Investor's Edge with Gary Kaltbaum - Support Defended [11.21.2024 w Adam Sarhan]

Episode Date: November 21, 2024

https://garykaltbaum.com/

At CVS, it matters that we're not just in your community, but that we're part of it. It matters that we're here for you when you need us, day or night, and we want everyone to feel welcomed and rewarded. It matters that CVS is here to fill your prescriptions and here to fill your craving for a tasty and, yeah, healthy snack. At CBS, we're proud to serve your community because we believe where you get your medicine matters. So visit us at CVS.com or just come by your food. our store. We can't wait to meet you. Store hours vary by location. Investors Edge with Gary Cultbaum. 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 Thursday, November 21st, 2024. We've got a great show for you and want to thank you very much for being here. Before we dive into the details, we want to give you quick overview. This is a show about you and your money and all of the fun and sometimes not so fun points in between. Just a reminder if you don't get the show in your city, you can go to GaryK.com. You may listen live or archive or live Monday through Friday, 6 to 7th, Eastern, all at GaryK.com. You can follow Gary on X, formerly known as Twitter by just pressing the button. You can subscribe for free to get Gary's morning notes delivered directly to your inbox. You may email Gary and ask about his money management services, read the articles he posts,

Or if you want more, you can join Convictionleaders.com for a 30-day free trial. It's conviction leaders, all one word, convictionleaders.com. Also, if I go fast or if I give you specific levels, then you tend to miss it, you can go and listen for free, pause or whine, fast forward on any device you want 24-7. All right, all that being said, let's talk about the market. First, the big news, the elephant in the room, is Navidia. Navidia happens to be the poster child for AI. Why is that important?

Because AI has been one of the themes that's led the market higher all year. And Navidia reported earnings after the close yesterday, or Wednesday after the close, initially the stock fell after hours. Now I'm going to pause right there because this is important, folks. The initial reaction after hours is not always what happens the next day. And this is a case and point here with Navidia, where initially the stock was down after hours. And then all of a sudden the bull showed up today.

And we've had a lot of back and forth. It was almost like a seesaw. It was up a little bit, then down a little bit, then up a little bit. But it wasn't what we saw after. It was a current difference. In other words, after hours, the stock was down 2.5%, 3%, somewhere in that range, and it was looking for it just to be a gap down and a down day today. It didn't do that.

And buyers showed up during the session. So for me, and I've seen this happen many times before, not always, but it happens enough to become an actual pattern. To me, it's the market session that matters the most. Sometimes it's confusing to watch after hours or even pre-market. that as well. Now, it's not always the case. Target, for example, yesterday, ticker symbol TGT, Tom, Gary Tom, gapped down. And it was down the night before, it was sorry, down yesterday when it reported earnings and just opened down all day and it was just boom, crummy day for Target,

for the stock. Okay, that was in line. It matched what happened. Snow, S&OW was up overnight and gaped up this morning. It happens where it's in line. It matches the pre-market matches the actual market. But there are times like Navidia where things are different. Now, the reason why I'm spending so much time on Navidio, oh, by the way, full disclosure, I'm long, been long since last year, there's a big, big portion of investors that look at Navidia as the true market leader or the poster child of this AI move, this AI craze. And now what that means? What that means? is that, you know, decades ago, let me pause, decades ago, there used to be a saying in the market before I was around, I think even before I was born, what's good for GE is good for America.

That used to be a saying decades and decades and decades ago. Because GE was the dominant stock in the market for that cycle for many, many, many years. So that's how the saying came out, what's good for G is good for America, you know, because it was just that big of a stock. And at the time, the automotive industry, automobiles, it was the leading technology of the day or engine in the economy, pardon the pun there, kind of like what's happening with AI now, where if you look at a lot of money is being made off AI and a lot of money is being invested in AI. And AI is the new disruptive technology, kind of like the automobile was decades ago. And Navidia happens to be the manufacturer of the chips that are required for most AI components. So what's good for Navidia is good for AI.

