Investor's Edge with Gary Kaltbaum - Week In Review [02.14.2025 w. Adam Sarhan]

Episode Date: February 14, 2025

https://garykaltbaum.com/

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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 K. Who's out today? Today is Friday, February 14th, 2025. We have a great show for you tonight. As always, I want to thank you very much for being here.

And wish everybody a happy Valentine's Day. All right, before we jump into the show, we've got some notes from Gary. We've got a lot to cover. I want to remind you that this is a show about you and your money and all of the points in between. Just as a quick reminder, if you don't get this show in your city or you go to GaryK.com, you can listen live or archive. We're live Monday through Friday, 6 to 7 p.m. Eastern. Also at GaryK.com, you can follow Gary on X, formerly known as Twitter by just pressing the button. You can subscribe and Gary's morning notes sent directly to your inbox every day for free.

You may email Gary, ask about his money management services, or if you want to be, want the premium, Gary Kay, multiple times a day updates with actionable ideas and daily webcasts and a whole lot more to see the market from Gary's eyes or Gary's point of view. You can subscribe to Gary's premium service, which is convictionleaders.com. So, got a few highlights here. The market remains strong. We have pretty much a wall of worry, a lot of negative news coming into this year over the last four or five weeks, six weeks now, you have tariffs, fears about that. You have DeepSeek AI game changer a few Mondays ago, had the market fall hard.

Then you have possible trade war and then China sued the US and WTO World Trade Organization and thought that the geopolitical stuff and news and headlines. Guess what? The market super strong. I mean, when you have an environment where the market can't go down, most likely it's going to go up. Doesn't have to, but most likely it's going to go up. Now, a few notes from Gary.

And of course, if things change, if we get heavy distribution, meaning heavy selling, that lasts. That's going to change the environment. Right now, we have a situation where we've seen distribution over the last six weeks or so, seven, eight, nine, ten weeks. Really, the market's been going sideways since December's Fed meeting. Really, that's been, that was the catalyst. that's yet a little distribution there. The Fed was a hawkish cut at the time, said, hey, we're going to cut rates now,

but we're pretty much not going to cut for the foreseeable future or cut lower than expected. Market sold off, been going sideways since. That comes after a very strong 2024. So when the market, remember folks, the market can only do three things. It can go up, it can go down, or it can go sideways. And during those uptrends and downtrends, it goes sideways. It's called basing, consolidation. You know, markets go sideways from time to time for extended periods of time.

Could be three months, could be three years, could be longer, could be shorter, could be days. Sideways consolidations are healthy. There's an old adage that says the market takes the stairs up and the elevator down. What does that mean? Stairs up. Market goes up, go sideways, up, go sideways, up, go sideways. Every one of those sideways bases, you know, I think of the stairs when you take a, You go up a stair level and you have a little plateau, go sideways for a little bit,

then you take another step up, right? So that's how the market works, right? And the elevator down, it's fearful. And oh, my gosh, everyone just sells kind of a thing. But for now, we're in that base and we're very, you know, you're at resistance, very close to resistance, depending on the index that you look at, within pennies at resistance, over resistance. You're near it.

You're flirting with major resistance. And you've been doing so for a long time, meaning a few months now. It's not going to take much for the market. to start a new leg higher, even if you break out above that, you know, intraday high, you broke out today in the S&P, just barely, and you pull back a little bit, you go up a little bit, you futz around a little bit near it. That's not really my concern. You could break out by points, like several points. You know, QQQQ, you can look at 539-15 as the high from back in December. The S&P 500, I like giving specific levels because we get asked. The high was 609-07.

you know, you're in a situation, enter day on Friday when it's high as 610, you go even higher, lower, you know, you're in that situation. You're near it. For me, it's the spirit of the law, not the letter of a law. And what I want to see is a breakout and then a rally after. So when the market breaks out above resistance, meaning the last three, four months since December,

it's been going sideways. Every time it gets near 610, 6.10, 6.09, 610-ish, 61078, just a few weeks ago, boom, you sell off. Right? Back on the 23rd of January, you hit a high, 06.09. So it's 24th of January. You hit it high as 61078. The high in December was 609-07 in the SPY, right?

All right, you're right near it. So you got just briefly above it today, and it goes back there. To me, you get two, three points above it. It doesn't matter. Is there continuation follow through after that? That's what's important. Okay? So notes from Gary.

