Investor's Edge with Gary Kaltbaum - The Market is Resilient [05.15.2025 w Adam Sarhan]

Episode Date: May 15, 2025

https://garykaltbaum.com/The market closed mixed today Thursday 05.15.2025. We discussed different ways the market can pullback. We also discussed the importance of making rational, not emotional, decisions. Especially with your money!

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Valid to 3-7-select for a lot of existences. Investor's 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 Thursday, May 15th, 2025.

We've got a great show for you tonight. As always, I want to thank you very much for being here. A little bit of housekeeping to discuss before we dive in. In case you don't get the show in your city, you can go to GaryK.com. You can listen live or archive anytime you want from any device for free, anywhere in the world that has Wi-Fi. All available on GaryK.com. You can also follow Gary on X, formerly known as Twitter. That reminds me of Prince when he changed his name.

X by just clicking the button or going at Gary Colpom on X and you can follow Gary there. There's a big banner on GaryK.com. You can click on that and just follow him there. You can also email Gary about his money management services, or if you want his premium service, you can go to convictionleaders.com. That's also on GaryKat.com. You click on the big banner that says convictionleaders.com. And that'll take you to Gary's premium service where he shares daily up, intradate updates multiple times every day with memories, active ideas, nightly webcasts, weekend webcasts. He shows you charts and takes it a step further, you know, shows you what he actually sees in real time day and, day out, day and day out.

All that's available on convictionleaders.com if you want to take a free trial there. And if you don't like it, cancel. If you like it, keep it. All right, a few things to talk about today. From Gary, I want to make sure I get the notes out there front and center is, let's see here. So first off, meta, which is, again, another one formerly known as Facebook. Meta changed their name a few years ago, but meta is delaying the rollout of AI, of their AI model because of concerns about the direction of their AI investments.

So a bunch of AI stocks are coming in a bit on the news. AI obviously is a big driver of the market for the last several years. Navidia has been the poster child of that big move. You have other stocks that have benefited either directly or indirectly from AI. Microsoft being one of them, meta being another one, Google has Gemini, lots of these big tech stocks have moved into AI or trying to monetize AI. But meta made a massive, ginormous investment in AI a while ago, and they're just delaying the rollout of their AI device or what a model, I guess is the right word.

So that's one. Second, sentiment is very much bullish. Again, this is coming from Gary, but hasn't been that affected just yet. So today, we open lower, rally a little bit, closed mix. It's one of the situations where you had every chance in the world to pull back coming into today. You're super extended, super overbought, just about every major technical oscillator, indicator, reading, levels of extension, off moving averages. Sentiment indicators you look at are super bullish, are one-sided. And the analogy I use, the metaphor, the way that I explain it is it's kind of like a traffic light.

after every green light comes what? Yellow and then a red light. After every red light, it goes back to green and so on and so forth. The market's in the same situation where when sentiment is really bearish like in early April or late March, it doesn't stay like that. And you get a snapback rally. Now at the time, I wish I would have known. I didn't that the market would have this kind of a V-shaped recovery. This is an anomaly. It doesn't typically happen throughout history, even though it's happened more and more in recent years, just because of the government interference and the crazy changes of policy and Fed injecting money and whatever the catalyst is at the time. But, you know, it's rare to see a massive just, hey, snapback rally, you go from being down over 20% to being down about 4% from its all-time high in about three or four weeks. That's super rare. But after, from a sentiment standpoint, when super one-sided, super bullish would be green, super bearish would be a red light, typically.