And if AI is here to stay and it's a legitimate thing, which so far it appears to be, guess what? That's good for the market as well. Now, it's not as important to be all and all. Navidia could be down and it's not the end of the world. but it's a proxy for the overall environment for AI. And that folks is very important because so far this earning season, it's been a mixed bag. We've had a lot of different reactions to earnings. And some of these stocks are semiconductor stocks.

Look at ASML when you have a chance. ASML gap, well, it didn't really gap down, but it got hit hard after reporting earnings. It was down a lot after earnings. after earnings. And then other semiconductors fell as well. KLAC, you could take a look at that one. And the list goes on and on. Not all semiconductors, but many other ones.

The SMH, if you look at that, that's been lagging. It hasn't taken out of July high yet. Well, all right. The indices have, you know, but SMH, the semiconductor index, hasn't yet. Well, okay, so semiconductors, by and large, this earning season, you've had three good stocks that I can recall off top of my head that have rallied that are AI related after earnings, ticker symbol AI, PLTR, Palantir, and the VINIA, NVDA, which is not down a lot. Let's put it that way. Forget about having a huge rally. It's just not getting crushed.

And that folks is really, there are some others. But those, you know, the fact that you have Pallantier, which was just added to the S&P recently, and NVIDIA, those are the two big AI-related stocks, du jour. Now, that can change, but of the day, those are the two big ones. All right, I'm going to continue to watch those as a proxy for demand for the market and see how the rest of the market reacts. And there's other ramifications throughout the economy. For AI.

And guess what these big tech companies are doing? they are in power, nuclear power specifically. You saw Microsoft do a deal with C-E-G. Microsoft's tickers MSFT, Navidia's tickers NVDA. I like to give the tickers in case people and pull them up to see the charts. And then after the Microsoft CEG announced,

turn Three Mile Island back on, you had Google announce a big, huge, I think, a multi-100 million dollar deal with a private nuclear company. And then you saw Amazon come out, AMZN, and do a deal with Dominion,

ticker symbol B. In and around the D.C. area, Maryland kind of area. Now, that's heaven. Meaning what? For those type of... It's heaven when you can connect the dots. You say, oh, okay, hold on a second here.

AI needs power. All right. The companies know that. And they're investing in that technology. It doesn't mean you go buy all nuclear power stock. All I'm just saying is, oh, okay, we're putting the pieces of the puzzle together. And AI now Navidia showed us that they're up after earnings. They're not down a lot.

Let's put it that way. Up down. It doesn't make a difference. They're not down a lot. Okay. And they reported strong earnings. Earnings were up over 100% last quarter compared to the same quarter last year. Great.

The theme's still there. Demand is still there. And that's what we did. That's what I do. Someone the other day told me, hey, it's kind of like you're a detective. I use the word kind of like because it's a good way of simplifying it and taking us out of the situation so we can see things clearly. Yeah, I'm looking for clues. It's just that simple.

I want an edge, investors edge. I want to be able to look at the environment and say, oh, one plus one equals two. Let's extrapolate. I'm not predicting what's going to happen tomorrow. Like Gary says, I don't know what I mean for dinner tonight. but I want to stack the odds of success in my favor. Hey, we're in a bull market. Surprises and bull markets happen to the upside, typically, not the downside.

For the most part, now there are exceptions, of course, but most of the time, a trend is you make the trend your friend. You've heard about trend following, you know, you want to follow the trend. Okay, great. We're bull markets and uptrend. Near-term support for the major indices has been the 21-day moving. average and then the 50-day moving average. And I've been saying that week after week after week.

And what happened? We came back, we tested it, and we bounced. So far, so good. We'll see where we close tomorrow, but for the indices, the major indices, we're seeing buyers show up. Remember, rewind the clock two weeks. We had the election, big rally. Then last week, market sold off, undercut the election post-election rally.

It was gone. Well, all right. This week, it was a major. make or break it week. We had a chance for it to roll over and keep falling. Break the 21 day moving at, this is the S&P, the Dow, the NASDAQ, any of the indices, and keep falling, break the 50 and keep falling. Or do what actually happen, have the bulls show up and defend support. And for now, the bulls have been showing up for the most part and defending support. Look at that 50-day moving average. Gary's harped on this and mentioned it many, many times. Why? Because it works.

and it's very important. Muy important, though. I can't speak Spanish. I said what I did. But three important. How about that? And it's held for now. So, 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 and only Investor's 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.

