Matt Matthew Roberts in the production studio fly in the plane today for us hey if it's your 1st time listening to power trading radio well I might tell you right upfront that this show is fueled by online trading Academy online trading Academy has been teaching people how to trade and invest in the financial markets for pushing 22 years now right 51 locations across the United States and abroad and by the way these are brick and mortar learning centers students actually walk through a front door they walk into a classroom where there is a certified instructor that is teaching people about the financial markets for major markets that we really focus on at the Academy one of course is the u.s. Stock market that's probably the smallest market out of the out of the Fed Yes that's what most retail investors trade and that's all they can go out right but it's actually the smallest of all 4 markets but you can also trade in the options market the global futures market also the global forex market or the currencies market where you're trading currency pairs and we teach about all 4 of them but we really want to focus on 2 major activities that a person might perform in the financial markets one of course is trading we talk about this in every show Trading is high frequency buying and selling your buying and selling in the financial markets daily weekly monthly The idea here is of course is to buy stocks options currencies or futures you buy at a low price and resell it at a high price over a short amount of time over a short amount of time we're not holding these for Monster years like we would an investment right so we're going into the market extracting money out of the market that day or that week yes so day trading and swing trading is what Matt was referring to day trading is when you're in and out of your trade you're buying is all in the within the same day a swing trade is when you keep that position open overnight and you might sell it the next day 3 days down the road 3 weeks down the road you're typically not holding it longer than a month now or swing trade so we focus on teaching p. Well how to do it successfully and successful trading is when you can get it out of the market maybe accept some small losses but you also realize large gains so at the end of the day you know the gains by far out shadow any losses that you've got right and you've got more money in your capital what you saw that's the goal that's kind of the whole concept of doing it. So you know a lot of times we have people that are experienced in the markets that come to the academy and they're interested in learning how we do it they're looking for a better mousetrap because I think the average Joe out there they're not so much day traders as they are maybe more like swing traders right there they're buying a position they're buying some stocks they're hanging onto it and then they're hoping that it goes up at some point but with really no solid strategy about wind Yeah whether they sold it for a profit or for a loss they have no strategy but a lot of people confuse investing with trading so I was asked everyone when I'm teaching me about half day of workshops you know how many of you trade right now and oftentimes as many as half of them all raise their hand but when I actually get to know them they're not really traders they're investors right then they have a 4 a one k. Or an Iran they're holding on to stocks or mutual funds hoping the Fed grow over time and they believe that that's trading and that's surely just about staying so why would a person want to learn how to trade and I've got a pretty simple answer for that a lot of people like their job but they'd like to supplement that income they'd like to develop a passive stream of income coming at them outside of their salary or the bonuses in the pay that they get from their job right it's just another way to help them grow wealth over time or maybe it's a situation where they'd like to enhance their lifestyle right now get into that nicer house put themselves in a financial position that they can afford maybe a slightly steeper mortgage so they can live in their dream home Riot's Maybe it's about taking vacations like my wife is retired travel agent is you know Matt didn't she loves to. Gravel I mean that's her good shot and she would travel every month if I let them get it but. That may be in our future some time in the distant future but right you know whatever it is the dream car is just maybe just financial security. We have students though 2 will I will tell you that have retired to trade full time for a living mind and I can kind of separate these students out maybe into a couple different several different categories one is the student who's baby in their fifty's and they've been displaced from their job and they don't want to stand out upon the line you know I might or 50 years old you don't want to re re restart your career especially if you're in management policy difficult hard to get hired. And especially with you know so. There's that so there's that student who wants to go ahead and take an early retirement and they need to replace their income and trading is that about is not a bad way to do it now we have students that just hate their jobs oftentimes younger students even that just chose the wrong career path to begin with and they've always felt like they've been trading their most valuable asset asset which is the time they have left on this earth and trading that for a paycheck and then we have students of course that baby something has changed and we're going to get a new boss new order the company. Never forget the last jail b I had that guy came in and he took over and he ended up cutting everybody's pay and then changed basically the way that we did business and it really was a great place to go to work at one time we had really culturally we had a lot of enthusiasm and excitement there and then this guy comes in to squashes it all and everybody just lived in drudgery you know misery experience that twice in my life as well but yeah I see that all the time were someone loves their job and then something major changes not not just another company comes in and takes them over and they have different policies procedures but ones that they've moved to a new technology that's their entire database that companies been used to using for 20 years now it's changed and you know if you get a hold or it's hard to migrate to those newer systems I went through that. As well how to present now it's a mystery when you go to jot that job each day Sure I think there are a lot of students that do this full