Investor's Edge with Gary Kaltbaum - Higher Yields & More Selling [05.19.2026]

Episode Date: May 19, 2026

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Investors Edge with Gary Coltbaum. Straight talk about you and your money. Now from the BizTalk Studios, here is Gary Cultbaum. And welcome once again to Investors Edge. I'm Adam Sarhan. In for Gary Kay, who's out today. Today is Tuesday, May 19th, 2026. We have a great show for you tonight.

Before we dive in and give you the specifics, just some high-level housekeeping to keep in mind. This is a show about you and your money and all of the fun points in between. We try to keep it light and fun. The show's available. 24-7. Anytime on any device you want that has internet on GaryK.com,

you can listen to any show. Rewind, fast forward, listen at your convenience anytime you want on any device for free. If you'd like more to subscribe to Gary's morning notes, you can go on GaryK.com and do that. Email Gary about his money management services, or if you want to follow him on X, you can just click the button.

If you want more from Gary, can subscribe to convictionleaders.com. And Gary shares his thoughts every day about the market, opening, well, basically webcasts every day and gives you charts. He shows you what he's, instead of just hearing him on radio, you actually see the charts and can follow along. All right, all of that's available at convictionleaders.com. Some notes from Gary right at the top of the show.

I want to make sure I do my job and get some housekeeping done. Let's go ahead and read that. Navidia is tomorrow after the close. Navidia is really important for AI stocks because a lot of the AI MLMs of the large language models run on Navidia's chip, so that's important. Gary says lots of back and forth today on attacking Iran, again, with the latest odds favor, yes, but then that can change in five minutes. Some pretty wild swings today, especially the semiconductor index that was down 400 at one time,

was up 200 and finished the day somewhere in the middle of the range type of a thing, as far as the high and the low, it finished somewhere in the middle to upper half of the range. Another bad day for the advanced decline line, which is not good. New lows, tripled new highs on the NASDAQ and more than doubled on the NYSC, the New York Stock Exchange. And then Home Depot, ticker's symbol is HD, that opened lower on earnings, they reported earnings, So let's see, it finished up, but at one point, well, their earnings were terrible is what he's writing. So Gary wrote, but their earnings were pretty much terrible and sales were down year over year.

So even though the good news is the stock reversed, it opened lower, closed higher, in the upper half of the range, that shows a potential near-term low. We'll see what happens. And of course, depending on the broader market and all that stuff, it has had a big decline in Home Depot from 397, all the way. way down to, where is it now, close to 300, undercut. Let's see what it hit today, 289, and then closed above 300. So we'll see. But those are the notes from Gary. I wanted to do my job and share them with you.

Now I'll give you my thoughts on what's happening. For the last few weeks, the market, and I've been saying it again and again, has been extremely extended. And it's normal and healthy for the market to pull back. So the March low was in the NASDAQ-100, the QQQQ, was 500. 555 is 0.6 if you want to get exact, but around 55. The high just, what was it, four days ago, it hit a high of, let's see here, 722. Folks, that is a ginormous move.

Any way you want to slice it. From 555 all the way up to above 7, that's in what, four or five weeks time, basically the month of April and then the first two weeks of May, that's an enormous move. It's normal and healthy to see the market pull back. If you look at levels of extension, if you go back and let's say here, let's say that typically if it gets 11, 12% above the 50-day moving average or the, let's just say the 50, it pulls back. If you get 12, 13%, it's due to pull back. We've got pretty much into that 13, 14%, nosebleed area, 15% above the 50, thereabouts. 10 and 11% is a lot.

The semiconductor index, SMH, also is a leading area. And the reason why I mentioned those two is because that's what's leading right now. And they both got extremely extended than that. I think the SMH, let me check. Where am I here? Yeah. Just, again, four days ago at the high was, 29% above its 50-be moving average.