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In this episode, we are diving into gut health with CVS pharmacist Victoria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic bloating, chronic stomach aches. Like I get a stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomachache every day. or I'm constantly feeling like gassy. And all of those things are not something that generally, if you have a healthy gut, you should be living with.

So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can probably identify something that we can change. Hear the full conversation, plus some fascinating facts about how gut health affects so much more than just your stomach on Beyond the script, a podcast from CVS Pharmacy and IHeart Radio. Listen now wherever you get your podcasts. All right, quick quiz for the hiring managers out there.

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or pursuing a lifelong passion. Our programs are designed for people who never stop. You bring the fire, APU will fuel the journey. Learn more at APU.apus.edu. It's time to switch on the integrator units and get the brain cells working. 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 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 at your leisure 24-7 anytime you want from any device, all for free. All that's available at garyk.com. All right, a few more things to cover. We spoke about Navidia's earnings, spoke about the fact that it's very important to look at Navidia and understand, you know, put things, the pieces of puzzle together and say, hold on a second here.

Is this important? Yes. why or why not? Okay, it's important. Why? Proxy for AI. AI is important in the economy because it's a new revolutionizing potential technology that can tremendously change the environment for many, many people, thousands of lives. Think of the internet back in the 90s or the late 80s or early 90s and most of the 90s. Or think of the automobile industry or think of any of these big railroads or steam engine. Think about big paradigm ships in the economy. I'm going to pause for a second. Give you a little history lesson that I learned, and it's very helpful.

There's a famous investor. I met him years and years. I think it was like 20 years ago, a little over 20 years ago. Jim Rogers. He used to work with George Soros and helped him build the big quantum fund and when George was coming up and all that fun stuff. Anyway, this guy, Jim Rogers, famous guy, big need to come out of these. He was giving a speech at one time in some conference.

I went up to him afterwards. You know, after the speakers were over, he'd go up and I was the young whippersnapper. hey, you know, what do you think, this, anything. Anyway, I wanted, sometimes speakers just talk and crowd shows up afterwards, and I was in the crowd and, okay, so I asked him a question. And I said, you know, he had just moved to China or Singapore or something like that. He took his family and he had kids and they wanted to teach a Mandarin. He's like, okay, the future's over there.

And I didn't quite understand it. So I'm like, why? And in it, he gave me a really powerful lesson. And I didn't understand at the time, but as I get older, here we go. Maybe I still don't understand it. Who knows? But he said, power follows wealth. And if you look at the world, for years, the Western world was where the money was. Okay, great. We've got the power. Now all of a sudden, he didn't like the debt and the deficits. And he could see going forward, the debt and the deficits are going to get huge and out of control.

And lo and behold, here we are now, 20 years later. Debt and deficits are huge. So, oh, wow. Now, it didn't change the fact that all of a sudden, you know, we're still the biggest country in the world, capitalism, all this kind of stuff. It was just one man's opinion. Now, whether he's going to be right 50 years from now or not, who knows, I live in the moment, I trade in the moment, our economy is the biggest in the world. Our stock market's the biggest in the world. Our stock markets at all-time highs are just thereabouts. Super bullish.

I'm not going anywhere. My family's in America. I'm raising my kids here, raising my wife here. That's his opinion. So I'm going to pause for a second and say he can choose to look at the data and come to any conclusion he wants. Now somebody else, me, you or anyone else, can look at the same data to a complete different conclusion.

So it's not so much what's the external environment, you know, what's happening, the news de jour. What really matters is what you do about it. So think of these people that are, you know, paralyzed, God forbid, and then they're super happy. And you've got people that are gazillionaires and they're miserable. It's that inner game. That is so important. The news, the data's out there.

All right. Look, Target, I mentioned earlier, gap down yesterday 20%. Or something like that, 17, 18%, whatever it was. Huge gap down. One of my wife's friends, her husband told her, hey, honey, I'm going to buy you shares of Target because they're on sale. And you're going to get him early for Christmas. That's your Christmas prison.

