GE, Bulls, Sanford discussed on Bulls and Bears


To I twenty that slows you down to boulder crest. Joel Nelson WSB. Welcome back to the bulls and bears. Tisco a little bit of Sanford and son nothing screams wealth intelligence, like a little Sanford and son. Absolutely. Don't forget the head over to Facebook like us at bulls and bears radio. And of course follows on Instagram that bulls and bears radio. And you know, if you follow us on Instagram, you know, get a little prize pack or something like that send us a message. Yeah. If you like us, I think they got a little swag bag for you. So you can go there, and maybe get a t shirt. I mean, we've got a lot a lot of Chachis that we can give me. Yeah. You know, trying to create the social media footprint a little bit. We really don't know much about that we had to bring in experts to help us with that. So that's that's that'd be an expert much bathing. So, but I will speak by a pigeon. No question about I'm pretty good about the market. Yeah. Well, you know, I've been around a long lot of years on the field. I mean, it's like anything else. Eventually, you get through the process, and you start to understand how it works. So that's why I love what we do here is because we're telling people Wall Street's got you convinced that you're not smart enough to manage your own money. You're not sophisticated enough. That's why most of you don't self direct your own money. You have under management in the 4._0._1._K. Or manage diary or nudity. There's purposes for all that stuff. But we believe that you can do a better job yourself with some basic knowledge, not at the pay the fees have full acquitted of your money. There's so many benefits to learning about handling your own money. And we're the only ones on the radio Adam that I know that's bang the drum telling people make the decision yourself, don't hire the certified financial planner don't hire the resume adviser. You know, what I'm not saying that they don't do good stuff way. But you know, what you could do a better job yourself, you'll know more than they know if you learn some basic skills, and ultimately you're responsible for your own success. And if the market goes down, you can still profit the Mark was up you can profit the market is moving and profit. You're not relying on a specific market condition for you to build wealth. You can make money regardless of direction, the market and conditions. It's been done by dumber people than you, folks. And they've shown the track record achieved the goal. So guess what we hear banging the drums because a lot of people out there. Don't even understand they could do better themselves. We'll you you said something in the midst of all that you can make money in a down market and a lot of people that that. Just floors them. They don't understand that. When there's a buyer. There's a seller. There's a winner. There's a loser. They don't understand that. When that market is dropping and prices falling that they at someone's making money. Yeah, it's a zero sum gain, folks. So if you lose money, if you own a stock drops, five bucks us, five bucks, a share with at five bucks. Go and went to the person who's short of the stock who made the five dollars as a felon price. So when you think about the markets, there's only three things at a stock or currency your future can do and go up and go down to go sideways. So if you don't know how to make money in all three directions. In other words, you'll know how to make money when it goes up when it goes down or sideways, you don't know how to make money you sit on the side of you. If you own it you turn a winter to a loser. Because you hold it when it falls in price while you're owning it. That's the definition of insanity. This ways for you to profit when it falls, and so we buy something in the market will consider long what long the stock so fi by GE's stock. I'm long GE's stock. I bought it to enter a position with the hopes. I'm assuming that I'm going to sell. Her a higher price it make a profit. Otherwise. Why would I bought it? Now, it's the same thing when stocks fallen price if g great example is GE if six months ago, you saw us at thirteen bucks. A share was it was and you thought I was gonna fall the ten which did you could have sold it at thirteen without even owning it, and this atom is you know, is the real disconnect with people when it comes to shorting or short selling in the market, you're selling something you don't own now. People say how can I sell the stock if I don't own the stock will your broker allows you to utilize their inventory? They have shares that they're going to allow you to sell at thirteen so six months ago was that thirteen dollars a share you go into your brokerage account. You hit the short sell button for GE, and you sell the shares into the market at thirteen bucks a share now. So you entered the trade by selling see, that's what people get confused ago. How can I sell your broker wants to use their inventory because they charge you a commission every time? You execute. A trade you pay a small commission. That's how that's their business. Their transactional biased. They want you to hit the button. So they provide shares for you and I to sell into the market without owning. And they're essentially loaning us the share. So I'm selling it at thirteen or you're selling thirteen. And then what happens is we're now short to start. But you have to buy it back. But our goal is to buy it back at ten see because if we sold it at thirteen and then a false attend. And then we buy it back when we buy back a short sell. It's called covering the shore. That's the technical term. So we're covering short position. We're buying them back ten the moment, we buy it back. The stock was right back into our brokers inventory. Now, what just happened we sold it at thirteen their shares. So when onto the market someone bought it. We don't care who they were. Someone bought it at thirteen it fell the ten we bought it back. The moment we bought back the shares go right back in our brokers inventory. We keep the difference between what we sold it for thirteen. And what we bought it back for ten three bucks. A share on one hundred shares used to make three hundred dollars and six months out of stock fell three dollars in its value on a thousand Jay she made three grand on a move down. And GE think about that. Folks. Think about a few shook sold the collapse of two thousand eight s and p people did. And guess what? What happens? The next time you're going to be able to short sell it and make money on a move down in price. The most successful traders and investors prophet, regardless of direction and shorting short-selling is a game changer. But you gotta understand. I it exists and second have a basic understanding of how it works. And then you start to see the picture of I could participate this and make money regardless of direction that is what gives. You to the next level? Exactly champion. Oh, what a lot of people out there. They have that idea of making money in a down market. They've never done it. They don't know where to begin. And that's just a. You just got to look in the mirror and say, okay. Well, if I want to do this. I gotta learn how to do it in a lot of people don't take the time to learn how to do. Well, what I love about the academy is that we spent a lot of time on understanding shorting and working with our students on that. Because you know, what if you can only make money in one direction and the market starts to go against you. You're wasting all those years and times that we spoke about earlier that you could have had growth in and you're just holding the line or losing and you run out of time. There's only so many years that we have to build our wealth so shorting or short-selling allows us to profit when price falls now, the problem is many of you bias that doubt is bad. And that's the live Wall Street wall. She's got the massive convinced when the market goes down. That's a bad day. It's not a bad day yet, everything that you read and everything that you see on TV in the media says when the market goes down that's a bad day a tough day on Wall Street today, you'll hear that it's always a day when the market falls. Why is it a tough day? It's only a tough day for the masses because they don't know how.

Coming up next