Not always, but typically you see the pendulum swing back to the other side. So that's the next point. Third, Gary really likes the interest rates that they were tanking today. That's big. And then, let's see, what else did they want to share? We had a market a week open and came back led by the Dow and even IBM. And let's see, the Dow was breaking out to new highs with their growth. Okay, so basically you've got a situation where the environment just had a really

big move up, right? Put things in perspective. Just zoom out for a little bit. When you have a situation where you get this V-shaped recovery from April's low until now, eventually the market has to pause and consolidate that move. Not always. This could keep going straight up for another four, five, six, seven, eight, nine, ten, twelve. Who knows, right? You can get the Fed cutting rate, surprising people. You can get Trump having a huge trade deal with China, whatever. some other place, it doesn't matter. The point is that anything can happen. But what I want to focus on is probability. You know, what is the highest probability outcome and then plan and trade accordingly? Because if you're in a situation where you've got too many people on one side,

again, think of it as a pendulum that swings back and forth or any seesaw, whatever it is, people on a boat, too many people on one side of the boat, you've got to move to the other side. You don't have to, but typically markets don't just go straight up. There's an old adage on Wall Street says that markets take the stairs up and then the elevator down, where they go up slowly, go sideways for a little bit, go up slowly, go sideways or pull back a little bit, and then continue so on and so forth. Pullbacks, let's talk about those, they come in different shapes and sizes, just like rallies and just like everything else in the market.

Healthy pullbacks, well, there's two kinds that I categorize them in. healthy pullbacks and then unhealthy pullbacks. Now, what's a difference you might ask? Well, a healthy pullback after a big move up like we just had, you'd see the market go down, they're short, down by a little bit. So healthy pullbacks are short in size and scope. Size meaning it's a small percent decline and scope, meaning it doesn't last a long time, short and duration.

That's a healthy pullback. Let's say you rally what we just did. did double digits off those lows. Okay, we pull back 3, 4%, 5%, somewhere in that range. Low single digits. Unlike volume. And then all of a sudden, you find support, let's say now, the 200-day moving average would be a clear place of support. All right.

Bounces off of there, or doesn't even get down there, but pulls back a little bit, and then bounces and they're just, boom, another leg higher. That's a healthy pullback. Where you had a huge move up, you pause, you pull back a little bit. and then you have another leg higher, another stair up, right? The other way you can have a healthy pullback is by going sideways. You don't have to go down. Like Gary says, there's time and there's price. So if you go sideways for an extended period of time after a big move up or down, by the way,

same is true when the market goes down for a little bit, it's got to consolidate that consolidation or that sideways period digestion, whatever word you want to use, it's healthy. And when the market goes sideways for a little bit, that's the healthier out of both scenarios. Meaning, instead of pulling back and having trouble, it could be a shallow pullback, it's not the end of the world. But if it doesn't even do that and it just goes sideways for a little bit, that just shows you the bulls are really in control. And the market's just very strong.

And then it could work off some of that overbought condition and cooler heads can come in. And then you can have another leg up, even if it's a three or four day consolidation, a week, two weeks, three weeks, there's no rule, right? But the idea is that you have a healthy pullback. It's one of those two scenarios. You either pull back a little bit or you go sideways. Now, an unhealthy pullback would be a very sharp pullback where you see distribution, which is a fancy word meaning the institutions are selling, heavy down days on heavy volume, all that kind of stuff. kind of like what we saw in March, day after day after day, so multiple distribution days, even in February 2, that's a sign, subtle sign that, hey, the institutions are selling.

Accumulation days are the opposite, where the mark goes up on heavier volume than the prior session. So when you have a day on a healthy pullback where you have a big move up like we just had, let's say the market goes down 10% from here in a matter of days where it's a really violent pullback. That typically is not a healthy pullback. And therein lies the difference between a healthy pullback and an unhealthy pullback. Or it goes down, down, down, and just goes on for months and months and months and months. And it's down a lot. Another way of not being a healthy pullback.

So keep those two things in mind as we go into this consolidation phase if and when we get one. It's a matter of when, not if typically based on history, anything's possible in the future. But at some point, the market tends to pause and consolidate. We don't know when, but typically that's what happens. So when you get a sideways consolidation or a small pullback after a big move up, it sets up. It gives the balls a chance. First off, it shakes out the weaker hands. It gives the bulls a chance to step in and buy more, accumulate more shares, right?

Because people don't just buy, buy, buy, buy, buy. There's pullbacks. Any season market participant can tell you that, right? So you wait for those pullbacks and then you can be buying on the way back up. So I don't buy the dip. What I do is I buy the bounce after the dip. They say, okay, I don't know, I'm going to get a pullback. Okay, great.

