The Dark Side of Day Trading Nobody Talks About

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0:37Not an Empower client paid or sponsored. When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check Lyft before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. Ernest, what's up?

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1:46More Americans listen to podcasts than ad-supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined. Learn how podcasting can help your business. Call 844-844-IHART. Let's go to the trading tip of the week. Most traders will be better off trading off the one hour or the two hour and having less trades per month. But having entries at a better entry price to avoid being stopped on it. I know it's a lot more fun to probably trade off of a two minute, 60 second chart. Some people are trading. I've even seen people trade 10 second charts.

2:26It's exciting and exhilarating, but less is more. And the reason why I bring this up, I've had a conversation with somebody yesterday who was on the verge of taking their life because of a loss. And when you get to that point, that's not the time for counseling for what went wrong and what could have been done better and et cetera. but whenever I've had these conversations it was because the leverage was too big and then the time horizon that you're trading off of is too small now when the market is closed everyone says well yeah I'm gonna look at the week the day the hour then I'm gonna go to the 10 second chart and make my entry if you've ever traded off of micro time frames it's moving so fast all you can do is put your eye on the smaller time frame chart so you'll be much better trading off the one hour or the two hour or in your swings trading off the eight hour into 12 hour and have a bigger macro view opposed to constantly trading on a smaller time frame trying to get a better entry and you're not seeing the big macro picture of what's going on in your trades that's uh 10 seconds is i guess you got to know what kind of investment i mean even with that that's one of the biggest lies i ever get told in investing and trading too you got to know your personality your personality does not give a damn like it doesn't matter when they get to sweeping liquidity yeah i gotta know the real that sounds good people tell you that because they don't want to tell you the answer of when to buy it's like when buffett be like yo just buy the s &p 500 i know that dipshit respectfully but tell me the real thing to buy that you're going to put 35 of your holdings into the personality does not matter to when liquidity sweeps and stop hunting that is true i'm just speaking from a just personal standpoint like the idea of watching something on a 10 second chart trying to invest something it's i mean you have people who will scalp and and that from that standpoint like know what you want to do not the type but just know what you want to do right because that is extremely volatile it would cause me anxiety right if i'm and the algos don't even do it like it's a great and if you're trading 10 seconds right think about what the algorithmic traders are doing like they're doing less than a second they're doing a tenth of a fraction of a second so you're actually still behind by a large gap in terms of time and even when the algos are trading those fraction of a second trades they're still looking at price disparities on on high time frames yeah be careful not saying that it can't be done but for 99.8 percent of people it's not gonna happen my trading tip is this and me and Shadi had this conversation earlier you know nobody spoke about this but quadruple witching actually happened last week right and so that's when option contracts expire and a large amount so when the year starts it's usually four dates that come out it's usually a January date there's a March there's a June September and then usually toward the end they'll put out the December one so it goes in rotation that would be five but like January it kind of fluctuates.

5:40And so why is that important? Because the June options expired, that June 19th date, obviously the market was closed, but they expired on June 18th. New contracts start to be created. And so when I'm talking about adding to the expiration date, now I'm looking at, okay, if June 26th is off the table, are we now going into Jan 1 or January whatever date, 2029. I'm looking two and a half years out. I'm looking for companies that have depreciated in value that are going to be strong companies. I'll just use an example, Microsoft, trading at below 20 to 30%, strong company, has a strong balance sheet, has cashflow.

6:26Can we look to contracts out there? So that would be my trading tip of the week. Once you start to see quadruple witching happen, which is a lot of sell-off. New contracts are created, so let's start looking out to those dates. I'm sure NVIDIA will be out to January 29 at some point in the next two weeks. Microsoft, Apple, all the mega cap companies will start expanding out, and then the ETFs will go out as far as well. So if we want to buy time, this is the time to start looking at them early. Yeah, switch your features contracts over, too. Yep. Yeah, switch your contracts over. Somebody said, what is triple witching quadruple witching so that i'll give you the the dates and i'll give you the definition so that's going to happen four times a year it is the third week in the of the last in the last month of each quarter so march the third week of march third week of june third week of september and third week of december where option contracts and futures contracts i shouldn't just say options derivative contracts are originated and a large amount of them expire so for example If you go out into 2028 right now, there might be just three months that are out there if you're looking to buy contracts.

7:39Why are we doing that? Because, again, time is our most valuable asset. And so if you look and it says January 2028, it might say June 2028, and it might say December 2028. And those are the only three expiration dates you can have in that year. As time gets closer, you're going to start to see more. You'll see March. You'll see September. You'll see February. You'll start to see August. like if you did that in the year 2026. You look every month is there. So which in, right? Large sell-off, large origination. So that's why it's important to know those days because if we're looking out to buy time, well, here comes the time where new contracts are being originated as a lot of them are being sold off.

8:18And if you guys look on Charles Schwab, if you're trading in the futures, there's a vertical green line that tells you the expiration and then on the red line, it tells you the date and which is switching. So if you want to see when those expirations are or those which in cycles are, you can do it on Thinkorswim and they'll be right there in your chart for you. Hit the like button and share. We will be going over the AI blueprint. We're going to be talking about some very, very, very important topics shortly. So share, hit the like button, tell a friend to tell a friend. Let's talk about June.

8:56You talked before about stock market never peaks in June. So explain that for people that might not have fully understood what you meant by that. Yeah. So maybe I call some confusion. So I want to take accountability and say if you got confused on the talking point or the stat, I want to clear it up for you today. So when I said the market never peaks in June, what it means, the high for the year is not made in June. The worst month for the market usually is September. July will present as a buying opportunity. opportunity. August will probably present during InvestFast as a buying opportunity.