That is an exceptionally extended amount. It hit a low of 359 back at the end of March and then at high of 5. Let's see, 581. Again, massive, massive, massive moves in a very short amount of time. And the reason why I'm sharing these two with you is because pretty much that's leadership. That's what's leading right now in growth world. Now, that could change, but for now, that's what's leading. A little pullback or backing and filling, you know, perfectly normal and healthy at this stage.

In fact, it's not only is it expected, it's welcomed. And it's welcomed with a pleasing thank you. You know, the semiconductor index went basically, let's say, 359, 581. Was that right? Is it 60%? 359. Yeah, 359 to 581. That's over 60% in what, five weeks? That is a massive, massive rally for the SMH. So if we're at the pull back from what was the high just a few days ago, 581, and the low today was 553. That's going to be three, about 4% or 5% after a 60% rally.

Again, I'm putting things in perspective. Perfectly normal, perfectly healthy. After a big move up, it's perfectly normal to see the market to consolidate that move. And there's two ways for it to do that. One, it can go sideways. Two, it can go down. That's it. Real simple. What it's doing now is pulling back just a little bit.

We're still above the 21-day moving average, which is the next level of support that I'm watching. We're still above the 50-day moving average in the 20-day moving average in the 20-day moving average. the NASDAQ 100 and the SMH. And the market remains very, very strong. Now, if you look at the other indices, similar situation. The S&P 500 had a huge rally from 629, the low at the end of March, up all the way to 749. Let's do some quick math here, 749. And the low was, what, 629? So you're talking about a 19% rally in five weeks? Historically, a 9, 10%? rally eight nine ten percent would be an average annual return for the last

hundred years in the S&P you had 19 percent in five weeks six weeks and now it's pulled back what in three or four days it's pulled back from seven forty nine to seven thirty three so seven forty nine seven thirty three you're talking about a what a two percent pullback barely anything after such a huge move up so again it's normal and healthy for the market to pull back now the gate question comes going forward is to gauge the health of the pullback. If it's a violent and ugly pullback down on heavy volume and just massive selling, a lot of distribution, down days on heavier volume in the prior day, so on and so forth, then that's not good. That could suggest,

oh, wait a minute, something a deeper pullback or correction could unfold. But it goes up 20% pulls back two or three or four or five. it's perfectly normal and healthy at this stage. Now, if the conditions change, we break the 21 day, we start getting heavy down days on heavy volume, you know, we start seeing some leading stocks roll over, complete different story. But for now, it's just a little pullback. Now, that could get into something worse. We'll see. NVIDIA has earnings tomorrow.

We'll see what happens. Walmart, a lot of retail stock. report this week on Deep Ovales this morning, Walmart in two days. We'll see what happens, how the market reacts to it. Very, very important. I believe Target reports this week also. Let me check. Yeah, they report in one day. So this is a big week for retail stocks. Could be a proxy for the consumer. And it's a big week for the Vidia and AI stocks. And we'll see how the market reacts. That's the big thing. We'll see how the market reacts. If it's a good reaction and we keep going up, great.

If the market barely moves down and just goes sideways for a little bit at a time, that's also a healthy sign. Remember, two ways the market consolidate. Go sideways or go down. A sideways consolidation is also healthy. In fact, it's more bullish than a pullback or a downward consolidation. Because that just shows you there's very few sellers. So for now, the market's just pulling back.

It's a pullback time. Now, are there concerns beneath the surface? Yes. Inflation remains high. Yields are going up. We also have other concerns, which I'll explain why do yields matter? Why does higher inflation matter? Energy prices are still high.

Last I checked, oil was above $100 a barrel. We're right near $100 a barrel. Let me check. Yeah, just above $100.104. So we'll take our time. we'll see how the market reacts. The fact that we're not down more is a good sign for right now.

Up next, we'll talk yields, economy, from earnings, and a whole lot more. I'm Adam Sarhan. 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, all to assist you in achieving your financial goals. Understanding not all individuals have the same needs, we'll carefully evaluate your personal goals

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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, who's out today.