Then what? I don't know how deep the pullback will be. I don't know how long the pullback will last. Actually, I was on Fox Business years ago with Liz Clayman and she asked me the question. He goes, Adam, you have a unique way of buying the dip. You don't do it. What do you do? I said, I buy the bounce after the dip.

Why? Because that means, oh, okay, the trends back up again. And that tends to all things being equal to be a healthier time. again probabilities which talk about in a second time to buy all right up next we've got a lot more to cover i'm adam saraham we want to thank you very much for being here this is the one and only investors edge hi i'm gary colbaum 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 to determine a proper investment strategy. If your current approach to investing is not getting you to where you would like to be, call us to make an appointment for a complementary portfolio review. The number to call is 888-4-22-559. That's 888422-5-5-9.

That's 888-4-22-5-5-9. Investment Advisory Services offered through Colbaum Capital Management. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John Underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands, and their innovative horizontal quick-draw fly is a game change. With over 30 million pairs sold, there are thousands of men out there more comfortable than you.

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Terms apply, lounge access is subject to change. See Capital One.com for details. This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confuse. used relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds

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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 Investors Edge. In case you're just joining us or missed any part of the show. you can go to GaryKK.com, rewind, fast forward, listen at your convenience anytime you want,

all for free on GaryK.com. So, a few things. We spoke about the market having a big move. We spoke about sentiment. We spoke about the fact that the market pulls back at some point, consolidates. There's healthy pullbacks. There's unhealthy pullbacks. Next, I want to speak about something that's dear to my heart, which is psychology.

upgrading the user is one of the most important things that we do. Like we upgrade cell phones, we upgrade our computers. You know, my whole, one of my passions in life is upgrading myself, my user, right? Because what's stopping me from being a billionaire? Myself, nothing else, myself, right? So, okay, let me learn. I've got one job. I know I don't know how to be up 500% every single day in the market.

Okay, that's not realistic. I'm exaggerating. Just illustrate the point. and interject some humor, but I've got one job I can learn, and that's empowering. So I want to learn. And just go out there and learn and learn and learn. I'm done to learn some more. So what is that?

That's psychology. Let's talk about it. If you haven't done so, please feel free. Go on Amazon. I wrote a book called Psychological Analysis. And the idea, the elevator pitch in a nutshell, is real simple. So we teach people how to make rational, not emotional decisions with their money. All right.

Sounds simple. Let's dive in a little bit. FOMO, fear of missing out, is one of the most powerful forces, well, fear itself and greed are the two most powerful forces in the market. And it's not me who says this. It's Warren Buffett. It's Paul Tudor Jones. It's Bill O'Neill. It's all these great legendary investors that have just done phenomenally well.

I mean, phenomenally well in the market. because they understand that humans are emotional creatures. And what happens when you're an emotional creature? We tend to make emotional decisions, and we justify it with what I call emotional logic, which is subpar logic. If you have a mind, you have biases. You have cognitive biases is what psychology calls them. And you can Google cognitive biases and find out there's lots of them.

Most of us walk around, not even aware that we have biases, let alone that we're making decisions, biased decisions, right? We're making decisions with those biases. So FOMO, fear, is a very powerful driver. I'm going to paraphrase here, but if you take people, the average human, you say, okay, the pain and pleasure, think of that. We're motivated as humans to do what? Seek pleasure and avoid pain. And you put them in a room and you say, okay, you're going to lose five bucks or $10 or $5 million or $10 million or $500,000 or $500,000 or the number itself doesn't matter. You're going to lose $5.5.00 or $5.000 or $5,000. The number itself doesn't matter. You're going to lose $0. some money. Okay, where it's emotionally painful and it feels bad. Or you're going to make a dollar. They're going to do more to protect not losing than they are to go after winning. That's why the medical business is based on curing a disease, not preventative medicine, which is what we all should be doing. Eat healthy, exercise, move, stretch, you know, take our blood work, look at our levels