9:33But the highs for the year for the S &P and the Dow and the Russell don't happen mid-year. And in terms like on a stat basis, it's one that I like to lean on a lot. So if we have any pullbacks in June or July, I'm usually very happy about them. So some people thought I meant that the high happens in June. That's not what I was inferring. But if that's how it came across because of me. I apologize, but the market never peaks in June. It's usually later in the year, November, when the market does peak. So if I cause some confusion, my apologies. Even though if you listen closely, it shouldn't cause that, but I apologize from the bottom of my heart.

10:16Appreciate it. Accountability is key. It's everything. Accountability is key. Accountability corner. For sure. Yep. The pitch competition finalists have been set. We will announce it later on. Not this show, but later on in the coming weeks. Pitch competition finalists have been set. Those people are locked in. Let's talk.

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12:17Hi, my love. Starting your day can be tough. You wake up, maybe hit snooze, and then scroll on your phone for a while, checking your emails, all before even giving yourself the chance to really open your eyes and breathe. And I want to help you break that cycle. My name is Ryan Weiss, and for the past 15 years, I've been an emotional intelligence coach and spiritual guide. And I'm here to share with you my new podcast, Waking Up With Ryan. Waking Up With Ryan is a daily audio video podcast to interrupt the inertia of your fear, your ego, and judgment. Here to help you connect with yourself before the noise of the day takes over.

13:01So let's start our days together with a moment of calm, a moment of reflection and meditation, a moment that's just for you. Listen to Waking Up With Ryan on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts You said to me Yo, you know, keep at it because you let me rap for you It was magical for all of us We made it, we made it I'm like, we? I'm like, I know these guys but who are you? I'm MC Jin and this is Laugh But Not Least I'll be chatting with guests from all walks of life about the power of humor when it comes to facing difficult times like the co-founder of Rough Riders Darren D.

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14:10Listen to Laugh But Not Least with MC Jin on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. Before we go, can I talk about the, really quick about the conversation I had with the gentleman. Some telltale signs in your trading that is about to go wrong. Troy, Rashad, you'll love this. he was doing intraday options on a well I won't tell this time frame because I don't want his business out there and he was doing intraday futures contracts at the same time 60 contracts apiece on both sides so I said okay you have some skill because you have capital to trade these things but why are you trading both intraday and i know a lot of times the desire to make the money fast is there but at least if you're going to do two derivatives options and futures if you're going to do intraday futures do call options to give you two years or a year and a half out or if you're going to do intraday options which i don't recommend at least swing trade the future so you have 30 days.

15:27Don't intraday trade both. And he showed me his account. He showed me his trades as a good trader. But please remember this. Being a good trader, you cannot outwork bad numbers through technical analysis. My first question was, what's your risk to reward? I'm just trying to take profit once it gets back to the midline after it sweeps low. That's not a mathematical formula. Shadi didn't build no fucking art museum. off a non-mathematical formula like that. The thing that I love about like any business, once you get to the mathematical science of it, even if you go on media, watch time, the conversion, everything has a science around numbers.

16:11It can't be feel. There's no feel in investing. It's all numbers. So know your risk to reward. Know your contract sizing. Know if you're risking one, if you're going to make five or 11. but if you're risking one to one or one to three, you only need three bad trades to blow up your account. If it ever gets that bad where you are going to take your life over a trade, call me first. But if you are trading big contract sizes, it's really important to let them contracts run. And don't fake like you're going through something just so I can help you out, please. but I'm begging you guys get your wrist there's going to be a lot of that yo my boy yo call your boy so but if you are trading size you have to let things be able to work out in your favor and live to trade another day now when he was hitting oh he was hitting he was hitting but to lose four or five hundred thousand in the day and it's a bad part now you lose a trade now you want to work to get it back it's tough bro and biggest violation of all no stop loss on either i was in the airport i was talking to fray i said bro look at this he said why is he trading with no stop i said i didn't even know you knew how to trade he said well i know not that i had no stop are you crazy no stop loss on the options or the features so that's my little quick sidebar lesson if you guys want to chime in.

17:47Ernest, what's up? Look, building wealth isn't just about making money. It's about knowing where your money is working for you. That's why we partnered with Empower. Empower is all about helping you invest well so you can go out and live a little. Their free Empower personal dashboard gives you a complete view of your financial life in one place. Track your net worth, monitor your budget, analyze your investments, set retirement goals, and more. You've worked hard for your money. Now make sure it's working hard for you. Download the Empower personal dashboard or visit Empower.com. Not an Empower client paid or sponsored.

18:24When traveling for events or festivals throughout the country, every dollar matters. We compare flights, prices, hotel rates, and restaurant options. So why wouldn't we compare rides? Personally, I always check lift before booking a ride. Prices can change throughout the day depending on traffic, weather, and what's happening in the city. If you're headed to a concert, out to dinner, or catching up with your friends on a Friday night, taking a few seconds to check lift could leave you with more money to enjoy the experience. Save money. Check lift. The World Cup is underway and it's been incredible.

18:57On our podcast, The Away End with Daniel Alarcon and John Green, we're talking about the games that have delighted us, the teams that have inspired us, what we're loving and what surprised us, all through the lens of being massive fans of the world's most beautiful game. Daniel, this tournament has been magical so far. There's so much to love, and I can hardly believe the drama that the group stage brought us. And now it's time for us to talk about the teams that are left as the field is whittled down to one World Cup champion on July 19th. Listen to The Weigh End with Aniel Alarcon and John Green on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

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