You know, somebody like me, and my wife was like, is that a good thing or a bad? I'm like, eh, he's free to do whatever he wants. If that works for him, God bless him, good luck. It's not going to work for me. He's like, I'm not buying you shares of Target after it goes down 20%. Now, if it gapped up 20%, you've got my attention. And a few weeks ago, he bought, or maybe a month and change ago, the same guy, he's a friend of mine or a friend of the

family's kind of thing, he went and bought shares of Newman, NEM, when it gapped down. He's like, oh, gold stocks and this, that, and the other thing, and it's so cheap and priced a book and sales, all this stuff. Great, God bless you. I'm not doing that. I think the stock fell another 20 or 30 or 40% after he bought it, after it had a huge gap down. Now, I'm not to say, this is right. I don't pass judgment in the markets in my book. By the way, if you haven't read it, by all means, go out and grab a copy. It's on Amazon or Barnes & Noble. It was number one on Amazon every day for three months.

In it, we teach people how to make rational, not emotional decisions. Take emotions out of trading. Okay, great. And it's really simple. There's cartoons in it. And I think it's the only investing book with cartoons. But in it, I say there's an infinite number of ways to make money in the market and in life. But in the market, your job is to find one that works for you.

And that folks is super important. Super, super, super important. Why? Because if that works for him, sure. I'm not doing that. There's no way I buy a stock that goes down 20% on earnings and buy it and tell myself it's getting cheap. It's just not the way that I, it's not my worldview. There's no way I'm going to take my family and move to Singapore.

Sure, that guy's richer than I am and he's smarter than I am and he's more famous than I. That's great. Good for him. God bless him. I'm not doing that. Again, having ownership in your decisions allows you to sit through the difficult times and allows you to thrive when things are good. And sure, he's probably right. You know, this stock's getting cheaper or power follows wealth or whatever smart thing someone says to justify their behavior. Sure. All I want to focus on is the one variable that I can control, and that's the price. My entry, my exit. The one variable is risk. All I want to focus on is price, and the one variable I can control is my risk, for the most part.

You know, the three magic questions, you can write this down before I buy a stock is, where am I going to enter, where am I going to exit, and how much do I risk when I'm wrong? Where do I enter? Where do I exit? And how much do I risk when I'm wrong? And I know for me, that works. I'm a growth investor. I like, stocks that go up. Very simple. I'm not a good. That's why I look for price. I'm look what shows up in my statement. Price. Not fundamentals, not value, volume or MACD or RSI or L MNOP or QRX or TUV. It's price. So I want to focus on price and when I make money if I buy something price has to go up. It's super simple, but super powerful. The U.S. military is the strongest and

biggest military in the world. They have a saying. It's called kiss. Keep it simple. I always joke around. The last S is for me. Keep it simple. I had a big meeting this morning with big investors and, you know, all these kind of people. And they want complex algorithms to invest. And they're trying to use chat GPT, type in complex algorithms. And I did the exact opposite. I'm like, no. Simple. Simple is powerful. Up next, we've got a lot more to discuss. I hope this helping for you. I'm Adam Sarahan. This is the one and only Investors' Edge. Hi, I'm Dr. Jake Goodman, host of Beyond the Script, the podcast where I sit down with pharmacists to answer the health questions you didn't even know you could ask at the pharmacy

counter. In this episode, we are diving into gut health with CVS pharmacist Victoria Motola, who explains why so many of us live with stomach issues we should not accept as normal. A lot of what I see is just like chronic blowings. chronic stomach aches. Like, I get a stomach ache every time that I eat. And it just becomes like a lifestyle where, oh, yeah, you know, I just have a stomachache every day. Or I'm constantly feeling like gassy.