and reduce inflammation, get out in nature, whatever. the case is, right, everyone's different. But there's certain things we can do from a preventative standpoint. Nah, nobody really cares until, oh no, I got this huge, awful situation. Then all of a sudden, that becomes the most important thing in my world or her world. Why? Because it's, again, it goes back to that pain and pleasure. People are more motivated, fancy word, or discipline to take action from the pain standpoint. So fear of missing out, fear and greed, fear relates to pain. Fear in general, you're in a position of a highly emotional position,

or a position of weakness, not strength, when you let the fear control you. Now, there's steps you can take to alchemize or neutralize the fear and then become friends with the fear and then turn it into from an L to a W, from a loss to a wind, to turn into something positive for you. but you've got to be aware of it first because if you're walking around making emotional decisions all day which most humans do

and they're thinking they're making rational ones those emotional decisions tend to be subpar and then when you put your money on top of it most people are emotionally attached to their money even though many people I speak to

or coaching service I got a bunch of stuff and they're like oh no I'm not emotionally attached on money it's not me really look at your actions and if you want to see what people really feel, look at their actions, not their words, their actions. Oh, I want to be in great shape.

Really? I want to have a flat stomach. Really? How many sit-ups do you do today, Adam? Zero. Really? You want that six-pack or that flat stomach? No, you don't.

What you want is tell yourself a story and then justify, a follow I'm coming from? So, okay, if we're making emotional decisions, think of a kid, somebody, a huge, human, right? Some kid who's crying and their, or a full adult is hysterical, right? Or a husband and wife are fighting and someone's really emotionally charged and someone's calm and cool. Who's going to make a better decision? Calm, cool, collected, the rational one or the emotional one? Of course, the rational one, you would assume, right? Over enough data points, thousands of thousands of people, most likely that's the case. Well, okay, great. So,

if most people are making emotional decisions and then you put fear on top of it, they're going to be making highly emotional decisions. So when we have FOMO, oh man, we had a big rally. I missed it. Oh, no. And then enter what I call a Schmelfth or the inner critic is what psychologists call it. Or the dumb money beast is a cartoon character as my book. The book's called Psychological Analysis.

And there's a smart money superhero, which is the com, cool, you know, collected version of yourself. the person makes rational decisions. And then the dumb money beast is the Schmelf character who runs around making emotional decisions. And I've shared the story before, but I'll do it again in case you haven't heard it, or if you forgot it. I learned that when my daughter was really young.

She was three or four years old, and we stayed up late watching Beauty and the Beast, and my wife was trying to brush her teeth and she didn't want to because when a three-year-old is really young and stays up too late, they get cranky, and she was having a fit, and she was crying, and she wasn't listening to reason. So I went upstairs. I did something really silly. I stood up. I don't know what came over me. It went schmowl. And I made a stomping sound like I'm stomping on an ant. And she looked over and I got really silly and I really exaggerated a lot more than I just said to you there. But she starts, I mean, she goes from crying to hysterically laughing. She's laughed so hard she literally fell over. She was exhausted and all that kind of stuff. But she fell over. She got back. She was fine. She got right back up as any three-year-old would do when they fall. It's no big deal.

And then guess what? She's laughing, laughing, laughing, we got silly. Her state changed. And now we can have a rational conversation. And it's a good idea to brush your teeth. Yeah, sure. Okay, great. So from now on, in our family, even now, kids are older.

Anytime somebody's off, we just say, oh, they're smelhing. It's not them. We're not attacking that person. It's schmelf. All right, smelph will pass. Take a minute. Calm down. Boom.

Smelf passes. Being aware of smelph, in of itself, is a game-changing because now you have a deeper level of awareness into your decision-making process. And what's the result of trading and investing? It's literally the result of your decisions. The better decisions you make, in general, all things being equal, hopefully, the better things will be. So that's when there's that fear, it's important to be aware of it, and then put it on the side. and understand there's infinite

opportunities in front of us. Up next, we've got a lot more to cover. I'm Adam Sarhan. This is the one and only investor's edge. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day.

