Investor's Edge with Gary Kaltbaum - Focus On What Matters

Episode Date: March 13, 2023

Follow Gary on GaryK.com or http://garykaltbaum.com

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Terms apply. Lounge access is subject to change. See Capital One.com for detail. Investor's Edge with Gary Cultbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome everybody to another episode of Investors Edge. I'm Adam Sarhan in for Gary Kay, who's out today.

In case you're just joining us, I missed any part of the show. We've got a lot to discuss, but you can go to GaryK.com. You can listen to Archive 24-7 on any device anywhere in the world that anytime you want, you just have to push the button on any one of the radio shows that Gary posts every day, Monday through Friday. Also on GaryK.com, you can subscribe to Gary's Twitter. You can get his morning notes sent to your inbox for free. You can ask him about his money management services if you have interest or join his premium service at convictionleaders.com. That's convictionleaders.com. So we're Gary updates members several times a day. He does webcasts, in-depth webcasts there, gives leading stock.

gives his thoughts about the markets, you know, everything you get here on the radio, but several times throughout the day. And then some. So let's talk about today's headlines. Before we go into the news and the reaction to the news and the markets, I'm going to read to you what Gary sent me because he does have some points he wanted me to cover. And I want to always make sure I do cover them and I read them verbatim. So I don't miss anything. So from Gary directly, don't blink is the beginning, the big message. The news is going to be fluid.

We don't trust a word from our central bankers or this administration. We do not believe in their assurances because we do not believe they are in control. But leave no doubt there'll be winners and losers going forward. Better day for the market today, especially growth stocks because of yields coming down in the belief that the Fed will not raise rates anymore. But we repeat, do not blink. We'll have more. when you get back, when Gary gets back tomorrow, he'll give you a whole lot more. He goes, keep your feet on the ground.

Be careful of things you hear because there's a lot of agendas, especially from Wall Street Titans that don't give a you know what about you. All they want is markets to go up. So be very careful, folk. That's Gary's big message from, from, well, from him to me to you. So that's Gary's message. The other point that Gary wanted me to make too. is that there's a huge flight to safety going on right now.

So you see money rotating into areas like gold, for example. You can look at GLD. Had a huge move the last three or four days as fear spread. Right? So if you look at GLD or you can look at the GDX, which is the gold miner ETF or look at gold stocks, you see tremendous amount of volume showing up and a lot of good price appreciation over the last several days.

The price has gone up. And then yields have come down a lot. And you can talk, you know, we can look at those, but yields are very fluent. They're dependent on what happens with a lot of the macro news, but yields have really come down big time in the last several days. Now, the other thing is mortgage rates. Mortgage rates have also come down a lot. Why? Because they're tied to the yields.

So it's important to pay attention to the news. Sure, we've got the bank that failed. and then Silvergate first, then it was SVB second, and then you've got rumors of other ones that are possibly in trouble. The regional banks, you know, so on and so forth. But so far, what has happened is there was a shock to the system. Silvergate was the first one, a ticker symbol SI, and then SIVB was a ticker for Silicon Valley Bank,

which is the big one that got the headlines last week and into the weekend. And then the other regional banks, are in trouble. We don't know if they're going to get, you know, money to get pulled out of them. Even brokerage firms, we've seen a lot of destruction. You can look at Charles Schwab. You can look at, well, a lot of broker deal. If you go on, if you're looking at charts, S-C-H-W as Charles Schwab had a huge decline over the last few days. The U.S. broker-dealer ETF, I-A-I, huge decline. Went from 105 to the mid-80s in the U. about a week and a half, or a few days went from 100 down to 85, or now 87's where it closed.