Today is the 19th, May. We covered a lot during the beginning, talking about the market being extended. We spoke a little about yields, spoke about inflation, spoke about the fact that the market has had a ginormous rally since the March low. Many of the indices, the S&P 500 had a big rally, the NASDAQ 100. leading the charge higher out of the major indices, the SMH, which is the semiconductor index, leading the charge higher out of pretty much all of the major sectors out there with a whopping, I believe, 60% rally since the March low. Now it's pulled back 5%.

So far, normal orderly pullback. Under the surface, could it get worse? Yeah, absolutely it can. But for now, the market's in a bull market. It's earned the right to pull back. the 21-day moving average is near-term support that I'm watching for the NASDAQ 100 and the SMH, and then the 50-day. And as long as we stay above those levels, it's pullback time. It's just that simple. So we spoke briefly in the news today. High yields, yields, Gary's mentioned this a lot, are going up, and that's not good for the economy, not good for stocks.

And a lot of people ask me today, why? I had a reporter actually reach out and ask why I'll get to that as well. and then high inflation. So the combination of how high yields and high inflation could hurt stocks, and I'll paint that picture because there's a lot of questions. So I asked market terminals AI, if you go into market terminal.com, you want to take a free trial by all means feel free. It's a tool that I built to get the access to information that I can see in the market in real time. There's AI prediction now on stocks, so you can see stocks setting up,

and you can see what the prediction is, if it's going to break out or not. You can see after a big move up, you can see a prediction, of what's going to happen next. It's like anything. Prediction, some are right, some are wrong. It's normal. Nothing's 100% in the market, but it's cool for me, at least, and a lot of other people to see that AI prediction on top of it.

But in market terminal, there's an actual AI built into it that's connected to real-time stock market data. So, for example, if you hit market terminals AI and say, oh, show me the stocks breaking out today, it'll actually show you which stocks are breaking out today. I mean, no other AI does that. you go to Chanche, PT or some of the other ones, Claude or Groch, I've done it before, where literally they'll give me stocks that are down. They're not necessarily up.

They're just not even breaking out. They're just wrong, but we were able to figure that out because we have the real-time data and our proprietary algorithms. But anyway, high yields and high inflation. So I went to market terminals AI and said, hey, how are high yields and high inflation? How does that hurt stocks? You can ask that question that any AI it'll tell you. But here's what it gave to me.

In simple terms, high yields and high inflation hurt stocks. because high bond yields and high inflation create a double whammy for the stock market. When both rise, they chip away corporate profits and make stocks much less attracted to investors. Number one, high borrowing costs eat away into profits. Three reasons. Expensive debt. Companies must pay higher interest rates to borrow money. Reduced growth.

Lower corporate spending slows down expansion and innovation. In the number three, lower earnings. Because rising interest expenses directly cut to net profit margins. So the first one, the reason why higher yields cut away at profits, expensive debt, reduced growth, and then lower earnings potential because they're paying more money and interest. All right. That's number one. Number two, future cash flow lose value. Remember, the markets are forward-looking mechanism, folks, right?

So what does it do? It discounts the future. Discounts future cash flow. So, okay, discounting risk, investors value stocks based on future estimated cash flows. Inflation penalty. High inflation makes a dollar earned today worth less than a dollar earned tomorrow. Right? No, one second.

High inflation makes a dollar earned tomorrow. There we go. Worth less than something was wrong. That's right. That's right. Okay, it's the opposite. Something worth a dollar. Let me read it right.

That would help. It says high inflation makes a dollar earned tomorrow worth. less than a dollar earned today. So today's dollar, once I make a dollar today, inflation goes up, it's worth less tomorrow. So that's why there's a penalty for inflation. Okay, and then lower valuations because stocks, the analytical models mathematically force stock prices to go down when interest rates rise. So the future cash flow is the second reason why higher yields and higher inflation could hurt stocks. And then bonds become fierce competitors. Remember, bonds, are in general, it's a fixed income product. There's equities and there's bonds, fixed income.