And then I'll talk more about the market. Gary says, I do not believe they're going to be big on tariffs. So I'm not worried about that anymore. I think it'll be tit for tat. In other words, coming into the year, there was a lot of fear around tariffs. People were worried that you'd have very big tariffs. And then it'd be a huge trade war, could slow down or stop, you know, global trade, so on and so forth. For now, that fear has eased a bit has subsided.

Next thing Gary says, big in the sea on the verge of breaking out of the world. and it sticks for the major indices. China goes beast mode off because of the government, off of the government, having in, you know, pumping more money, stimulating so on and so forth. But it all counts and we are really isolating it now, but only on pullbacks and don't know if we get good pullbacks. It was good news that we got some bad inflation numbers and interest rates went down after initially going higher, as we have said time and time again, watch the 10-year yield.

So that's, those are the notes from Gary. on the messenger, so I want to make sure I get those notes out front and center. And now let's keep going about the market. So when you step back and I like to zoom out, you know, part of what I do when I come on the show here is I don't come on often, but when I do come on, is I like to zoom out and talk about big picture timeless lessons. That's what I'm all about. Why? Because I'm not with you every day. So for me, the brief, if I can give you one nugget that potentially can change your life or improve your something to do with the quality of life or anything. hey, by all means, that makes me happy.

I'd love to do that. You know, nuggets of wisdom have changed my life. So if I can pay it forward, hey, let me do that. And that's what I spend most of the time talking about when I come on here, because those timeless lessons are applicable for just about any environment. You know, like we said, market can go up down or sideways. Only three ways any investment you take after you buy it can go up down or sideways. You buy a house.

You buy crypto. You buy stocks. You buy commodities. You buy anything. up the ETFs, mutual funds, up down sideways. Wow, simple but powerful. A lot of the market, it's really a superpower that I've learned, is being able to simplify things.

Some of the geniuses in history are being able to do what? Make things extremely simple. Now, simple, it's not being stupid or being done. or being any other negative word there. Simple is brilliant. Simple. It takes a real master, so to speak, to make things extremely simple. And when you can do that and you can explain it to a five-year-old or simplify it to the point where, oh, you really understand it, you're much more likely to have good results when you apply it. Whatever the theory is, right? If you don't understand something, it confused mind. They say marketing in a business never buys. If you don't understand

with the offer is, hey, go in to buy something. What are these guys selling? You ever get to a website or an email saying, hey, you want, and then 500 things, or I'm exaggerating, but it's just so confusing where you talk to somebody and you ask a simple question and that person goes off on 18 different tangents? Simple. The power of thinking and then acting is extremely important in this business because we're bombed with news all day long. Somebody used the word carpet bomb the other day with news and data.

And noise. Stocks are trading up, down, left, right. We've got to go this way. We've got to go that way. Oh, my goodness. Oh, my goodness. Well, slow down for a second. What matters?

What really moves a needle? All this noise and the S&P and NASDAQ are all-time highs, right, near all-time highs. At or near? That doesn't matter. You're split in hairs, right? The spirit of the law. Well, what happened to AI a few weeks ago? Deep Seek changing the AI paradigm.

NASDAQ 100, tech heavy index absorbs that news and trucks higher. And so far, a lot of earnings that have come out have come out from these AI companies and have been positive or have said Deep Seek is going to help the industry. And that's really interesting. So again, knee-jerk reactions, emotions drive our decisions. and this is the next big thing I want to share. We're all logical. We're using our brains.

Yeah, I'm making logical decisions. That's what we all tell ourselves, right? Every once in a while, maybe staying up too late, not a good idea. But for the most part, we make logical decisions. Well, how about with the market? What are we really doing? We're making emotional decisions and justifying it with logic. I like, notice the language.

I like. Like is an emotion. This stock. That stock. I'm going to buy it for these reasons. And that becomes what I call emotional logic, right? We find confirmation biases, what the psychologists call it, but we find reasons that justify the decision. Up next, we've got a lot more to cover. 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. 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 888-4-22-5-59. That's 888-4-2-5-9. That's 888-4-2-2-5-5-9. Investment Advisory Services offered through call-bomb 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 stretched than competing

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podcast brain. Symptoms include buying microphones you don't need, explaining RSS feeds to confused 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. 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 called bomb.

It doesn't get better than this. 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 GaryKK.com, rewind, fast forward, pause, listen at your convenience as much as you want anytime. I know I tend to go fast. I do my best to slow it down. There's a lot to cover. So much time.