Their zero-chafe thanks to four times more stretch than competing brands, and their innovative horizontal quick-draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you. Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with code comfort. That's Tommyjohn.com code comfort. Tommy John, comfort perfected.

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? Terms apply, lounge access is subject to change. See Capital One.com for details.

This episode is brought to you by Spreaker. The platform responsible for a rapidly spreading condition known as podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confuse. used relatives, and saying things like, sorry, I can't talk right now, I'm editing audio. If this sounds familiar, you're probably already a podcaster. The good news is Spreaker makes the whole process simple. You record your show, upload it once, and Spreaker distributes it everywhere people listen.

Apple Podcasts, Spotify, and about a dozen apps your cousin swears are the next big thing. Even better, Spreaker helps you monetize your show with ads, meaning your podcast might someday pay for, well, more microphones. Start your show today at spreeker.com. Spreaker, because if you're going to talk to yourself for an hour, you might as well publish it. 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. In case you're just joining us or missed any part of the show.

you can go to GaryK.com, rewind, fast forward, pause, listen at your convenience for free on any device, all available on GaryK.com. All right. So we spoke about FOMO, spoke about fear of missing out, spoke about some biases briefly. When you experience fear, you get into that flight or fight mode, excuse me there, flight or fight mode, and you get into a situation where your body and your mind kind of going to panic. Oh my God, the market's up so much and I missed out. or the markets, whatever, enter anything you want. This stock took off without me. I saw it. It was on my list.

I had done the research. I was setting up. It was perfect. But then I got called into a meeting. I missed it. And then the inner critic comes over or a Schmelf comes in and guess what? There's self-talk. And then it becomes a self-fulfilling prophecy of what?

A negative snowball is what I call it. And it just gets bigger and bigger and bigger until you stop it. And once you stop it, the good news is, boom, you can stop it instantly. But if you don't stop it, if you're not aware that it's even, happening, boom, game over. Why? Because our decisions control, the quality of our decisions control for the most part, the quality of our outcomes, right? Okay, great. So when you have FOMO, stop and ask yourself, hey, is this the end of the world? Let's say I miss this entire rail. I said the market's up 20% this year and I don't catch it and I miss the whole thing.

We'll make it to be okay? Yeah. Normalize that fear. Acknowledge it and normalize it. because then you can A, realize that it's there, but B, take control. And that's a game changer. It goes from being a victim to a victor. That's what I'm all about. Turning to the L to the W, right? Upgrade the user. So, oh, I don't have fear.

Okay. There's something called personal blind spot bias. Again, Google it. It just basically means, in layman terms, that most people can't see themselves objectively. Okay. What does that mean? If you ask 100 newlyweds the night of their wedding, hey, do you think you're going to get divorced? Raise your hand.

How many people think you get divorced? Nobody's going to raise their hand, but statistically, we know half of them are getting divorced. So, all right, let's go back into that for a second. So they can't see themselves objectively. Same thing with people. I speak to investors all the time. I go, okay, raise your hands, a room of 100 people or 400 people. or 400 people or whatever the number is, doesn't matter,

if you think you're going to beat the market. Just about everybody's hand goes up. Statistically, we know that most of them are not going to beat the market. But Adam, I'm different. Hold on a second. I used to think that. I'll be honest and vulnerable and share for years. Oh, it's not going to happen to me.

Really? Okay. I just had a... I'll leave that story. or a health situation show up out of nowhere, which was like, oh, okay, that's exciting. Thankfully, it passed and I'm fine. But yes, things happen to all of us. We're human.

So, oh, I'm not going to, FOMO is not going to impact me, Adam. I used to think that all the time. I didn't have the depth of awareness into my own self to be able to see myself objectively until life humbles you, markets humble you, and I decided to lean in and do the work. And say, I want to figure this out. Okay, I have a personal blind spot bias. How do I overcome it? How do I make smarter decisions?