Fixed income has many different things. There's municipal bonds, corporate bonds, so on and so forth. But bonds, as an asset class, fixed income, become more competitive. So you have high bond yields, offer safer and predictable income. That's attractive for many investors instead of high volatility with stocks. Capital flight, investors pull money out of riskier stocks, things like stocks and they buy safer bonds. And there's a drop in demand. Less buying pressure on stocks causes overall market prices to fall. In the old days, there was a great line that said the great rotation out of stocks into bonds and vice versa, where you would just see, and this was decades ago, you just see money flow out of bonds into stocks and vice versa. So that becomes a big

piece of it. So the third one is bonds become a fierce competitor. And then fourth, consumer spending power shrinks. Price pressures, lower sales, and then margins are squeezed. So first, price pressures. High inflation reduces what everyday consumers can afford to buy. Therefore, they buy less goods and services. When less money is moving in the economy, what happens to earnings? Goes down. So lower sales, when citizens, consumers cut back on spending, corporate revenues drop. margin squeeze, companies cannot always pass 100% of their rising costs onto consumers. If an airline has to pay more for jet fuel because energy prices are up, guess what? They can't really pass that along as easily.

So keep that in mind as you move forward. So again, higher borrowing costs into profits, future cash flow loses their value, bonds become a fierce competitor to think of that great rotation out of stocks at the bonds and vice versa. And then consumer spending power shrinks. So consumers spend less money, less revenue, so on and so. And then, of course, companies can't always pass, they're paying more for their goods and services as well, and they can't always pass that along. And that folks is the reason or some of the reasons. Those are four big reasons. Why high yields and high inflation potentially could impact stocks. The other piece of the puzzle to put together, which is important,

is the market's the mirror of the economy, not 100% perfect. Remember, there's nothing 100% perfect in the market that I know of. If there is one, please let me know. But it's, again, stacking the odds of probability in our success. So when we put the pieces together, it's really important to understand, oh, okay, well, if yields go up, inflation goes up, what could happen to the economy? We know what's going to happen in the market. That could hurt earnings, everything I just explained.

well, okay, it could also trigger a recession if they go up too far too fast and at the same time simultaneously, energy prices, food prices skyrocket. And that's the fear. Now, it doesn't mean that's the reason why markets are going down today or yesterday or whatever the case is. It's just why would higher yields impact the market? It's because of putting all this together. So up next, we've got a lot more to come.

cover. Hope this makes sense and I hope I've simplified it for you enough. But I'm Adam. Sorry and want to thank you very much for being here. 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. And welcome once again to Investors Edge. In case you're just joining or missed any part of the show. You can go to garyk.com or wine fast forward listen at your convenience on any device anytime you want so we spent the beginning part of the show speaking about a huge rally in the market especially the

nassadk 100 and the semiconductor smh index we also spoke about high yields and high inflation how that potentially can impact stocks we also will cover some other things but high level those are important spoke about earnings and spoke about the video's earnings are wednesday after the We had Home Depot today reversed, open lower but reversed, even though the numbers were not the best, but still, closed higher, that's a good sign. Also, Walmart, Target, lots of other retailers are reporting earnings this week. So we're focused on that as well, not just what the numbers are, but the reaction to the numbers. In other news, we've got some headlines or some news to give you. First off, Kevin Warsh, then he's set to be sworn in as a new Federal Reserve chair on Friday.

that's Trump's guy. So we'll see what he does, especially with rates, especially with higher inflation prices and higher oil prices. The market, give you a little update here. Dow closed down 322 points to 49,363. The S&P 500 closed down about 49 points to 73.53. And the NASDAQ composite closed down 220 points at 25,870. The Russell 2000 was down 28 points, 2747. and the VIX was up just a little bit about 0.24 or about a percent and changed to 18.06.

So the VIX was up 0.24% and closed at 1806 today. Let's see here what else. Oil is about, is that right? No, that's a different price. Okay, that's it for now. Let's see here. As of right now, after the close, we have oil prices at 104. and it's up for the week. We'll see where we close for the week on Friday.