You can look at a lot of other brokerage stocks, IBKR, interactive brokers, went from 90 down to 76. If you look at the regional banks, a lot of them, PNC, for example, it went from where was it, 150 to 129? That's a big decline in a short amount of time. So you've got a situation here where the fears has taken over, 209, 209. a large extent, and you've got a situation where you have to ask yourself as an investor, as a trader, it's where do you want to, how do you want to engage? I spoke about this on the show last time I was on, where I spoke to you about different ways of participating in markets

when they go down, right? You can buy more on the way down. You can go to cash. You can hedge yourself. There's lots of options you have. But really, for me, when I was on the first, the show on Thursdays made it very clear. It's like, okay, if the market breaks below support, because at the time it was testing support and just closed slightly below it, which was that 200-day moving average line, ask yourself, what are you going to do? Why? So you have to yourself, what are you going to do before it breaks support? When it breaks support, you're prepared. And you're not playing, you're not scrambling or playing Monday morning quarterback or like, oh, what should I do now? Oh, my God, this could have would have should have. Uh-uh. All that out the

window. Why? Because you had a plan and then your job is a step back and trade your plan. It's just that simple. Now you can go a lot deeper and you can study this and you can do that and say, oh my God, I should have done this. But but blah, blah, blah. Sure. But big picture, folks, it's really important to understand what we can control and what we can control in our decisions. We can't control what the market does. We can't control how high a stock's going to go after we buy it. or how low it's going to go or how low it'll go after you buy it and or sell it. Let me put it that way because many times I sell the stock and then it goes way up. So you deal with it, right?

The ones that don't work your way, whatever that way may be. You sell it and it and it keeps going up or you sell it and then you buy it and then it goes down or whatever the outcome is that you don't like, you've got to deal with it. That's part of this business. Now, the future by definition is unknown. So if you focus on what you can control, your decisions, okay, great, the next question becomes is, what do you do? What decisions can how can you make the smartest decisions possible? Think about this. In my book, psychological

analysis, if you haven't read it, by all means, I recommend reading it. I wrote it, so of course I'm going to recommend it. And I've had a lot of really good reviews on Amazon, so I'm very happy about that. It was number one on Amazon two for about two months, so I was very, very happy about that, literally pegged it number one. And the whole idea is that fundamental technical analysis are not enough to beat the market. If they were, everybody to be rich, there's a third component, know thyself and master thyself and bring out your smart money superhero which in the book if you buy the physical book i have two copy i have a two cartoon characters it's the first investment book with cartoons where one is a superhero and the other one is what i call the smart the dumb

money beast so there's a smart money superhero and the dumb money beast dumb money beast is kind of like a tasmanian devil if you remember that character from looney tunes way back when who runs around making emotional decisions in your mind not rational ones and this applies to all all of life, not just stocks. But the idea is, A, to recognize that we have two sides of us, the smart side and the not smart side. Let's put it that way. How about the logical and emotional if you want to be, take away the smart and dumb kind of words?

But there's the logical side of us and there's the emotional side. All right, fine. There's nothing wrong with the emotional side, by the way. I don't want that to feel like that's dumb. It's good to make emotional decisions at times when you're aware of it, but be aware of it, right? If you take everything out, all things being equal, person only makes emotional, who makes better decisions, someone who makes highly emotional decisions all the time or highly logical ones.

Hope the logical ones, you know, are these smart decisions. So that's the goal is to be aware that you're most of the time with your money because you're mostly attached to your money that you're making emotional decisions. And then create guardrails that protect yourself from getting in trouble. Meaning have stops, have exit plans in place, protect risk, respect risk. say, oh, this isn't working, I need to get out. There's no reason why you have to write a stock. It doesn't matter what the stock is. It doesn't matter how good the company is, whatever, it doesn't matter, from 100 down to zero,

or whatever down to zero, right? Or even down 50%. So that's empowering you to make smart money decisions. Bring out your smart money superhero. That's the whole point of the book, because make logical, not emotional decisions, especially with your money. And I talk about cognitive biases and, yes, ever do something and hit a wall? Of course, we all have. I call them mental walls and so on and so

forth. So I want to take some of these lessons that are timeless lessons that apply to anything and share them with you so you can learn from them and you can bring out your smart money superhero and make the best decisions possible. So earlier today I took a picture of the KRE, which is the Regional Bank Index, and I tweeted it online and I said, okay, technical analysis, which is studying the stock, behavior, the way the stock behaves. So think of a company as one entity or one thing and think of a stock as a complete another entity or another animal altogether is really, really important because it keeps you out of trouble and it protects you. Because just about any stock that's publicly traded or any ETF or mutual fund or currency or commodity or