How do I get ahead? Investors' edge? How do I get an edge? And then I would write down, I realized it's something magical. Here's something to do with my coaching clients. I'd write down my plan every night before the market opens, at night when the markets are closed. And then on the weekends, my heavy-duty stuff, what do I want to do tomorrow?

What am I focused on? Once you start doing that, all of a sudden, you're now are building a muscle. You're building a muscle of putting your thoughts on paper and getting out of your head. Look, it's not my words, but Tony Robbins and Jim Rohn and all these famous people. So get out of your head. If you don't get out of your head, you're dead. So to get out of your head is freedom. Put it on paper.

Write down. Even a sentence, two sentence. even a stock ticker, two, three letters, four letters, with a price, my pivot point. If XYZ goes above $100, I'm going to buy it. All right, you get a target list of four or five stocks, ten stocks, whatever the number is. Everybody's different. And then what? Tomorrow, when the market goes, opens and things happen, life happens, you get busy, you're around, not around, the market goes, so many stocks are breaking out this,

Whatever the case is, go back to your list. Hey, here are the stocks that I was focused on. How many of them took off without me? Did I catch them? Did I set alerts? Did I have structure, folks? This is a key, key metric in improving performance. We're in a performance-based business.

People in our business get paid extremely well. Steve Cohen bought the Mets because it was profits in the market, investing and trading. And literally, it's a performance business that you get paid extremely well when you perform well. And if you don't perform well, no bueno. You lose money or you don't get paid well. But if you can perform well, great. So if we're playing basketball, you want to shoot free throws.

Shoot three, you know, play basketball. You want to shoot three-pointers. Get better, get better, get better, get a coach. Every major performance-based business outside of an investment. investing that I know of at least, acting, athletic, sports, you know, all these those goes on and on. Typically, they have coaches. Okay. Why?

Because when you learn how to get out of your head and you can have somebody help you that can actually make, help you make better decisions, guess what? You can see your strengths. You can see your weaknesses. You can see your blind spots. Right down, you know, the biggest hedge fund manager, a very general. generation literally says these three things. We all have strengths, weaknesses, and blind spots. We want to find those blind spots. What am I good at? What am I not good at? What am I missing?

And how do I stop missing it? And that work over time becomes gold. So if I write down a report and I'm saying or just my thoughts on the market and I email to myself, week in, week in, week out, guess what happens? There's now accountability. Napoleon Hill talked about this 100 years ago when thinking grow rich. He goes, one of the most important things is to have accountability. Oh, I missed it. I saw this. It went off without me. Oh, this. He used to do that all the time. And I was in my head all the time. And I wanted accountability. So what I did, it's different than what most people do. I started an email service.

I said, okay, well, find leading stocks.com. I said, I'm going to share my thoughts with people. And there's my accountability. There's archives of my thoughts. every day and I want to see what stocks are breaking out. I want to do weekly videos. I want accountability and I want to share them with people. Where people were asking what my thoughts were at the market, I'm like, okay, let me just do this. It's a good way of getting the message out there instead of responding to each individual email and it just became too much.

Okay. Now I can go back. What was I thinking on April 7th or April 9th or April 15th or yesterday? Were my actions, and this is important, aligned with my thoughts? I want to have a flat stomach. Really, Adam? How many sit-ups you do today? Oh, none.

What do you really want? I want to make money trading, investing, this, that, and the other thing. Okay, let's look at your actions. What's the structure that you have in place to help you protect yourself from yourself, so to speak, right? From Schmelf, from the emotional side of us. We're all humans. These are some of the things that have really, and I'm sharing these things because I don't come on often. But when I come on, I want to give you a timeless advice.