But for now, we've got Navity tomorrow. We've got a lot of earnings. We've got a new Fed chair coming in on Friday. And we've got higher yields. And if that wasn't enough, we have another important thing that impacts yields. So the 30-year Treasury yield top 5.19%. It's the highest since before.

the financial crisis. Is that headline correct? Yields on the U.S. Treasury's advance Tuesday as investors continue to dump bonds on fears of inflation is reigniting. The 30-year Treasury yields hit the highest level in nearly 19 years. The longer-dated 30-year Treasury bond rose about six basis points of 5.198 percent, which is the highest level since July of 2007. The 10-year Treasury U.S. Treasury note yield, which is a key benchmark index for mortgages, auto loans, credit card debt climbed six basis points to 4.687%. That's the highest since January of 2025. And the two-year yield, which reacts to expectations and short-term federal rates,

rose by five basis points to 4.127%. So, okay, one basis point equals 0.01% and yields and prices move in opposite directions, just to keep things in perspective. So the 30-year rising to two highest levels in 2007, no bueno. Now, if oil prices, there's two things, I was asked about this earlier today also. What do I think about another 2008 happening? To me, it's not a matter of will it, if it'll happen, it's when.

I mean, if you study market history, you've seen markets have explosive rallies, and you've seen devastating crashes. I mean, explosive moves up, explosive moves down. I mean, you just had really just tremendous, bull markets and bear markets. They just happen. They don't, thankfully, the bare markets are few and far between, and thankfully, the devastating bear markets are very, very few and far between decades apart. So I don't think there's anything happening tomorrow, but we're always, always mindful of it can happen at any point in time. If there's two things that I'm looking at now, well, really three.

First would be stock prices. If the stock market starts tanking undercuts this year's low, starts falling, breaks the 21 day, the 50 day, the 200 day moving average, turns negative for the year. You know, that's definitely a sign that I'll be watching because that's what happened in 2008. That's what happened in 2000 to 2002 bear market, the dot-com crash. You saw the stock market go down. That's not the case right now. Oil prices in 2008 before Lehman crashed, oil prices at the time hit 150 a barrel, which was 149 or right near 150. It was huge. huge move up. Now, if oil prices do that again, that could easily trigger global recession

or just a recession here. That could trigger a concern. And then, of course, yields. If yields just go skyrocket through the roof, that's going to put pressure on mortgages. It'll put pressure on people defaulting. You'll put pressure on anybody with a variable interest rate, really, for auto yield. I mean, anyone that bars money, credit card yields, all this stuff, that could put a lot of pressure on the economy. Those are the three things. Stock prices, energy price, inflation, just food and energy, and then of course, just the economy and seeing jobs. I mean, that's another important thing. If we start seeing massive layoffs, which had not happened, that's going to be a big concern

as well. So those are the main points I'm watching for, for a recession, not talking about a 2008 meltdown. I'm just talking about a recession. And then if it gets really bad, sure, then it away can follow. But first, a recession has to happen. Let's just see some signs of it cracking. We haven't seen that yet. And as long as that stays strong, the way the market is right now, then by all means,

the bulls have earned the benefit of the down. I'm not sleeping with one eye open worrying about a huge crash tomorrow with the stock market at all-time highs. Now, back in March, if we didn't have this ginormous rally and instead we had a down 20%, different, complete different story you'd hear from you right now. But I always like to say that market is speaking and then ask, are you listening? I mean, that's just that simple. And this is how the market speaks.

It's not verbal communication. Like right now I'm literally speaking using words. Market doesn't need to do that. It speaks by showing you what's happening, not telling you what's happening. Let's say number of breakouts versus breakdown, movers up versus movers down. Think of all of these statistics, advanced decline. All these things, that's how the market speaks. The NASDAQ 100 is above its 50-day.

Okay, that's the market speaking. The SMH is above its 50-day, market speaking. The S&P 500, you can look at that. That's above its 50-day. And by the way, all three of those, above the 21-day also. Okay, that's the market speaking. Number of breakouts I have on market terminal today, 12 breakouts. I've got 51 breakdowns. That's stocks breaking below support. 12 stocks breaking out.

