E. N., Steve discussed on 830 WCCO 24 Hour News

Automatic TRANSCRIPT

Eight one four forty four ten well with these wild ups and downs in the markets can an individual state E. N. and still make money well the key thing you said there Steve as the ups and downs yes you can still be in the market and still generate a return in these financial markets because most people don't know that you can profit in down markets now let me say that again you can profit in down markets is called Shorty and that's what you do need a strategy for any market condition then that's what I was going to get into on we know some of the lessons that you actually learn during turmoil times which is down markets but we really how you can benefit in a great way in these down markets because al do they go up faster they go down faster let me let me guess how are you going to take a wild guess and I I see that this last couple weeks almost a down well they go down about three times faster than than they go up and that's always been the case always will in part of it is because of the the emotions of of the public psychology plays a big part in trading and investing but you know we talk a little bit about some of the lessons learned Steve a U. S. a question can you stand the market can you make money absolutely but we understand that the markets are multi directional we understand that that we learned this very very it directly and strongly this last few weeks the market goes different directions sometimes goes different directions within the same day you know and if you're in a portfolio that only goes up when the market goes up you're in a a just a one directional type of an investment there are so there are certain types of investments that will make money regardless of which direction it goes in in one investment but it's important I think one of the lessons we learned here is that it hedging and protecting what you have is very important and you can do that there are assets that you can use that will provide protection for your portfolio's options happen to be one of those and in the people that are using these assets that that hedge their portfolios to protect them allow them to make money in down markets that's called Wall Street those are the pros they're doing this but they're probably not putting you in the the same type of investment that's one of the things that we go over in our classes Josh mentioned shorting shorting is a way of making money in a down market on individual assets or in the markets in general and basically what you're doing is you're selling something at a high price that you don't own you borrowed it to sell it and then you have an obligation to return it your hope is to buy back at a lower price return it and then your profit is the difference between what you sold it for and what you buy it back for that shorting well let me ask a quick question that you mentioned the pros do you have to be a pro to do that because a lot of people think a limb I've heard this many times well you got to be a professional the profit DaMarcus deal is that true well who who want you to think that I would say the brokers of anchors rotations yeah right you know that's one of the fallacies that's out there that you have to be a professional they people think they don't have the intelligence to do this and you really don't have to be real smart to do you just have to be smart enough to have the discipline to follow something that works out basically which is showing you how to follow the people that are successful all right knee institutions when they're buying and selling we don't really care why they do it in fact most of the time we don't even no because they get they get data they get information before we do sometimes we never get it was just an opinion now well it usually what people invest in you the public invest on opinion you based on what they either are listening to the news you're listening to on TV the institutions are making their moves based on data that they get daily evaluated things they know what a fair prices to pay for something they know a proper prior a profit is to get out so instead of trying to come up with a a decision as to which to do based on someone's opinion why not look at what is factual it factually moves the market on a regular basis that's that institutional activity which we can identify a chart that's the proper education what we teach our students it's sort of like reading eighty eight a price chart like a radiologist read an X. ray or an MRI they're trained to do that they can see things on an X. ray for example that you can't see I can't see and we'll show you how to do that with the price and everything you need to know is is on that pressure so learning how to read that is going to give you an idea of where the institutional activity is that's where you want to be placing your trades and also taking your profits and that's just like any profession to just you you mentioned the radiologist I mean right now yeah you we can't read a read radiologist all just heard I can even say the word right now but but me think of the professions that you you listen now what we what you do in life right now for your job did you know that before you started you probably didn't detract practice it you OB doctors practice I did whatever you're doing you had to learn how to do it and the more you did it the better you gotten eventually you kind of do that your sleep don't tell your employer that but that's probably what happens is you do it so many times is repetition all you have to do is find somebody that knows what they're doing and basically do what they do and that's why you know we're raising awareness to financial illiteracy to help people through that process to be more financially literate and we have these investing classes where we we we always we teach people you know how you can get started how you can get involved participate in these financial markets especially when we have a phenomenal opportunity that's happening right now you don't want to let that go by and see I wish I would've tried something or I wish I'd have done something different so I want to.

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