That's what really drives me. I love it. And it gets me going because, okay, if I can help one person, it's a win. Living is giving. Another thing Tony says and other folks say. And it's true. You get to a certain point, you really get satisfaction of helping others and living is giving. Think of two people. Take yourself out of the equation. Two people that are investing. One person has a plan, writes down his thoughts. The other person doesn't have a plan. Who do you think is going to have better results over the long term? The person is, you know, the person? with structure and accountability or the person that just wings it and has no structure and no accountability again remove the personal blindspot bias it's not a matter of intelligence I have many doctors lawyers I even PhDs have nuclear I have people that are infinitely intelligent I don't even know the number I mean by 10x 100x more intelligent than I am it's not a matter of intelligence in fact sometimes intelligence in this business is is harmful Not helpful. Why? Because many times people that are very, very, very smart in their fields, whatever their fields may be, let's say they're doctors, lawyers, accountants, nuclear engineers, which I have, you're just in a situation. Oh, okay. I'm really good at X, but you come to the market. It's a different skill set. It's not just about the intellect. It's also about the emotional stuff because that drives the decisions. I don't know anyone that buys a stock and say, oh, I hate this stock.

I'm going to buy it anyway. All right, I hope this is helpful. Up next, we've got a lot more to cover. I want to thank you very much for being here. I'm Adam Saran. This is the one and only Investor's Edge. Guys, it's no use putting it off. The best time for an underwear refresh is now.

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Well, what are you waiting for? One, two, ready, go. Investors Edge with Gary Culpa. And welcome once again to Investor's Edge. In case you're just joining us or missed any part of the show, you can go to GaryK.com, rewind, fast forward, or the... listen anytime at your convenience from anywhere. All right. A few minutes ago, I had a big helicopter that passed. I apologize if that noise interrupted us, but it should be good now. All right. So,

it was really low too. It was very strange. But anyway, we're good now. So a few thoughts here. We spoke about markets. We spoke about the importance of making rational, not emotional decisions. I spent a lot of time on that because it's really important. And what I've, again, what I've learned over the decades, I've been doing this since the 90s, is the more humble we are, the better we tend to be, number one, but number two is the more that we're open-minded and willing to look at things differently, that's where growth comes from. Now I want to talk about breakthrough and growth, right? If we keep doing the same things, Einstein says, and you're expecting different results, that's the definition of insanity. Nobody wants to be insane than I know of, especially

you're not investing and trading and has that edge and wants to get ahead and do better and level up and all that stuff. All right. So step, another step, not just step one, but another step, is observe. And the best way to get out of your head than I know is either talk to somebody or write it down. And it doesn't have to be long paragraphs. In fact, sometimes the shorter, the better. Observe not only your thoughts, but your actions. And then more importantly, your habits.

Well, not even more importantly, equally important. your habits. So it's thoughts, actions, and habits. If I wake up every day doing the same thing, having the same thoughts I did yesterday, doing the same actions I did yesterday, eating the same food I ate yesterday, and trading the market the same way I'm a busy guy, I'm doing this, I'm doing that, but I'm squeezing in some trades as I'm running around on my phone and I'm not getting the results I want. And this is the critical part. It behooves me to do what? Change. It's not easy to change because then that ego comes in. Am I wrong? I'm not wrong. I'm not bad. I'm not the I'm not no, just pause. Reflect for a second. We're human. We can grow. In fact, growth is good.

I'm not the same person I was 20 years ago. I'm not the same person I was 10 years ago. I want that edge, right? I'm going to get, if someone's a pilot, I have clients that are pilots, I work with one degree off could send you on a completely different destination. nation. So if you can get 1% better every day over the next 10 years, 30 years, 40 years, what's going to happen? Hopefully, you continue to grow and improve and evolve and become the best upgrade the user, become the better and better and the best version of yourself. It's endless, but keep upgrading. Okay, great. And then what happens? Along the way we get breakthroughs. And what are breakthroughs? You ever get stuck doing something and you hit a wall? Of course. I mean, I have

Who hasn't, right? It's part of the learning curve. You learn how to do anything. Learn how to play tennis, learn how to ride a bike, you know, learn how to do math. Whatever it is, you learn it, you get a certain level of proficiency, and then you hit a wall.

Most people stop because that's pain and they just move away from it. Successful people understand that. It's natural, and they push through. They become friends with what's stopping them. They're blocks. And they alchemize them. They neutralize them.