So much to say, so little time. But you can always go to GaryK.com and pause and rewind and listen multiple times. Some of these concepts too, you know, I'm trying to simplify it as much as possible, but they are concepts that it's good to listen to them a few times until they really sink in and once it clicks in your mind's eye It's a no-brainer, but until it clicks it's like oh, okay, what do you say there again? Oh, how does that work? Oh, okay So we left off speaking about emotions, right? We're humans, we're emotional creatures. We make emotional decisions now not every decision we make is emotional not every decision we make is 100% rational is a blend. It's like a Venn diagram to overlapping circles. And the overlap has to do with a few things.

Number one is what are your goals and desired outcomes? Well, I want to make money. Of course you want to make money. I want to make money too. Everybody wants to make money. Right? I speak to investors all over the country. Actually, the world. and yeah I've been to Asia I've been to Australia so everywhere except Australia I've spoken and on Zoom calls done lots of stuff and I ask everybody raise your hand if you think you can beat the market everybody raises their hand

now statistically we know most people don't beat the market and that's called a personal blind spot bias you can Google it's called personal blind spot bias what that means is people have a hard time seeing themselves objectively In other words, ask 100 newlyweds. Raise your hand the night of your wedding.

How many of you think you're going to get divorced? Nobody's going to raise their hand. Statistically, we know half of them are getting divorced. Same thing with it just about anything in life. It's universal truths, right? That's what my goal is after. It's the truth. What works and works time and time and time and time and time and time again, again and again and again?

All right, we have a lot of news. It comes into the market, and the market reacts to the news. It's just that simple. We have a trifecta of news. We have political news. We have economic news. And we have earnings news. What happened this week?

Let's put the week in review. You had some reciprocal tariffs come out. You had some political news that continues to come out from D.C. You've got inflation news. CPI and PPI came out this week. Stocks are up. that's what matters, right? The reciprocal tariffs, this,

and you don't think stocks are up. And we had lots of earnings, lots of earnings news. And we want to separate the winners from the losers during earnings season because some of them, when they blow up, they blow up and they're big. I mean, they're down 20%,

down 30%, down double digits. And it's a big, big hit if you're not prepared. And even if you are prepared, how do you prepare? You don't know it. You have to have a cushion. That's one thing I like to have going into earnings and so on and so forth.

I have a positive environment, you know, so on and so forth. But there's still nothing you can, you want to buy puts. You maybe do that, but there's nothing you can really do, scale back your position a little bit. But again, it's one of those things. Trifective news. You have political news, economic news, and earnings news. Now the question becomes, how do you handle all this?

Really, the handling of the news is secondary. What matters is the reaction to the news, because how you process that news, and handle it and take it in and digest it all. And do I know every single data point that came out this week? No. What do I know how the market reacts to the news? The single most important thing, folks, is price, in my humble opinion. Why?

Because what shows up on your statement? The news doesn't show up on your statement. Volume doesn't show up on your statement. Price shows up on your statement. Right? So it's the reaction to the news. What if the news was bad, but the market rallied? Okay, what's more important?

Conversely, what if the news is good and the market falls? What's more important? Price. That shows up on the statement. That determines if I make money or lose me. Right? So being able to, again, isolate what matters, price, reaction, and filter out everything else, opinions, headlines, so on and so forth, is a superpower when you're investing

in trading. Think about it. It's a superpower. Because there's so much data, there's so much news, there's so much noise, being able to filter out noise and focus on the facts that give you an edge, investors edge. Right? That's what we want. Nothing that I know of works 100% guaranteed every single time in the market. But over time, there's things that work out really well.

You have a high probability. You want a positive expectation. expectancy, right? You're just fancy words. It means you want an edge when you trade and when you invest. And the beauty here is you can create your own edge. And you can learn. I have a whole chapter in my book. So I wrote a book. It's called psychological analysis. It was number one in Amazon every day for three months after I published it. I'm very happy about that. Thank everybody for leaving nice comments and supporting it and sending me nice messages, so on and so forth. The idea is that fundamental and technical analysis are not enough to beat the market. In my humble opinion, if they were, everybody would own a few islands in the Caribbean. Okay, great. So what's the missing element? You, the user. This is the story of money. I call up, I buy a printer. The printer doesn't work.