And all of those things are not something that generally, if you have a healthy gut, you should be living with. So that's when we deep dive. We deep dive into your medication. We deep dive into your OTC medication. And then at that point, we can probably identify something that we can change. Hear the full conversation plus some. fascinating facts about how gut health affects so much more than just your stomach on Beyond

the Script, a podcast from CVS Pharmacy and IHeartRadio. Listen now wherever you get your podcasts. All right, quick quiz for the hiring managers out there. What's worse? Being understaffed or being poorly staffed? Well, that's a trick question, because both are recipes for chaos. Either way, just say to yourself, this is a job for indeed sponsored jobs. You'll get matched with candidates that meet the skills, certifications, and everything else you're looking for. Or go a different way and get no traction. Seriously, sponsored jobs posted directly on Indeed are 95% more likely to report a hire than non-sponsored jobs.

It really is a no-brainer. Spend less time searching and more time actually interviewing candidates who check all your boxes. Less stress, less time, more results. When you need the right person to cut through the chaos, this is a job for Indeed's sponsored jobs. And listeners of this show will get a 75% of the job. dollar sponsored job credit to help your job get the premium status it deserves at indeed.com slash podcast just go to indeed.com slash podcast right now indeed dot com slash podcast terms and conditions apply need to hire this is a job for indeed sponsored jobs success starts with your drive

an american public university is here to fuel it with affordable tuition and over 200 flexible online programs APU helps you gain the skills and confidence to move forward. Whether you're changing careers, starting fresh, or pursuing a lifelong passion, our programs are designed for people who never stop. You bring the fire, APU will fuel the journey.

Learn more at APU.APUS. dot edu. 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 Coltbaum.

It comes highly recommended. You're going to feel better. you talk to. And welcome once again to Investors Edge. In case you're just joining us and missed any part of the show, you can go to GaryK.com, rewind, fast forward, listen anytime at your convenience 24-7, all for free, on GaryK.com. If you like Gary, you want more from him. By all means, I recommend joining Convictionleaders.com, which is his premium service. You get daily reports several times a day.

You can see the market from Gary's point of view and get daily webcasts, weekend web, web, where he shows you chart after chart, after chart, and tells you what he's seeing to help you train your eyes so you can see it too. All right. We're talking about markets. We're talking about structure, risk reward, you know, focusing on the information, filtering out the noise, coming up with your own decisions, owning your decisions, looking at the data. We're all looking at the same data.

This guy, my friend, I'm telling you about it. I'm not picking on him, but he buys Newmont when it gaps down. he buys target when it gaps down. In his mind's eye, in his story, his belief system, that's a quote-unquote good thing for him to do. Great, God bless you. Again, I'm not passing judgment. Whatever works works.

He might look at me like I'm absolutely crazy buying a stock that gaps up on earnings. Hey, for each their own. It's the beauty of life. Finding out one approach or having a simple structure is so powerful. Because if you look at any performance-based business, Remember, we're in the performance-based business, just like professional athletes.

Michael Jordan can stand next to me and shoot that basketball all day long. I try to shoot it. He literally cannot tell me exactly what he does. His muscle memory, even if he does, his approach might not work for me. I'm not as tall as he is. I'm nowhere near his height. So maybe he doesn't need the same effort for the ball to arc and go in. Who knows?

I have to figure out an approach that works for me. Now, if I'm disciplined and I have structure and I practice and learn and iterate and get better and get better and get better and work with coaches, you know, really make this a priority and do the hard work, especially when I don't want to, there's a chance I'll get better. Take it two people. One person has structure and discipline to accomplish a goal. The other person does not. Who would you put your money on? The person with structure and discipline? Most likely, not always, not a guarantee, but most likely they'll go further than the person that doesn't.

So with investing and trading, it's the same thing. It's a performance-based business. Once you hone your craft, you practice, you do very well at it, you learn from your mistake, so on and so forth. Over time, you can make a lot of money, just like athletes. Make a tremendous amount of actors. Same thing. It's a performance-based business where the very best of the best get paid to perform very, very well. And it's an art more than an exact science.

But that's the beauty of it. Anybody can enter this playing field. Look, I'm short. I'm 5-6. Maybe on a good day. 5-6. 5-6 on a good day. 5-6 on a good day.