crypto, it doesn't matter. If there's a bid and ask, you could buy and sell it publicly in the market and it's freely traded, this applies to it. You can get out of the market. You can get out of of the way before it gets crushed. Up next, I've got a lot more to talk about. I'm Adam Sarhan, and this is the one and only Investors Edge. Hi, I'm Gary Kalbaum, hosted a nationally syndicated radio show Investors Edge. We're not just handsome radio people. We manage investors' money for a living, specializing in fee-based discretionary money management. No big commissions, just a fee on the assets that's managed. We also provide a full range of personalized services, including retirement planning, fixed income, and educational needs.

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You're listening to. Hey, this promises to be fun. Investors Edge. The last bastion of quality programming. With Gary Coltbaum. It doesn't get better than this. And welcome once again to Investor's Edge. I'm Adam Sarhan in for Gary Kay.

This is the one and only Investor's Edge. And it's always a pleasure being here. We left off talking about technical analysis and how it can protect you from markets that go against you in a big way, whether you're long and it goes down or you're short and it goes up. It doesn't matter. Technical analysis works both ways because it's the objective study of price. And the idea, the notion, is that price, everything is factored into the price.

Fundamentals, the news, the macro, the schmackerel, that doesn't make a difference. It's fun. It's in the price, right? What shows up on your statement? The price. The fundamentals of the company don't show up on your statement, the earnings, the sales, the revenue, the news of the de jour doesn't show up on, the news of the day doesn't show up on your headline, and your statement, excuse me, the headlines in the newspaper, it don't matter, in the statement. There's one thing and one thing only. Even volume doesn't show up in the statement.

The moving averages don't show up on the statement. Price does. So for me, price is king. Everything else is secondary. Price is primary. everything else is secondary in my world. Now, that doesn't mean you ignore the fundamentals. It doesn't mean you ignore any of the news or the, no, no, that stuff.

But what I want to focus on like a hawk is the highest ROI activity possible. So when my brain works, I was being interviewed earlier today and I was speaking about this concept. We went to dinner last night with my wife and kids. My brain is binary. It's either I delegate something in my subconscious mind is that this is a high ROI activity. It's important. I need to know this or it's not. Now, that's a bit extreme.

I get it. Sure, intense. Whatever word you want to use. Sure. No problem. So the names of restaurants I am absolutely awful with. I have no idea. We could walk into a restaurant.

We can sit down and then you ask me, what's the name of this restaurant? I would have no idea. Not to say that it's not important. It's just for me, the way that my own brain works, it's a blind spot. Why? Because what is important for me? Number one, the food's good, healthy, clean, good. And number two, I can pay for the meal. That's it. In my mind's eye, right or wrong judgment, no judgment. That's not the point. I'm just explaining to you how my mind works. Okay. It's an ROI, high ROI activity or it's not. Think of the 80-20 rule, right? You know, 80% of the things don't matter. 20% really matters. Okay, great. I take that and I go a step further. And I have 99-1. 99% of the things that I do on a given day really don't matter. Most days on Wall Street don't matter. But there's 1% of the things that I do that really matter, that move the needle.

So focus like a hawk on the things that really move the needle and bam, you get clarity, you get better results, you get way ahead of the pack. Because most people are caught up in the noise. They're focusing on the low-level activities that don't matter. So what matters? It's the price because that's what shows up on the statement. That's what determines whether or not you and me and everyone else out there makes or loses money, period. And we're doing this with the intention to make money. So if we're going to lose weight, then the price of the stock doesn't matter because we're measuring the weight loss. If we're playing basketball, you're not going to look at the price of the stock. You're going to look at the points in the board or baseball or golf or soccer, any other tennis, any other sport. You're going to to look at the points on the board. Well, all right, money, your statement, the price, the difference between your entry and your exit are those proverbial points in the board.