I call up HP, hey, what's wrong? The printer's not working. First question, is it plugged in? Whoops, no. Okay, there's nothing wrong with the printer. I'm exaggerating to illustrate the point. It's the user error, right? Nothing wrong with the market.

Nothing wrong with the economy. Let's upgrade the user. You upgrade cell phones. You upgrade computers. Why not upgrade ourselves? And the point of the book is teach people how to make rational, not emotional decisions with their money. And again, focus on the important things

and filter out the noise. There's so much noise out there. We drown in a sea of noise. And most of it doesn't matter. Most of it's our ego just going out there saying things just to reinforce our own beliefs about ourselves and feel smart. Notice the language, feel the emotions.

And that's powerful. Because when you have a situation where you feel smart, and you're just doing over and over and over and you're not getting the results you want, you have a choice. You can keep doing that. Oh, you can adjust and look for the truth, and that's been the story. I'll adjust. Adjust. Upgrade the user.

What works? Here's a decision. There's an outcome. It's that outcome what I want. If I keep making that same decision, guess what? I might most likely get the similar to the same outcome. So I've got control. I want to change, change the decision.

Great. Boom, boom. So that's how the mind, all of us in some capacity works. We've taken information in, we filter it out, find the important information, and then act on it or not act on it, right? The decision to do something, to buy a stock or not buy a stock, the decision to do something is a decision, not to buy a stock is another decision or not to sell, another decision. And that determines success in the market and to a large extent in life. Should I do those setups? Should I make that sales call? So on and so forth.

So when you look at the market, you got all this news. coming out the trifecta of news and this, that and the other thing, and the markets are flirting with all-time highs. My goodness is that strong. Now, it doesn't mean you're going to have to break out and have a double-digit year this year and you have a huge, you know, gangbuster rally from here. No, the market can easily roll over. But what does it mean? For now, right here, right now, this is a strong environment for the most part. All right. Up next, we got a lot more to cover. 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. 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. 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 Capital1.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 confused 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. Sprinker, because if you're going to talk to yourself for an hour, you might as well publish it. He's talking. Investors Edge. He's got to be pleased with that. The crowd is just on his feet here. He's a Cinderella boy. With Gary Colbomb.

It comes highly recommended. You're going to feel better if you talk to him. And welcome once again to Investors Edge. I'm Adam Sarhan. In for Gary Kay, who's out today. In case you're just joining us, or missed any part of the show, you can go to GaryK.com, listen live or archive. We are live Monday through Friday.

6 to 7 p.m. Eastern, or you can listen 24-7 on any device you want from anywhere in the world on GaryK.com. All right, a few more things. So we spoke about the fact or the power of making rational and not emotional decisions, especially with your money. And that's really, really powerful. It's borderline game-changing. When you understand that you have the power to interpret the data. Now, I mean data any way you want. News. Economic data, earnings data. you know, however you want to say data, and use it in a way that can benefit you, all of a sudden, you're way ahead of the pack. Why? Because what happens is you're in control. And you're in control of a few things. First, you're in control of your actions. Second, you can create structure and discipline to help you make rational decisions.

Help you process that information better. Think about two people that want to accomplish something. I want to be rich. I want to beat the market. I want to, it's human nature. We all want more. We all want better.

Be thankful for what you have. Enjoy the ride. I'm big on the personal development stuff. Somebody had a great line the other day. They said, hey, the journey is the destination. Someone's like, I'll be happy when I get X, Y, Z. When I get a million dollars, I get a six-pack,

or I lose 10 pounds. I'll be happy then. Uh-uh. You blink your eyes. What are you doing? The journey, enjoy it. That is the destined age. Enjoy every step of the way.

Enjoy the progress to get the evolution. How do you become a better, quote unquote, upgraded character, upgrade your user, right? So, all right, lots of people, common mistakes people have trading. Let's talk about just common things, right? Is that they don't have structure and they're not disciplined. I asked somebody the day, how do you make your decisions to trade? He says, I wing it. I think this is like 13th or 15th person, double digits for sure, that told me that just this year alone.

Usually every year I count and some variation of wing it. Maybe I get 100 to 300 responses like that. Why? Because what happens is you have a situation where lots of people, and I mean lots of people, they do their homework. They spent hours and hours and hours doing whatever that homework may be. Scanning stocks, you know, looking at charts, doing the fundamental research, reading 10 Qs, 10Ks, 8Ks, NLMNOPs, QRSs, TUVs, doing their home. Whatever they feel the quote unquote work is that they should be doing to help them get better results and do it week in, week out, day and day out, year in, year out.