It doesn't make it. 5-5. It doesn't make a difference. I'm short. That's what the point is. If I'm going to go play basketball against Shaquille O'Neal or Michael Jordan and LeBron, I don't have a chance in the world to win. Physically, it's impossible.

In this business, however, what drew me to the business, the markets, It's a level playing field. Anybody can enter. Anybody can succeed based on the mental reps, the mental sit-ups. Their discipline. Do they have structure? Michael Jordan, you know, there's two good books I can recommend reading. I have no affiliation with them.

Tim Grover wrote them. One's called Relentless. The other one's called Winning. W number one in an inning. So it's winning. Instead of an I, it's number one. And Relentless. Two great books.

Tim Grover trained. Kobe Bryant, trained Michael Jordan, trained Dwayne Wright, and so many others. Okay, great. Talks about the winner's mentality. Champions mentality. Michael Jordan would win a championship immediately. His brain would focus on the next win. He'd be in the gym at 4 o'clock in the morning with Grover shooting free throws,

practicing when his other players were sleeping. The competition, sleeping. This guy relentless wants to win. As I was reading those books, look at the market. I'm like, there's so much parallel. It's borderline the same thing, is what it takes to become a champion, what it takes to become excellent or excellente, for those of you that speak Spanish or I think it's excellent in Portuguese also, become excellent, strive for excellence.

That's what I want for myself. I want to be the best I can possibly be. Bring out my inner superhero. I talk about cartoons in the book. One's a superhero, the smart money superhero. And the other one is what I call the dumb money beast, where it's like a Tasmanian devil character, runs around, makes emotional decisions, jumps from one trading system to another trading system to the next shiny object and just constantly chasing his tail. Which, that was me for years when I first got started in the 90s. Then, hold on, pause.

Calm down. Relax. Calm, cool, collect. Take control. Get that structure. Get that discipline. Do the mental reps. It's a level playing field.

Anybody can compete. Anybody can win. Okay, Adam. Learn. You got one job. You don't know how to do. to do it, great, go learn. That's been the story of my life, my golden thread since day one. Learn. That's simple. Learn. I found Gary in the radio, started listening. Next, read books. Contacted

Gary. What books do you recommend I read? Go read Weinstein. Go read O'Neill. Go read this, go read that. Gary had a book. I read it. Gary's a CD. Took the courses. Knock on the door. Just keep knocking. Knock, knock, knock, knock. and most don't work, that's okay. Most trades don't work. That's okay. I learned this from nature. You know, there's an apple tree has a thousand seeds. I'm just making up the number of seeds.

It doesn't matter just for easy math and the sake of this illustration. Let's say a thousand seeds come out. 999 fail. Nature loses one 99 times. That's okay. Why? Because the one seed that works, you have a new tree. That creates, ready for this one?

Almost an infinite number of new seeds. Why? Because the next tree comes out. 99 fail. 999 fail. One comes out, new tree. Same thing. Winsh Rosh repeat. You have a whole forest. And nature produces and it's lush, it's green,

it's beautiful, the whole world has, the plant system works. Even though the vast majority of those seeds fail. Why? It's asymmetric risk or work. So we're trading, it's the same thing. When I'm wrong, I want to be wrong, one unit, $1, 1%, one number. Whatever that number is, half a percent of my

portfolio, 1% of my portfolio, 10 basis points, 20 basis points, whatever it is. Wrong, small. That's the concept. And when you're right, let those winners run. You do that over and over and over again. You can compound your wealth and perform very, very well. No matter what the system is, I've loved to learn.

I've talked to countless investors. And there's a common theme. The ones that are very successful tend to keep their losses small and let their winners run. Irrespective of their fundamentally slanted or technically slanted or quanted, quantum or quantitative or whatever. It doesn't even matter. Do those sit-ups. Get that structure.

There's thousands of stocks out there in ETF and all this stuff. How do you distill it to a handful or two handfuls or maybe 10 or 20 or 30 or 50 stocks? And then out of those 50 or the 100 stocks, whatever the universal stocks as you're looking at, how do you find the top 20, top 10, top five? What type of structure do you have? to digest and make sense of all the information out there. And ready for this? I'm going to take it a step further.