And that's why I'm focusing, like a hawk, on price. So how do you handle the news? You get a situation like this, this big bank fails, aliens attack, I'm exaggerating, natural disasters, you know, geopolitical woes, a war. you know, oil prices, this scare, that scare, inflation, the Fed, you know, enter any other headline you want. How do you handle it? The reaction to the news is what matters in my world. Why? Because that tells you what the market, which is just another way of saying, all of the people participating and not even people. You also have algorithms and bots and high-frequency traders and all these

different things, some total of all the participants that can buy and sell, which impacts price, they vote. That's all it is. They vote every single day with their dollars. You have awful news. Stock goes up. Does it matter? What does that tell you? The awful news doesn't matter. What matters? Stock goes up. You got great news. Stock goes down. The news, by definition, is a rear-view mirror phenomenon. I talk about this in the book too. The market's a forward-looking mechanism. And that right there, folks, is a major, major reason why most people don't understand this business and they can't get ahead, because they're too busy looking backwards, looking to the left of the chart. Instead, I joke around the book and say, you want to be looking to the right of the

chart. I have a whole section to it. It's not a joke. I just do it in a lighthearted fashion. because that's where you're going to make money or lose money. The past doesn't matter. It's the present right here, right now, and then the next tick or the next best trade, the next idea, the next, you know, what happens to the right of the chart is what matters. Let's put it that way. The next week, the next month, the next year, so on and so forth. That's where you can make your money.

So if you've made a lot of mistakes, it doesn't matter. You've had a lot of success. It doesn't matter. I know people that have lost it all. in almost an instant in this business because things in life change and change quickly and most people stand there and are stunned. So another timeless lesson I can share with you, I've been training since the 90s, I've been through the dot-com boom and dot-com bust, I've been through the 08 crisis,

I've been through the wars in Iraq and the, you know, the cyber attacks and then the COVID bottom and then the market doubled after COVID and easy money and QE1,23 and L MNOP and QRX and TUV, WX and Y and Z. I've studied history. The one thing I can tell you, folks, is that the people change, the booms and busts change, the asset classes change. The history, when they happen in history, change. But the one constant is human nature. Psychological analysis, right? It's the whole point of the book. If you were Walk into a crowded theater, yell fire. What happens?

You get the same reaction anywhere in the world. Irrespective, their language, their race, their religion, their creed, their socioeconomic level, their wealth. It doesn't make a difference. People are going to run. Panic. I saw a great little Bart Simpson, Simpson thing above or meme or whatever it is come up where the people in the bank, Bart Simpson walks in and says, The bank is not solvent. Run, run.

They can't pay your money. And then you see all the characters in the Simpsons cause havoc and go crazy. and there's run on the banks. And then Barton says, oh, you know, this guy's got the money. They go beat up that guy. So, again, it's the reaction that matters. Focus on how you react and boom, by making logical decisions, by planning ahead. And the world is your oyster.

Still going to be difficult and still going to be challenging. But over time, you come back way ahead. Keep the risk small. Let those winners run. All right. That's time flies. I'm Adam Sarhan. I've got a lot more up next.

We've got a lot more to discuss. This is the one and only investors edge. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges,

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See Capital One.com for details. We're listening to. America is talking. Investors Edge. He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb.

It comes highly recommended. You're going to feel better if you talk to him. And welcome once again to Investors Edge. I'm Adam Sarhan in for Gary K. who's out today. So in case you're just joining us or missed any part of the show, you can go to GaryK.com, listen live or archive, rewind, fast forward, pause, do whatever you want to do to catch everything. I know people like to take notes. They email me and tell me. We're like this point. We're like that point. And by the way, if you do read the book, 10 pages a day is what I

tell people. You can do 10 pages. Somebody says to me, actually someone told me just yesterday. I'm going to read a whole chapter every day. So, okay, great, read the chapter a day. It's written in easy format so people can plow through it. It's not heavy technical work. Some finance books are really tough to get through. This is written in layman terms, so people can blow through it easily. So, or read it easily. Let's talk about a few things. Let's talk about markets now. So when things change, they change quickly. Okay, we spoke about the psychology part. We spoke about the reaction to the news, gave you a bunch of great timeless lessons. Let's talk about markets and put all this, you know, down on on actual paper. What does it mean? So the S&P. The S&P 500 when I was on last week talked about the 200-day

moving average being support. Okay, what happened? You slice below support. And then what happened? He kept on falling. So that was Thursday when I was on. Thursday, we closed just below support. Friday we got hit and today we got hit again. Today was not as bad of a day as it could have been. but it wasn't a pretty day, especially in the financials. So when things change, things change quickly. If you pull up a chart of KRE, which is the regional bank index, you could see it was down below, it broke its 50-day moving average on the second of March, rallied into it on the sixth, and then rolled over hard.