They turn them from L to W's. Instead of being painful, whatever that event is or that habit is So that pattern is, let's become friends with it. Let's acknowledge it. Let's give it space. And then flip it. And let's take control of it.

And if that habit doesn't serve us, what do we do? Keep doing it if you want. Better option is upgrade. Find a new habit that serves us. When I was younger, in my teens, I used to eat a lot of carbs, rice, bread, and I was much heavier. Guess what? I learned calories. One of the most important formulas in the world.

I love simple things. Cash flow in versus cash flow out. Everyone's like, I want to be richer. I want to be richer. Someone makes $10 million a year. They spend $11. They're minus one. It's not just about making more money.

It's about controlling what goes out, right? Calories in versus calories out, the same thing. I want to lose weight. I want to lose weight. I want to lose weight. literally in one donut. It blows my mind. So, all right, I educated myself.

I'm going to change, adopt a lower carb diet, lower calories, and understand the formula, calories and versus calories out, if that's my objective. I could have easily said, oh, I always eat carbs. I'm going to keep eating carbs. All right, if you want the same results, keep doing that. If you want to change, you want to break through, want to get to the next level, that's where that change.

It's not easy. It's simple, not easy. Just like riding a bike, just like, learning anything. At first it's hard, then it becomes easy. Now you can ride a bike if someone knows how, piece of cake. Teach a seven-year-old or five-year-old how to ride a bike. Yeah, not the easiest thing in the world. But if they keep doing it, guess what? They'll get it. Just about guaranteed. Same thing with learning just about anything. At first it's hard, then it's easy. Not always. Not everything, just to be clear, but lots of things, right?

So creating new habits and doing inventory of what's serving me, what's not. Am I getting better? If I keep doing this, am I getting that 1% better or 5% better? Am I improving? Am I getting closer to my goals or further away? Here's the data in the market. How am I interacting with it? Take the politics out for a second.

How am I interacting with the market? Am I in control? Not in control. What am I doing? What are my routines? Again, routines. People are creatures of habits. Do I have L habits or W habits?

How do I change those habits? So on and so forth. That's the type of work that anybody, just about anybody can do. And I recommend people do it because that's where the breakthroughs come from. And when you start adapting new habits over time, it compounds. I gave a speech. I gave a speech. I spoke to the kid that's my daughter's school, a bunch of seventh graders a few weeks ago,

or from a few months ago at this point, but about career day. I said, okay, how many wonders are there in the world to a bunch of seventh graders, 12, 13 year old kids? Seven wonders in the world. All right, here's the eighth wonder. Compound. Compounding. Shorten how money compounds.

The end of, like, knowledge compounds. Relationships compound. Mind, like the head emoji on the iPhone, the mind explodes kind of a thing. They loved it. And it's so true. It's so powerful. So again, I hope all this helps you. The idea is to find out the data that's coming in,

filter out the noise, get rid of this. the data that doesn't serve us, the low ROI data, focus on the most important things that really matter. What moves the needle? And then do that assessment. Where are my strengths? Where are my weaknesses? Where are my blind spots?

You need help? Reach out. There's people that can help you. And then what happens? Once you become aware of something that doesn't serve you, it's a choice. Happiness is a choice, right? Success is a choice. That habit is a choice.

choice. I'm not going to do it anymore if it doesn't serve. Anyway, I believe that's all the time we have for today. Thank you very much for being here. This is the one and only Investor's Edge. This has been Investors Edge with Gary Coltbaum on BizTalk. To listen to past episodes or to get in contact with Gary, go to GaryK.com. That's GaryK.com. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John underwear is designed for a perfect fit that stays put all day. Their zero-chafe thanks to four times more stretch than competing brands and their innovative horizontal quick-draw fly is a game changer. With over 30 million pairs sold, there are thousands of men out there more comfortable than you.

Don't settle for less. Go to Tommyjohn.com today for 25% off your first order with Code Comfort. That's Tommyjohn.com code comfort. Tommy John. Comfort perfected. This message is brought to you by the Capital One VentureX card. The 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?

Terms apply. Lounge access is subject to change. See Capital One.com for details.