Have guardrails to protect yourself from the dumb money beast inside you, meaning that emotional side of you that just wants to go out there and make decisions and buy sell, buy sell, buy sell, buy sell, buy sell, guardrails. Don't take my word for it. Ray Dalio, the biggest hedge fund manager in the world, one of the most successful people in my business, wrote a book called Principles. Again, I'm not affiliated with it. Recommend people read it.

In it, he talks about guardrails. protect yourself from yourself. I woke up with a stiff neck today. I don't want to get out of bed. Six o'clock in the morning. I'm sleep for another few minutes. No, get up. My wife's up.

My kids are up. I'm taking them to school. It's my thing. I drive in the school every day. In addition to lots of other things, but the one thing I've done religiously every single day since those kids were born, I'm driving those kids to school.

Get up. Go. I'm going to raise my standards. Tony Robbins talks about that. Every weekend, every night, I'm doing work. I'm looking at the market. I'm looking at charts. I'm looking at the leaders.

Every day after the open, I give a breakouts report. Every single day, pre-market report. I'm right. I have structure. I want to know my own trades. I want to look at the quote unquote pain side of my losing trades. Find patterns. What am I doing wrong?

Am I chasing? Am I not chasing? What's happening? How do I improve? And then over time, what ends up happening is you learn and you improve. Look, Elon Musk, the genius that he is, like him or hate him, whatever it is, irrespective, he's got a great line. And what he does is this. See, five rockets.

He's going to shoot rockets up. Have four of them explode. He doesn't care. No one doesn't get hurt. Learn, learn, learn. The fifth one works. When he's wrong, he's wrong. Small.

When it right? Great. tremendous success. All right. Up next, we've got a lot more to cover. I'm Adam Saran. This is the one and only Investor's Edge. Hi, I'm Dr. Jake Goodman, host of Beyond the script, the podcast where I sit down

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Action! In the guesters' head. with Gary Culper. And 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 to anything at your convenience, anytime you want, 24-7 for free on any device.

All right, so we spoke about a lot so far, and a lot of my stuff is general, not specific to the market that day, because I'm not on here often. But I want to give you just tools you can use, structure, principles you can use, values, you know, things that I've learned that really changed my life. And a lot of them is the stuff I share with you where it's like, oh, okay, hold on a second here. Let's look at things differently.

Is this serving me? Whatever this is, yes or no. Is it helping me, this behavior, this thought process, this anything? I can tell you another big change in my life. One of the biggest things that happened to me that changed my world was shifting from a pessimistic mindset to an optimistic one. I grew up in a world, a lot of adversity, overcame a lot of adversity my childhood, this and the other thing. The environment was pessimistic. Okay, love everybody around me, but that was the environment. Guess what?

As an adult, when I count to my 20s, I had a choice. I can stay with that pessimistic outlook, or I can consciously shift it and create a new outlook. Optimism wins every single time. I could tell you somebody who made that switch, there's no way I'm going back. I was in Cancun, Mexico a few years ago, and it was six o'clock in the morning. We're checking out of the hotel.

My white kids were really young. Wife's there. We had to go to the airport and you wake up. The kids were cranky and blah, blah, blah, blah. Whole nine yards. We're at the front desk. It's back when people are at the front desk. Now everything's online on the app and you check out on the app and whatever it is.

But back in the old days, right? I'm at the front desk. And this guy's dripping sweat behind me, shorts and a t-shirt. Older gentlemen. So I'm like, what is this guy doing at this hour, like at 6 o'clock in the morning? and he's super upbeat, and he's just jumping up and down, great mood. So I'm like, hey, how are you?

And he's like, great. Actually, he said the word, Excellente. And that was the theme. The staff was trained to say, Excellente, you know, the whole time, that's where the word came from. So anyway, he gets talking.