time because they have got a kind of an entrepreneurial spirit about them and they've always dreamed about having their own business and if you think about oh gosh if you want to go open a McDonald's franchise you need to be liquid by a 1000000 bucks to do that right this is something that you can open your trading business at a for its appearance as little as $2000.00 that you're not going to publish the world that's in South dollar tell us that this is the. Actually the show. You know he just started that he said he destroyed buildings that that's where he's gotten the feeling that it was like This is. The place Rick. Page ever wonder what happened to all that money you lost in 2008 during the market crash if you're like the average for a one k. Or mutual fund investor you lost almost 40 percent of your life savings that year now Wall Street by contrast actually prospered with companies like Goldman Sachs boasting of billions in profits from the markets that same year this is Chris Crabb your host for power trading radio you know I see it all the time on the show successful trading and investing is simply the transfer of money from the account of the person who doesn't know what they're doing and into the account of the person who does Wall Street wants you to remain educated but I don't and neither does online trading Academy in fact the folks at the trading Academy have decided to offer a series of convenient workshops right here in San Jose next week these powerful comprehensive 3 hour workshops will teach you the common mistakes that traders and investors make will show you how we time the markets with a great degree of accuracy and will teach you how to use a simple rule based trading and investing strategy that you could apply to a trading account if you want to replace your supplement your income or apply to your long term financial investments to build wealth over time the classified material of Al you but I'm giving away to our listeners today absolutely free and you know what else I'm going to throw in a wealth builder Wall Street insider tool kit absolutely free as well just call 8887128723888712 trade 888-712-8723 do it right now that's a comprehensive 3 hour workshop and wealth builder or. All Street insider toolkit 8887128723888712 trade check us out on the web at 3 o t a class dot com That's free o.t. a Class dot com all one word are you working harder and harder but just not getting ahead isn't it about time to stop worrying about your financial future and instead do something about it take the 1st step attend one of online trading Academy's free internet Dr e. Classes near you my decision to enroll in training academy it was a decision I've ever made for over 20 years online training academy is help people just like you learn skills and tools designed to help build your financial future I used to work for money and I have my money working for me during your free class you'll discover powerful strategies designed to create monthly weekly and even daily income using their patented supply and demand strategy if you call or go online right now they'll send you home with a free investor kit including videos and some of their best lessons so you can get started right away visit them online at free ot a class dot com That's free ot a class dot com. Given about what you do if you are listening to. Radio like grist for studio day mammogram and that Roberts is in the production studio producing the show for us today well we were talking about trading which is high frequency buying and selling in the markets and how that's one of the skill sets that we teach to our students at the trading Academy Now the other activity though that is important to talk about as well as of course investing in the markets and I think everybody they probably everybody that's listening to my voice is familiar with this concept you take it. Decide you're going to invest it in the financial markets so you're buying assets that you'll buy and hold over a great length of time you're hoping that those oppression. You know over time you know you want to go up in value obviously I think most people are familiar with of course with the concept of a for a one k. a Lot of Americans have their money then that's their life savings that they're checking away in that for a one k. . And by the way I'm not going to be. Antagonistic is that the right word of Balata for a one k. Choose the right there on you you can Sam take a mistake I mean negative about the former one pair. I mean to an extent I am going to be Ok so. The cool thing about the for a one k. Is that if you've got an employer this willing to match any part of your contribution Well that's just an immediate guaranteed return on your money right so that's the coolest part of that it the downside to the $401.00 k. Is that it is a buy and hold investment meaning that the investments that occupy space as far as the Tory that for a one k. Typically mutual funds are comprised of baskets of stocks and if the overall return on those companies that are invested in that go down well then the value of your account goes down ride of the money is not protected typically you know for a one time types of them if the mutual funds you've chosen and when you signed up for the 4 on one day go down we're going to lose money right I want to add something else Chris you've mentioned that you know the big benefit of a 4 a one k. Obviously is that the company typically matches that's free money that they're contributing right so we start off in. One of the most alarming things in my career as lately in the trade plan meetings that I do with students I'm seeing more and more people where they're contributing to their 4 a one k. And therefore a one k. Does not match any benefit yet said and I'm here to tell you I just had one of those meetings last week if you're contributing to your 41 k. And they're not matching there's much better avenues to save for retirement Yeah right because the problem with a 4 on one k. Again is they they typically lock you into mutual funds a family of mutual funds that company has chosen and they're just not the best performing and you could almost do an entire show just on the problems with mutual plans where is if instead you contribute to an Iraqi right that you've got a lot more options you're not limited to mutual funds we can do exchange traded. We talk about all the time we can do deploy options strategies we can invest in stocks futures for x. Currencies even real estate if you want to be a lot of people are aware that you can invest in real estate and turn around and you just have a lot more options