at the black market live online event so you can grab your free ticket by clicking on the button places are limited so I’ll see you there daily friendly reminder that if you take $100 put it into a Broker account build that account 2% daily for $260
days because we do not trade on weekends or holidays you can have a little over $177,000 now wait wait wait don’t stop there you’re going to leave that amount in there specifically $1 1,564 187 and you’re going to keep building that 2% daily for another 260 days and guess what you
will have a little over $3 million in 2 years well I think I mean mathematically yes you could get that number but can you get like 2% a day for many days in a row uh consistently like that it’s just insane I don’t think it’s going to happen people just think that the market keep
going higher and higher every single day and not pulling back that’s not possible so maybe from your point of view after trading for so long right what would be a reasonable rate is it good to think of it in terms of a daily returns kind of thing no no how how do you look at it there will be
a time when the market go through a serious pull back back to back to back to back many days in a row and that where the draw down will start kicking in and slow balling and you will experience a big draw down as well so yes if every day is a new high yeah you can get a very high return but
it’s is impossible there will be P backs so what would be a reasonable rate of return from your own point of VI I mean the market has been performing like historically 10 to 12% every year so in a good year it could be double of that in a bad year you could see a negative return as well
option trading you could get two times of the market return or three times of Market return that is quite expected as well when I sat down for the first time to learn how to trade the first thing that my uncle said was everything I’m getting ready to teach you is all you need to know and he
told me that the ones that knew the least amount about trading that knew nothing prior were the most successful when it came to trading people that already have previous knowledge they develop biases when it comes to trading they look for other things to incorporate they have old habits he said the
ones that started fresh and took everything he said for face value were the most successful well I agree with with the the fact that if someone come into trading as a clean sheet of paper they do have a certain added Advantage because they wouldn’t have any power biases or habits that will
influence the way they assess and learn the new trading methodology take for example if someone come to learning price action strategy so we all know that price action is basically the analysis of a chart without any indicators however if someone coming to learn price action with power knowledge in
certain momentum indic ators they may tend to look at the price action signal differently right it may influence them right to appreciate the strategies in price action so I would say that if you want to really maximize and get the best out of a trading methodology it’s best to clear your
prior understanding of other methodology focus on learning the ins and outs practice for a certain period of time to maximize your experience and your knowledge about their strategy then you move further to incorporate other strategy so Elson for yourself right before trading price action do you
also have your own prior methodology and how do you overcome that yes in fact price action manipulation strategies is not something that I first learned when I started off trading I actually learned other trading strategies as well at the start when I learn price action manipulation it does
influence the way I look at the market I’m always asking myself how can I incorporate the momentum indicators to help me do my trading better but I realize that there’s certain conf flick in terms of using these two methodology because one is a lagging indicator right and another one is
based on instantaneous chart patterns you looking at the price action so you can’t really marry both at the same time instead you should focus on what this methodology price action can provide you and then look out for repeatable patterns in price action right to hold that strategy itself
Elson can you explain a little bit more in terms of maybe to a complete beginner what is price action well price action is basically looking at a pure price chart without any I would say momentum indicators like macd RSI stochastic in my earlier days I even used alligator parabolic SAR some of you
may be familiar with po Binger bands the most I use right I would say is uh simple moving averages on the the pure price charts but our main focus right the way we analyze is what we call we look at the price structure we look out for things like buot traps bad traps taking out of stop losses doing
fake breakouts on the upside foral buying flush up flash down to do Panic selling all these kind of things are important to a price action Trader so be sure to join me in my upcoming webinar where I’m going to share with you guys how to spot multibagger opportunities in the China Hong Kong
market and even in the Crypto Market as well so click on the link below to get your free tickets and I’ll see you at Black Market actually this reinders my own memories when I trade
option in the first few weeks or few months I used to be like this so I just went to some of the chat groups where people uh hype with on the news bum and dum kind of things I did not know I did not know that there were people around there just feed you some of the news that get you buy into call
option or put options and later in time I realized those are the one that scammers right they just just got your money or they just hype some of the socks so W Street B um stocks YOLO like trade like this I it just remind me the time when I was young I was naive and lost a lot of money uh because I
had a little money to start with so I want to double triple or 10 times of my money in no time so what I wanted to here at that point in time is somebody who could give me some ideas that could double triple my money easily and when I read this one and you explain to me it remind me those times and
I tell you most of the time you will end up with losing money so it’s about Crypto predictions went wrong well in in the color: #1a73e8; text-decoration: none;">Crypto World a lot of people give give a lot of advice on what is the new ining hype what’s the next narrative and things can go wrong because no one can 100% predict the market so what I actually suggest is even if someone is confident about
certain Markets it’s important to deploy appropriate size to express your view and I always tell students that you can even trade MIM coins if you have a certain view on it
there’s nothing wrong with that because this is what trading is all about right you can trade anything that people have interest in but you need to do proper Risk Management and and whether you are able to get out if you’re wrong these are the key factors if I listen to
someone on a certain narrative and I went in and if I get it wrong I’ll just cut good afternoon my colleagues and I remain squarely focused on achieving our dual mandate goals of Maximum employment and stable prices okay now this situation happens to many people keep watching Medias and
dictate their behavior or actions I don’t think that’s a right Behavior I think media just you it’s one of the point of reference many time media is completely wrong even the whole Market is can be wrong as well right so listen to the shortterm media news like this and I think
it’s just a bad behavior if you are the investor forget about the news just focus on the stocks fundamentals if you are the trader follow the trade setups uh with the very clear exit plans either it hits your Profit Target or your stop loss and you out and listening to this
kind of media won’t help so for yourself when you trade right do you tend to like to trade around this kind of like fat announcement there there are strategies that I’m using to to trade news or events right for earnings for fomc meeting for the employment data so I do have strategies
that I use to trade the event but most of my bread and butter kind of strategies I don’t really based on events like this so thank you once again bang do you have anything else you want to add like just a final wrap up for this reaction series okay I made mistakes before when I started
trading option 20 years ago it took me 7even years to figure out that I was wrong I took the wrong approach l listening to Media listening to other people for quick tips to make money very quickly and that’s is a very costly mistake that I made you need to take the proper training to
understand how option works and practice it to master your skills join me in the upcoming Black Market live online event where I will share with you one of my most Profitable strategies DS hammer and to make the most out of it in this current market environment grab the free ticket
with the link below
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