He's a doctor, surgeon from Toronto, and he deals with death the whole time because people die and he tries his best to save people. And just small chit chat while we're waiting online, but there was like three or four people in front of us checking out. So it turns out, he goes,

today's the best day in my life, but he screamed it, like almost this, like, I don't want to scream it because I don't want to throw you off. I have higher energy today, but you'll see it. Just today's the best day in my life, that type of a thing, right? And I'm thinking of myself, like, man, this guy just sell his business, did he win the lotto? You know, that's directly where my brain went. He didn't just have a kid because maybe he had a grandkid, who knows, but, you know, right away, like my split second kind of thought process. And this guy's, no, every day above ground is the best day in my life because he deals with death all day. And I was like, wow, that is such a great way to look at life. Can I use it? He goes, yeah, absolutely. It's like,

great. So now when anyone asks, how are you? My answer is excellent day or excellent, right? Right away, just default setting. So that's another choice. All of us are creatures of habits. So what are your habits? They're choices, their decisions. To buy the stock or not to buy the stock, to hold the stock, these are all decisions. And if you don't like the results or you want better, you want more, I'm very ambitious person. I'm hungry for more. I need to sit down with myself and say, okay, here's what I've done, be honest, intellectually honest with myself, put the cards in the table, and ask myself, how can I do better? Where are my blind spots? Another word from Dallio, right? all of us have blind spots all of us have strengths and weaknesses where am i weak and how do i find

people that are strong we're on weak and then surround yourself with the winning team and you're done not you're done like it's over over time you constantly improve and iterate and so on and so forth and then you have a you have structure where your habits turn into they start stacking right go from l habits losing habits to winning habits the ws and then you start stacking W's. So, for example, looking at the market, hey, the market pulled back to the 21-day moving average, more or less, the major indices, and bounced. We're in a bull market. We know surprises in bull markets happen in the upside, not the downside. All right, last week was a bad week. Look at your stocks. Look for opportunities. Did you get shaken out of everything?

That's fine if you did. You don't have to, but that's fine if you did. Hey, where do we get back in? When things change, I change. If I enter here, whatever the stock is. Where will I exit if I'm wrong? How much am I going to risk if I'm wrong? These are all decisions. And then am I chasing? Or do I do the work in advance? That's why I do the work when the markets are closed and the night and weekends and the morning before the open because I want to be prepared. What are the best setups coming into this week? You know, tomorrow's Friday. Hey, every weekend I put my weekend report out. What are the best setups? What am I focused on? Where's the pivot point, the ideal buy price, a recent high, a bounce off the 50 day, whatever the case is.

Where can I enter where if I'm wrong, I'm wrong small, let's say wrong one. And if I'm right, I can be right big, just like nature. Up five, up 10, up two, up one, up eight, up 20, up 200, who knows. And that's a really big process, a big piece of my process, where it starts with the preparation. I think Ben Franklin had a great line hundreds of years ago. He goes, failing to prepare is preparing to fail. Say it again in different language. You either prepare to win or you don't.

My kids got a test. Hey, you knew the test is coming up. Did you study for it? I don't mean the night before. I mean, the day the school started, start studying for that exam. Because you know you're going to be tested on the material you learn. Don't wait until last minute. It's human nature to procrastinate and wait.

I get it. But you don't have to do that. That's a choice to procrastinate. If you want to stack Ws, I want to watch TV. No. Do your work first and then watch TV second. Sure, you want to watch TV. That's great. Do the work first. Well, I'll do the work tomorrow, Dad. Or once the test comes. A test next week. Start studying now. I don't have to study now. Yeah, you don't have to. You want to get ahead. You want to win? It starts every single thing you do. Do it with excellence. So hope all this helps with the market. Hope all this helps put things together. Because really the environment, the stock markets at all time high, very close to all time highs, and likely will be higher because we're in a bull market. And what happens? The trend is your friend.

Newton taught us this, right? What happens to an object in motion? Usually it stays in motion until the other object hits it that bigger force or stops it. But for now, just be prepared in the event that we do rally. I want people to participate and prosper and all that fun stuff. So hope all this is helpful. I believe that's all the time we have for today. As always, we want to thank you very much for being here. I'm Adam Sarhan. This is the one and only Investor's Edge. This has been Investors Edge with Gary Coltbaum on Biz Talk. To listen to past episodes or to get in contact with Gary, go to GaryK.com.

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