So when you, the 50-day moving average, it's the last 50 days, the closing price. a moving average where in healthy market it's sloping up and its support. Every time the market pulls into it, it bounces, pulls into it bounces and it makes higher lows and higher highs. And it just keeps sloping up. When you break below the 50, you do on a heavy volume, that typically is not a quote unquote bullish sign. Now on the way down, it serves as resistance, not support. Resistance is like a ceiling, support is like a floor. So when you break below an average, in moving average like that, the 200 day, the 50 day, whatever. moving average you're looking at that that's impactful for that stock or that

security or that ETF whatever it is it's really important to understand how that behaves now just because you break below the 50 doesn't mean that it can't go up you have lots of false breakdowns it could easily break down undercut support and then rip back higher things are fluid things change that's how markets work they it's an it's the market's constantly in flux it's a game of tug-of-war between the bulls and the bears right and there's battles within the war and there's a long-term war, so to speak. This is an infinite game, right?

That infinite game of tug-of-war, it's never going to end. This is an infinite, the markets are never shut down with, okay, the market's done, we're done. No. So as a person who's interacting or playing with this business, I don't mean playing in a negative connotation to it. No, I mean, it's a very serious business. But as a person who's interacting or engaging in this environment or in this arena,

it's important to come to the table with a different set of rules than you would if it was a finite game. So infinite game versus finite. Infinite game outlives all of us. So it's important to understand to have checks and balances guard rails in place. And that's what we do with the 50, the 200 support to be a line in the sand. You could use prior chart highs, prior chart lows. And if you want to understand why, I've got this in the book, it's called anchoring, which is a cognitive bias. can Google it, and it'll tell you why these levels matter. But you find inflection points that

are important on the chart. And if those inflection points break, then you've got a choice. You either get out of the way or you stay involved and potentially have a big waterfall kind of moment, like what happened with the KRE. The KRE was at 60. It closed at 44. That was what, four days ago, five days ago? So understand, folks, when you're dealing with markets, Things change and they change very quickly. This could be a Bear Stearns moment where Silvergate, S-I and then S-I-V-B, which is Silicon Valley Bank, they could be a situation where it's like, oh, yeah, this just happens. And then fast forward six months a year, whenever, you get a big financial crisis.

Sure. Or this could be completely different where, hey, banks are much better capitalized. They don't have those loans and mortgages or whatever the case may be. Maybe the Fed stops raising rates or whatever. you know, pauses, whatever. Point is, is that it doesn't have to be a 2008 moment, but it could very well be. But if you use technical analysis and you focus on price,

the high ROI activity, right, focus on what matters, the price, and ignore everything else that doesn't matter, or just put that in the box, put it where it belongs. Okay, not so much ignore it like it doesn't matter 100%, but understand that it's a secondary or even a tertiary, a third thing, fourth order of consequence where it's less important than price, then all of a sudden,

you now have the upper hand because you have clarity. And you're prepared for when the market decides to fall and fall hard or go up and go up big. Right. But the environment, and this is where the next point I want to discuss here, is really, really important. We've been in pretty much a bearish environment, which Gary's done a phenomenal job for you. nailing for the last, since the end of 21, the middle of 21 or early 21, depending on certain pockets of the market, but really the end of 21 was when the market topped out, the major

indices very early 2022. So it's been over a year and change. This is the average duration of a bear market. It lasts about nine to 18 months, 12 months, somewhere in that range. Some bare markets are longer, some are shorter. So typically when bare markets, end, they end with capitulation. People are just, okay, see you later. Typically, you get a big leg down, bounce a little bit, another leg down, bounce a little bit, third leg down, bounces,

and that's that. Sometimes you get a fourth leg, even a fifth leg, every bear market's different. However, the history rhymes doesn't necessarily repeat exactly. So what I'm looking for, whether this is another bear stance moment or not, that's secondary. It doesn't matter. All I'm dealing is one day at a time with the market is, but I'm prepared for the event that. the market gets crushed, my capital, my mental capital and my physical capital are both protected. I want yours to be as well. And that's critical. So I can't control what the market does, but I can control how I react to it.