And they're not happy with the results. I did that for years until I realized, hey, there's got to be a better way. Let's look at the actual decision-making process. There's so much information, and there always isn't a lot of information. It's never a dull moment on Wall Street. And how do I process that information? What structure, what rules, the discipline can I create for myself? You know, Tiger Woods has a great line one time.

Somebody went up to him and he was playing golf. I wish I'm as good as you, Tiger. And he walks up to him heated and he's, you know, boiling. Tiger's like, show me your hands. And a guy opens up his hands. He doesn't see any caluses on his hands. He shows him his hands. He's like, I'm here every day at 4 a.m., swinging the golf club until my hands almost bleed.

Or until they bleed. I don't know the exact quote. He's like, look at your hands. You're not doing that. Don't tell me you want that. It's like the person. It's like me. I want the six pack.

Ask me how many setups I did today? Zero. Do I really want that six pack? I'll be happy with a flatter stomach, not a six-pack. I'll be super happy. You know what I'm saying? So, okay, great. Enjoy what I have now.

Be grateful of what I have now. Okay, great. Start doing actions. Let me do one set up a day. Can I do that? Yeah, just do that. Well, that's not going to do anything. So I'm not going to do it.

Then you're stuck in that loop. What do you really want? Who's going to get their goals accomplished faster? Somebody with structure and discipline or somebody without it. Right? So create that structure. For me, every day right after the open, I love going through breakouts. I want to see the stocks that are moving that day.

Up on volume, I look for stocks that are breaking out. And around 10 o'clock, I'm good to go. I've got my list, ready to go. Check it again in the afternoon? Sure. Right after the open, want to see what's cooking. Check the pre-market, all that fun stuff. Weekend.

That's when I really shine. Put the end of the week. I do the work. What happened last week? Set the stage for what likely can happen next week, only three things up down or sideways. And then isolate strength. I love leading stocks, which are the strongest stocks in the market. I want to isolate strength.

Find those leaders. I don't just blindly buy them. That wouldn't be prudent. What I do is I wait for ideal setups. I wait for good times to buy. Stock's building a base about to break out. It's coming up the right side of a base. You have an early entry point.

I have an amped investment system. A is advanced entry points. Buying off the 50-day moving average. You know, I don't buy the dip. I buy the bounce after the dip. and so on and so forth, but I have structure. So on the weekends or the last day of the week, I go through and say, okay, what are the strongest stocks in the market? My whole goal is to find leading stocks.

That's it. I got a website called find leading stocks.com. That's it where I show my ideas. It's real simple. Find leading stocks. And then find the ideal time to buy them. They have strong fundamentals. They have strong technicals.

They're leading the market. Think about sports. Super Bowl was last weekend. Great. You know the chiefs are playing the Eagles. year. If you're a sports fan, you know where your team stands in the division, right? Are the first place, a last place, whatever the case is. If you're a sports fan, well, we're stock fans. What are the strongest stocks in the market this year? It blows my mind. Remember, I speak to investors.

I ask them all the time. Simple questions. Raise your hand if you think you would beat the market. Everybody raises their, just about everybody raises their hand. Okay, great. statistically, we know that half of them are not going to beat more than, sorry, two-thirds, if not more. 80, 90 percent are not going to beat the market. Okay, great. And then I ask the next question is, what's the strongest stock in the market right now? The top five strongest stocks. I don't mean Apple, Navidia, Netflix, you know, whatever the glamour names are, de jour. No, talking about the strongest year-to-date performance, just up the most in 2025. Nobody can raise their hand and answer it. How do you beat the market? How do you expect to beat the market, Mrs. Smith or

Mr. Jones, if you don't know the strongest stocks in the market? And then how about the most undervalued, right? From an evaluation standpoint, there's a lot of people like value stocks. Okay, great. They tell me, oh, I'm not looking at buying leadership. Great. How about the five cheapest stocks in the market if you're a value of that? They can't answer. How do you expect to beat the market? Again, that's a structure.

So for me, it's a structure. It's like have a way of organizing the market based on what works for me. And in my book, psychological analysis, I recommend everyone. I say there's an infinite number of ways to make money in the market. I recommend everyone to find one that works for them. And the beauty of life is you can have one way. of working for you and someone else can have another way working for them and both ways could work if applied properly. There's a great book, series of books, Jack Schwego, were called Market Wizards.