226 movers down, only 83 movers up. Today, 15 stocks gap down, 10 gaped up. On market terminal, I have 174 new 52 week lows. Only 101, 51 52 week highs. So each one of those metrics, the down outnumbered the up. 51 breakdowns, 12 breakouts. that's the market speaking 226 stocks moving down 83 moving up 15 stocks gap down 10 up 174 new lows

101 new 52 week highs that's how the market speaks to me folks on market the market just closed we have earnings coming out tomorrow morning we have earnings tomorrow after the close we have earnings you know as you go through there's a whole section under ideas in market term that I built it's called extended hours

X hours, extended hours. I can see stocks breaking out and breaking down after hours and before the open. Keys, K-E-Y-S, is on track to open higher tomorrow and break out. That's one breakout after the close. ANVS is on track to gap down to dollar stock,

so it's lower-price stock, and L-I-C-N just imploded on-track to breakdown tomorrow as well. After the close, I've got 10 stocks up. after hours and I've got 11 down. Ooh. Oh, no, that's something different. So that's how the market speaks. And feel free to take the data anywhere you want.

But the market's moving, price action, really, really moving. That's what moves a needle. And when you put the pieces together, you say, oh, okay, the market's near all-time highs. I've yet to see a recession in history. whack us with like a 2008 meltdown or a 2000-2002 meltdown with the market at all-time highs. Maybe it's happened. I just don't know of it. I don't think that's happened. I've studied just about every major bull and bear market in history. So when you put the pieces together, say, yeah, sure, can anything happen?

Theoretically, yeah, the world's been closed because of COVID. And the week before March of 2020, I didn't think that was going to happen. But it happened. So could something? Yeah, sure, it could. but we want to stack the probabilities of success in our favor. Right now, we're in a bull market. Right now, the economy is still growing, jobs are still growing. Markets earn the benefit of the doubt. Pullbacks are normal.

Pullbacks are healthy. Again, I hope this helps. Up next, we've got a lot more to cover. I want to thank you very much for being here. I'm Adam Sarhan. This is the one-only investor's edge. You're listening to What are we waiting for?

Well, what are you waiting for? One, two, two. Ready go. Investers Edge with Gary Culpa. Welcome once again to Investors Edge. In case you're just joining us or missed any part of the show, you can go to GaryK.com, rewind, fast forward, listen on any device for free, anytime you want from anywhere in the world.

All right, so we spoke about a lot during the show. We have only a few minutes left. I want to talk about some important things that matter to me. I hope they matter to you two. One of the most important things, you put things pieces together, right? People always, there's a lot of fear, right? Markets are driven by fear and greed. What matters to me, folks, isn't so much a stock or a breakout or a trade or a theme.

What matters to me is a winning process, a winning mindset. What matters to me is structure, is a routine, our habits. Why? Because today happens to be Navidia. I had a listener here on the show, call me. Last time I mentioned what's good for GM is good for the country. What's good for Apple was my way of saying it back 15 years ago or 10 years ago. And now it's what's good for Navidia is good for the country.

Because Navidia is the institutional sweetheart in the market. market. Every decade or two, there's a stock that captures the market's collective attention or consciousness, and now it happened to be Navidia. Okay, 10 years ago was Apple, decades ago was GM. And thank you to the caller, the person did call me, because you made my day that day. It was a really nice phone call. But where I'm going here is that the market's a forward-looking mechanism. And when you put the pieces together, say, okay, great. Humans, there always going to be another big stock. Micron had a huge move recently. Sandisk had a ginormous move. You know, these are the leading stocks of the day right now. Okay. And let's just say I missed them all.