Super important. Next, we get a bare market. You get another leg down. You're going to start seeing panic. Write this down. if you can, if you're not driving, if you're an ability to write, winners win, losers quit. It's just, I'm not, there's no negative connotation there.

It's just a fact, right? Winners win. Think of the market as an arena and another leg down with capitulation. People leave the arena. They can't take it. They suffer too much pain. They're wiped out financially. They're wiped out mentally.

They're mental capital, physical capital, whatever. They're just gone. It's thinning of the herd is, what happens. Gary's been doing this for decades. The man knows how to win. Very, very simple. Otherwise, he wouldn't be here. I can't tell you how many people I know in my quote-unquote career on Wall Street that aren't around anymore. One guy's a roofer. He was a stockbroker. Now he's no longer a broker. another guy became a painter, another guy's a contractor, another guy's working at a big company, doing whatever, another guy, you know, so on and so forth.

It's a competitive environment. But winners win. So understand, if you protect your capital, you respect risk. I have a whole chapter dedicated to respecting risk. Super important. You can survive these periods. And if we do have another leg down, people capitulate. It's going to be the weaker hands.

that's typically how bare markets end, is that you get this flush out low, panic, oh my God, the world's going to collapse, and it doesn't, and then bam, it paves away for a new bull market. And again, I don't make the rules. I'm just showing you history what I've learned from studying countless bull and bear markets in history. These patterns repeat themselves because human nature.

We spoke about that. So ask yourself, you want to win or do you want to quit? Ask yourself, how am I going to prepare for then if we have another leg down. Where are my guardrails? What am I doing to protect myself? Because the environment, you're in a bullish environment,

there's only three things you can be. In a bullish environment, a bearish environment, or a choppy sideways environment. So if you're in a bearish environment or a sideways one, protect the capital, even in a bullish environment,

protect the capital, right? Mental capital and physical capital. So I hope this helps, give you some framework or some guardrails or an overview, some structure, for lack of a better word, on how you can protect yourself and be there for when the market turns. Because when the market does turn, it's life-changing well on the other side of this. Up next, we've got a lot more to discuss. I'm Adam Sarg, and this

is the one and only Investor's Edge. This message is brought to you by the Capital One Venture X card. Venture X offers the premium benefits you expect, like a $300 annual Capital One travel credit for less than you expect. Elevate your earn with unlimited double miles on every purchase, bringing you one step closer to your next dream destination. Plus, enjoy access to over 1,000 airport lounges worldwide. The Capital One Venture X card. What's in your wallet?

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And welcome once again to Investors Edge. I'm Adam Sarham. In for Gary Kay, who's out today. If you're just joining us or missed any part of the show, you can go to GaryK.com, listen live or archive. We're live 24-7. Sorry, not live, 24-7. We're available 24-7 to listen live, if that would help. We're available online on-demand, 24-7. Live 6 to 7 p.m. Eastern, and everything's available on GaryK.com. All right.

So, we spoke about a lot of, covered a lot of ground. in closing here just wrapping up some thoughts garries me back tomorrow i'm very big on planning in the market i'm very big on respecting risk because most people go into the market with these dream of getting rich quick or just getting rich and they don't even focus on the risk they just want oh if i just go buy 10,000 shares of this and 30 000 shares of that and it just goes up by this much money i'm going to the calculator comes out and then they start living in a lot of land. No, not most, not, I don't say, no, no, almost nobody goes in there and be like, okay, if I'm wrong, before I enter, where am I going to exit, how much am I going to risk,

and focus on risk management? It's super, super important. It's one of the most important things that successful traders do that the unsuccessful traders just don't do or they don't do well. I have a podcast where I interview some really smart folks. Eos of people can trade companies and, you know, some other people and for timeless advice. And one of the guys that came on the show told me, Adam, you know, I'm not buying and selling stocks and neither are you. I'm like, what's this guy talking about? You know, if you're not buying and selling stocks, what are you doing?