In one of the first ones and the third one or the second ones, in two of the books, there are two separate interviews. And one of the interviews, the guy in like the third book or the fourth book, whatever it was, opened the first book. He's like, hey, Jack, you see what you, this guy told you? This guy told you, I do the exact opposite. And look at my returns. They're phenomenal. It was nuts. I blew my mind, but I read that 20 years ago, whatever it was. I was like, what? Exact opposite. And they both are successful. So again, find a way that works for you. Know your strengths. Know your weaknesses and know your blind spots. Folks, those three things can help you level up and upgrade that user like there's no tomorrow in all areas of your life. I know I'm really good at the big picture and I'm really bad at details.

So in my life, I'm very fortunate. My wife, she's a chemical engineer, way smart of them. I always like this joke around and say, I'm lucky I can tie my shoes. She knows how to do things. She loves details, so on and so forth. Any detail-oriented thing? Hey, honey, boom. Not even a question anymore.

And thankfully, we compliment each other because big picture, that's where I shine. So it comes to details. I don't even try to go there anymore. Trading. Adam, what do you think about this, you know, two-minute chart or 15-minute chart? Whatever the guy was telling me the other day. 30-minute chart. There's a cup and handle here, head and shoulders, about to break out, whatever it was.

And I was like, it's not my world. Nothing wrong with it. I just don't know any billionaire day traders. And it's not good for me. I know I've tried that before, no avail. Not my world. intermediate term trading weekly charts daily charts longer term charts i love it i thrive in that environment short term intraday trading it's not my thing now nothing wrong with that i just know you know

know thyself i know that doesn't work for me so i'm not going to be tempted by that you know temptation endless temptation to go in there oh this is setting up really good on the one minute chart it's not my world. Now, occasionally may I do something in that world? Sure, I'm human. I'll break that rule. Every once in a while, eat the cookie when you're not supposed to eat the cookie or have a cheap day, whatever. Sure, within reason, I'm aware of it. All right, there's something up next. We've got a lot more to cover. I'm Adam Sarhan. As always, want to thank you very much for being here. This is the one and only investors' edge. Guys, it's no use putting it off. The best time for an underwear refresh is now. Tommy John

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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.

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going to talk to yourself for an hour, you might as well publish it. You're listening to What are we waiting for? Well, what are you waiting for? One, two, ready, go. Action! In The Bester's Edge. With Gary Kulp-Bah. Welcome, once again to Get 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 at your convenience 24-7 for free on any device you want. All right, a few more things here.

Before we wrap up, I know we're just have the last few minutes left of the show. Decision, structure. However you want to create structure, again, my belief is there's an infinite number of ways to make money in the market. Find one that works for you. By all means, I recommend people do it. having structure, having a way to be disciplined, having a way to protect yourself from your flaws is a great way of getting ahead and doing more of what's working, less of what's not. It's not my line. Someone else said it. Do more of what's working, less of what's not in life and in the markets.

And adjust. And now, we spoke about risk before. I'll talk a few minutes about risk and reward. Because at the end of the day, that's what we're trading. We're buying and selling. We're investing. in Apple or in Tesla or in the video or whatever the stock is. Yeah. No, no. What you're really doing is you're managing risk. You're buying the, you're risking your money. You're buying the potential for a reward in the future.

That's it. Whatever the stock is, that's what the stock is. Have strong earnings, strong technical, strong fundamentals, undervalued, you know, every other logical thing you want to use by all means. But people make emotional decisions. Right? You buy a house? No, I don't know anyone that bought a house that they hate. They absolutely despise it. I'm going to buy that stock. I can't stand it. Every time I buy it, lose money. I hate that stock. I'm going to buy a lot of it. It doesn't happen every day. In fact, it's the opposite. More frequently, maybe that happens every once in a while. I don't speak in absolute. So everything is a spirit of a law, not the letter of law. For the most part, how people behave is what? They do the opposite. I like this stock, and I'm going to buy it for these reasons. So the end of the my book, I have this whole section for cognitive biases, right? We all are human and we all have cognitive biases. One of them is confirmation bias. Where you made a decision and what you're doing

is you're looking for information that's already confirmed your decision. What? Yeah. It's good for me to do X. Well, why? Let me ignore all the bad things and find a few good things. That's one. one bias that impacts all of us, right? Second bias is a loss aversion bias. You can Google these, by the way, type in confirmation bias in Google or AI, whatever you want, and you can read about it and go deeper, deeper, deeper. The second one, loss aversion.