Okay. I have a choice. The story I tell myself after that is my control, my power. So, I'll tell you what's a good way of explain this? There's no way to catch every single leading stock. If you're a trader and you're going to buy and sell and make decisions, there's going to be stocks that get away from all of us. It's just humans. That's how people function. Even the greatest traders, investors in the world don't own every single leading stock by the exact low sell at the exact high. It's not possible. So setting realistic expectations for yourself is really important. And taking that extra, the market's a difficult place in and of itself. Putting additional pressure on yourself on top of that is to me a losing proposition and it's not needed i coached my son's baseball

league when he was younger fourth grade third grade you're the young kids they're running around playing and they're just having a good time well what happens anybody who plays baseball they're going you're going to get out the best baseball players in the world strike out six seven times seven times or eight times out of ten it's normal and they're still the best right seven times at ten they hit three out of ten great if these kids get up they strike out or they pop out or they run the first and they get thrown out they come back in the dugout they grab their helmet and they smash on the ground they're so upset they're angry because they got out it's going to happen it's inevitable it doesn't make any sense to beat yourself up on top of it ray dahlia talks about

it's another one of those these events occur throughout history and Anybody who plays baseball is going to be out if you play long enough. Anybody that trades a stock market, you're going to have losing trades, and you're not going to catch every big winning stock. There's no point in the dugout and smashing that helmet on the floor and getting angry because it's going to throw off the rest of your game. You're going to be off. The game, the external and internal, the internal changes because you're angry.

You're upset. Okay. The external doesn't change. The other kids in the field are still going to play. How are you going to show up? angry and upset and huffing and puffing, or the best version of yourself. Let some space pass between the event that occurred that you're not happy with and your reaction to it. Let it pass. Let it flow.

You can't control what happens to you in life, but we all can control how we react to it. And when you miss stocks, you miss losing trades or you have a loss, you did something, whatever it's going to happen. Now, I'm not saying be reckless and doesn't even matter and who cares, but what? But no, if your process isn't helping you find leading stocks, you're missing breakouts after breakouts, so on and so, maybe try something different. Keep doing the same thing, expect different results. We know what Einstein's definition of insanity is, right? By the way, that's one of the big reasons why I built market terminal.

So I stopped missing breakouts. I can see them. One clicked, and anyone can too. That's very helpful. Create the structure. So, okay, I might see it and pass on it, which is how. happens a lot and yeah, I kick myself afterwards, but don't keep kicking myself and catch myself so I don't kick myself because the kicking yourself doesn't help me find the next

winner. And that's what this whole mindset conversation is about. It's taking control of that internal dialogue and shifting it from a negative to a positive, human nature to be criticism and and beat yourself up and I wish I could have shun could have put a shud a little bit little little just pause it's another one of those and it's okay if you missed a micron it's okay if you missed a sand disk it's okay providing you've caught something else that worked now if you don't have anything then you might want to revisit what you're doing and look at the structure and keep peeling back the onion until you can get to the root cause and hopefully have a winning strategy to help you catch winning stocks, help you catch, you know, have small

risk when you're wrong, let the winners run when you're right, so on and so forth. But taking control of your mind and helping yourself looking at things as they are, not worse than they are, just as they are. And understanding the rules of the game, if I'm going to play baseball, high likelihood I'm going to get out. It's part of the game. And that's okay. If I'm going to trade stocks, I'm not going to catch every single winning stock. And that's okay, providing I have good risk management in place, providing I have a good entry, a good exit. How much am I going to risk if I'm wrong? Those are the three questions I ask before I buy and sell any stock, anything, really, any major decision I take, where am I going to enter, where am I going to exit, and what happens if I'm wrong?

Whether I'm crossing the street, I'm buying a business, I'm buying a stock, I'm selling something. It doesn't even make a difference. any decision. What are we doing? What's the entry? What's the exit? If I'm not happy, I want to exit. Going to a dinner party,

going to whatever. It doesn't matter. And what's the risk if I'm wrong? So hope this is helpful for you. Some of this stuff has really changed my life and so many other people when you actually apply it. I believe that's all the time we have for today.

As always, I want to thank you very much for being here. This is the one and only Investors Edge. This has been Investors Edge with Gary Cult Bomb on Biz Talk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryKK.com.