He goes, I'm buying and selling risk. And I thought that was just phenomenal. Like the emoji where your head explodes kind of a thing, where it's like, wow, that is so profound, it is so incredibly true that, wow. And understand folks, another point, this is a performance business where you get paid and you get paid very well to perform. But the rules of the game or the playing field are different. Traditionally, we're taught you have to work for your money. You trade time for money.

I go work eight hours. I get paid $1 an hour. I get paid $8. That's traditionally how we're taught. Money is exchanged. In this business, it's the exact opposite. You put your money to work for you. And then you step away.

And that's very difficult for most people to do, especially when they're not aware of it. But that's how you compound returns over the long periods of time, is get out of the way during crummy environments and be there. This is so critical. Be there during good environments. And Gary does a great job of keeping you posted of when things are going well and when things are crummy. And if you want extra help, you can go to Convictionleaders.com and sign up there. So winners win, stay engaged. Put the market where it belongs is another point.

Find your passion. Find your joys. Respect risk. And ask yourself, am I prepared if things go against me? The market doesn't go up after I buy it. What am I going to do? Where am I going to exit? How much am I going to risk it come wrong?

So on and so forth. And when you start asking those questions and looking at markets from the risk standpoint, instead of just the reward standpoint, because it's a balance, right? Think of the Libra scale. You've got risk on one side and you've got reward on the other side. The reward side of it

will take care of itself over the long term if you're around to be there during the good times. When you pay attention to risk, all of a sudden, it'll allow you to be there during good times and it'll help prevent you,

avoid you getting crushed when markets go really, really, really better. against you the other way or they fall off the deep end or whatever word you want to use to explain it. So when markets are not, the performance business, let's talk about that. It's really important to focus on things that give you energy and not things that take energy away from you. A friend of mine calls it a time vampire or an energy vampire. You know, that's things that just suck the life at you. Scrolling on your phone endlessly or engaging with toxic people or doing thing that don't serve you. Let's just put it that way. And instead, focus on things that serve you,

sitting all day, for example. Move. Motion creates emotion, right? Thank you, Tony Robbins, for that one. Move. Living is giving. Thank you, Jim Rohn, for that one. Give to others. You're in a relationship with yourself. You're in a relationship with your money and your relationship with the people around you. How do you improve those relationships? Take more from them or give? You want more money in your life, give more value to others, you'll get more money. You want better relationships with your wife or with your husband or with your kids or with whoever. Give more to them. You want a better relationship with yourself?

Pay attention to the self-talk. How do you talk to yourself? Would you talk to your kids that way? And improve it. Give. Most people are in the default setting of taking. Taking, it's a very limited way of interacting with the world. Give.

Give and you get. Give and give without even the notion of getting or the hope of getting. Just give. Give tremendous value. Things work out tremendously well. And then do what I call the intellectual sit-ups. Do the things that most people don't want to do. Every major athlete or anyone in the performance business actors have coaches.

Traders don't for the most part. Some do. Successful ones do. but most don't. Find a coach. Find someone you can talk to. A therapist maybe. Anybody doesn't matter.

Somebody who's objective and that you can will hold you accountable or hold yourself accountable. Why? Because accountability alongside accurate thinking are two of the most important things

people can do in life. Accurate thinking, Napoleon Hill's great book, thinking grow rich, and accountability. Not me. I didn't invent those two things. They've been there for eons or for a long time, right?

Again, just study successful people, success leaves clues, and apply those lessons. If you do the physical sit-ups and you eat well, guess what? You can have a flatter stomach. But you've got to do the sit-ups. Nobody can do the setups for you. You've got to do them. Same thing in business or on Wall Street. It's the intellectual sit-ups that really, really matter.

So, I know we're running short on time. I want to thank you very much for being here, as always. The markets are going to be there tomorrow and the next day. This crisis, the next crisis. Respect risk. It's a big message. And be there when the market turns because the biggest winners are in front of us. I want to thank you all for being here, everybody.

I'm Adam Sarhan. This is the one and only Investor's Edge. This has been Investors Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's Gary K. dot com.