Investors fear losses more than they value gains. That means if you lose $5, that's going to be more painful than the reward of gaining $5, right? And that can cause them to hold on to, losing stocks for too long, hoping they will rebound or sell winning stocks too early to lock in games. Fear, right? FOMO is another really big one. Fear of missing out. That ties to it. I hate the stock you bite it. Let's say it 100. It goes to 105. I'm going to sell it because I'm scared of this language. That is going to lose my profits and I have to get out. That's it. I'm scared. I'm going to lose my profits. I have to get out.

Oh, no. Fear takes over. Right? Again. Warren Buffett has a great line. Be fearful when others are greedy and greedy when others are fearful. What that means is right there. You buy it, goes to 112. Don't be fearful. Be greed at that point. Other people can be fearful and sell it at 112.

If it's going to double, how are you going to double your money if you sell it at 112 and you buy it at 100? But people do that all the time. That's what I mean by emotional decisions. Fear is an emotion. And the other way is when you buy it at 100, let's say it goes to 95, you down 5%. A lot of people are hoping they're greedy that it's going to go back to 100. That's what you should be fearful.

It's going to go to 50 or go to zero. Notice the emotions behind the decision, right? Another one, overconfidence bias. Investors often overestimate their knowledge and their ability to interact with the market. Remember, I'm great. I'm going to beat the market. Of course, I'm going to beat the market. This can lead to excessive trading and taking on two more.

risk. It's too much risk. Oh, this one trade's going to make me rich or I'm going to retire. If this, if I go all in on this one idea and it just doubles me here, oh my God, pull up the calculator, I'm going to buy a Porsche, a Ferrari, you know, so on and so forth. Herd mentality. Another bias, cognitive bias, right? What is it? Investors tend to follow the crowd, buying stocks that are popular because it's on TV or on the news or your friend said it. And this can lead to market bubbles. Everyone's buying XYZ. I'm going to buy it too. My neighbor made so much money buying

whatever it is. Tech stocks in the 90s, crypto a few years ago, even recently, you know, AI stocks, whatever. It's herd mentality. We're familiar. Another powerful one, anchoring bias. Investors often rely too

heavily on the first piece of information they receive. That's the anchor. Or when they bought the stock, I bought the stock at 100. Now it's at 105. All that matters is I bought it at 100. Or now it's at 90. All that matters in my mind, the anchoring concept is that I bought it at 100.

And this can cause them to stick to outdated or irrelevant information when evaluating stocks. Another powerful one is recency bias. Investors give more weight to recent events than historical data. And this can lead to overreacting to short-term market movements and making impulsive decisions. There's a lot more. I have all of them in the book, but I just wanted to share a few of them with you because it impacts all of our decision making, not just in the stock market, by the way. These are just some of the cognitive biases that impact our decision to make investment

decision, better investment decisions. See the market objectively. So putting it all together, create some kind of structure that works for you. Create some kind of way of making sense of the market and helping you focus on your strength and helping you avoid your weaknesses. Find that discipline. Create the plan and trade the plan. Doesn't have to be a weekly plan. It could be a daily plan. Could be whatever you want. Infinite number of ways to make. It could be longer term. Could be shorter term. Whatever you want. But the idea is to have that plan created and then follow the plan.

And a lot of this is removing yourself from that personal blindspot bias, which is most people can't see themselves objectively. And once you understand, you're most likely making heavy emotional decisions, then okay, the question becomes is, how do we change that? How do I make more rational decisions? Am I even aware that I'm making emotional decisions? Right? It overlaps with the personal blindspot bias. Oh, no, Adam, I'm not making emotional decisions.

That's somebody else. That's Joey. That's Mary. That's whoever. Okay. So, in closing, the market remains strong. Gary will be back, I believe, on Monday. So always want to thank everybody for being here.

Happy Valentine's Day to everybody. Happy Valentine's Day to everybody. Let me say it properly. Hug your children like Gary says. And I'll speak to you again soon. Take care. This has been Investor's Edge with Gary Cult Bomb on BizTalk. To listen to past episodes or to get in contact with Gary, go to garyk.com.

That's 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.

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See Capital One.com for details.