in an Ira So if you're listening out there and you're contributing to it for a one k. That does not match anything your contributions say you'd be much better served to invest in are a little less than that contribution a yearly contribution a not for a one k. Now I know that's what I don't want which was a long time ago the most that you could contribute was 14 about a year but I know it's much more than that and I guess I wanted to say around $22000.00 I wouldn't be surprised but you know that's kind of part of it too that you know you're limited to the amount of money that you can set aside in that it is right good decent money and you want to go ahead in you know best in a tax deferred account you could open and Ira along with that but it is a no that's a contribution now $5500.00 now they actually raise that in the new tax laws in 2019 if you're above age 50 then actually do $7500.00 a year if you're under age 50 you can do $6500.00 a year right and ideally you want to do both you know if you're for a one k. Is matching obviously we do want to max out those contributions because that's free money so even if it's in a horrible like a mutual fund you're starting out of the gate up $25.00 or 50 percent depending on how much money the company's matching and so ideally we want to do both we want to contribute to the 4 a one k. And we want to max out our irate contributions each year as well well and then here's another concept for you what if you opened it and investment accounts that was taxable in your parent taxes on that each year you and I both do that who cares because you got to pay taxes on it at some point in time or another so why not have more than just to have 2 tax deferred accounts so absolutely that's what we do what we teach our students 1st and foremost in fact I was in the classroom with them. Last week and trying to work with them to get them to identify what their number is because what you're trying to do for retirement is become financially independent so the age of retirement isn't necessarily as important if you're if your target ages age 65 will figure out how many years you're going to live right now the average life expectancy is well into our eighty's so if you're to live 20 years into retirement you need 20 years of income what's that look like for you and then you know you need to make a decision do you want to withdraw the financial horns of risk once you do go to a fixed income or do you want to still keep your money at risk in the markets and if you're conservative person like me I think I want to stuff my money in a mattress I'm not sure. I've had students do that before yeah you know but you need just to identify what your lifestyle looks like and how much money you need to spend each year to pay the mortgage right probably add at additional several $100000.00 at least for medical expense extended care insurance that kind of stuff now if I double your number is if you find out what your number is you'll be in the top 4 percent of America who's different from has done that at least you know oh yeah then you need the average person spends more time planning their wedding and made to preparing for retirement right. So you know just this is what we teach our students we teach our students then some other things number one and I was listening to the radio coming in here today and there was this of this quote unquote from the actual guru talking about how the swings in the s. And p. 500 and how that affects your counsel he's telling everybody well you should expect this to happen and don't be alarmed by it but you know I'd be a larger buy right because Wall Street's going to make money in the financial markets no matter what right it doesn't matter if there's that the swing prices going up or if it's going down they make money on both of those moves and you could do it too if you just knew how to do it the other thing as well. Could protect their money they know how to hedge it that's what a hedge fund is exactly that guy this guy or gal who's managing that fund is using protective puts which are options the option to sell it legally sell it now legal binding agree that. If the price falls so that's what we teach our students we teach our students really protection 1st and foremost to risk management 1st and foremost what you had mentioned earlier was interesting so the person on there on the radio who said you know these dips in the market are to be and to support it and not to worry about a similar reason he's saying not to worry about it is that you know we're in this for the long run and over time again it's going to go out but remember we can't invest with a one size fits all approach right yeah I was just having again a trade plan meeting with a student last week where we discussed this if you're 70 years old we don't necessarily have 9 years to get back to you I think right again so if you do go through 3 corrections like we did last year from 2018 the market fell 10 percent 3 times the students I'm meeting with are still recovering from that and we don't always have that much time to get back to even and also that assumes it's going to get back to you then we don't know if it's going to come out or not now of course history would suggest that it's going to but now we're getting into gambling right and what you just mentioned a professional investor they don't gamble right they I'm sure there are long term investments in case they do go down so right always in the money we're always making money each year we're not having to wait 9 years to recover want to goes down well here's the thing about the financial markets it's that they are somewhat unpredictable. The person that was on the radio this morning was saying that prices fell because of news because of that news we kind of took talked about that right on the show was it last week or the week before us Terry the tariffs that you know it's true that new news can cause people. Make decisions change their mind about their investments if there's enough people selling today that it can cause prices to go down over all right Anshul markets and that could be caused by specific news it could be caused by propaganda could be that the big banks and institutions really want price to go down today and they create some propaganda but it is these are speculators making the decision that I want to sell today and that's what's causing the price to go down right so last year we have $3.00 price dips of 10 percent that's caused because there was enough people selling off their shares to try to dump their positions that it pressed the press the price down yeah that's t